TORONTO--(BUSINESS WIRE)--March 15, 2006--Alamos Gold Inc.
(Alamos) (TSX:AGI) announces additional high-grade gold intervals from
recently completed drilling designed to further define the Escondida
Hanging Wall Zone. Drill hole 06EI065, designed to extend the zone to
the southwest, intersected 18.29 meters of 19.78 g/t Au. These
intervals complement previously announced results and are part of an
ongoing surface and underground drilling program. Uncapped recent
drill hole composite intervals are summarized below:
ESCONDIDA HANGING WALL ZONE COMPOSITE INTERVALS
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DRILL TOTAL
HOLE DEPTH FROM TO INT. GOLD
(Azimuth/ (m) (m) (m) (m) (g/t)
Inclination)
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06EI054 167.68 141.77 167.68 25.91 0.654
(0/-90)
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06EI055 167.68 131.10 144.82 13.72 1.297
(170/-70)
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06EI056 167.68 134.15 137.20 3.05 2.050
(130/-70) 143.29 167.68 24.39 0.728
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06EI057 182.93 108.23 120.43 12.20 0.628
(090/-75) 129.57 140.24 10.67 0.800
143.29 173.78 30.49 0.715
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06EI060 141.77 109.76 121.95 12.19 0.915
(0/-90)
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06EI061 108.23 86.89 92.99 6.10 51.60
(180/-70) includes
89.94 91.46 1.52 126.50
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06EI063 79.27 51.83 62.50 10.67 60.18
(140/-80) includes
56.40 59.45 3.05 156.75
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06EI064 79.27 54.88 62.50 7.62 14.92
(140/-60)
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06EI065 83.34 45.73 64.02 18.29 19.78
(145/-60)
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06EI066 76.22 54.88 68.60 13.72 39.77
(0/-90) includes
60.98 62.50 1.52 175.50
64.02 67.07 3.05 69.35
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06EI067 83.84 48.78 53.35 4.57 22.98
(140/-70) 60.98 64.02 3.05 36.34
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06EI068 106.71 82.32 86.87 4.55 7.32
(135/-90)
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06EI072 121.95 100.61 114.33 13.72 8.21
(015/-75)
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06EI073 106.71 76.22 80.79 4.57 2.45
(0/-90)
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06EI074 100.61 91.46 92.99 1.53 6.31
(0/-90)
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Drill results reflect both infill and step-out holes. The zone
was extended to the southwest by 06EI065 and remains open. Drill
holes 06EI063, 06EI064, 06EI066, and 06EI067 are infill holes with
significant high-grade intercepts. The extreme northeast fan of drill
holes comprising 06EI054 through 06EI059 encountered only low-grade
mineralization and appears to have largely closed the zone to the
northeast along the strike. Drill holes 06EI069, 06EI070, 06EI071,
and 06EI073 also hit only low-grade mineralization and close the zone
to the southeast. Drill holes 06EI062 and 06EI075 did not reach the
targeted depth due to hole collapse.
Assay results from drill holes to date combined with three
isolated higher-grade holes previously drilled delineate an area of
high-grade mineralization approximately 165m long by 75m wide.
Additional expansion potential is possible to the southwest and
north-northeast and is the focus of current drilling activities. Due
to the stratiform nature of the zone, drill intercepts in vertical
holes are believed to be approximate true thickness, whereas inclined
holes have inferred true thickness of 1.5 to 3.2 meters less than
drill thickness. A map of drill hole locations can be accessed at the
following website: www.alamosgold.com
All holes were drilled dry using reverse circulation with a
center-return bit and had excellent sample recovery. A total of 52
holes (4,827 meters) have been drilled to date. Drilling is ongoing
to the northeast and south, with six additional holes planned. A
large-diameter surface core rig is currently onsite twinning select
holes for bulk samples for metallurgical testing. Core recovered to
date confirms previous assumptions of coarse native gold occurring
within stockwork and breccia zones cross-cutting the early pervasive
silicic alteration hosting the main Escondida deposit. Loosely held
native gold is observed in open-space fractures and in vugs within
late-stage breccias. Two underground core rigs are also testing the
hanging wall zone from two drill stations. Disseminated visible gold
is commonly observed in core from the holes completed to date.
