Esperanza Project Mexico

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Quick Facts

Ownership
100%
Location
Morelos State, Mexico
Status
Permitting
Operation
Open Pit, heap leach
Commodity
Gold & Silver

The Esperanza Gold Project is an attractive low-cost, low capital intensity, and low technical risk growth project located in Morelos State, Mexico. Esperanza will be designed and constructed to the same high-level environmental and social standards as our Mulatos mine in Sonora and operations in Canada. We are committed to working with all parties to ensure Esperanza is developed in a responsible manner that benefits all our stakeholders.

Mineral Reserves and Resources

as of December 31, 20191

Measured and Indicated
Mineral Resources

000 Oz Au

1,084

Inferred
Mineral Resources

000 oz Au

18

1 Please see 2019 year end Mineral Reserves and Resources statement for additional detail.

Esperanza Mine Map Larger

Esperanza is located in Morelos State in south-central Mexico, near the state capital of Cuernavaca, and 110 kilometres south of Mexico City.

Esperanza is comprised of seven adjacent land concessions totaling 15,025 hectares and is situated approximately 70 kilometres north of the 15-million-ounce multi-mine Guerrero Gold Belt.

The Esperanza Gold Project is a low capital intensity and low technical risk open-pit, heap leach project with excellent infrastructure. A positive preliminary economic assessment (PEA) was completed on Esperanza in 2011, which contemplates an open pit, heap leach operation expected to produce over 100,000 ounces of gold annually at cash operating costs1 below $500 per ounce over an initial six year mine life. Baseline environmental work is ongoing in support of the project's Environmental Impact Assessment. Through our Mulatos mine in Sonora, Alamos has extensive permitting, development and operating experience in Mexico along with an excellent environmental and social track record.

The Esperanza Gold Project was acquired by Alamos as part of the acquisition of Esperanza Resources in 2013.

The Esperanza Gold Project is located within the physiographic province of the Sierra Madre del Sur, an orogenic belt along the South Pacific coast of Mexico. It is on the northwest corner of the Mixteco Terrene, which emerges in the central part of the Sierra Madre del Sur, between the Caltepec and Teloloapan faults which represent its limits east and west, respectively. The basement of this terrene consists of deformed metamorphic rocks, represented mainly by migmatites, metasediments, metagranitoids and eclogitized ophiolites, which were grouped into the Acatlan complex metamorphic complex of Grenvillian to Early Triassic age.

Mineralization at the Esperanza Gold Project is associated with the intrusion of a stock of Granodiorite composition into the carbonate rocks of Guerrero-Morelos Platform, specifically the rocks of Xochicalco Formation. Spatially related to the intrusive contact with the carbonate rocks are varying degrees of skarn and marble development. Intruded by the granodioritic stock are the limestone of the Xochicalco Formation of Aptian age (early Cretaceous), that have beds of varying thickness from very thin to medium. Primary mineralization consists of gold, and to a lesser extent silver, associated with the skarn zones spatially related to the intrusive.

The project contemplates a conventional open pit, heap leach operation with two-stage crushing. Crushed ore will be conveyed to the leach pad and irrigated with dilute cyanide solution. Gold will be recovered from pregnant solutions utilizing carbon adsorption, subsequent electrowinning and on-site smelting to produce gold and silver doré bars. This will be shipped off-site for final refining.