Alamos Gold releases update on Cerro Pelon, La Yaqui deposits at Mulatos mine

Alamos Gold Inc. released results this week from the ongoing exploration program at the Cerro Pelon and La Yaqui satellite deposits at its Mulatos mine in Sonora, Mexico.

At Cerro Pelon, multiple high-grade intercepts were encountered in the new zone of mineralization, about 100 meters north of the existing reserve, including 14.47 g/t Au over 50.30m (15PEL012), 9.65 g/t Au over 34.60m (15PEL020), and 2.46 g/t Au over 94.20m (15PEL010). A first phase of infill and exploration drilling (approximately 16,500m in 81 holes) commenced at Cerro Pelon in April 2015 and has led to the definition of a new zone of mineralization.

This zone sits approximately 100 meters to the north of reserve mineralization and outside previously designed pit limits. Excellent drill results were obtained with several intercepts averaging well above the current mineral reserve grade.

At La Yaqui, three rigs mobilized early in 2015 to undertake an infill, condemnation and metallurgical drill program, along with a large regional mapping and sampling program over an area totaling 4.3km2.

Following the completion of engineering drilling, mapping and sampling, exploration step-out drilling commenced and has yielded encouraging results, including two step-out holes 500 meters to the northeast of in-pit reserve mineralization.

Cerro Pelon and La Yaqui are located approximately 3km and 7km (straight line), respectively, from the existing Mulatos operation. These deposits host a combined mineral reserve 4.2 million tonnes grading 1.64 g/t Au, containing 220,400 ounces of gold. Both deposits are near surface, highly oxidized and amenable to open pit, heap leaching. Each project will operate with independent heap-leach pads and portable crushing circuits, and will not displace existing throughput capacity from the main Mulatos crushing circuit and heap leach pad.