TORONTO--(BUSINESS WIRE)--Aug. 23, 2006--Alamos Gold Inc. (Alamos) (TSX: AGI) announces results of a recently completed drilling program in the San Carlos area, which has delineated an extensive area of blind mineralization extending a minimum of 600 meters to the northeast from the El Victor project area. Significant gold-bearing intervals include 35.0 m of 2.99 g/t in 06SC008 and 48.8m of 4.69 g/t in 06SC018, as well as more restricted high-grade intercepts of 4.6m of 36.11 g/t in 06SC010. Drill hole composite intervals are summarized below:
DRILL TOTAL
HOLE DEPTH FROM TO INT. GOLD
(Azimuth/ (m) (m) (m) (m) (g/t)
Inclination)
----------------------------------------------------------------------
06SC001 150.91 64.02 65.55 1.53 0.767
(000/-90) 73.17 83.84 10.67 0.796
88.41 94.51 6.10 0.849
106.71 117.38 10.67 2.076
128.05 144.82 16.77 0.923
150.91 153.96 3.05 0.564
----------------------------------------------------------------------
06SC002 149.39 56.40 57.93 1.53 0.544
(000/-90) 88.41 92.99 4.58 2.503
96.04 103.66 7.62 0.707
115.85 117.38 1.53 0.572
126.52 128.05 1.53 0.578
138.72 141.77 3.05 0.650
----------------------------------------------------------------------
06SC003 135.67 70.12 92.99 22.87 2.315
(000/-65) 105.18 115.85 10.67 1.844
120.43 123.48 3.05 0.564
----------------------------------------------------------------------
06SC004 198.17 53.35 56.40 3.05 2.460
(000/-50) 64.02 67.07 3.05 1.108
77.74 79.27 1.53 0.709
83.84 96.04 12.20 0.841
123.48 125.00 1.52 0.517
131.10 132.62 1.52 0.534
141.77 143.29 1.52 2.340
149.39 157.01 7.62 0.890
----------------------------------------------------------------------
06SC005 167.68 77.74 83.84 6.10 1.186
(000/-90) 86.84 91.46 4.62 0.636
94.51 102.13 7.62 2.197
105.18 121.95 16.77 1.014
126.52 131.10 4.58 0.836
----------------------------------------------------------------------
06SC006 198.17 59.45 60.98 1.53 4.980
(000/-65) 68.60 70.12 1.52 0.762
73.17 79.27 6.10 1.085
83.84 99.09 15.25 3.285
111.28 112.80 1.52 1.010
118.90 125.00 6.10 1.711
128.05 138.72 10.67 0.750
146.34 150.91 4.57 0.668
----------------------------------------------------------------------
06SC007 152.44 89.94 91.46 1.52 0.998
(000/-90) 94.51 102.13 7.62 1.184
109.76 111.28 1.52 0.503
121.95 126.52 4.57 0.887
140.24 150.91 10.67 0.556
----------------------------------------------------------------------
06SC008 269.82 114.33 149.39 35.06 2.994
(000/-75) 155.49 157.01 1.52 1.240
175.30 193.60 18.30 0.975
198.17 211.89 13.72 1.093
----------------------------------------------------------------------
06SC009 230.18 96.04 97.56 1.52 0.640
(000/-55) 100.61 117.38 16.77 1.236
144.82 147.87 3.05 1.351
153.96 155.49 1.53 0.551
160.06 161.59 1.53 0.645
184.45 185.98 1.53 1.145
204.27 211.89 7.62 0.963
----------------------------------------------------------------------
06SC010 228.66 120.43 121.95 1.52 1.970
(000/-60) 125.00 129.57 4.57 36.11
153.96 161.59 7.63 0.659
Re-run by 205.79 207.32 1.53 0.504
screen fire assay 210.37 213.41 3.04 0.775
----------------------------------------------------------------------
06SC011 253.05 118.90 120.43 1.53 0.531
(000/-90) 125.00 131.10 6.10 1.691
135.67 140.24 4.57 0.574
234.76 240.85 6.09 0.708
----------------------------------------------------------------------
06SC012 243.90 170.73 189.02 18.29 0.932
(000/-90)
----------------------------------------------------------------------
06SC013 230.18 185.98 189.02 3.04 0.820
(000/-60) 193.60 195.12 1.52 0.537
216.46 217.98 1.52 0.561
----------------------------------------------------------------------
06SC014 182.93 42.68 51.83 9.15 0.959
(000/-75) 57.93 65.55 7.62 1.057
70.12 100.61 30.49 1.153
103.66 112.80 9.14 1.108
118.90 123.48 4.58 0.847
129.55 155.49 25.94 1.378
----------------------------------------------------------------------
06SC015 243.90 160.06 163.11 3.05 23.48
(000/-70) 176.83 178.35 1.52 2.18
(to be re-run 198.17 199.70 1.53 0.867
by screen fire 202.74 204.27 1.53 0.669
assay) 221.04 227.13 6.09 0.726
----------------------------------------------------------------------
06SC016 68.60 44.21 48.78 4.57 6.157
(000/-65) 51.83 68.60 16.77 2.027
(to be re-run
by screen fire
assay)
----------------------------------------------------------------------
06SC017 182.93 0.00 1.52 1.52 1.555
(000/-90) 6.10 7.62 1.52 0.782
24.38 25.91 1.53 0.618
109.76 111.28 1.52 0.623
131.10 132.62 1.52 0.689
----------------------------------------------------------------------
06SC018 221.04 103.66 105.18 1.52 0.658
(000/-80) 109.76 111.28 1.52 0.516
117.38 166.16 48.78 4.692
(to be re-run includes
by screen fire 120.43 134.15 13.72 12.80
assay)
190.55 193.60 3.05 0.799
196.65 201.22 4.57 0.973
----------------------------------------------------------------------
06SC019 213.41 4.57 16.76 12.19 0.539
