Alamos Gold Reports Fourth Quarter and Year-end 2012 Results
Best Quarter and Year in the Company's History
Continued Exploration Success at San Carlos and Camyurt
TORONTO, ONTARIO -- (Marketwire) -- 02/21/13 -- Alamos Gold Inc. (TSX: AGI)(NYSE: AGI) ("Alamos" or the "Company") today reported its financial results for the quarter and year ended December 31, 2012 and reviewed its operating, exploration and development activities. All amounts are expressed in United States dollars unless otherwise specified.
"In 2012, Alamos achieved the best performance for any year in its history and, in the final three months, posted record results for any quarter. We established a new benchmark by producing 200,000 ounces of gold in 2012 (including 67,800 ounces in the fourth quarter) at a cash operating cost of $355 per ounce, which is at industry-leading low levels. On a quarterly and annual basis, we set records in terms of earnings, earnings per share, operating cash flow, and other key metrics. Moreover, the Company's performance reflects our ongoing success in achieving outstanding organic growth," said John A. McCluskey, President and Chief Executive Officer.
"In Turkey, we remain on schedule with respect to the permitting of our late-stage development projects. We anticipate responses from the Turkish Government on our Environmental Impact Assessment submissions for Kirazli and Agi Dagi by the end of the first and second quarters of 2013, respectively, and we expect our outstanding cash flow and balance sheet will enable us to self-finance the construction of these mines," Mr. McCluskey commented.
Fourth Quarter 2012 Highlights
Financial Performance
-- Sold 62,516 ounces of gold for record quarterly revenues of $106.9
million
-- Realized record quarterly earnings of $37.9 million ($0.31 per basic
share), a 78% increase compared to the fourth quarter of 2011
-- Generated record cash from operating activities before changes in non-
cash working capital of $53.5 million ($0.44 per basic share); after
changes in non-cash working capital of $69.2 million ($0.57 per basic
share)
-- Increased cash and cash equivalents and short-term investments to $353.7
million at December 31, 2012
Operational Performance
-- Produced a record 67,800 ounces of gold at a cash operating cost of $377
per ounce of gold sold (total cash costs including royalties were $461
per ounce of gold sold)
-- Achieved record quarterly average crusher throughput of 17,900 tonnes
per day ("tpd")
-- Continued to improve production from the Escondida high-grade zone
through higher grades milled, averaging 14.12 g/t Au for the period
Full Year 2012 Highlights
Financial Performance
-- Sold 197,516 ounces of gold at an average realized price of $1,668 per
ounce for revenues of $329.4 million
-- Realized earnings of $118.0 million ($0.98 per basic share) compared to
earnings of $60.1 million ($0.51 per share) in 2011
-- Generated strong cash from operating activities before changes in non-
cash working capital of $178.5 million ($1.49 per basic share) compared
to $107.2 million ($0.91 per basic share) in 2011
-- Paid a total of $24.0 million in dividends to shareholders ($0.20 per
basic share)
Operational Performance
-- Produced 200,000 ounces of gold at a cash operating cost of $355 per
ounce of gold sold (total cash costs including royalties were $438 per
ounce of gold sold), below the Company's guidance range of $365 to $390
per ounce
-- Achieved record average crusher throughput of 16,000 tonnes per day
-- Started production from the Escondida high-grade zone in the first
quarter, and achieved design average throughput of 500 tonnes per day
for the year
-- Reported a net positive ounce reconciliation of 14% comparing mined
blocks from the global Mulatos Pit to the block model
In addition, subsequent to the fourth quarter of 2012, the Company:
-- Announced an offer to acquire all of the common shares of Aurizon Mines
Ltd.
-- Released 2013 production guidance of 180,000 to 200,000 ounces at a cash
operating cost per ounce sold of $415 to $435 per ounce (exclusive of
the 5% royalty)
-- Commenced trading on the New York Stock Exchange on February 13, 2013
under the ticker symbol "AGI"
-- Strengthened its management team through the addition of two key hires;
Andrew Cormier as Vice President of Construction and Development, and
Jason Dunning as Vice President of Exploration
Fourth Quarter and Full Year 2012 Financial Results
Strong operating margins from higher realized gold prices and continued low cash costs contributed to the Company generating record cash provided by operating activities and earnings in the fourth quarter of 2012. Cash from operating activities before changes in non-cash working capital in the fourth quarter of 2012 of $53.5 million ($0.44 per basic share) increased 68% relative to the same period of 2011.
Earnings before income taxes in the fourth quarter of 2012 were $51.9 million or $0.43 per basic share, compared to $37.1 million or $0.31 per basic share in the fourth quarter of 2011. On an after-tax basis, earnings in the fourth quarter of 2012 of $37.9 million or $0.31 per basic share increased 78% over the comparable period of 2011 as a result of a higher number of ounces sold and a lower effective tax rate.
On a year-to-date basis, cash flows from operations and earnings increased substantially in 2012 relative to 2011. For the year ended December 31, 2012, cash from operating activities before changes in non-cash working capital of $178.5 million ($1.49 per basic share) increased 68% compared to $106.5 million ($0.91 per basic share) in 2011. Earnings of $118.0 million ($0.98 per basic share) increased 96% compared to $60.1 million ($0.51 per basic share) in 2011.
Capital expenditures for 2012 totalled $57.4 million. Operating capital spending in Mexico in 2012 included sustaining and expansion capital of $20.8 million, consisting of $1.4 million for construction primarily related to achieving cyanide code certification, $4.9 million related to completing the gravity mill and crushing circuit in the first quarter, $5.7 million for component changes, $2.0 million for the addition of interlift liners on the leach pad and $6.8 million of other capital.
In addition, the Company invested $17.4 million in development activities in Mexico, focused on completing Escondida stripping activities and capitalized exploration expenditures, as well as $18.9 million on development projects in Turkey.
Key financial highlights for the fourth quarter and full year 2012 compared to the fourth quarter and full year 2011 are presented at the end of this release in Table 1. The unaudited consolidated statements of financial position, comprehensive income, and cash flows for the three months and years ended December 31, 2012 and 2011 are presented at the end of this release in Table 2.
Fourth Quarter and Full Year 2012 Operating Results
In the fourth quarter of 2012, production reached a record of 67,800 ounces of gold, 46% higher than production of 46,500 ounces in the fourth quarter of 2011, and 41% higher than the previous quarterly production record of 48,200 ounces. Gold production in the fourth quarter benefited from higher than budgeted throughput and grade from the gravity mill, which is processing ore from the Escondida high-grade zone.
Total crusher throughput in the fourth quarter of 2012 averaged a record 17,900 tpd, above the annual budgeted rate of 17,500 tpd and 12% higher than 16,000 tpd in the same period last year. Higher crusher throughput was achieved through a reduction in downtime resulting from improved maintenance practices. Mill production from the Escondida high-grade zone continued to improve in the fourth quarter of 2012, with daily average throughput of 630 tonnes exceeding budgeted levels.
The grade of the crushed ore stacked on the leach pad in the fourth quarter of 2012 of 1.20 g/t Au was higher than the full year budgeted grade of 1.00 g/t Au, but below the grade in the fourth quarter of 2011 of 1.33 g/t Au. Applying higher gold price assumptions to the mine model has resulted in material previously classified as waste becoming economic to mine and therefore classified as low grade ore. This has the effect of lowering the average grade mined.
The grade of the Escondida high-grade zone mined and milled rose to 14.12 g/t Au in the fourth quarter, an increase from the grade milled in the third quarter of 13.25 g/t Au.
The ratio of ounces produced to contained ounces stacked or milled ("recovery ratio") was 78% in the fourth quarter of 2012. The recovery ratio in the fourth quarter benefited from gold production deferred from the third quarter as a result of dilution on the heap leach pad during the rainy season.
Higher gold production for the full year 2012 relative to the same period of 2011 was primarily attributable to production from the gravity mill, which started operation in early 2012. Gold production in 2012 also benefited from a 13% increase in crushed ore stacked in relation to the same period of 2011, partially offset by a 9% decrease in the grade stacked on the leach pad.
Cash operating costs in 2012 were $355 per ounce of gold sold, below the Company's revised full year guidance range of $360 per ounce. Cash operating costs per ounce in 2012 were 4% less than in the same period last year due to lower cost ounces produced from the gravity mill in 2012, as well as the weakening Mexican peso, partially offset by higher input costs.
Crusher throughput in 2012 averaged 16,000 tpd, 13% higher than 14,100 tpd in the same period of last year. Crusher throughput increased steadily throughout 2012, reaching 17,900 tpd in the fourth quarter. The Company anticipates crusher throughput in 2013 will average 17,500 tpd.
