Alio Gold Inc (TSX:ALO) (NYSE MKT:ALO) (“Alio
Gold” or the “Company”), is pleased provide new results from its
exploration drill program at its 100% owned Ana Paula project in
Guerrero, Mexico. The 2,000 metre drill program to twin 11 holes
within the proposed pit is being carried out to confirm previous
drilling and to obtain samples for metallurgical testing.
2017 Drill Highlights
- First two holes confirm the presence of high-grade
mineralization and the lithology of the previous drilling that were
incorporated in the current Mineral Resource Estimate (‘MRE’) dated
May 16, 2017 as per the NI 43-101 Preliminary Feasibility
Study1
- Drill hole 17-04 intersected 99.4m (from 51.9m to 151.3m2) of
10.8 g/t gold
- Drill hole 17-05 intersected 74.0m (from 96.0m to 170.0m) of
6.2 g/t gold
“The results of our first two metallurgical
sample drill holes are a reminder of the high-grade nature of the
breccia system within our proposed open pit at Ana Paula,” said
Greg McCunn, Chief Executive Officer. “These holes are similar in
grade and lithology to the previously drilled holes and compare
favorably to the block model. These results further validate our
decision to proceed with constructing an underground decline to
test the known extension of the high-grade breccia system outside
the current MRE, below the proposed pit.”
These results are from the first two of eleven
proposed drill holes in the metallurgical sample drilling program
within the proposed open pit. Results from the third and
fourth holes are expected in early November and drilling of the
sixth hole is currently in progress. Representative samples from
the drill core will be sent for metallurgical testing which is
expected to be completed in Q1 2018. The metallurgical results will
be part of the Definitive Feasibility Study which is currently
underway and expected to be published in the second quarter of
2018.
Recently, the Company initiated an extensive
exploration program at Ana Paula which includes:
- Twin hole drilling within the proposed open pit for
metallurgical samples (this release);
- Exploration drilling from an underground decline targeting an
extension to the high-grade breccia below the proposed open pit and
a skarn target below the breccia (decline construction to commence
in Q4 2017 with drilling by end Q2 2018);
- Surface drilling to test a high priority target that is 100
metres north of the proposed open pit (drilling to commence after
metallurgical sample drilling in Q1 2018), and
- Regional exploration work on the 56,000 hectare land package
including an airborne magnetic survey targeting further breccia or
skarn targets (ongoing into 2018).
Current Results from Metallurgical
Sample Drilling 2017
Drill Hole Number |
Mineral Drill Intersections |
From (m) |
To (m) |
Width (m) |
Au (g/t) |
APM-17-041 |
0.0 |
23.5 |
23.5 |
0.97 |
|
33.7 |
44.9 |
11.2 |
1.30 |
Including |
73.5 |
78.3 |
4.9 |
10.79 |
|
51.9 |
151.3 |
99.4 |
10.78 |
Including |
87.9 |
151.3 |
63.4 |
15.27 |
APM-17-05 |
96.0 |
170.0 |
74.0 |
6.17 |
Results of the previous drilling are shown
below:
Drill Hole Number |
Mineral Drill Intersections |
From (m) |
To (m) |
Width (m) |
Au (g/t) |
AP-12-111(twin APM-17-04) |
0.0 |
174.5 |
174.5 |
5.45 |
includes |
72.3 |
77.1 |
4.9 |
14.29 |
includes |
87.9 |
164.2 |
76.3 |
10.57 |
and |
89.0 |
102.6 |
13.6 |
16.20 |
and |
114.3 |
117.0 |
2.7 |
41.26 |
and |
120.7 |
128.2 |
7.5 |
13.25 |
and |
131.6 |
135.2 |
3.6 |
15.73 |
and |
143.6 |
146.0 |
2.4 |
11.64 |
and |
148.5 |
149.6 |
1.1 |
10.15 |
and |
156.0 |
157.9 |
1.9 |
17.27 |
also |
180.0 |
187.5 |
7.7 |
1.76 |
|
192.0 |
198.8 |
6.8 |
3.14 |
|
208.2 |
240.0 |
31.9 |
1.14 |
includes |
210.5 |
215.6 |
5.1 |
4.16 |
|
244.5 |
279.4 |
34.9 |
1.27 |
includes |
256.0 |
267.5 |
11.5 |
2.59 |
AP-16-260(twin APM-17-05) |
19.0 |
30.0 |
11.0 |
0.66 |
|
94.5 |
197.0 |
102.5 |
3.80 |
including |
123.0 |
