Alamos is bringing in the same guy who conducted the Mulatos exploration for PDG. Quite a coup, AGI management knows what they're doing IMO. There is as much potential at Salamandra as any place in Mexico.:
Alamos Gold Inc.: Exploration Starts at Mulatos and Salamandra
Thursday July 24, 3:30 pm ET
Community Relations Update-Warrants Bring in $2.3 Million Grant of Incentive Stock Options
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 24, 2003--Alamos Gold Inc. has retained the services of Ken Balleweg, MSc. Geo., to manage exploration at the Mulatos deposit and the Salamandra District. Mr. Balleweg was with Placer Dome Exploration as Sr. Project Geologist for the Mulatos Project and Manager of the Mexico exploration program from 1997-1999. He was on Placer's Mulatos district regional evaluation team in 1994, the Sierra Madre reconnaissance program in 1995, and the Mexico exploration program in 1996.
Mr. Balleweg's re-interpretation of the Mulatos deposit lead to the discovery of 1.5 million additional gold ounces at the Escondida and Gap zones. His work in the El Halcon area resulted in the discovery of the Los Bajios area. Alamos' holdings in Sonora State comprise over 16,000 hectares of mineral claims. Exploration this summer is covering areas within the Mulatos deposit and 8 additional zones within the district.
Mulatos Exploration
The exploration plan at the Mulatos deposit is focused on increasing the ore grade. Previous exploration activities were focused on defining bulk tonnage mineralization. No attempt was made to delineate high-grade gold domains and structural controls that are clearly exposed in the extensive 1,061 meters of underground tunnels. Bench level maps from the Placer Dome resource model indicate northeast and northwest structural control on higher-grade gold, with domains of higher-grade mineralization up to 100m long and 50m wide.
A detailed mapping survey of surface and underground structure and alteration was recently completed to define the structural controls of high-grade gold mineralization. Through this work Alamos has identified areas amenable to selective mining early in the project life, identified additional areas of oxide mineralization and open mineralization, allowed tightening of grade distribution in the new resource model, and defined drill targets for a 1,500 metre underground core drilling program to commence in August.
Previous drilling from the surface resulted in numerous holes being oriented sub-parallel to some of the primary structural controls of high-grade gold. Underground drilling will allow exploration of the higher-grade structures normal to their trend, and is expected to encounter higher-grade oxide mineralization missed by surface drilling. Results from the study and drilling are expected in the fourth quarter.
A surface RC drilling program will also be conducted at the Mulatos deposit to target structurally controlled high-grade mineralization in two adjacent zones discovered in previous drilling programs. Previous work targeted the large-tonnage replacement mineralization marginal to the structures. Structural zones were not drill-tested. Drill intercepts with visible gold and containing greater than one ounce per ton were not targeted with follow-up drilling. The surface drilling program will target the structural roots of the historic mine area which produced a significant tonnage of free-milling high-grade ore.
Salamandra District Exploration
A regional exploration program will be focused on discovering new mineralization in areas of extensive alteration located within 8 concessions controlled by Alamos in the Salamandra Gold District. Alamos recently discovered silicified breccias in the central Bajios area similar to those closely associated with gold in the main Mulatos deposit. An IP survey is planned to delineate drill targets in the El Halcon and Los Bajios areas supplemented by detailed alteration mapping and sampling in areas of outcropping or projected near-surface mineralization. The previous owners discovered outcroppings of gold-copper and gold mineralization in the Los Bajios area in 1999, but these targets were not pursued.
Alamos' recent discovery of advanced argillic alteration commonly found near gold mineralization led to the staking of a new area south of the Mulatos deposit. The "Carboneras" zone may be an extension of the Mulatos system or a new subsidiary system. Reconnaissance exploration with PIMA alteration mapping and geochemical analyses will be undertaken on the new concession.
Aster remote sensing imagery has been obtained for the greater Mulatos district which is helping to identify additional areas of alteration on the concessions similar in nature to those known to contain gold deposition.
Community Relations Update
Agrarian Court proceedings stemming from two disputes concerning the Company's contractual rights to reduce surface areas leased and payments to the Ejido Mulatos (the surface rights holders) have been completed. The judge's rulings in these cases are expected soon. Ejido Mulatos officials and the Company have been conducting meetings and are forming a committee to promote communications. The Company is nearing completion of interviews with community members to identify concerns and establish a baseline of information. Access road improvements and evaluation of utility services has begun. Work is being provided through exploration, sampling, metallurgical testing, construction and camp services programs.
Warrants Exercised and Grant of Incentive Stock Options
Warrants to purchase 2,586,250 common shares of Alamos at $0.90 per share were exercised by shareholders by the July 22, 2003 expiry date, increasing Alamos' working capital to $2.7 million.
Alamos has granted incentive stock options to some of its directors and consultants under its Stock Option Plan to purchase up to a total of 682,483 common shares of the company. The options are exercisable at a price of $1.13 per share for a five-year period.
Alamos' Stock Option Plan received shareholder approval on June 26, 2003 and TSX Venture Exchange acceptance on July 10, 2003.
Alamos Gold is a precious metals exploration and development company with its Salamandra exploration properties and its Mulatos project, an advanced gold deposit currently in the bankable feasibility phase of development. |
