Santana operations 2024 outlook

Toronto, Ontario - (Newsfile – February 22nd, 2024) 

Minera Alamos Inc. (the “Company” or “Minera Alamos”) (TSX VENTURE:MAI) is pleased to provide an operations update for the Santana gold project outlining updated plans for expanding mining and processing operations over the next year.

“Last year was challenging for both our operations and our shareholders. However, we are optimistic that 2024 will see significant positive advancements at the Santana gold mine,” stated Darren Koningen, CEO. “A newly modelled approach to the development of Santana utilizing the existing leach pad capacity will allow mining and stacking operations to increase significantly from 2023 levels. We are currently finalizing plans for the year and concluding our discussions with our mining contractor to implement the new production plans.  In parallel we will continue our active conversations regarding approval of our permit amendments covering the future development for the Santana mine.”

2024 Outlook

In late 2023, the Minera operations team evaluated a series of operation scenarios aimed at balancing future planned leach pad expansion (awaiting permit amendments) against a shorter-term plan to expand mining and stacking activities using the current permitted pad space. Modelling results supported a plan of operations that can be conducted prior to any pad expansion required for longer term production plans. During 2023, the Company initiated some advanced development activities at the Nicho Main zone as preparation for the new plan of operations.  This included:

• Pioneering/pre-stripping of waste material within the proposed 2024 mining areas.
• Blasting and crushing studies using material from the Nicho Main zone to determine any significant differences in the rock mechanical properties versus those for the Nicho Norte starter pit operations that were the focus of 2021-2023 mining.

Approximately 20,000 oz of gold at an average grade of 0.63 g/t and an approximate strip ratio of 1.6:1 has now been defined for mining and loading over a 12-month schedule utilizing the current leach pad installed capacity.  Included in the current plan are an additional 4,500 oz of higher grade (~1 g/t) mineralized material.  Due to its elevated gold content, this mineralization will be stockpiled initially for future processing pending additional studies to determine an optimal approach for crushing and processing to maximize recoveries.

The Company is working to conclude discussions with its mining contractor to prepare their equipment and personnel for the revised operational plan and expansion of mining and stacking activities. Included in the plan are minor modifications to the crushing equipment to help with processing and gold recoveries. Subject to a successful conclusion of the current discussions, the Company anticipates the upgrades to the Santana operations will be phased in over the next month or so which will allow production levels to significantly increase from 2023 levels.

Further details regarding the Company’s 2023 full year financial results will be provided prior to the end of April 2024 along with ongoing updates regarding the new plan for the Santana mining operations.

Cautionary Statement

The Company made its production decision at the Santana gold mine without having completed a feasibility study demonstrating economic and technical viability. As such, there may be increased uncertainty of achieving planned production levels, estimated recovery of gold, the costs associated with such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure.

Mr. Darren Koningen, P. Eng., Minera Alamos’ CEO, is the Qualified Person responsible for the technical content of this press release under National Instrument 43-101.

For Further Information Please Contact:

Minera Alamos Inc.                                                    
Doug Ramshaw, President
Tel: 604-600-4423
Email: dramshaw@mineraalamos.com

Victoria Vargas de Szarzynski, VP Investor Relations
Tel: 289-242-3599
Email: vvargas@mineraalamos.com

Website: www.mineraalamos.com

 

About Minera Alamos Inc.

Minera Alamos is a gold production and development Company undergoing the operational start-up of its first gold mine that produced its first gold in October 2021. The Company has a portfolio of high-quality Mexican assets, including the 100%-owned Santana open-pit, heap-leach mine in Sonora that is currently going through its operational ramp up. The 100%-owned Cerro de Oro oxide gold project in northern Zacatecas has considerable past drilling and metallurgical work completed and the proposed mining project is currently being guided through the permitting process by the Company’s permitting consultants. The La Fortuna open pit gold project in Durango (100%-owned) has a positive, robust preliminary economic assessment (PEA) completed, and the main Federal permits are in place. Minera Alamos is built around its operating team that together brought three open pit heap leach gold mines into successful production in Mexico over the last 13 years.

The Company’s strategy is to develop very low capex assets while expanding the projects’ resources and continuing to pursue complementary strategic acquisitions.