The grade of the crushed ore stacked on the leach pad in 2012 of 1.19 g/t Au was 19% higher than the full year budgeted grade of 1.00 g/t Au. The reconciliation of mined blocks to the block model for the Global Mulatos Pit, including Escondida, for the year ended December 31, 2012 was +7%, +6% and +14% for tonnes, grade and ounces respectively. Since the start of mining activities in 2005, the reconciliation is +2%, +7%, +10% for tonnes, grade and ounces, respectively. Positive variances indicate that the Company is mining more gold than was indicated in the reserve model.
Improvements in ore control practices throughout the year have been reflected in the grade mined and milled as well as the block model reconciliation results. The grade milled in 2012 was 12.49 g/t Au, and improved every quarter since the start-up of the gravity mill in the first quarter. To date, the Company has mined and milled a total of 176,000 tonnes from the Escondida high-grade zone, representing approximately 41% of the pit-contained high-grade mineral reserve tonnes.
The recovery ratio in 2012 was 70%, below the Company's budgeted average recovery ratio for the year of 77%. This lower recovery ratio was the result of the deferral of gold production from the gravity mill as a result of lower than budgeted mill recoveries.
Key operational metrics and production statistics for the fourth quarter and full year 2012 compared to the same periods of 2011 are presented in Table 3 at the end of this press release.
Turkey Developments
The Company has submitted the final environmental impact assessment ("EIA") report for Kirazli, and expects a response from the Turkish Government in the first quarter of 2013. The final Agi Dagi EIA report is expected to be submitted in the first quarter of 2013, with a response expected in the second quarter. Permitting and construction activities are expected to take up to 18 months once the EIAs are approved. The Company is also committed to aggressively drilling the Camyurt project to bring inferred mineral resource ounces into the measured and indicated categories, which is the next step in fast-tracking Camyurt toward production.
Fourth Quarter 2012 Exploration Update
Total exploration expenditures in 2012 were $18.0 million. In Mexico, total exploration spending was $8.9 million. This included $5.9 million of drilling costs at East Estrella, San Carlos and El Victor, which were capitalized, and $3.0 million of early-stage exploration and administration costs, which were expensed. Total exploration spending in Turkey was $9.1 million, of which $3.5 million related to drilling at Firetower and Rock Pile was expensed, while $5.6 million related to development work at Camyurt, Agi Dagi and Kirazli was capitalized.
Mexico
Exploration expenditures in Mexico in 2012 totalled $8.9 million. The Company completed 48,822 metres ("m") of reverse circulation ("RC") drilling in 453 holes and 7,174 m of core drilling in 40 holes in 2012. Exploration activities in the fourth quarter were primarily focused on completing infill and step-out drilling programs at El Victor and East Estrella to upgrade mineral resources to the measured and indicated categories, and continued deep directional drilling at San Carlos. Three drill rigs were active during the fourth quarter, with two rigs allocated to drilling at San Carlos.
El Victor North
The El Victor North area contains gold-bearing silica and advanced argillic alteration contiguous with the El Victor deposit. El Victor North has the potential to expand mineral resources and reserves along the northern boundary of the Gap to El Victor trend. The results of the drill program are expected to extend the El Victor pit design north and west of the current pit design outline.
Total exploration spending at El Victor North was $2.8 million with a total of 3,124 m in four RC holes, for a total of 2,300 m in 13 core holes and 18,145 m in 120 RC holes drilled in 2012. Ore-grade mineralization has been extended up to 300 m to the north over a strike length of 550 m contiguous with the El Victor mineral reserve. Wide intervals of low-grade mineralization with local high-grade intercepts have been encountered. The majority of thick low-grade intercepts are hosted by advanced argillic alteration, with local high-grade gold in vuggy silica zones. The Company completed the infill and step-out drilling program to upgrade the resource to the measured and indicated category. New drill holes at the extreme north edge of the deposit extend the deposit an additional 80 m north of previous intercepts to a distance 420 m north of the main El Victor deposit axis.
Recent highlighted intercepts from drilling include:
2.040 g/t Au over 76.22 m (12EV242)
1.735 g/t Au over 50.80 m (12EV248)
1.304 g/t Au over 27.44 m and 1.725 g/t Au over 30.49 m (12EV289)
Drilling was completed prior to year end, with results to be included in the 2012 mineral reserve and resource update. Relevant assay results from the recent drilling at El Victor North are presented in Table 4 at the end of this press release. Locations of the drill collars of the highlighted drill intercepts at El Victor North are presented in Figure 1.
East Estrella
Exploration drilling directly east of the Mulatos pit southeast wall continued through the quarter. Condemnation drilling completed to investigate a proposed waste dump site east of the Estrella Pit by previous operators encountered a number of near-surface gold intercepts along with localized high-grade silver mineralization. Drilling earlier in the year confirmed widespread gold-silver-copper mineralization in the area, and the program expanded significantly to develop measured and indicated resources. Mineralization in the northern part of the project area is gold-dominant, near-surface, and stratiform, and structurally controlled with higher contents of silver and copper to the south. An additional 3,386 m of drilling was completed in 26 RC holes during the quarter, for a total of 13,165 m in 93 RC and 920 m in seven core holes.
Recent highlighted intercepts from drilling conducted to date include:
1.798 g/t Au over 25.55 m (12SX064)
4.396 g/t Au over 51.65 m, including 9.983 g/t Au over 5.45 m and 7.371
g/t Au over 6.5 m (12SX081)
2.600 g/t Au over 24.60 m (12SX089)
Highlighted silver intercepts from recent drilling include:
386.2 g/t Ag over 13.10 m (12SX069)
1078.4 g/t Ag over 5.70 m (12SX070)
403.2 g/t Ag over 9.30 m (12SX077)
121.1 g/t Ag over 17.80m (12SX081)
Relevant assay results from the recent drilling at East Estrella are presented in Tables 5 and 6 at the end of this press release. Locations of the drill collars of the highlighted drill intercepts at East Estrella are presented in Figure 2.
San Carlos
Drilling resumed at San Carlos during the fourth quarter, targeted at deep high-grade gold mineralization extending to the east of the San Carlos resource and reserve. High-grade intercepts have been encountered up to 500 m from the existing pit boundary. An infill and step-out directional drilling program is currently in progress to define the mineralization extents and develop the resource. Drill progress has been relatively slow at San Carlos due to the directional drilling complexity and deep, deviating drill holes that have to be steered to the target. During the fourth quarter, nine directional holes were completed by RC pilot holes with core tails, for a total of 3,096 m of drilling. In 2012, a total of 9,386 m of drilling was completed in 25 RC holes, and 1,319 m in three core holes.
In 2011, the Company obtained positive results from metallurgical testing conducted on high-grade ore at San Carlos. The results indicated that the high-grade ore at San Carlos is amenable to gravity separation and capable of providing an additional source of feed for the gravity mill. Ultimate recovery rates (gravity separation followed by leaching the tailings with cyanide) were 78% and 70% for the two large samples processed. The Company has high-grade proven and probable mineral reserves at San Carlos of 649,000 tonnes grading 7.670 g/t Au for approximately 160,000 contained ounces. The Company continues to evaluate the potential to mine a portion of the San Carlos deposit through underground mining methods.
Highlighted intercepts from recently conducted drilling include:
7.729 g/t Au over 4.65 m (12SC177)
3.839 g/t Au over 17.55 m, including 10.517 g/t Au over 4.15 m (12SC178)
5.154 g/t Au over 17.3 m (12SC178B)
12.850 g/t Au over 6.09m, including 24.325 g/t Au over 3.04m (12SC183)
Relevant assay results from the recent drilling at San Carlos are presented in Table 7 at the end of this press release. Locations of the drill collars of the highlighted drill intercepts at San Carlos are presented in Figure 3.
El Realito
Drill hole data from the 2004 to 2006 El Realito drilling programs has been re-evaluated in light of current gold prices and developed into a new geologic model that will be subject to a preliminary resource estimation. Oxide gold mineralization with local high-grade intervals was delineated during the previous exploration programs, and mineralization remains open. A 60-hole infill and step-out drilling program is planned for the first half of 2013 to further develop the resource.
Turkey
Exploration expenditures in Turkey totalled $9.1 million in 2012. Up to eight drill rigs were active throughout the fourth quarter, drilling a total of 30,478 m in 165 holes in 2012. Drilling included 22 holes across the project, for engineering purposes.
