Alamos Gold Inc. [[AGI-TSX, NYSE]has released new results from continuing surface exploration drilling within the Mulatos district, Sonora State, Mexico. This included further extending high-grade gold mineralization outside of Mineral Reserves and Resources at Puerto Del Aire (PDA), a higher-grade underground deposit adjacent to the Mulatos pit. Additionally, gold mineralization was intersected over a wide interval at the Capulin target, located 2 km east of the former San Carlos open pit.
High-grade gold mineralization further extended beyond Mineral Reserves and Resources at PDA, supporting the potential for ongoing growth of the deposit which remains open in multiple directions. This follows a 71% increase in combined Mineral Reserves and Resources in 2022 to total 1.0 million ounces.
All reported composite widths are estimated true width of the mineralized zones. New highlights include 20.95 g/t gold (11.14 g/t cut) over 14.15 metres (23MUL117); 8.33 g/t gold (8.33 g/t cut) over 18.00 metres (23MUL119); 14.81 g/t gold (12.34 g/t cut) over 9.10 metres (23MUL112); 16.19 g/t gold (7.63 g/t cut) over 7.75 metres (23MUL108); 33.14 g/t gold (33.14 g/t cut) over 3.05 metres, and 10.80 g/t gold (10.80 g/t cut) over 3.00 metres (23MUL098); and 15.49 g/t gold (13.89 g/t cut) over 6.00 metres (23MUL115).
Capulin Target: Significant interval of oxide and sulphide gold mineralization intersected in a breccia along the Capulin Fault. Follow-up drilling is ongoing in this area to test the geometry and extent of the gold mineralization and the breccia unit.
New highlights include: 2.01 g/t gold (2.01 g/t cut) over 82.45 metres core length, including 4.81 g/t gold over 16.40 metres and 5.38 g/t gold over 12.35 metres (23REF012).
“Our exploration success at PDA and regionally continues to demonstrate the potential within the Mulatos District. PDA has already surpassed La Yaqui Grande in terms of the size of its Mineral Reserve base. We expect that growth to continue based on the number of high-grade step out holes completed in 2023 and with the deposit open in multiple directions. Reflecting this success, we’ve more than doubled the size of the exploration program at PDA since the start of the year. This growth will be incorporated into a development plan for PDA to be completed in the fourth quarter. We see excellent potential for PDA to be another low-cost, high-return project given its higher-grades, ongoing growth and proximity to the main Mulatos pit and existing infrastructure,” said John A. McCluskey, President and CEO.
The company has a large exploration package covering 28,972 hectares with the majority of past exploration efforts focused around the Mulatos mine. For 2023, a total of $21 million has been budgeted for exploration, triple the $7 million budget in 2022.
The regional exploration budget has doubled to 34,000 metres with the focus on several high priority targets including Refugio, Halcon, Halcon West, Carricito, Bajios, and Jaspe.
Puerto Del Aire is a higher-grade underground deposit located adjacent to the main Mulatos pit and is comprised of multiple mineralized zones including PDA, Gap, Victor, and Estrella. Ongoing exploration success has driven substantial growth in the deposit over the past two years. This included a 70% increase in Mineral Reserves to 728,000 ounces at the end of 2022 with grades increasing 4% to 4.84 g/t gold. Mineral Reserves and Resources at PDA now total 1.0 million ounces across all categories, up 71% from the end of 2021. Over the past two years, discovery costs at PDA have averaged $10 per ounce.
The initial focus of the surface exploration program in 2023 has been on the main PDA zone where drilling continues to extend high-grade mineralization beyond Mineral Reserves and Resources.
Five surface drill rigs are currently in operation with the 35,000 metres program expected to be completed early in the third quarter of 2023.
In Q1 2023, 6,556 metres of regional surface exploration drilling was completed at several targets in the Refugio, Halcon West, and Carricito areas.
A key highlight from the results received to date include drill hole 23REF012, which was drilled in the Capulin target area approximately 2 km east of the former San Carlos open pit.
Drillhole 23REF012 intersected a significant interval of oxide and sulphide gold mineralization, 2.01 g/t gold (2.01 g/t cut) over 82.45 metres core length including 4.81 g/t gold over 16.40 metres and 5.38 g/t gold over 12.35 metres in a breccia unit in the Capulin Fault Zone. This hole is a 75-metre step-out to the northwest from drillhole 17REF015, which was drilled in 2017 and intersected 1.00 g/t gold over 13.80 metres.