164.0 |
41.0 |
8.09 |
1 For more information on the Ana Paula mineral
reserves and mineral resources, see the Ana Paula technical report
entitled “NI 43-101 Preliminary Feasibility Study, Guerrero,
Mexico”, dated May 16, 2017 which is available on Alio Gold’s SEDAR
profile at www.sedar.com. Mineral resources that are not mineral
reserves do not have demonstrated economic viability
2 151.25 metres was the end of the hole
About Alio Gold
Alio Gold is a growth oriented gold mining
company, focused on exploration, development and production in
Mexico. Its principal assets include its 100%-owned and
operating San Francisco Mine in Sonora, Mexico and its 100%-owned
development stage Ana Paula Project in Guerrero, Mexico. Located
within the highly prospective Guerrero Gold Belt on 56,000 hectares
of underexplored land the Ana Paula Project is a high-grade, high
margin project currently in the definitive feasibility stage. An
underground decline to provide access for an exploration drill
program has been initiated targeting the continuation of the
high-grade gold mineralization below the proposed pit which has the
potential to significantly enhance the robust economics of the
project. The Company also has a portfolio of other exploration
properties, all of which are located in Mexico.
Investor Contact
Lynette GouldVice President, Investor
Relations604-638-8976lynette.gould@aliogold.com
Qualified Person
The scientific and technical content of this
news release has been reviewed and approved by Paul Hosford, BSc,
P.Eng, a ‘Qualified Person’ as defined by National Instrument
43-101 – Standards of Disclosure for Mineral Projects.
Cautionary Note to United States
InvestorsThe Company is subject to the reporting
requirements of the applicable Canadian securities laws, and as a
result it reports its mineral reserves and resources according to
Canadian standards. Canadian reporting requirements for disclosure
of mineral properties are governed by NI 43-101. The definitions of
NI 43-101 are adopted from those given by the Canadian Institute of
Mining, Metallurgy and Petroleum. U.S. reporting requirements are
governed by Industry Guide 7 (“Guide 7”) of the Securities and
Exchange Commission (the “Commission”). These reporting standards
have similar goals in terms of conveying an appropriate level of
confidence in the disclosures being reported, but embody different
approaches and definitions.
The Company reports “resources” in accordance
with NI 43-101. While the terms “Mineral Resource,” “Measured
Mineral Resource,” “Indicated Mineral Resource” and “Inferred
Mineral Resource” are recognized and required by Canadian
regulations, they are not defined terms under standards of the
Commission and generally, U.S. companies are not permitted to
report resources in documents filed with the Commission. As such,
certain information contained in this news release describing
mineralization and resources under Canadian standards is not
comparable to similar information published by United States
companies subject to the reporting and disclosure requirements of
the Commission. It cannot be assumed that all or any part of
Measured or Indicated Resources will ever be converted into Mineral
Reserves, and it cannot be assumed that all or any part of an
Inferred Mineral Resource exists, or is economically or legally
mineable. Under Industry Guide 7, mineralization may not be
classified as a “reserve” unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. In
addition, an Inferred Mineral Resource has a great amount of
uncertainty as to its existence and as to its economic and legal
feasibility, and it cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of a feasibility study. In
addition, the definitions of “Proven Mineral Reserves” and
“Probable Mineral Reserves” under CIM standards differ in certain
respects from the standards of the Commission.