Camyurt
Resource infill and expansion drilling continued through the fourth quarter and is ongoing, with 8,302 m completed in 47 core holes in 2012. The Company published an initial pit-constrained inferred mineral resource estimate of 24.6 million tonnes grading 0.810 g/t Au and 4.7 g/t Ag for 640,000 ounces of gold and 3.8 million ounces of silver at Camyurt, applying a 0.2 g/t Au cut-off. The Camyurt project is located approximately three km southeast of the Company's development-stage Agi Dagi project. Drilling at Camyurt has defined a mineralized zone that is continuous for at least 1,200 m along strike, with additional potential to extend mineralization to the northeast and at depth.
Gold mineralization is hosted within a tabular, steeply-dipping oxidized zone starting at surface and with a cross-strike width up to 150 m. The average drill spacing is approximately 55 m along strike, and 59 drill holes were used in the estimate. The new inferred mineral resource estimate for Camyurt represents a significant addition to the Company's mineral resource base in Turkey. In addition, the average grade of the mineral resource is substantially higher than at the Agi Dagi and Kirazli projects. The Company intends to continue expanding mineral resources at Camyurt in 2013.
Recent highlighted intercept from drilling conducted to date include:
1.718 g/t Au over 55.1 m (12CYD64)
2.708 g/t Au over 17.0 m (12CYD68)
1.243 g/t Au over 126.2 m (12CYD70)
1.035 g/t Au over 96.7 m (12CYD71)
2.900 g/t Au over 23.6 m (12CYD72)
Relevant assay results from the recent drilling at Camyurt are presented in Table 8 at the end of this press release. Locations of the drill collars of the highlighted drill intercepts at Camyurt are presented in Figure 4.
Agi Dagi
The Agi Dagi project is comprised of the two principle resource areas at Baba and Deli, connected by the Firetower zone of advanced argillic and silic alteration. The Baba-Firetower-Deli zone of mineralization extends at least 4.3 kilometers ("km") along a northeast-southwest trend. During 2012, 42 drill holes were completed at Baba and Firetower, for 10,990 m of drilling.
A portion of the Firetower mineral resource area was included in the Company's year-end 2011 mineral reserve and resource statement as inferred mineral resources. However, these were not incorporated into the June 2012 preliminary feasibility study as it included only measured and indicated resources. Upgrading these mineral resources to measured and indicated is expected to improve the economics of the Agi Dagi project.
Two parallel trends of advanced argillic and silicic alteration occur to the northwest of the Baba-Deli trend. The Ayi Tepe-Firetower North zone is approximately two km long, defined by relatively wide spaced drilling. Similar alteration occurs along the discontinuous Tavasan-Ihlamur zone, approximately 4.5 km long. Both zones have not been fully defined by drilling. The Ayi Tepe-Firetower North and Tavasan-Ihlamur zones occur approximately 300 m and one km northwest of the Baba-Deli trend, respectively. Fifteen exploration drill holes were completed in these areas in 2012, for 3,836 m of drilling.
Highlighted intercepts from drilling include:
2.180 g/t Au over 50.3 m, including 7.23 g/t Au over 7.1 m (11AD546)
1.372 g/t Au over 42.5 m (12AD609)
Relevant assay results from the recent drilling at Agi Dagi are presented in Table 9 at the end of this press release.
Kirazli
The 2012 drill program at Kirazli was completed in the previous quarter, with 19 infill and expansion holes drilled at the Kirazli main zone, and 14 completed at Rockpile.
Recent highlighted intercept from drilling include:
5.948 g/t Au over 10.3 m (12KD200)
1.620 g/t Au over 32.6 m (12KD205)
2.211 g/t Au over 22.6 m (12KD208)
Relevant assay results from the recent drilling at Kirazli are presented in Table 10 at the end of this press release.
Outlook
The Company anticipates producing between 180,000 and 200,000 ounces of gold in 2013 at a cash operating cost of $415 to $435 per ounce of gold sold, excluding a 5% royalty. If the 5% royalty is included, and assuming a $1,700 gold price, total cash costs are expected to be between $500 and $520 per ounce of gold sold.
The 2013 Mulatos capital and development budget is $40.7 million. Operating and expansion capital spending is forecasted to be approximately $21.4 million in 2013, consistent with 2012. Development spending in 2013 is budgeted to be $19.3 million and will be focused on underground development of the San Carlos and Escondida North areas, in order to access high-grade ore to provide additional gravity mill feed. In addition, the Company expects to commence construction of an access ramp from the Estrella portion of the Mulatos Pit to the El Victor and San Carlos deposit areas.
The Company's mineral reserve and resource update is expected to be released at the end of the first quarter of 2013. The current focus of exploration at Mulatos is on continuing to delineate high-grade mineral reserves to provide mill feed beyond the life of the Escondida high-grade deposit.
In Turkey, the Company published an NI 43-101 compliant preliminary feasibility study summary of the Agi Dagi and Kirazli projects in June 2012, which demonstrated robust economics and supported the Company's decision to proceed with permitting and development activities. Total development spending related to the Turkish projects in 2013 is expected to be approximately $69.3 million.
In the first quarter of 2013, the Company expects to receive a response from the Turkish government with respect to EIA approval for the Kirazli project. The final EIA for the Agi Dagi project will be submitted in the first quarter of 2013 with approval expected in the second quarter of the year. The Company is also committed to aggressively drilling the Camyurt project, which is the next step in fast-tracking the project toward production.
The Company continues to strengthen its financial position, generating over $131 million in free cash flow from the Mulatos Mine in 2012. The Company's development capital and exploration spending in 2013 is all expected to be financed from cash flow.
If the acquisition of Aurizon is successful, the combined Company will have geographic and operational diversity, with producing assets in Canada and Mexico and a strong growth development pipeline in Turkey. Furthermore, after payment of the CAD$305 million cash portion of the acquisition cost, it is expected that the combined Company would have in excess of $250 million in cash and cash equivalents and short-term investments, providing a strong financial platform for future organic growth or acquisitions.
Update on Aurizon Offer
On January 14, 2013, the Company announced that it has commenced an offer to acquire Aurizon Mines Ltd. ("Aurizon") for approximately CAD$780 million in cash and shares (the "Offer"). On February 18, 2013, Alamos and Aurizon consented to an order by the British Columbia Securities Commission to cease trade the Aurizon Shareholder Rights Plan on March 4, 2013. Accordingly, the Company announced that it was extending the Offer to 5:00 p.m. (local time) on March 5, 2013, unless further extended or withdrawn.
Under the terms of the Offer, Alamos proposes to acquire all of the issued and outstanding Aurizon Shares ("Aurizon Shares") for consideration of, at the election of each Aurizon shareholder, either (i) 0.2801 common shares of the Company ("Alamos Shares"), or (ii) CAD$4.65 in cash, in each case, subject to pro-ration based on a maximum cash consideration of CAD$305 million and a maximum number of Alamos Shares issued of 23,500,000.
Prior to January 14, 2013, Alamos acquired, for the same consideration available to Aurizon shareholders under the Offer, 23,507,283 Aurizon Shares pursuant to share purchase agreements entered into between Alamos and certain shareholders of Aurizon. After giving effect to the transactions referred to above, Alamos owns or controls 26,507,283 Aurizon Shares, representing over 16% of the issued and outstanding Aurizon Shares.
The Offer is conditional upon Alamos acquiring that number of Aurizon shares, which, together with the Aurizon shares already owned by Alamos, represent not less than 66 2/3 percent of the outstanding Aurizon Shares calculated on a fully-diluted basis, as well as receipt of all necessary governmental or regulatory approvals and other customary unsolicited offer conditions.
Associated Documents
This press release should be read in conjunction with the Company's consolidated financial statements for the years ended December 31, 2012 and December 31, 2011 and associated Management's Discussion and Analysis ("MD&A"), which are available from the Company's website, www.alamosgold.com, in the "Investor Centre" tab in the "Reports and Financial Statements" section, and on SEDAR (www.sedar.com) and EDGAR (www.sec.gov).
Reminder of Fourth Quarter 2012 Results Conference Call
The Company's senior management will host a conference call on Thursday, February 21, 2013 at 12:00 pm ET to discuss fourth quarter and year-end 2012 financial results and update operating, exploration, and development activities.
Participants may join the conference call by dialling 1 (877) 240-9772 or (416) 340-9531, or via webcast on the Company's website at www.alamosgold.com.
A playback of the conference call will be available until March 7, 2013 by dialling 1 (800) 408-3053 or (905) 694-9451 (pass code 8854574). The webcast will be archived at www.alamosgold.com.
QA/QC Programs
Agi Dagi, Kirazli and Camyurt exploration programs were conducted under the supervision of Charles Tarnocai, PhD in Geology, Alamos' Vice President of Corporate Development, a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are usually 1.0 to 1.5 m. Agi Dagi, Kirazli and Camyurt samples are sent to Acme Analytical Laboratories in Ankara, Turkey for sample preparation and then to Vancouver, British Columbia, Canada or Santiago, Chile 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 Au.
