Alio Gold Inc (TSX:ALO) (NYSE AMERICAN:ALO) (“Alio
Gold” or the “Company”), is pleased to provide an update on its
exploration program at its 100% owned Ana Paula Project (the
“Project” or “Ana Paula”). Ana Paula is a high grade, high
margin project located in Guerrero, Mexico.
Highlights
- Discovered two new breccia targets within 1.5 km west of the
Ana Paula deposit through surface mapping as part of the regional
exploration program
- Completed 1,300 metres of the planned 3,800 metre surface drill
program testing the known extension of the high-grade breccia below
the proposed open pit
- Completed two of six diamond drill holes, third underway with
one diamond drill rig operating
- Intersected breccia mineralization in first two holes as
anticipated, assay results expected this month
- Progressed underground decline construction with mining
equipment including jumbo drill rig, scoop and two trucks
mobilising to site from port
“We have made good progress on the exploration
program in the first two months of the year” said Greg McCunn, CEO
of Alio. “The discovery of two new breccia targets
outcropping at surface and within close proximity to the existing
Mineral Resource is an exciting development and shows the potential
of our 56,000 hectare land package. The surface drilling to
test the known extension of the breccia below the proposed pit is
designed to allow us to more fully understand the nature and extent
of the mineralization ahead of drilling from underground.
With the decline construction now fully underway, we expect to be
in a position to start drilling from underground in Q3 2018.”
Regional Exploration
As part of the ongoing regional exploration
activity, the Company has been compiling higher resolution (1:5,000
scale) geological mapping of areas surrounding the Ana Paula
deposit. Mapping to the west recently identified two breccia
outcrops within 1.5 kilometres from the Ana Paula deposit.
The high-grade breccia mineralization at Ana
Paula is predominantly a hydrothermal breccia surrounded by a
sediment-intrusive domain. The two west breccia targets are
outcroppings of magmatic and hydrothermal breccia mineralization
with traces of pyrite and arsenopyrite.
Further exploration work is being undertaken in
the area including sampling, mineralogy and more detailed
mapping.
Surface Drilling Program
The main objective of the current exploration
program at Ana Paula is to further delineate the known extension of
the high-grade breccia mineralization below the proposed open
pit. A second objective is to test a lower-grade hydrothermal
breccia structure lying south of the proposed pit. A 3,800
metre diamond drilling program was initiated in January 2018 which
consists of six drill holes of 600 to 700 metres each.
The Company has had one drill rig in operation
since late January, has completed the first two drills holes and is
currently drilling the third hole. A total of 1,300 metres
has been drilled to-date. The first hole intersected the
hydrothermal breccia system over a mineralized interval of
approximately 180 metres and the higher grade complex breccia below
the proposed pit over a 27 metre interval. Similarly, the
second hole also intersected the hydrothermal breccia over
approximately 177 metres and the complex breccia over a 31 metre
interval. Assay results will published as they become
available and drilling is expected to be complete in Q1 2018 when
the drill will be moved to the North Area target.
Figure 1 - Surface drill holes
projectionhttp://www.globenewswire.com/NewsRoom/AttachmentNg/8f69e2b0-9942-4ca8-b190-08db4bead113
Decline Construction and Underground Drilling
Program
The extension of the high-grade breccia system
below the proposed pit will be further tested from drilling
underground in Q3 2018. Currently, a 1,200 metre underground
decline is under construction which is being driven from a portal
site located in the adjacent valley from the proposed pit and
approximately 400 metres from the proposed mill site. It is
expected that the underground decline will be advanced sufficiently
by Q3 2018 to enable commencement of the first phase of the
underground diamond drill program. The drill program is expected to
confirm the continuity and shape of the high-grade gold
mineralization below the proposed pit that is hosted in the breccia
and it will also explore the gold mineralization indications at
depth hosted in hornfels skarn, typical of the Guerrero Gold Belt.
The underground drilling program proposed includes 55 diamond drill
holes (12,000 metres).
Currently the portal site has is being prepared
with bolting, screening and shotcreting by the mining
contractor. Mining equipment including a jumbo drill rig,
scoop and two trucks will be arriving on site in the next
week. Currently, drilling is being conducted by jack-leg
drilling. Mining operations are currently taking place on 24
hours per day, 7 days per week basis.
Support infrastructure construction is
continuing with the 100-person camp site fully prepared for the
arrival of the modular units this month. A power line is
being installed to the camp and the mine portal area and a
communications tower will be operational in Q2 2018.
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. The drill program will target 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.
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
parametres 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.
Source: ALO
For further information, please
contact:
Lynette GouldVice President, Investor
Relations604-638-8976lynette.gould@aliogold.com
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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