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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: que seria who wrote (21617)	10/7/2003 1:13:04 PM
From: Nikole Wollerstein	Respond to of 39344

Alamos: it might be bigger: Underground Drill Program Commences on Mulatos Deposit 10/7/03 Alamos Gold Inc. announces that an initial underground core-drilling program has begun to test high-grade structural zones recently identified in the Cerro Estrella portion of Alamos Gold's Mulatos deposit, located in Sonora, Mexico. Eleven holes (1500m) will be drilled to test four primary target areas using the bulk sampling drifts within the deposit. Recently completed detailed surface and underground alteration and structural mapping indicate that structural control is the dominant control of high-grade mineralization within the deposit. The structural zones had not been previously identified, and have not been the focus of any previous drilling campaign. Gold-bearing structural zones are predominantly northwest-oriented with steep southwesterly dips. Structural zones are marked by vuggy silica alteration and oxidized sheeted fracture zones which contain very high-grade gold concentrations. Previous drill holes were drilled predominantly sub-parallel to the structural trend, and only occasionally entered the zones at oblique angles, with grades of resulting intercepts ranging up to 40 g/t gold. The underground workings allow for a drill direction perpendicular to the trend and dip of the zones so that a true idea of width and grade can be ascertained. Recognition of the structural control has significant positive economic implications for deposit development, as the grade within these zones is significantly greater than the average grade of the deposit. The near-surface portion of the silicified structural zones most often outcrop as vertical cliffs and hence were not tested by previous drilling efforts. The structural zones also are areas of strong oxidation due to the intense fracturing, with oxidation within the zones continuing to at least 100m below the surface. Higher-grade structural zones appear to have strike lengths of up to 170m and widths up to 40-50m. Target areas are four locations of high-grade mineralization indicated from the bench plan maps, surface and underground geologic mapping, and sectional interpretation. Zones underlying Cerro Estrella were selected as highest priority for underground drilling, as they have the highest probability of encountering higher-grade oxide mineralization and will be mined earliest in the mine life. Additional structural zones are recognized further to the north. Exploration on other properties within the district is currently being advanced by evaluation of existing surface data. Detailed PIMA-assisted alteration mapping and sampling is planned for the highest priority exploration areas in the fourth quarter of 2003. Activities will be centered on the prospective Bajios area where outcropping copper-gold mineralization has been identified. Existing IP data covering an area of a high-grade copper-gold occurrence is undergoing inversion modeling to identify drill targets and plan additional geophysical surveys to be implemented in the fourth quarter