Mulatos exploration programs are conducted under the supervision of Ken Balleweg, B.Sc. Geological Engineering, M.Sc. Geology, Registered Professional Geologist, Alamos' Mexico Exploration Manager. Mr. Balleweg is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are usually 0.5 to 1.5 m. Mulatos samples are sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and then to Vancouver, British Columbia, Canada for analysis. Analytical method is fire assay with atomic adsorption finish and gravimetric finish for individual samples with a gold concentration greater than 5.0 g/t Au.
The Sampling and QA/QC work was reviewed by Gary N. Lustig, MSc. Geology, P.Geo, Registered Professional Geoscientist, Principal of G.N. Lustig Consulting Ltd. Mr. Lustig is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.
Marc Jutras, P. Eng., M.A.Sc., Director of Mineral Resources for Alamos, prepared or supervised the mineral resource estimation for the Mulatos Mine, and the Agi Dagi and Kirazli projects. Mr. Jutras is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.
About Alamos
Alamos is an established Canadian-based gold producer that owns and operates the Mulatos Mine in Mexico, and has exploration and development activities in Mexico and Turkey. The Company employs more than 600 people and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities. Alamos has over $350 million cash and short-term investments, is debt-free, and unhedged to the price of gold. As of February 19, 2013, Alamos had 127,455,786 common shares outstanding (132,326,086 shares fully diluted), which are traded on the TSX and NYSE under the symbol "AGI".
Cautionary non-GAAP Measures and Additional GAAP Measures
Note that for purposes of this section, GAAP refers to IFRS. The Company believes that investors use certain non-GAAP and additional GAAP measures as indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
Additional GAAP measures that are presented on the face of the Company's consolidated statements of comprehensive income include "Mine operating costs", "Earnings from mine operations" and "Earnings from operations". These measures are intended to provide an indication of the Company's mine and operating performance. "Cash flow from operating activities before changes in non-cash working capital" is a non-GAAP performance measure that could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to "Cash provided by (used in) operating activities" as presented on the Company's consolidated statements of cash flows. "Mining cost per tonne of ore" and "Cost per tonne of ore" are non-GAAP performance measures that could provide an indication of the mining and processing efficiency and effectiveness of the mine. These measures are calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. "Cost per tonne of ore" is usually affected by operating efficiencies and waste-to-ore ratios in the period. "Cash operating costs per ounce" and "total cash costs per ounce" as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "cash operating costs per ounce" as determined by the Company compared with other mining companies. In this context, "cash operating costs per ounce" reflects the cash operating costs allocated from in-process and dore inventory associated with ounces of gold sold in the period. "Cash operating costs per ounce" may vary from one period to another due to operating efficiencies, waste-to-ore ratios, grade of ore processed and gold recovery rates in the period. "Total cash costs per ounce" includes "cash operating costs per ounce" plus applicable royalties. Cash operating costs per ounce and total cash costs per ounce are exclusive of exploration costs. Non-GAAP and additional GAAP measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other companies.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding forecast gold production, gold grades, recoveries, waste-to-ore ratios, total cash costs, potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Alamos' expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Note to U.S. Investors
Alamos prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this presentation are defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Alamos may use certain terms, such as "measured mineral resources", "indicated mineral resources", "inferred mineral resources" and "probable mineral reserves" that the SEC does not recognize (these terms may be used in this presentation and are included in the public filings of Alamos, which have been filed with the SEC and the securities commissions or similar authorities in Canada).
Table 1: Financial
Highlights
----------------------------------------------------------------------------
Q4 Q4
2012 2011 2012 2011
----------------------------------------------------------------------------
Cash provided by
operating activities
before
changes in non-cash
working
capital(000)(1)(2) $ 53,523 $ 31,801 $ 178,534 $ 107,226
Changes in non-cash
working capital $ 15,648 $ 5,474 $ 6,062 $ (692)
Cash provided by
operating activities
(000) $ 69,171 $ 37,275 $ 184,596 $ 106,534
Earnings before income
taxes (000) $ 51,943 $ 37,138 $ 166,925 $ 105,935
Earnings (000) $ 37,906 $ 21,294 $ 117,956 $ 60,081
Earnings per share
- basic $ 0.31 $ 0.18 $ 0.98 $ 0.51
- diluted $ 0.31 $ 0.18 $ 0.98 $ 0.51
Comprehensive income
(000) $ 38,812 $ 21,703 $ 117,972 $ 60,333
Weighted average number
of common shares
outstanding 120,796,000 118,308,000 119,861,000 117,375,000
- basic 121,746,000 119,563,000 120,904,000 118,669,000
- diluted
Assets (000) (3) $ 753,856 $ 599,224
(1) A non-GAAP measure calculated as cash provided by operating activities
as presented on the consolidated statements of cash flows and adding
back changes in non-cash working capital.
(2) Refer to "Cautionary non-GAAP Measures and Additional GAAP Measures"
disclosure in this press release for a description and calculation of
this measure.
(3) Assets are shown as at December 31, 2012 and December 31, 2011.
Table 2: Unaudited Consolidated Statements of Financial Position,
Comprehensive Income, and Cash Flows
ALAMOS GOLD INC.
Consolidated Statements of Financial Position
(Unaudited - stated in thousands of United States dollars)
December 31, December 31,
2012 2011
---------------- ----------------
ASSETS
Current Assets
Cash and cash equivalents $ 306,056 $ 169,471
Short-term investments 47,654 53,088
Amounts receivable 7,647 6,147
Advances and prepaid expenses 3,207 2,117
Available-for-sale securities 10,340 10,355
Other financial assets 1,118 244
Inventory 42,046 33,220
---------------- ----------------
Total Current Assets 418,068 274,642
Non-Current Assets
Other non-current assets 1,058 -
Exploration and evaluation assets 127,015 108,454
Mineral property, plant and equipment 207,715 216,128
---------------- ----------------
Total Assets $ 753,856 $ 599,224
---------------- ----------------
---------------- ----------------
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 24,874 $ 17,024
Income taxes payable 15,497 6,125
---------------- ----------------
Total Current Liabilities 40,371 23,149
Non-Current Liabilities
Deferred income taxes 38,365 35,008
Decommissioning liability 13,934 6,680
Other liabilities 714 837
---------------- ----------------
Total Liabilities 93,384 65,674
---------------- ----------------
EQUITY
Share capital $ 393,752 $ 355,524
Contributed surplus 22,606 27,861
Accumulated other comprehensive loss (1,064) (1,080)
Retained earnings 245,178 151,245
---------------- ----------------
Total Equity 660,472 533,550
---------------- ----------------
Total Liabilities and Equity $ 753,856 $ 599,224
---------------- ----------------
---------------- ----------------
ALAMOS GOLD INC.
Consolidated Statements of Comprehensive Income
(Unaudited - stated in thousands of United States dollars, except per share
amounts)
For the three-month For the year
periods ended ended
December 31, December 31,
----------------------------------------------------
2012 2011 2012 2011
----------------------------------------------------
OPERATING REVENUES 106,946 71,133 $ 329,372 $ 227,364
----------------------------------------------------
MINE OPERATING COSTS
Mining and processing 23,480 16,319 70,168 53,868
Royalties 5,255 3,573 16,411 11,157
Amortization 18,115 6,880 50,678 23,423
----------------------------------------------------
46,850 26,772 137,257 88,448
----------------------------------------------------
EARNINGS FROM MINE
OPERATIONS 60,096 44,361 192,115 138,916
EXPENSES
Exploration 1,448 3,236 6,488 9,540
Corporate and
administrative 4,758 2,142 14,177 9,613
Share-based compensation 876 3,260 7,634 13,525
----------------------------------------------------
7,082 8,638 28,299 32,678
----------------------------------------------------
EARNINGS FROM OPERATIONS 53,014 35,723 163,816 106,238
OTHER INCOME (EXPENSES)
Finance income 689 489 3,133 1,717
Financing expense (148) (151) (536) (598)
Foreign exchange gain
(loss) (833) 1,535 14 (3,688)
Other income (loss) (779) (458) 498 (1,234)
----------------------------------------------------
EARNINGS BEFORE INCOME
TAXES 51,943 37,138 166,925 102,435
INCOME TAXES
Current tax expense (19,265) (12,234) (45,612) (34,194)
Deferred tax recovery
(expense) 5,228 (3,610) (3,357) (8,160)
----------------------------------------------------
EARNINGS FOR THE PERIOD 37,906 21,294 $ 117,956 $ 60,081
Other comprehensive
(loss)
- Unrealized (loss) gain
on securities (1,065) 953 (2,350) (1,089)
- Reclassification of
realized losses on
available-for-sale
securities included in 1,971 (2,165) 2,366 (280)
earnings
- Impairment of
available-for-sale
securities - 1,621 - 1,621
----------------------------------------------------
COMPREHENSIVE INCOME 38,812 21,703 $ 117,972 $ 60,333
----------------------------------------------------
----------------------------------------------------
EARNINGS PER SHARE
- basic $ 0.31 $ 0.18 $ 0.98 $ 0.51
- diluted $ 0.31 $ 0.18 $ 0.98 $ 0.51
----------------------------------------------------
Weighted average number
of common shares
outstanding
- basic 120,796,000 118,308,000 119,861,000 117,375,000
- diluted 121,746,000 119,563,000 120,904,000 118,669,000
----------------------------------------------------
ALAMOS GOLD INC.
