Alamos Gold Inc (AGI)

[amarksp]

this research report dated 3/19/03 is of interest:

http://www.alamosgold.com/i/pdf/McFarlaneGordon-AGI-19Mar2003.pdf

GAMEPLAN:
Alamos Gold has yet to establish a final mine plan or project scope. Currently, the company is progressing with a Mulatos gameplan as follows:
1. The company would like to resolve the issue it has with the Ejido relating to the holding costs for surface rights to the mine area. This issue revolves around the agreement Placer Dome entered into with the Ejido that called for payment of US$350,000 per year and required Placer to hold the surface area related to this payment for 6 years. After the 6th year the company had the right to reduce the acreage. The sixth year having passed, AGI cut back the landholding and adjusted the payment down to US$52,000, and the Ejido challenged the
reduction. A judge is expected to rule in the next 1-2 months on the right of AGI to reduce landholdings and payments.
2. The company would like to complete its metallurgical work which is projected to require 6 months and involve sampling the underground workings through existing tunnels at Mulatos. Choosing the ideal crush size to optimize recoveries at reasonable cost is the focus of this study.
3. The company would like to complete an in-house feasibility study that would call for contract mining of 12,000 tonnes of ore per day to produce annually 150,000 ounces based on the PAH study parameters with improved recovery and targeting the larger orebody.
4. The company would like to start production at Mulatos on a small scale, self mining about 1,000 tpd, to garner knowledge on optimization of the leach process through sorting of the mined material. Again, improving recovery rates is the focus of this initiative. This mining phase is expected to commence early
spring 2004.