Alamos Gold Reports Mineral Reserves and Resources for the Year-Ended 2020

“Island Gold is now approaching five million ounces of combined Mineral Reserves and Resources with excellent potential for this growth to continue with the deposit open laterally and at depth," said John A. McCluskey, President and Chief Executive Officer.

"This growth further increases the value of the operation beyond what was outlined in the Phase III Expansion Study this past year and reaffirms the decision to put in a shaft,” Mr. McCluskey added.

Alamos Gold Inc. has reported its updated Mineral Reserves and Resources as of December 31, 2020. 

Highlights

• Island Gold’s Mineral Reserves and Resources increased a combined 1.0 million ounces, net of mining depletion, at a discovery cost of $8 per ounce, including:  
  °  8% increase in Proven and Probable Mineral Reserves to 1.3 million ounces (4.2 million tonnes (“mt”) grading 9.71 grams per tonne of gold (“g/t Au”)), net of mining depletion
  °  40% increase in Inferred Mineral Resources to 3.2 million ounces (6.9 mt grading 14.43 g/t Au) with grades also increasing 9%, reflecting further higher grade additions in Island East
  °  Combined Mineral Reserves and Resources now total 4.7 million ounces,a 27% increase from the end of 2019 and 155% increase from the 1.8 million ounces at the time of acquisition in 2017, net of 508,000 ounces of mining depletion
  °  Growth highlights significant upside potential to Phase III Expansion Study, with the 2020 Mineral Reserve and Resource additions expected to increase already attractive economics
• Global Proven and Probable Mineral Reserves of 9.9 million ounces of gold (204 mt grading 1.50 g/t Au), up from 9.7 million ounces at the end of 2019 with increases at Island Gold, Young-Davidson and Lynn Lake more than offsetting 555,000 ounces of mining depletion
• Global Measured and Indicated Mineral Resources of 6.9 million ounces of gold (196 mt grading 1.09 g/t Au), down 3% reflecting the conversion to Mineral Reserves at Young-Davidson and Lynn Lake
• Global Inferred Mineral Resources increased 16% to 7.0 million ounces of gold (132 mt grading 1.65 g/t Au), with grades also increasing 15% driven by significantly higher grade additions at Island Gold which totalled 910,000 ounces grading 18.59 g/t Au
• Gold price assumptions unchanged from 2019 with $1,250 per ounce used for estimating Mineral Reserves and $1,400 per ounce used for estimating Mineral Resources
• Global exploration budget of $50 million in 2021, double the $25 million spent in 2020. Island Gold remains the primary focus with a $25 million budget, followed by $9 million budgeted at Mulatos and $7 million at each of Young-Davidson and Lynn Lake

“We had an excellent 2020 on the exploration front despite a smaller than planned program due to COVID-19. We more than replaced Global Mineral Reserves and added another million ounces of high-grade Mineral Reserves and Resources at Island Gold,” said John A. McCluskey, President and Chief Executive Officer.

 

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