Consolidated Statements of Comprehensive Income
(Unaudited - stated in thousands of United States dollars, except per share
amounts)
For the three-month For the year
periods ended ended
December 31, December 31,
----------------------------------------
2012 2011 2012 2011
----------------------------------------
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Earnings for the period 37,906 21,294 $ 117,956 $ 60,081
Adjustments for items not involving
cash:
Amortization 18,115 6,880 50,678 23,423
Financing expense 148 151 536 598
Unrealized foreign exchange (gain)
loss 722 (3,469) (1,352) (353)
Deferred tax (recovery) expense (5,228) 3,610 3,357 8,160
Share-based compensation 876 3,260 7,634 13,525
(Gain) loss on sale of securities 1,390 (1,751) 460 (783)
Impairment of securities 0 1,621 - 1,621
Other (406) 205 (735) 954
Changes in non-cash working capital:
Fair value of forward contracts (150) 467 - (715)
Amounts receivable (4,142) (5,650) (18,865) (18,218)
Inventory 3,365 (1,157) (5,655) (6,572)
Advances and prepaid expenses (673) 1,393 (1,090) 1,019
Accounts payable, taxes payable and
accrued 17,248 10,421 31,672 23,794
liabilities
----------------------------------------------------------------------------
69,171 37,275 184,596 106,534
----------------------------------------------------------------------------
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Sale (purchases) of securities (6,470) 4,247 (185) (2,213)
Contractor advances - 16,200
Short-term investments (net) (17,785) 968 5,434 (11,242)
Proceeds on sale of equipment - - - 889
Decommissioning liability (26) (9) (1,172) (145)
Exploration and evaluation assets (7,307) (1,771) (18,561) (8,687)
Mineral property, plant and
equipment (9,511) (33,726) (38,815) (68,352)
----------------------------------------------------------------------------
(41,099) (14,091) (53,299) (89,750)
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Common shares issued 3,746 1,216 28,178 22,267
Dividends paid (12,073) (8,280) (24,023) (14,114)
----------------------------------------------------------------------------
(8,327) (7,064) 4,155 8,153
----------------------------------------------------------------------------
Effect of exchange rates on cash and
cash equivalents (731) (200) 1,133 (1,800)
----------------------------------------------------------------------------
Net increase in cash and cash
equivalents 19,014 15,920 136,585 23,137
Cash and cash equivalents -
beginning of period 287,042 153,551 169,471 146,334
----------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS - END OF
PERIOD 306,056 169,471 $ 306,056 $ 169,471
----------------------------------------------------------------------------
Table 3: Production Summary & Statistics (1)
---------------------------------------------------------------------------
Production summary Q4 2012 Q4 2011 YTD 2012 YTD 2011
---------------------------------------------------------------------------
Ounces produced (1) 67,800 46,500 200,000 153,000
Crushed ore stacked on leach pad
(tonnes) (2) 1,590,000 1,467,000 5,646,000 5,164,000
Grade (g/t Au) (2) 1.20 1.33 1.19 1.31
------------------------------------------
Contained ounces stacked 61,300 62,970 216,000 217,030
Crushed ore milled (tonnes) 57,800 - 176,500 -
Grade (g/t Au) 14.12 - 12.49 -
------------------------------------------
Contained ounces milled 26,200 - 70,900 -
Ratio of total ounces produced to
contained ounces 78% 74% 70% 71%
stacked and milled
Total ore mined (tonnes) 1,619,000 1,475,000 5,786,000 5,327,000
Waste mined (tonnes) 822,000 612,000 3,360,000 3,486,000
------------------------------------------
Total mined (tonnes) 2,441,000 2,087,000 9,146,000 8,813,000
Waste-to-ore ratio 0.51 0.41 0.58 0.65
Ore crushed per day (tonnes) -
combined 17,900 16,000 16,000 14,100
(1) Reported gold production for Q4 2011 and YTD 2011 has been adjusted to
reflect final refinery settlement. Reported gold production for Q4 2012
and YTD 2012 is subject to final refinery settlement and may be
adjusted.
(2) Excludes mill tailings stacked on the heap leach pad during the period.
Table 4: El Victor North - Select Composite Intervals(1)
Include intervals at greater than 0.30 g/t Au over a 3 metres minimum width,
no assay cut
----------------------------------------------------------------------------
TOTAL
DRILL DRILLING DEPTH FROM TO INT. GOLD
HOLE METHOD (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
12EV242 RC 213.41 28.96 33.54 4.58 0.413
77.74 153.96 76.22 2.040
Inc. 86.89 89.94 3.05 7.771
Inc. 131.10 132.62 1.52 6.92
167.68 173.78 6.10 0.907
----------------------------------------------------------------------------
12EV248 RC 217.65 42.30 51.30 9.00 0.436
54.30 56.95 2.65 0.969
84.55 89.10 4.55 0.799
99.60 117.35 17.75 0.724
121.85 145.20 23.35 0.905
148.20 199.00 50.80 1.735
Inc. 171.40 174.40 3.00 7.945
Inc. 175.40 176.90 1.50 10.80
----------------------------------------------------------------------------
12EV259 CORE 121.20 0.00 10.55 10.55 0.489
18.05 30.05 12.00 0.465
33.05 37.55 4.50 0.605
46.60 50.60 4.00 0.460
68.05 76.80 8.75 0.445
79.70 88.70 9.00 0.460
98.25 102.75 4.50 0.411
----------------------------------------------------------------------------
12EV282 RC 152.44 79.27 83.84 4.57 0.621
----------------------------------------------------------------------------
12EV288 RC 167.68 92.99 102.13 9.14 0.520
105.18 108.23 3.05 0.659
112.80 121.95 9.15 0.679
126.52 146.34 19.82 1.065
----------------------------------------------------------------------------
12EV289 RC 221.04 57.93 85.37 27.44 1.304
92.99 117.38 24.39 1.187
172.26 185.98 13.72 1.207
189.02 219.51 30.49 1.725
Inc. 216.46 217.99 1.53 5.460
----------------------------------------------------------------------------
12EV290 RC 152.44 114.33 120.43 6.10 0.751
----------------------------------------------------------------------------
12EV291 RC 137.20 102.13 105.18 3.05 0.421
----------------------------------------------------------------------------
12EV292 RC 291.16 256.10 260.67 4.57 0.473
----------------------------------------------------------------------------
12EV293 RC 138.72 No Intervals
----------------------------------------------------------------------------
12EV294 RC 251.52 166.16 170.73 4.57 0.695
173.78 195.12 21.34 0.466
202.74 234.76 32.02 0.966
----------------------------------------------------------------------------
(1) Due to the exploratory nature of this program and the variable
orientations of the mineralized zones, the intersections presented herein
may not necessarily represent the true width of mineralization
(2) RC = Reverse Circulation Hole
(3) Number in bold represent intervals greater than 35 metres x grams/tonne
(35gmt)
Table 5: East Estrella - Select Composite Intervals(1)
Include intervals at greater than 0.30 g/t Au over a 3 metres minimum width,
no assay cut
----------------------------------------------------------------------------
TOTAL
DRILL DRILLING DEPTH FROM TO INT. GOLD
HOLE METHOD (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
12SX064 CORE 200.7 79.50 105.05 25.55 1.798
132.80 135.20 2.40 1.844
142.70 157.70 15.00 0.719
----------------------------------------------------------------------------
12SX069 CORE 60.70 27.65 37.75 10.1 2.657
Inc. 32.70 34.75 2.05 4.97
----------------------------------------------------------------------------
12SX070 CORE 107.55 10.15 15.85 5.70 2.414
Inc. 12.85 14.35 1.50 6.56
70.95 76.90 5.95 0.543
83.15 87.65 4.50 1.416
98.25 105.75 7.50 0.672
----------------------------------------------------------------------------
12SX077 CORE 62.10 14.20 22.40 8.20 1.173
29.90 40.70 10.80 2.093
Inc. 33.65 35.15 1.50 8.43
----------------------------------------------------------------------------
12SX078 RC 121.95 42.68 56.40 13.72 0.646
----------------------------------------------------------------------------
12SX081 CORE 176.30 3.95 13.00 9.05 0.534
