San Carlos

At Alamos, we approach this business as just that – a business.  There are times, however, when the adventurous joy of discovery gets the best of us.

San Carlos is one such case. So bursting with reasons to believe in its potential, one can’t help but feel that shiver of excitement at what lies ahead for this high priority project.

The San Carlos mineral resource area is located to the northeast of the proposed El Victor Pit, along a two kilometre continuous mineralized trend that controls gold occurrences from the Mulatos Pit towards the proposed El Victor Pit.  San Carlos is the easternmost gold occurrence discovered to date along this trend. Again, San Carlos has become a high-priority project for Alamos, as it as seen as being the strongest candidate to supply future high-grade mill feed after the high-grade portion of the Escondida zone is depleted.

In 2006, Alamos completed an RC drill program at San Carlos that consisted of 6,303 m in 33 holes. The drilling resulted in the delineation of an extensive area of blind mineralization extending a minimum of 400 m to the northeast from the Mulatos River. Significant gold-bearing intervals from that drill program included 35.0 m of 2.99 g/t Au and 48.8 m of 4.69 g/t Au, as well as a more restricted high-grade intercept of 4.6 m of 36.11 g/t Au. The best holes from the program were generally located at the edge of the drilled area, with intercepts open to the northeast.

In other words, we found our reasons to believe.

In November 2009, the Company commenced a definition drilling program at San Carlos after completing geological mapping of the historic underground mine workings to ascertain gold controls. The objectives of the 2009 drill program were to upgrade the established inferred resources to the measured and indicated category through infill and step-out drilling, expand the known limits of the mineralized system, and further define the structurally controlled high-grade zone.