For detailed technical information related to
the Company’s exploration, development, and operating assets,
please refer to the Company’s website at www.aliogold.com or
the most recent Annual Information Form available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Cautionary Note Regarding
Forward-Looking StatementsCertain statements and
information contained in this news release constitute
“forward-looking statements” within the meaning of applicable U.S.
securities laws and “forward-looking information” within the
meaning of applicable Canadian securities laws, which we refer to
collectively as “forward-looking statements”. Forward-looking
statements are statements and information regarding possible
events, conditions or results of operations that are based upon
assumptions about future economic conditions and courses of action.
All statements and information other than statements of historical
fact may be forward-looking statements. In some cases,
forward-looking statements can be identified by the use of words
such as “seek”, “expect”, “anticipate”, “budget”, “plan”,
“estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”,
“potential”, “target”, “may”, “could”, “would”, “might”, “will” and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an outlook.
Forward-looking statements in news release
herein by reference include, but are not limited to statements and
information regarding: the Company's future mining activities,
including mining capacity, recovery, cash costs, production and
mine life; the Company's reserves and resources estimates; the
Company’s exploration and development plans, including anticipated
costs and timing thereof; the Company’s plans for growth through
exploration activities, acquisitions or otherwise; and expectations
regarding future maintenance and capital expenditures, working
capital requirements, the availability of financing and future
effective tax rates. Such forward-looking statements are based on a
number of material factors and assumptions, including, but not
limited to: that contracted parties provide goods or services in a
timely manner, that no unusual geological or technical problems
occur, that plant and equipment function as anticipated and that
there is no material adverse change in the price of gold, costs
associated with production or recovery. Forward- looking statements
involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements, or
industry results, to differ materially from those anticipated in
such forward-looking statements. The Company believes the
expectations reflected in such forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and you are cautioned not to place undue
reliance on forward-looking statements contained herein.
Some of the risks and other factors which could
cause actual results to differ materially from those expressed in
the forward- looking statements contained in this news release
herein by reference include, but are not limited to: risks and
uncertainties relating to the interpretation of drill results, the
geology, grade and continuity of mineral deposits and conclusions
of economic evaluations; results of initial feasibility,
pre-feasibility and feasibility studies, and the possibility that
future exploration, development or mining results will not be
consistent with the Company’s expectations; risks relating to
possible variations in reserves, resources, grade, planned mining
dilution and ore loss, or recovery rates and changes in project
parameters as plans continue to be refined; mining and development
risks, including risks related to accidents, equipment breakdowns,
labour disputes (including work stoppages and strikes) or other
unanticipated difficulties with or interruptions in exploration and
development; the potential for delays in exploration or development
activities or the completion of feasibility studies; risks related
to the inherent uncertainty of production and cost estimates and
the potential for unexpected costs and expenses; risks related to
commodity price and foreign exchange rate fluctuations; the
uncertainty of profitability based upon the cyclical nature of the
industry in which the Company operates; risks related to failure to
obtain adequate financing on a timely basis and on acceptable terms
or delays in obtaining governmental or local community approvals or
in the completion of development or construction activities; risks
related to environmental regulation and liability; political and
regulatory risks associated with mining and exploration; risks
related to the uncertain global economic environment; and other
factors contained in the section entitled “Risks and Uncertainties”
per above.
Although the Company has attempted to identify
important factors that could cause actual results or events to
differ materially from those described in the forward-looking
statements, you are cautioned that this list is not exhaustive and
there may be other factors that the Company has not identified.
Furthermore, the Company undertakes no obligation to update or
revise any forward-looking statements included in, or incorporated
by reference in, this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Neither the TSX nor its Regulation Services
Provider (as that term is defined in the policies of the TSX) nor
the New York Stock Exchange MKT accepts responsibility for the
adequacy or accuracy of this news release.
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