23.80 33.90 10.1 0.401
73.45 125.10 51.65 4.396
Inc. 73.45 78.90 5.45 9.983
Inc. 84.90 91.05 6.15 5.489
Inc. 92.20 94.70 2.05 6.01
Inc. 96.20 102.70 6.50 7.371
Inc. 113.15 114.65 1.50 7.35
129.60 134.11 4.50 0.494
138.60 140.95 2.35 1.27
148.65 151.70 3.05 0.517
----------------------------------------------------------------------------
12SX089 CORE 205.00 10.25 12.85 2.6 0.379
17.45 29.80 12.35 0.509
76.35 79.35 3.00 0.410
84.10 88.70 4.60 0.376
96.20 99.20 3.00 0.646
103.70 106.85 3.15 0.955
140.50 165.10 24.60 2.600
Inc. 151.05 152.55 1.50 5.750
Inc. 157.20 158.70 1.50 7.93
----------------------------------------------------------------------------
12SX091 RC 108.23 No Intervals
----------------------------------------------------------------------------
12SX092 RC 108.23 No Intervals
----------------------------------------------------------------------------
12SX093 RC 108.23 No Intervals
----------------------------------------------------------------------------
12SX094 RC 91.46 No Intervals
----------------------------------------------------------------------------
12SX095 RC 108.23 No Intervals
----------------------------------------------------------------------------
12SX096 RC 182.93 No Intervals
----------------------------------------------------------------------------
12SX097 RC 182.93 No Intervals
----------------------------------------------------------------------------
12SX098 RC 190.55 No Intervals
----------------------------------------------------------------------------
12SX099 RC 182.93 No Intervals
----------------------------------------------------------------------------
12SX100 RC 169.21 No Intervals
----------------------------------------------------------------------------
12SX101 RC 182.93 No Intervals
----------------------------------------------------------------------------
12SX102 RC 182.93 16.77 19.82 3.05 1.394
152.44 155.49 3.05 0.413
167.68 172.26 4.58 0.390
178.35 181.40 3.05 0.692
----------------------------------------------------------------------------
12SX103 RC 121.95 35.06 45.73 10.67 0.849
----------------------------------------------------------------------------
12SX104 RC 114.33 103.66 106.71 3.05 0.429
----------------------------------------------------------------------------
12SX105 RC 108.23 0.00 3.05 3.05 0.584
----------------------------------------------------------------------------
12SX106 RC 114.33 92.99 96.04 3.05 0.719
----------------------------------------------------------------------------
12SX107 RC 105.18 No Intervals
----------------------------------------------------------------------------
12SX108 RC 91.46 No Intervals
----------------------------------------------------------------------------
12SX109 RC 91.46 No Intervals
----------------------------------------------------------------------------
12SX110 RC 91.46 No Intervals
----------------------------------------------------------------------------
12SX111 RC 76.22 No Intervals
----------------------------------------------------------------------------
12SX112 RC 121.95 70.12 73.17 3.05 0.525
----------------------------------------------------------------------------
12SX113 RC 152.44 30.49 35.06 4.57 0.652
68.60 74.70 6.10 0.519
96.04 109.76 13.72 0.496
----------------------------------------------------------------------------
12SX114 RC 152.44 54.88 62.50 7.62 0.371
68.60 76.22 7.62 0.718
114.33 123.48 9.15 0.344
132.62 135.67 3.05 1.017
----------------------------------------------------------------------------
12SX115 RC 152.44 48.78 54.88 6.10 2.167
92.99 96.04 3.05 0.369
102.13 112.80 10.67 0.889
----------------------------------------------------------------------------
12SX116 RC 92.99 No Intervals
----------------------------------------------------------------------------
13SX117 RC 152.44 71.65 76.22 4.57 0.496
----------------------------------------------------------------------------
13SX118 RC 141.77 16.77 19.82 3.05 0.624
24.39 28.96 4.57 0.547
36.59 56.40 19.81 0.936
64.02 74.70 10.68 0.543
85.37 105.18 19.81 0.747
125.00 128.05 3.05 0.518
----------------------------------------------------------------------------
13SX119 RC 152.44 12.20 16.77 4.57 0.346
68.60 76.22 7.62 0.380
77.74 83.84 6.10 0.364
----------------------------------------------------------------------------
13SX120 RC 172.26 22.87 27.44 1.57 0.758
----------------------------------------------------------------------------
13SX121 RC 152.44 126.52 129.57 3.05 1.409
----------------------------------------------------------------------------
13SX122 RC 152.44 38.11 41.16 3.05 0.746
44.21 47.26 3.05 0.500
144.82 147.87 3.05 0.414
----------------------------------------------------------------------------
13SX123 RC 182.93 82.32 92.99 10.67 2.383
Inc. 83.84 85.37 1.53 10.85
97.56 100.61 3.05 2.789
----------------------------------------------------------------------------
13SX124 RC 169.21 144.82 147.87 3.05 0.316
----------------------------------------------------------------------------
13SX125 RC 121.95 No Intervals
----------------------------------------------------------------------------
13SX126 RC 182.93 112.80 147.87 35.07 0.579
----------------------------------------------------------------------------
13SX127 RC 137.20 79.27 82.32 3.05 0.357
----------------------------------------------------------------------------
13SX128 RC 182.93 4.57 13.72 9.15 0.669
16.77 19.82 3.05 2.664
48.78 53.35 4.57 0.742
71.65 86.89 15.24 1.116
91.46 102.13 10.67 0.912
----------------------------------------------------------------------------
(1) Due to the exploratory nature of this program and the variable
orientations of the mineralized zones, the intersections presented herein
may not necessarily represent the true width of mineralization
(2) RC = Reverse Circulation Hole
(3) Number in bold represent intervals greater than 35 metres x grams/tonne
(35gmt)
Table 6: East Estrella - Select Silver Composite Intervals(1)
Include intervals at greater than 30 g/t Ag over a 3 metres minimum width,
no assay cut
----------------------------------------------------------------------------
TOTAL
DRILL DRILLING DEPTH FROM TO INT. SILVER
HOLE METHOD (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
12SX064 CORE 200.70 39.65 97.55 3.9 32.218
----------------------------------------------------------------------------
12SX069 CORE 60.70 17.15 20.15 3.00 44.30
26.15 39.25 13.10 386.239
----------------------------------------------------------------------------
12SX070 CORE 107.55 10.15 15.85 5.70 1078.368
70.95 73.90 2.95 384.893
----------------------------------------------------------------------------
12SX077 CORE 62.10 12.70 23.90 11.20 82.906
32.90 42.20 9.30 403.194
----------------------------------------------------------------------------
12SX081 CORE 176.30 73.45 78.90 5.45 62.394
84.90 102.70 17.80 121.075
111.65 117.60 5.95 42.011
----------------------------------------------------------------------------
12SX089 CORE 205.00 105.35 109.85 4.50 42.167
149.55 160.20 10.65 83.245
----------------------------------------------------------------------------
12SX091 RC 108.23 13.72 18.29 4.57 92.10
----------------------------------------------------------------------------
12SX093 RC 108.23 9.15 12.20 3.05 59.90
----------------------------------------------------------------------------
12SX104 RC 108.23 30.49 36.59 6.10 72.63
----------------------------------------------------------------------------
12SX114 RC 152.44 132.62 135.67 3.05 33.64
----------------------------------------------------------------------------
(1) Due to the exploratory nature of this program and the variable
orientations of the mineralized zones, the intersections presented herein
may not necessarily represent the true width of mineralization
(2) RC = Reverse Circulation Hole
(3) Number in bold represent intervals greater than 2,140 metres x
grams/tonne (2,140gmt)
Table 7: San Carlos - Select Composite Intervals(1)
