Good call..here is the news..
Alamos begins exploration in Mexico; warrants exercised
Alamos Gold Inc AGI
Shares issued 34,153,249 Jul 23 close $1.17
Thu 24 Jul 2003 News Release
Mr. John McCluskey reports
ALAMOS GOLD INC.: EXPLORATION STARTS AT MULATOS AND SALAMANDRA; COMMUNITY
RELATIONS UPDATE-WARRANTS BRING IN $2.3 MILLION GRANT OF INCENTIVE STOCK
OPTIONS
Alamos Gold has retained the services of Ken Balleweg, MSc geology, to
manage exploration at the Mulatos deposit and the Salamandra district. Mr.
Balleweg was with Placer Dome Exploration as senior project geologist for
the Mulatos project and manager of the Mexico exploration program from 1997
to 1999. He was on Placer's Mulatos district regional evaluation team in
1994, the Sierra Madre reconnaissance program in 1995 and the Mexico
exploration program in 1996.
Mr. Balleweg's reinterpretation of the Mulatos deposit led to the discovery
of 1.5 million additional gold ounces at the Escondida and Gap zones. His
work in the El Halcon area resulted in the discovery of the Los Bajios
area. Alamos's holdings in Sonora state comprise over 16,000 hectares of
mineral claims. Exploration this summer is covering areas within the
Mulatos deposit and eight additional zones within the district.
Mulatos exploration
The exploration plan at the Mulatos deposit is focused on increasing the
ore grade. Previous exploration activities were focused on defining bulk
tonnage mineralization. No attempt was made to delineate high-grade gold
domains and structural controls that are clearly exposed in the extensive
1,061 metres of underground tunnels. Bench level maps from the Placer Dome
resource model indicate northeast and northwest structural control on
higher-grade gold, with domains of higher-grade mineralization up to 100
metres long and 50 metres wide.
A detailed mapping survey of surface and underground structure and
alteration was recently completed to define the structural controls of
high-grade gold mineralization. Through this work, Alamos has identified
areas amenable to selective mining early in the project life, identified
additional areas of oxide mineralization and open mineralization, allowed
tightening of grade distribution in the new resource model, and defined
drill targets for a 1,500-metre underground core drilling program to
commence in August.
Previous drilling from the surface resulted in numerous holes being
oriented subparallel to some of the primary structural controls of
high-grade gold. Underground drilling will allow exploration of the
higher-grade structures normal to their trend, and is expected to encounter
higher-grade oxide mineralization missed by surface drilling. Results from
the study and drilling are expected in the fourth quarter.
A surface reverse circulation drilling program will also be conducted at
the Mulatos deposit to target structurally controlled high-grade
mineralization in two adjacent zones discovered in previous drilling
programs. Previous work targeted the large-tonnage replacement
mineralization marginal to the structures. Structural zones were not
drill-tested. Drill intercepts with visible gold and containing greater
than one ounce per ton were not targeted with follow-up drilling. The
surface drilling program will target the structural roots of the historic
mine area which produced a significant tonnage of free-milling high-grade
ore.
Salamandra district exploration
A regional exploration program will be focused on discovering new
mineralization in areas of extensive alteration located within eight
concessions controlled by Alamos in the Salamandra gold district. Alamos
recently discovered silicified breccias in the central Bajios area similar
to those closely associated with gold in the main Mulatos deposit. An
induced polarization survey is planned to delineate drill targets in the El
Halcon and Los Bajios areas supplemented by detailed alteration mapping and
sampling in areas of outcropping or projected near-surface mineralization.
The previous owners discovered outcroppings of gold-copper and gold
mineralization in the Los Bajios area in 1999, but these targets were not
pursued.
Alamos's recent discovery of advanced argillic alteration commonly found
near gold mineralization led to the staking of a new area south of the
Mulatos deposit. The "Carboneras" zone may be an extension of the Mulatos
system or a new subsidiary system. Reconnaissance exploration with PIMA
(portable infrared mineral analyzer) alteration mapping and geochemical
analyses will be undertaken on the new concession.
Aster remote sensing imagery has been obtained for the greater Mulatos
district which is helping to identify additional areas of alteration on the
concessions similar in nature to those known to contain gold deposition.
Community relations update
Agrarian court proceedings stemming from two disputes concerning the
company's contractual rights to reduce surface areas leased and payments to
the Ejido Mulatos (the surface rightsholders) have been completed. The
judge's rulings in these cases are expected soon. Ejido Mulatos officials
and the company have been conducting meetings and are forming a committee
to promote communications. The company is nearing completion of interviews
with community members to identify concerns and establish a baseline of
information. Access road improvements and evaluation of utility services
has begun. Work is being provided through exploration, sampling,
metallurgical testing, construction and camp services programs.
Warrants exercised and grant of incentive stock options
Warrants to purchase 2,586,250 common shares of Alamos at 90 cents per
share were exercised by shareholders by the July 22, 2003, expiry date,
increasing Alamos's working capital to $2.7-million.
Alamos has granted incentive stock options to some of its directors and
consultants under its stock option plan to purchase up to a total of
682,483 common shares of the company. The options are exercisable at a
price of $1.13 per share for a five-year period.
Alamos's stock option plan received shareholder approval on June 26, 2003,
and TSX Venture Exchange acceptance on July 10, 2003.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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