(190/-60) 28.96 32.01 3.05 0.636
144.82 146.34 1.52 0.717
----------------------------------------------------------------------
06SC020 160.06 1.52 39.63 38.11 0.954
(190/-45) 42.68 45.72 3.04 0.845
68.60 70.12 1.52 0.515
89.94 92.99 3.05 0.727
146.34 147.87 1.53 0.648
152.44 153.96 1.52 1.035
157.01 158.54 1.53 0.567
----------------------------------------------------------------------
06SC021 227.13 86.89 89.94 3.05 0.558
(180/-65) 115.85 117.38 1.53 1.015
179.88 181.40 1.52 0.638
196.65 198.17 1.52 0.577
201.22 204.27 3.05 0.649
----------------------------------------------------------------------
06SC022 243.90 111.28 114.33 3.05 1.106
(000/-70) 117.38 121.95 4.57 10.616
125.00 126.52 1.52 6.640
(to be re-run 129.57 149.39 19.82 2.031
by screen fire 157.01 158.54 1.53 0.519
assay) 160.06 161.59 1.53 0.542
164.63 167.68 3.05 1.137
179.88 181.40 1.52 2.030
184.45 185.98 1.53 1.095
190.55 192.07 1.52 0.542
202.74 207.32 4.58 0.635
211.89 214.94 3.05 0.745
224.09 234.76 10.67 0.856
----------------------------------------------------------------------
06SC023 217.99 105.18 106.71 1.53 0.948
(000/-70) 114.33 115.85 1.52 0.600
120.43 121.95 1.52 0.802
129.57 132.62 3.05 0.598
137.20 138.72 1.52 0.520
----------------------------------------------------------------------
06SC024 243.90 138.72 155.49 16.77 1.200
(180/-70) 160.06 161.59 1.53 0.979
167.68 169.21 1.53 0.671
173.78 178.35 4.57 0.655
208.84 222.56 13.72 1.074
230.18 231.71 1.53 0.608
----------------------------------------------------------------------
06SC025 254.57 146.34 147.87 1.53 1.830
(000/-60) 153.96 157.01 3.05 0.722
160.06 161.59 1.53 0.658
164.63 176.83 12.20 1.320
179.88 181.40 1.52 0.533
185.98 187.50 1.52 0.863
192.07 199.70 7.63 0.728
237.08 242.38 5.30 1.965
----------------------------------------------------------------------
06SC026 239.33 176.83 187.50 10.67 1.039
(000/-90) 192.07 199.70 7.63 0.600
208.84 210.37 1.53 0.516
----------------------------------------------------------------------
06SC027 176.83 53.35 57.93 4.58 6.747
(000/-90) 60.98 71.65 10.67 3.130
76.22 77.74 1.52 0.610
(to be re-run 82.32 100.61 18.29 5.374
by screen fire 115.85 152.44 36.59 1.169
assay) 155.49 160.06 4.57 0.684
169.21 170.73 1.52 1.365
173.78 176.83 3.05 1.131
----------------------------------------------------------------------
06SC028 60.98 30.48 36.59 6.11 0.854
(000/-55) 36.93 41.16 4.23 0.716
57.93 60.98 3.05 1.176
----------------------------------------------------------------------
06SC029 121.95 47.26 50.30 3.04 0.669
(000/-70) 54.88 60.98 6.10 5.264
(to be re-run 64.02 85.37 21.35 0.650
by screen fire
assay)
----------------------------------------------------------------------
06SC030 251.52 146.34 147.87 1.53 0.712
(000/-90) 150.91 152.44 1.53 0.546
----------------------------------------------------------------------
06SC031 205.79 71.65 79.27 7.62 0.791
(010/-45) 82.83 86.89 4.06 0.699
92.99 99.09 6.10 1.840
103.66 106.71 3.05 1.035
111.28 114.33 3.05 1.289
117.38 129.57 12.19 2.392
163.11 164.63 1.52 0.700
172.26 179.88 7.62 1.010
185.98 189.02 3.04 2.131
----------------------------------------------------------------------
06SC032 141.77 53.35 56.40 3.05 0.540
(190/-70) 70.12 71.65 1.53 0.556
73.17 74.70 1.53 0.688
79.27 80.79 1.52 0.503
83.84 85.37 1.53 0.616
91.46 94.51 3.05 0.626
97.56 105.18 7.62 0.578
112.80 114.33 1.53 0.570
115.85 117.38 1.53 0.569
125.00 141.77 16.77 0.821
----------------------------------------------------------------------
06SC033 60.98 32.01 33.54 1.53 3.39
(000/-45) Drilled 42.68 44.21 1.53 0.616
into stope 48.78 56.46 7.68 6.974
(to be re-run at 56.46;
by screen fire no
assay) recovery 60.98 62.50 1.52 8.3
56.46-60.98
======================================================================
The San Carlos area was selected as a high-priority exploration target due to having similar geologic characteristics to the Escondida Hanging Wall Zone. It is located along the same 2-km regional structural trend controlling the gold occurrences from Mina Vieja to El Victor. It also has a similar stratigraphic setting of an impermeable horizon overlying a highly favorable unit, which was the gold trapping mechanism at the Escondida Hanging Wall Zone. San Carlos has been sporadically mined at a small scale by locals and was a well-known source for spectacular high-grade gold specimens. Historical San Carlos underground channel sampling records (1960) show narrow high-grade gold intervals, including 2.13 m of 253 g/t Au and 1.9m of 259 g/t Au. Widely spaced Kennecott drilling at San Carlos in early 90's encountered both low grade and high-grade gold intercepts, but no further drilling has been completed since then. The Alamos Gold Phase I drilling program was designed to test projections of identified high-grade structures and associated hanging wall and footwall mineralization, particularly where favorable stratigraphy was projected, offset previous high-grade Kennecott intercepts, and test for lower-grade bulk-tonnage stratiform mineralization.