Include intervals at greater than 0.30 g/t Au over a 3 metres minimum width,
no assay cut
----------------------------------------------------------------------------
DRILL TOTAL
HOLE DRILLING DEPTH FROM TO INT. GOLD
(Azimuth/Inclination) METHOD (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
12EV242 RC 213.41 28.96 33.54 4.58 0.413
77.74 153.96 76.22 2.040
Inc. 86.89 89.94 3.05 7.771
Inc. 131.10 132.62 1.52 6.92
167.68 173.78 6.10 0.907
----------------------------------------------------------------------------
12EV248 RC 217.65 42.30 51.30 9.00 0.436
54.30 56.95 2.65 0.969
84.55 89.10 4.55 0.799
99.60 117.35 17.75 0.724
121.85 145.20 23.35 0.905
148.20 199.00 50.80 1.735
Inc. 171.40 174.40 3.00 7.945
Inc. 175.40 176.90 1.50 10.80
----------------------------------------------------------------------------
12EV259 CORE 121.20 0.00 10.55 10.55 0.489
18.05 30.05 12.00 0.465
33.05 37.55 4.50 0.605
46.60 50.60 4.00 0.460
68.05 76.80 8.75 0.445
79.70 88.70 9.00 0.460
98.25 102.75 4.50 0.411
----------------------------------------------------------------------------
12EV282 RC 152.44 79.27 83.84 4.57 0.621
----------------------------------------------------------------------------
12EV288 RC 167.68 92.99 102.13 9.14 0.520
105.18 108.23 3.05 0.659
112.80 121.95 9.15 0.679
126.52 146.34 19.82 1.065
----------------------------------------------------------------------------
12EV289 RC 221.04 57.93 85.37 27.44 1.304
92.99 117.38 24.39 1.187
172.26 185.98 13.72 1.207
189.02 219.51 30.49 1.725
Inc. 216.46 217.99 1.53 5.460
----------------------------------------------------------------------------
12EV290 RC 152.44 114.33 120.43 6.10 0.751
----------------------------------------------------------------------------
12EV291 RC 137.20 102.13 105.18 3.05 0.421
----------------------------------------------------------------------------
12EV292 RC 291.16 256.10 260.67 4.57 0.473
----------------------------------------------------------------------------
12EV293 RC 138.72 No
Intervals
----------------------------------------------------------------------------
12EV294 RC 251.52 166.16 170.73 4.57 0.695
173.78 195.12 21.34 0.466
202.74 234.76 32.02 0.966
----------------------------------------------------------------------------
(1) Due to the exploratory nature of this program and the variable
orientations of the mineralized zones, the intersections presented
herein may not necessarily represent the true width of mineralization
(2) RC = Reverse Circulation Hole
(3) Number in bold represent intervals greater than 35 metres x grams/tonne
(35gmt)
Table 8: Camyurt - Select Composite Intervals(1)
Include intervals at greater than 0.2 g/t Au over a 1.5 metres minimum
width, no assay cut
----------------------------------------------------------------------------
FROM TO INT. GOLD
DRILL HOLE (m) (m) (m) (g/t)
----------------------------------------------------------------------------
12-CYD-64 40.2 44.7 4.5 0.328
47.7 102.8 55.1 1.718
----------------------------------------------------------------------------
12-CYD-66 1 1.5 1.5 1.4
17 20 3 0.32
22.9 25.9 3 0.373
----------------------------------------------------------------------------
12-CYD-67 35.7 43.2 7.5 0.678
81.4 108.1 26.7 0.843
----------------------------------------------------------------------------
12-CYD-68 115 132 17 2.708
----------------------------------------------------------------------------
12-CYD-70 0 126.2 126.2 1.243
----------------------------------------------------------------------------
12-CYD-71 19 115.7 96.7 1.035
----------------------------------------------------------------------------
12-CYD-69 0 3.3 3.3 0.595
14.8 18.6 3.8 0.252
26.6 31 4.4 0.603
42.1 47 4.9 0.596
54 80 26 0.866
----------------------------------------------------------------------------
12-CYD-72 55.5 74.4 18.9 0.95
80.4 104 23.6 2.9
----------------------------------------------------------------------------
12-CYD-74 0 28.3 28.3 1.173
34.8 39.7 4.9 1.232
----------------------------------------------------------------------------
12-CYD-75 0 41.4 41.4 0.608
54.2 61.6 7.4 0.381
----------------------------------------------------------------------------
12-CYD-77 68.6 70 1.4 0.225
73 88.2 15.2 0.697
117.9 125 7.1 0.351
126.2 127.7 1.5 0.2
129.2 130.7 1.5 0.334
133.7 135.2 1.5 0.281
136.7 137.7 1 0.646
138.7 151 12.3 0.781
184.7 186.2 1.5 0.305
188.9 192.5 3.6 0.546
213.5 251 37.5 0.637
254 269.4 15.4 0.584
----------------------------------------------------------------------------
12-CYD-78 0 1.5 1.5 0.301
2.9 4.3 1.4 6.877
23.5 25 1.5 0.253
130.9 136.5 5.6 0.417
144.9 146.4 1.5 0.218
156.2 164.3 8.1 0.571
175.6 178.2 2.6 0.316
194.5 215 20.5 0.448
225.3 230.7 5.4 0.526
----------------------------------------------------------------------------
12-CYD-79 105.2 108.7 3.5 2.082
135.6 162.2 26.6 0.845
----------------------------------------------------------------------------
12-CYD-81 0 14.5 14.5 1.153
68 69.6 1.6 0.233
74 75.5 1.5 0.221
77 93.8 16.8 0.983
----------------------------------------------------------------------------
12-CYD-82 129.4 143.7 14.3 2.878
----------------------------------------------------------------------------
(1) Due to the exploratory nature of this program and the variable
orientations of the mineralized zones, the intersections presented
herein may not necessarily represent the true width of mineralization
(2) Number in bold represent intervals greater than 35 metres x grams/tonne
(35gmt)
Table 9: Agi Dagi - Select Composite Intervals - Core Drilling(1)
Include intervals at greater than 0.2 g/t Au over a 1.5 metres minimum
width, no assay cut
----------------------------------------------------------------------------
FROM TO INT. GOLD
DRILL HOLE (m) (m) (m) (g/t)
----------------------------------------------------------------------------
11-AD-542 110.5 119.5 9 0.48
130 136.1 6.1 0.54
170.4 174.9 4.5 0.74
188.4 195.9 7.5 0.59
227.4 236.6 9.2 0.73
----------------------------------------------------------------------------
11-AD-546 17.5 29.4 11.9 0.49
120.6 170.9 50.3 2.18
including
161.4 168.5 7.1 7.23
----------------------------------------------------------------------------
12-AD-561 89.5 97.3 7.8 0.37
119 122 3 0.27
361.9 363.4 1.5 4.89
----------------------------------------------------------------------------
12-AD-562 71.5 74.5 4.5 0.33
243 246 3 0.21
291 298.7 7.7 0.31
----------------------------------------------------------------------------
12-AD-564 223.5 232.5 9 0.23
256.4 269 12.6 0.27
273.1 284.4 11.3 1.04
----------------------------------------------------------------------------
12-AD-567 2 11 9 0.28
184.1 194.5 10.4 0.32
198.7 211.1 12.4 0.48
311.3 316.6 5.3 0.21
----------------------------------------------------------------------------
12-AD-566 256.7 262.7 6 0.54
292.4 297.4 5 0.22
312.4 327.9 15.5 0.49
----------------------------------------------------------------------------
12-AD-569 224.7 227.7 3 0.54
255.7 258.7 3 0.59
274.9 285.4 10.5 0.24
409.8 414.3 4.5 0.35
----------------------------------------------------------------------------
12-AD-571 254.1 261.4 7.3 0.39
316.7 322.4 5.7 0.93
449.3 455.2 5.9 0.26
----------------------------------------------------------------------------
13.5 15 1.5 0.2
19.5 51 31.5 0.37
54 55.5 1.5 0.22
61.5 63 1.5 0.25
66 87 21 0.33
91.5 93 1.5 0.42
108 109.5 1.5 0.21
112.5 115.5 3 0.35
171 178.5 7.5 0.28
----------------------------------------------------------------------------
199.9 231.1 31.2 0.54
239.1 247.2 8.1 0.32
302.1 313.5 11.4 0.22
----------------------------------------------------------------------------
94.5 102 7.5 0.296
121.5 124.5 3 0.408
----------------------------------------------------------------------------
71.2 83.1 11.9 0.619
89.2 101.8 12.6 0.47
110.8 121.8 11 1.088
132.3 136.1 3.8 0.547
303.6 310.3 6.7 0.51
----------------------------------------------------------------------------
30.5 34.5 4 0.536
