TORONTO--(BUSINESS WIRE)--Feb. 13, 2006--
(All funds in United States dollars)
Alamos Gold Inc. (Alamos) (TSX:AGI) announces that Phase I
development of its Mulatos gold mine in Sonora, Mexico is now
complete following successful commissioning of its three-stage
crusher and conveying system. Fine crushed ore is being delivered
adjacent to the leach pad at a rate of 7,000 tonnes per day and is
expected to ramp up to a projected 15,000 tonnes per day during the
second quarter of 2006. Crushed ore delivered to the leach pad
continues to be supplemented by run-of-mine ore until sustained
higher throughput is achieved.
On a project-to-date basis, over 1.3 million tonnes of ore
containing 76,000 ounces of gold was placed on the leach pad. In the
month of January 2006, 304,000 tonnes of ore, including 62,000 tonnes
of primary crushed ore, containing 20,300 ounces of gold was placed
on the leach pad. Gold production for the year ended December 31,
2005 was 7,600 ounces gold, before final settlements. Production for
January was 6,700 ounces gold, before final settlements. The mine
expects to produce between 25,000 and 27,000 ounces of gold for the
first quarter of 2006 and between 140,000 and 155,000 ounces of gold
for 2006. Cash costs are expected to average between $210 and $225
per ounce of gold for the year. Cash costs are higher than
feasibility due to higher energy costs and planned lower recoveries
from run-of-mine ore compared with crushed ore contemplated in the
Feasibility Study. Cash costs in the first quarter are expected to be
higher than this range and trend lower through successive quarters as
higher average throughputs are established.
Alamos also announces that Standard Bank PLC has agreed to
increase its previously announced revolving credit facility from $10
million to $16 million. The facility is available for general
corporate purposes and to fund a Phase II expansion at Mulatos to
15,000 tonnes of ore per day from the feasibility rate of 10,000
tonnes per day, at a planned cost of $10 million. Working capital in
the company has recently increased from the exercise of 2,084,000
warrants at CDN$3.50 for proceeds of $6.2 million. An additional 2.3
million warrants at the same price remain to be exercised prior to
expiry on April 8, 2006.
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 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.
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
Alamos Gold Inc.
Victoria Vargas de Szarzynski
Investor Relations
(416) 368-9932 x201 or 1 (866) 788-8801
vvargas@alamosgold.com
www.alamosgold.com
SOURCE: Alamos Gold Inc.
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