Canada-based producer Alamos Gold (TSX:AGI) has intersected higher grade gold within newly discovered zones located 10m to 200m south of the existing resources and reserves within its operational underground mine, Young-Davidson, in Ontario.
Drilling at the 9620 Level returned a peak intercept of 22m @ 7.41 grams per tonne (g/t), including 6m @ 15.84g/t, while drilling at the 9500 Level returned a hit of 15.55m @ 10.73g/t.
President and CEO John McCluskey says this represents a new style of mineralisation at Young-Davidson, hosted in the hanging wall.
“This is a new style of higher-grade mineralisation, near our existing underground infrastructure, which has the potential to provide meaningful production upside,” he says.
The grades intersected are well above the current reserve grade of 2.31g/t, according to Alamos.
Young-Davidson has proven and probable reserves of about 3.3 million ounces and measured, indicated and inferred resources of around 1.3 million ounces.
Alamos expects the mine, which is located within the Abitibi Greenstone Belt, to produce between 180,000 and 195,000 ounces in 2024.
Drilling is aimed at extending the mineralisation within the Young Davidson syenite rock, which hosts the majority of the reserves and resources.
“Young-Davidson is a consistent, long-life operation with a long-track record of mineral reserve replacement having maintained at least a 13-year mineral reserve life since 2011,” McCluskey says.
“With the deposit open at depth and to the west, we expect this track record to continue well into the future as we extend gold mineralisation within the Young-Davidson syenite.”
Alamos has committed $12 million to its 2024 exploration campaign, which is a $4 million increase over the previous year.
This includes 21,600m of underground exploration drilling and 1,070 m of underground exploration development to extend drill platforms on multiple levels.
Since the start of May, Alamos has drilled 9,610m across 26 holes from the 9220 West exploration drift, 9025 East footwall drift, 9305 East transfer and the 9620 Hanging wall drift.
Write to Angela East at Mining.com.au
Images: Alamos Gold
