Extension Of High-Grade Gold Mineralization Laterally
TORONTO - Alamos Gold Inc. reported on surface and underground exploration drilling at the Island Gold mine, further extending high-grade gold mineralization in Island West, Island East, and at depth.
“These high-grade results across multiple areas of the Island Gold deposit highlight the significant exploration upside, not only laterally and at depth, but within newly defined sub-parallel structures. Much of our focus the last several years has been adding high-grade Mineral Resources at depth in advance of the Phase 3+ Expansion study. Having nearly tripled the Mineral Reserve and Resource base to over five million ounces of gold and with work on the expansion ramping up, our exploration focus is shifting to more cost-effective underground drilling where we can leverage existing infrastructure,” said John A. McCluskey, President and Chief Executive Officer. We see excellent potential to continue adding high-grade Mineral Reserves and Resources laterally and at depth, but also within these previously undefined areas adjacent to our existing infrastructure which have the potential to be incorporated into near-term mine planning. These represent potential high-grade ounces close to our existing production horizons which will be low cost to develop, further increasing ounces per vertical meter and the value of the operation.”
Total exploration spending through the first nine months was $17.9 million, in line with the annual budgeted amount of $22 million for surface and underground exploration at Island Gold in 2022. Exploration remains focused on defining additional near mine Mineral Resources across the Island Gold Deposit (Island Main, West, and East), as well as advancing and evaluating several regional targets.
A total of 28,174 m of surface directional drilling, 17,984 m of underground exploration drilling, and 9,707 m of regional surface exploration drilling has been completed to date.
Island West surface directional drilling extended high-grade mineralization 225 m west of existing Mineral Reserves and Resources (MH33-01) in Island West and highlights the opportunity to expand mineralization up-plunge and along strike, in proximity to existing underground infrastructure. Surface drilling is ongoing in this area, and underground exploration drifts will be extended west from the 490 and 790 levels to continue testing this area from underground.
Island West Hanging Wall Zones, in addition to testing the C-Zone structure from the 770- and 790-levels, drill holes were extended into the hanging wall to follow up on previous drilling that intersected high-grade gold mineralization in sub-parallel structures. These structures were previously classified as “unknown zones” and contained limited Mineral Resources due to the lack of drilling. Additional drilling has been successful in establishing continuity and extending high-grade gold mineralization within multiple structures referred to as the B, G, and G1 Zones. These zones are located 20 m, 75 m and 110 m south of the main C-Zone, respectively. This highlights the potential to add high-grade Mineral Reserves and Resources in proximity of existing production horizons and infrastructure which could be incorporated into the mine plan and mined within the next several years. These potential high-grade Mineral Reserves and Resource additions would be low cost to develop, further increasing the value of the operation and strong economics of the expansion.
Island Main and East surface directional drilling continues to extend high-grade gold mineralization in the E1E-Zone beyond Mineral Resource blocks in the lower portions of Island Main and East areas. Drill hole MH30-02 (23.21 g/t Au (23.21 g/t cut) over 2.50 m) was planned as a significant step-out at depth below Inferred Mineral Resources in Island Main area. This hole intersected high-grade mineralization 160 m vertically below Inferred Mineral Resources and is one of the deepest intersections to date at Island Gold. This further highlights the opportunity for the expansion of high-grade Mineral Reserves and Resources at depth, where Island Gold remains open at depth across the 2 km strike of the deposit.
Drill holes MH27-06 (10.45 g/t Au (10.45 g/t cut) over 7.28 m), MH27-07 (22.17 g/t Au (22.17 g/t cut) over 8.01 m), and MH27-08 (110.17 g/t Au (52.08 g/t cut) over 7.79 m) intersected wide, high-grade mineralization beyond the nearest Inferred Mineral Resource block in Island East. These drill holes continue to extend gold mineralization down-plunge from the large Inferred Mineral Resource block which has grown rapidly over the last several years to contain 2.0 million ounces grading 15.48 g/t Au (3.96 mt) as of December 31, 2021. Drilling is in progress in this area and is expected to extend Inferred Mineral Resources to the east.
Drillhole MH27-06 was extended into the footwall of the E1E-Zone and two mineralized zones were encountered, 29.81 g/t Au (29.81 g/t cut) over 6.40 m, and 20.67 g/t Au (20.67 g/t cut) over 13.50 m. These zones start 125 m and 137 m, respectively, down-hole from the E1E-Zone, both with apparent moderate to low-angle relative to the core axis, suggesting an oblique orientation relative to the drill hole azimuth (see “Other Zones”). As a result, true width and geometry are unknown at this time and core length is reported. Drill hole MH27-07 was drilled as a step-out to follow up on these zones; however, did not encounter the same zone. Additional interpretation is ongoing to determine the geometry of the zones, and optimal orientation for follow up drilling.
Both MH27-06 and MH27-07 also intersected a mineralized zone in the hanging wall, 25 m up-hole from the E1E-Zone, returning 25.71 g/t Au (25.71 g/t cut) over 5.0 m, and 10.35 g/t Au (10.35 g/t cut) over 4.65 m, respectively. True width is unknown at this time and core length is reported.
Underground drilling from the 620- and 840-level exploration drifts continues to extend high-grade gold mineralization along strike to the east of Mineral Reserves and Resources in the middle portion of Island East (between vertical depths of 500 m and 1,000 m). Drillhole 840-632-11 was drilled from the eastern extent of the 840-level exploration drift and intersected 14.82 g/t Au (14.82 g/t cut) over 3.68 m, 120 m to the east of the nearest Mineral Resource.
The Island Gold Deposit consists of a number of sub-parallel mineralized structures, with the majority of Mineral Reserves and Resources defined in the C/E1E structure which constitute the main production horizons at the Island Gold Mine. As underground development advances, these sub-parallel hanging wall and footwall structures can be targeted with step-out drilling from underground drill platforms. As demonstrated with the above noted newly defined B, G, and G1 Zones, through additional drilling these zones have the potential to be converted into new Mineral Reserves and Resources adjacent to existing underground infrastructure.
High-grade gold mineralization has been previously intersected from surface and underground drilling throughout the hanging wall and footwall across the 2 km strike extent of the Island Gold Deposit. These intersections are high-priority exploration targets outside of the main C/E1E Zone, which currently hosts the majority (94%) of the known Mineral Reserves and Resources at the Island Gold Mine.
Step-out underground exploration drilling targeting these zones can be completed once underground development has been established. This drilling allows for the confirmation of the geometry and potential continuity of mineralization with the objective of defining new Mineral Resources. These hanging wall and footwall exploration opportunities provide potential further upside to define additional Mineral Reserves and Resources outside of the main C/E1E-Zone in proximity to underground development, which would enhance the ounce per vertical meter profile, and provide multiple mining horizons from the same lateral development levels.