Environmental permit for Arequipa "M" mine
Alamos Minerals Ltd AAS
Shares issued 14,878,030 May 22 close $0.49
Tue 26 May 98 News Release
Mr. Francis O'Kelly reports
The Peruvian Ministry of Mines and Energy has awarded Alamos an
environmental permit to operate the underground Arequipa "M" mine near
Huaraz in the Department of Ancash. The concurrent registration of
contracts with the former operator and the mine owner completes Alamos'
arrangements to secure a 100 per cent interest in the property.
The award signals the commencement of development work at the mine starting
with the rehabilitation of the 4 kilometre road connecting the immediate
levels (6 and 7) of the mine with the main access road to the property.
Alamos will initially mine ultra high-grade polymetallic ore from the
uppermost levels (12 through 15). This ore, with grades up to 4 kilograms
per metric tonne silver, and combined lead and zinc of 28 per cent, is
suitable for direct shipping to Noranda's Refimet refinery in northern
Chile. The latter has recently completed a technical evaluation of the
mine. Concurrently, the main level (No. 6) will be extended and drilling
stations established in cross-cuts to be developed off the main drift. An
underground drilling program will commence shortly to provide details for
mining and to investigate the deeper resources.
For the near surface and current workings, the provisional resource of
Arequipa "M" is 752,000 metric tonnes comprising polymetallic and
arsenopyrite veins. This occurs in parallel and contiguous veins which have
a combined width ranging from 0.35 to 3.10 metres. Sampling reports
indicate average polymetallic grades of 900 g/t silver, 3 g/t gold, 15 per
cent zinc, 8 per cent lead, 0.8 per cent copper. The arsenopyrite grades
average 17.90 g/t gold, 332 g/t silver and 1.5 per cent copper, and 6.4 per
cent arsenic. The Arequipa "M" property hosts at least four other veins,
all of which are considered to have economic potential.
In Peru, Alamos is also exploring seven mineral claims in joint venture
with Queenstake Resources. The most advanced is Mamanina which hosts a
copper porphyry and copper-zinc skarn. Extensive surface sampling,
geophysical and geochemical surveys conducted during the past year indicate
a large mineralized body which the joint venture partners intend to test by
drilling during the latter half of 1998.
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