Advanced Exploration

The Salamandra group of concessions surrounding the Mulatos Mine consists of 21,300 hectares of mining claims that contain both advanced and grassroots exploration prospects similar to the Mulatos deposit. In 2005, Alamos spent $4.7 million exploring these areas, with the majority of expenditures allocated to near-mine resource expansion projects.

There are several advanced exploration projects near the Estrella Pit that have the potential to add resource and reserve ounces to the greater Mulatos deposit, including both mineralization extensions and satellite deposits. In 2005, Alamos focused its attention on expanding resources at the El Salto, Mina Vieja, Escondida and El Victor project areas. Underground development and drilling of the mineralized corridor between the Escondida and El Victor zones are ongoing.

Alamos will continue underground development and core drilling in the Escondida, El Victor, and Gap areas in order to expand resources and define reserves.