70.1 73.1 3 0.329
83.6 88.1 4.5 0.577
143.9 146.6 2.7 3.162
----------------------------------------------------------------------------
101.1 138.8 37.7 0.451
150.8 170.8 20 0.334
227.5 232 4.5 0.28
238.3 245.4 7.1 0.378
----------------------------------------------------------------------------
5.5 18.7 13.2 0.323
154.8 169.3 14.5 0.333
212 216.1 4.1 0.522
245.8 248.8 3 0.352
----------------------------------------------------------------------------
1.5 3 1.5 0.463
24 27 3 0.244
31.5 33 1.5 0.328
93.2 94.7 1.5 0.296
117.5 119.1 1.6 0.304
120.6 122.1 1.5 0.399
179.4 182.5 3.1 0.388
234.7 236.2 1.5 0.27
245.3 248.2 2.9 0.252
257.4 261.6 4.2 0.23
267.6 278.1 10.5 0.325
284.2 287.3 3.1 0.242
----------------------------------------------------------------------------
12-AD-584 1.4 34.5 33.1 0.288
40.5 47 6.5 0.267
50.7 52.2 1.5 0.314
74.7 76.2 1.5 0.232
80.7 82.2 1.5 0.358
----------------------------------------------------------------------------
12-AD-585 4 12.8 8.8 0.34
86.5 91 4.5 0.268
205.7 259.5 53.8 0.33
282.2 330.4 48.2 0.514
----------------------------------------------------------------------------
12-A-586 0 15 15 0.54
----------------------------------------------------------------------------
12-A-588A 55.5 60 4.5 0.433
72 79.5 7.5 0.256
103.5 106.5 3 0.364
127.5 132 4.5 1.549
----------------------------------------------------------------------------
12-A-590 34.5 36 1.5 0.641
52.5 61.5 9 0.426
85.5 91.5 6 0.322
----------------------------------------------------------------------------
12-AD-590 103.1 104.8 1.7 0.248
108.1 111.1 3 0.796
114.1 127.6 13.5 0.444
151.5 153 1.5 0.397
----------------------------------------------------------------------------
12-A-592 16.5 18 1.5 0.297
21 22.5 4.5 0.21
57 64.5 7.5 0.293
67.5 69 1.5 0.248
76.5 78 1.5 0.422
82.5 91.5 9 0.664
----------------------------------------------------------------------------
12-A-593 60 91.5 31.5 0.328
97.5 99 1.5 0.208
----------------------------------------------------------------------------
12-A-594 9 26.5 17.5 0.73
----------------------------------------------------------------------------
12-AD-588A 125.6 131.2 5.6 2.361
----------------------------------------------------------------------------
12-AD-597 0 2.3 2.3 0.27
----------------------------------------------------------------------------
12-AD-596 178 196 18 0.311
----------------------------------------------------------------------------
12-AD-598 6 9 3 0.306
153.6 158.4 4.8 0.292
231.9 234.9 3 0.314
237.9 250.7 12.8 0.735
260 271.6 11.6 0.356
----------------------------------------------------------------------------
12-AD-601 89.2 94.2 5 0.971
----------------------------------------------------------------------------
12-AD-603 20.1 25.6 5.5 0.319
36.3 39 2.7 1.309
46 49.7 3.7 0.336
64.5 67.5 3 0.306
100.2 123.7 23.5 0.768
236.5 239.5 3 0.296
----------------------------------------------------------------------------
12-AD-604 208.2 214 5.8 0.232
217 224.5 7.5 0.264
----------------------------------------------------------------------------
12-AD-577 3.5 6.8 3.3 0.249
80 81.5 1.5 0.539
117.4 127.9 10.5 0.315
130.9 135.4 4.5 0.259
144.4 148.9 4.5 0.439
189.6 191.1 1.5 0.388
204.8 210.8 6 0.372
218.3 221.3 3 0.235
----------------------------------------------------------------------------
12-AD-582 31 37 6 0.235
125.5 138.5 13 0.419
162.5 212.5 50 0.37
226 230.5 4.5 0.247
233.5 271.8 38.3 0.403
300.4 302.9 2.5 0.266
----------------------------------------------------------------------------
12-AD-609 40.5 43.5 3 0.309
117 126 9 0.743
151.5 194 42.5 1.372
----------------------------------------------------------------------------
12-AD-594 11.3 13.5 2.2 0.571
17 20 3 0.397
23 39.5 16.5 0.445
47 48.5 1.5 0.363
53 59 6 0.911
63.5 66 2.5 0.399
----------------------------------------------------------------------------
12-AD-610 21 27 6 0.31
33 38.4 5.4 0.237
60.9 72.9 12 0.468
77.4 78.9 1.5 0.214
81.9 83.4 1.5 0.365
96.9 101.4 4.5 0.269
107.4 110.4 3 0.29
113.4 126.9 13.5 0.29
131.4 147.9 16.5 0.389
152.4 153.5 1.1 0.276
----------------------------------------------------------------------------
12-AD-612 24.9 30.9 6 0.589
53.4 60.9 7.5 0.386
71 75.5 4.5 0.37
117.9 120.9 3 0.334
132.9 146.4 13.5 0.318
159.8 162.8 3 0.305
164.3 165.8 1.5 0.339
----------------------------------------------------------------------------
12-AD-613 16.2 28.2 12 0.294
32.7 35.7 3 0.232
49.2 52.2 3 0.268
----------------------------------------------------------------------------
(1) Due to the exploratory nature of this program and the variable
orientations of the mineralized zones, the intersections presented herein
may not necessarily represent the true width of mineralization
(2) Number in bold represent intervals greater than 35 metres x grams/tonne
(35gmt)
Table 10: Kirazli - Select Composite Intervals - Core Drilling(1)
Include intervals at greater than 0.2 g/t Au over a 1.5 metres minimum
width, no assay cut
----------------------------------------------------------------------------
FROM TO INT. GOLD
DRILL HOLE (m) (m) (m) (g/t)
----------------------------------------------------------------------------
12-KD-194 4.5 29.8 25.3 0.527
43.3 44.8 1.5 0.278
49.2 50.7 1.5 0.241
52.2 72.3 20.1 0.465
75.2 76.8 1.5 0.548
79.8 99.4 19.6 0.261
106.9 202.1 95.2 0.422
206.1 209.1 3 0.279
----------------------------------------------------------------------------
12-KD-195 183 186 3 0.279
205.5 208.7 3.2 0.225
----------------------------------------------------------------------------
12-KD-198 4.2 25.1 20.9 0.72
34.1 37.2 3.1 0.26
111.1 114.6 3.5 0.815
----------------------------------------------------------------------------
12-KD-196 39.8 43 3.2 0.975
45.8 46.8 1 0.24
103.7 109.7 6 0.37
119.3 123.8 4.5 0.397
----------------------------------------------------------------------------
12-KD-200 134.5 144.8 10.3 5.948
----------------------------------------------------------------------------
12-KD-201 8.8 12.3 3.5 0.213
24.8 25.8 1 0.397
46.7 49.7 3 0.233
95.4 96.9 1.5 0.2
99.9 101.4 1.5 0.378
104.4 114.9 10.5 0.567
137.6 144.6 7 0.273
----------------------------------------------------------------------------
12-KD-199 0 13.9 13.9 1.819
----------------------------------------------------------------------------
12-KD-202 69 87.6 18.6 0.348
94.9 237.5 142.6 0.219
----------------------------------------------------------------------------
12-KD-203 0 3.6 3.6 1.428
----------------------------------------------------------------------------
12-KD-204 5 10.2 5.2 0.226
----------------------------------------------------------------------------
12-KD-205 0 32.6 32.6 1.62
137.7 142.2 4.5 0.259
154.2 155.7 1.5 0.274
169 171.6 2.6 1.819
----------------------------------------------------------------------------
12-KD-208 3 25.6 22.6 2.211
61 100 39 1.023
113.5 119.5 6 0.313
----------------------------------------------------------------------------
(1) Due to the exploratory nature of this program and the variable
orientations of the mineralized zones, the intersections presented herein
may not necessarily represent the true width of mineralization
(2) Number in bold represent intervals greater than 35 metres x grams/tonne
(35gmt)
To view Figure 1: El Victor North highlighted drill results, please visit the following link: http://media3.marketwire.com/docs/AGIQ4FIG1.pdf.
To view Figure 2: East Estrella highlighted drill results, please visit the following link: http://media3.marketwire.com/docs/AGIQ4FIG2.pdf.
To view Figure 3: San Carlos highlighted drill results, please visit the following link: http://media3.marketwire.com/docs/AGIQ4FIG3.pdf.
To view Figure 4: Camyurt highlighted drill results, please visit the following link: http://media3.marketwire.com/docs/AGIQ4FIG4.pdf.
The TSX and NYSE have not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Alamos Gold Inc.
Jo Mira Clodman
Vice President, Investor Relations
(416) 368-9932 x 401
www.alamosgold.com
