Alio Gold Inc (TSX:ALO) (NYSE MKT:ALO) (“Alio
Gold” or the “Company”), is pleased to provide the final drill
results from the 2,000 metre drill program to twin previous drill
holes within the pre-feasibility pit for metallurgical test work
samples at its Ana Paula project in Guerrero, Mexico.
Highlights
- Final drill results received from the 2,000m drill program for
metallurgical sampling, confirm high-grade mineralization and
lithology in the Mineral Resource Estimate (‘MRE’) dated May 16,
2017 as per the NI 43-101 Preliminary Feasibility Study
- Drill hole 17-13 intersected 112.0m (from 8.0m to 120.0m) of
3.85 g/t gold
- Drill hole 17-14 intersected 33.1m (from 116.9m to 150.0m) of
7.07 g/t gold
- Drill hole 17-15 intersected 54.6m (from 11.6m to 66.2m) of
7.19 g/t gold
“These final results of the drill program are
again a reminder of the high-grade nature of the breccia
mineralization within the proposed open pit at Ana Paula and give
us further confidence in our existing block model,” said Greg
McCunn, Chief Executive Officer. “We are excited to be turning our
attention to testing the extension of the breccia zone below the
proposed pre-feasibility study pit with a 6 hole, 4,000 metre
program that is expected to begin in early January. This surface
drill program will be undertaken in parallel to the construction of
the underground decline which is being driven into the mineralized
area to allow further drill testing from underground.”
Twin hole drilling program for
metallurgical samples
This program which is now completed, was
intended to provide sufficient material within the proposed open
pit for metallurgical testing. Drill results for hole APM-17-04 and
APM-17-05 were previously announced on October 24th, 2017 and drill
hole APM-17-06 through APM-17-10 were previously announced on
December 4th, 2017.
Hole NB |
Material |
Azimuth |
Dip |
DepthFrom |
Depth To |
Au (gpt) |
Interval length(m) |
EstimatedTrue Width |
APM-17-11 |
HALO |
90 |
-60 |
124.0 |
136.0 |
6.84 |
12.0 |
N/A |
including |
|
|
|
129.6 |
130.5 |
20.90 |
0.9 |
|
and including |
|
|
|
133.3 |
134.7 |
37.50 |
1.4 |
|
APM-17-11 |
HALO |
|
|
153.2 |
180.0 |
2.67 |
26.8 |
N/A |
including |
|
|
|
155.1 |
156.4 |
20.80 |
1.3 |
|
APM-17-11 |
HALO |
|
|
210.0 |
232.0 |
3.37 |
22.0 |
N/A |
APM-17-12 |
HALO |
90 |
-50 |
71.1 |
76.0 |
2.55 |
5.0 |
N/A |
|
HALO |
|
|
161.2 |
164.8 |
2.03 |
3.7 |
N/A |
APM-17-13 |
HALO |
90 |
-45 |
8.0 |
120.0 |
3.85 |
112.0 |
N/A |
Including |
|
|
|
31.5 |
33.0 |
39.10 |
1.5 |
|
and including |
|
|
|
93.5 |
95.3 |
52.70 |
1.8 |
|
APM-17-14 |
HALO |
90 |
-50 |
53.5 |
63.0 |
0.76 |
9.5 |
N/A |
|
HALO |
|
|
116.9 |
150.0 |
7.07 |
33.1 |
|
Including |
|
|
|
125.4 |
126.9 |
34.40 |
1.6 |
|
APM-17-15 |
HALO |
90 |
-75 |
11.6 |
66.2 |
7.19 |
54.6 |
N/A |
APM-17-16 |
HALO |
90 |
-50 |
22.0 |
34.0 |
1.09 |
12.0 |
N/A |
APM-17-17 |
INTRS |
90 |
-80 |
78.8 |
84.8 |
0.76 |
6.0 |
3.7 |
Note on true width calculation:For the complex breccia and
surrounding halo mineralization and in the monolithic breccia
(MBX), the calculation of a true width is inappropriate since these
units are not tabular. For the mineralization outside of these
units (i.e. sediments (SED) and intrusive (INTRS)) the true width
can be estimated since the mineralization is likely following the
stratigraphy.
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 Pierre Desautels, P.
Geo, a ‘Qualified Person’ as defined by National Instrument 43-101
– Standards of Disclosure for Mineral Projects who is an
independent consultant to the company.
Quality Assurance/Quality
Control
Drill holes reported in this press release were
drilled using PQ sized diamond drill bits. Company personal were
located at the at the drill site. Contractors and employees of Alio
Gold conducted all logging and sampling. The core was logged,
marked up for sampling using standard lengths of approximately 1.5
meters. Samples were then collected by sawing a ¼ of the PQ core
using a diamond saw with the remaining ¾ portion of the PQ core
retained for metallurgical test work. The samples were catalogued
and placed into sealed bags and securely stored at the site until
it was shipped to sample preparation laboratory owned by ALS Chemex
in Guadalajra, Mexico. The core was dried and crushed and
pulverized to 85% passing 75 microns. The pulps were then shipped
for assay to the ALS Chemex located in Vancouver, Canada. At that
location, the samples were analysed for gold using fire assay with
an atomic absorption finish (FA-AA) on a 50 gram charge. Samples
returning over 10 grams per tonnes were re-assayed using a fire
assay with a gravimetric finish. Samples were also analyzed for a
suite of 35 elements using Aqua Regia Inductively coupled plasma
atomic emission spectroscopy (ICP-AES). Over limits for silver,
arsenic, zinc were re-assayed using a ore grade ICP-AES method.
Quality control procedures included the systematic insertion of
blanks, duplicates and sample standards into the sample stream. In
addition, The Labs inserted their own quality control samples.
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, an Inferred Mineral Resources has a lower level of
confidence than an Indicated Mineral Resources and it is reasonably
expected that the majority of Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration.
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 the quantity and grade of reported Inferred resources are
conceptual in nature, and are estimated based on limited geological
evidence and sampling. Geological evidence is sufficient to imply
but not verify geological and grade or quality continuity. For
these reasons, Inferred Mineral Resources has a lower level of
confidence than Indicated Mineral Resources and it is reasonably
expected that the majority of Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration.
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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