The Phase I drilling program consisted of 33 surface reverse circulation holes (6303 meters) and four underground core holes (353.3m). Two surface reverse-circulation (RC) and one underground rig were allocated to the project in an attempt to complete as much drilling as possible before rising monsoon season river levels blocked access. Drill holes to date have outlined an extensive area of thick intensely silicified hydrothermal breccias concealed by post-mineral volcanic cover. The silicic alteration occurs over an area greater than 300m wide, 400m along strike, and over 150m thick. Sixteen holes were terminated in strong silicic alteration, due to caving conditions and/or excessive water at depth. The system is open to the east and north with the highest grade-thickness intercepts located at the extreme northeastern edge of the drilled area. Highest-grade mineralization occurs at the near at the top of the stratiform silicic alteration, a similar relationship to the Escondida high-grade occurrence. Drill hole intercepts are believed to approximate true widths based on sectional work indicating stratigraphic-hosted mineralization, but need additional drilling to confirm zone geometry. High-grade intercepts were also encountered, including local visible gold, but they appear narrower and more structurally confined than the Escondida Hanging Wall Zone. Higher-grade intercepts were generally uniform in the 10-20-g/t range. All assay results to date, however, are fire assay with atomic adsorption finish, which tend underestimate grade in a coarse gold situation. Higher-grade intervals will be re-run by screen fire assay to analyze for coarse gold.
The San Carlos area appears to be a separate mineralization center due to the generally higher grades in comparison with El Victor, multi-stage alteration and mineralization events, and the abundance of late mafic dikes spatially related to mineralization. Hydrothermal breccias and the dikes are rare to absent in the Mulatos deposit. The feeder zone of the multi-stage breccias has not yet been located. Classic multi-stage epithermal textures suggest further potential for high-grade mineralization in the system.
Additional drill holes are strongly warranted, but will need to wait until river levels drop in October or November. The San Carlos project area will mostly likely be the next project added to the resource expansion project pipeline. The success of the San Carlos project is believed to increase the likelihood of finding additional high-grade mineralization in the Gap area, where a similar structural and stratigraphic setting exists in a largely untested area of mineralization. A 7500 hectare concession was also recently added to the land position to cover potential extensions of mineralized trend, as well as two other areas of alteration.
A map of drill hole locations can be accessed at the following location:
http://www.alamosgold.com/Theme/AlamosGold/files/SanCarlos2006Drilling.pdf
www.alamosgold.com, http://files.newswire.ca/518/SanCarlosDrillingPlan.pdfwww.alamosgold.com, http://files.newswire.ca/518/SanCarlosDrillingPlan.pdf.
The San Carlos exploration program is being carried out under the direction of Ken Balleweg, P. Geol, 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. Drilling method was reverse circulation using a center return bit and 1.5 meter sample intervals. Strict sampling and QA/QC protocol are followed, including the insertion of standards and blanks on a regular basis. Samples are sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and then to Vancouver, British Columbia for analysis. 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. 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.
Alamos common shares are traded on the Toronto Stock Exchange under the symbol "AGI" and convertible debentures under the symbol AGI.DB".
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This release contains "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the Company's expectations regarding the results of the Company's exploration activities and the potential of the Mulatos Project. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; future prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and . Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.
CONTACT: Alamos Gold Inc.
John A. McCluskey, 416-368-9932 Ext. 203
or
Investor Relations:
Victoria Vargas de Szarzynski, 416-368-9932 Ext. 201
vvargas@alamosgold.com
www.alamosgold.com
SOURCE: Alamos Gold Inc.
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