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Alamos Gold’s Island Gold mine continues to climb list of Ontario’s best producers

Apr 21, 2021

Investors and company management at Alamos Gold couldn’t be happier with results at Island Gold – Alamos’ mine just east of Dubreuilville and north of Wawa.

By Kevin Vincent
Island Gold was once again the largest driver of global mineral reserves and resource growth for the company in 2020.
“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.
The company says despite a smaller than planned drill program due to COVID-19, Island Gold more than replaced Mineral Reserves and delivered its largest annual increase in Inferred Mineral Resources to date and at significantly higher grades.
In fact, company data suggests that Island Gold is Canada’s third-best average grade, just behind Kirkland Lake Gold’s Macassa Mine in Kirkland Lake, and Wesdome’s Eagle River Mine near Wawa.
“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. 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,” McCluskey added.
Mineral Reserves increased 8% in 2020 to 1.3 million ounces, despite the primary focus in 2020 being on Mineral Resource growth. The increase in Mineral Reserves included the addition of 239,000 ounces which more than offset mining depletion of 144,000 ounces.
Mineral Reserve grades decreased slightly to 9.71g/t Au due to higher grades mined in 2020 (11.18 g/t Au) as well as a reduction in the cut-off grade reflecting lower expected costs following the completion of the Phase III Expansion in 2025. Since the acquisition of Island Gold in November 2017, mineral reserves have increased 74%, net of depletion, with mineral reserve grades increasing 6%.
The increased grades are combined with lower costs, making Alamos an attractive proposition for investors. Since 2014 the company has seen average costs drop from $1452/ounce to $656 in 2019.
The company added to the good news from Island Gold earlier this year when they released their latest exploration numbers.
The results from each section of the mine were more than encouraging.
Island East: High-grade gold mineralization extended 110 metres down-plunge from the nearest Inferred Mineral Resource block, and up to 70 m below, and west of previously reported drillhole. New drill highlights include:
• 54.18 g/t Au (31.94 g/t cut) over 6.54 m (MH25-05);
• 123.74 g/t Au (15.75 g/t cut) over 5.06 m (MH25-06); and
• 21.88 g/t Au (21.88 g/t cut) over 2.52 m (620-623-07).
In the Island Main area: High-grade gold mineralization intersected up to 200m east of existing Mineral Reserves in Island Main and between Mineral Reserve and Resource blocks in middle to upper areas of Island East (between depth of 850 and 1,100 m). New highlights include:
• 18.64 g/t Au (18.64 g/t cut) over 5.89 m (840-578-11); and
• 97.76 g/t Au (36.40 g/t cut) over 2.00 m (840-578-13).
At Island West: Underground directional drilling extended high-grade mineralization up to 45 m beyond the nearest Inferred Mineral Resources. New highlights include:
• 72.45 g/t Au (72.45 g/t cut) over 2.04 m (740-471-36).
“These latest results conclude another successful drilling campaign in 2020. We expect these results to drive further growth in high-grade Mineral Resources at Island Gold with our 2020 year-end update, improving already attractive economics with the Phase III shaft expansion, while also clearly demonstrating the significant ongoing growth potential of the deposit,” said McCluskey, President and Chief Executive Officer.
$25 million is budgeted in 2021 for surface and underground exploration at Island Gold, up from the initial 2020 budget of $21 million. The company says the focus remains on continuing to define new near mine Mineral Resources across the two-kilometre-long Island Gold Main Zone, as well as advancing and evaluating several regional targets.
The 2021 exploration budget includes 27,500 m of surface directional drilling, 24,000 m of underground directional drilling, 28,000 m of underground exploration drilling, and 900 m of underground exploration development to extend drill platforms on the 620, 790, and 840-levels.
A significantly larger regional exploration program is also planned in 2021.

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