Recently obtained historic underground maps of the high-grade
stopes at the neighboring Mina Vieja suggest a distribution of
high-grade mineralization very similar to that encountered in the
Escondida Hanging Wall Zone, and further support the interpretation
that the Escondida Hanging Wall Zone is the faulted extension of the
historic high-grade workings. Mina Vieja stope maps show a large,
extensively mined area 240m by 100m extending up to the projected
location of the Escondida fault, which separates the two high-grade
mineralized areas. Historic data from the San Carlos mine, located at
the extreme northeast end of the 1.5km long structural corridor
controlling mineralization from Mina Vieja through Escondida and El
Victor, also indicates extremely high-grade gold concentrations and
suggests high exploration potential for additional high-grade zones
along this trend. Exploration is continuing along the corridor via
the underground development drift, and underground drilling is
scheduled for the San Carlos mine following completion of the El
Victor underground drilling.
The Escondida exploration program is being carried out under the
direction of Ken Balleweg, BSc. Geological Engineering, M.S. Geology,
Alamos' Vice President of Exploration and the Qualified Person as
defined by National Instrument 43-101 of the Canadian Securities
Administrators. Strict sampling and QA/QC protocol are followed,
including the insertion of standards and blanks on a regular basis.
Sample intervals are 1.5 meters, with two splits taken and bagged on
site. One split is sent to ALS Chemex Inc. in Hermosillo, Mexico for
sample preparation and then to Vancouver, British Columbia, Canada
for analysis. The second split is saved in secure facilities at the
onsite exploration camp. Analytical method is fire assay with atomic
adsorption finish and gravimetric finish for individual samples with
a gold concentration greater than 3.0 g/t. Drill hole samples in the
Hanging Wall Zone are analyzed by 1000-gram screen fire assays to
fully test coarse gold distribution. A 0.5g/t cut-off grade was used
for calculation of composite intervals, with only a single 1.5m
interval of sub-0.5 g/t material allowed within a composite interval.
Holes commonly ended in low-grade mineralization, as the objective
was to solely test the high-grade upper zone.
Alamos' common shares are traded on the Toronto Stock Exchange
under the symbol "AGI" and convertible debentures under the symbol
"AGI.DB".
Safe Harbor Statement under the United States Private Securities
Litigation Act of 1995: Statements in this release that are
forward-looking, including statements relating to the future recovery
of the Mulatos Project, are subject to various risks and
uncertainties concerning the specific factors identified about in
Alamos's periodic filings with the Ontario Securities Commission and
the U. S. Securities Exchange Commission. Such information contained
herein represents management's best judgment as of the date hereof
based on information currently available. The Company does not intend
to update this information and disclaims any legal liability to the
contrary.
NOTE: There is a Map of the 'Greater Mulatos Deposit Mineralized
Areas' available on CCNMatthews' website at:
http://www.ccnmatthews.com/docs/graph1.pdf
NOTE: There is a Map of the 'Escondida High Grade Zone' available
on CCNMatthews' website at:
http://www.ccnmatthews.com/docs/graph2.pdf
The TSX has not reviewed and does not accept responsibility for th
e adequacy or accuracy of this release.
Alamos Gold Inc. (TSX:AGI)
CONTACT: Alamos Gold Inc.
John A. McCluskey
President and Chief Executive Officer
(416) 368-9932 x203 or 1-866-788-8801
OR
Alamos Gold Inc.
Victoria Vargas de Szarzynski
Investor Relations
(416) 368-9932 x201
vvargas@alamosgold.com
www.alamosgold.com
SOURCE: Alamos Gold Inc.
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