Alamos Gold Inc. · TSX:AGI
Alamos Gold — Shareholder Meeting (May 2006)
23 slides from Alamos Gold's shareholder meeting presentation, May 24, 2006
Slide 1: Operations Report AGM 24 May 2006
TSX: AGI February, 2006 An emerging intermediate gold producer Operations Report AGM 24 May 2006 Operations Topics • Overview • 2006 Objectives • Expansion to 15,000 tpd • Production to date • Plan for the remainder of the year • Target objectives for gold production • Leach pad construction • Escon
Slide 2: Overview
Overview 15,000 tpd heap leach Plant & Facilities 140-155,000 Au oz per year 9 million tonnes mined in pit 17,000 tpd crusher $210 – 225 per oz. 48”x60” Jaw 7’ standard 7’ short head x2 20,000 tpd overland conveyor 160,000 sq m leach pad 25,000 tpd ADR plant 6 mw power plant Overview Cont. • $73 M C
Slide 3: 2006 Objectives; Expansion from 10,000 tpd to 15,000 tpd
2006 Objectives • Complete expansion to 15,000 Q2, 2006 • Produce gold at $210 - 225/oz • Reduce operating costs • Continue Reserve development in Salto, Mina Vieja and Escondida • Complete the access road • Discover more deposits in the Mulatos District • Design recovery plant for Escondida Hanging
Slide 4: Mine production and pad loading; Target objectives for gold production
Mine production and pad loading Mine Production Pad Loading (000 Tonnes) (000 Tonnes) Period Ore Waste Total ROM Crushed Total 2005 800 5,276 6,076 800 800 Q1 – 06 1,118 2,273 3,391 782 332 1,114 Q2 – 06 1,320 2,576 3,896 586 727 1,313 Q3 – 06 1,320 2,576 3,896 191 1,170 1,361 Q4 – 06 1,320 2,575 3,
Slide 5: Leach pad construction
Leach pad construction Phase One A 160,000 sq m Expansion storm Phase Two - Expansion water pond 2005 Phase One B 200,000 sq m 2006 New leach pad - 22 May 2006 5
Slide 6: Escondida Mill; Road Improvement and Construction
Escondida Mill • Al Hayden and Maurice Tagami contracted to complete the mill option trade-off study • Metallurgical samples ready for testing • Heap leach tests contemplated • 2000 tpd is minimum size • 2000 tpd allows pulp agglomeration without a tailings dam • Higher recovery from higher grade Es
Slide 7: Impact on Sonora and Mexico
Impact on Sonora and Mexico • Direct employment 352 • Indirect employment at 3:1 1,056 • Annual payroll including benefits and taxes US$6,000,000 • Annual gold production in ounces 140 to 155,000 Impact to the town of Mulatos • Employees from Mulatos 25 • Contractor employees from Mulatos 7 • Curren
Slide 8: Major New Sierra Madre Advanced Projects/Mines
Major New Sierra Madre Advanced Projects/Mines New Mines/ Advanced Development Projects – Sierra Madre, Mexico • Sauzal (HS) – production • Palmarejo (LS) - exploration 2.3 Moz Au 136M oz Ag 3.9 Moz Ag 1 M oz Au • Mulatos (HS) - production • Pinos Altos (LS) - exploration 4.1 Moz Au 2.1M oz Au • Oca
Slide 9: Focus on: Commercial production, reserves, regional exploration
Focus on: ACHIEVING COMMERCIAL PRODUCTION EXPANDING RESERVES REGIONAL EXPLORATION 2
Slide 10: Mulatos Deposit Resource Expansion Program
Focus on: ACHIEVING COMMERCIAL PRODUCTION EXPANDING RESERVES REGIONAL EXPLORATION Mulatos Deposit Resource Expansion Program 3
Slide 11: Escondida/Gap/El Victor/San Carlos Model and UG Drill Plan
Escondida/Gap/El Victor/San Carlos Model and UG Drill Plan Exploration Drift Escondida/El Victor Drifting • 1534 m total progress to date • 523 m remaining • Escondida drifting: 9381 t shipped to leach pads (92%) • 1.37 g/t Au, 5.9 g/t Ag average grade • El Victor portion advancing while drilling Es
Slide 12: Escondida Underground Drilling Program
Escondida Underground Drilling Program • Two rigs • 93 holes completed (7876m) • 28 holes remaining (2100m) • Completion - July • Continued difficult drilling due to extremely hard, broken core and recovery issues • Drill crew staffing becoming problematic Escondida Underground Drilling – challengin
Slide 13: Escondida Hangingwall Zone Au
Escondida Hangingwall Zone Au • Missed by three previous drill campaigns • Coarse native gold with barite • Gold to 4mm • Highest assays in deposit: 100- 540 g/t Au Escondida Hanging Wall Zone Plan Map 6
Slide 14: Escondida Hanging Wall Zone Long and Cross Section
Escondida Hanging Wall Zone Long Section Escondida Hanging Wall Zone Cross Section 7
Slide 15: EHWZ Large-diameter Core Drilling Program
EHWZ Large-diameter Core Drilling Program • Core twins of high- grade intervals for met and bulk sample test work. • Seven holes, 194m • Variable recovery due to highly fractured and broken extremely hard silica. EHWZ Characteristics • Native gold very loosely held on fractures and in vugs. • Gold l
Slide 16: Greater Mulatos Deposit Mineralized Areas
Greater Mulatos Deposit Mineralized Areas El Salto - Mina Vieja – Escondida Long Section 9
Slide 17: 1885 Mina Vieja Stope Map
1885 Mina Vieja Stope Map Greater Mulatos Deposit Mineralized Areas 10
Slide 18: El Victor Underground Development and Drilling Program
El Victor Underground Development and Drilling Program • 930m total development in two drifts • EVE: 4410t shipped, 1.01 g/t Au, 7.5 g/t Ag • EVW: 4983t shipped, 0.91 g/t Au, 12.5 g/t Ag • 31 core holes completed (1852m) • 50 holes remaining (6000m) remaining Resource Estimation Projections • Origin
Slide 19: San Carlos High-grade Zone
Known High-Grade Mineralized Areas Known areas of high-grade (+1 opt) Primary mineralized structures San Carlos High-grade Zone • K3 : 9m @ 12.1 g/t Au • K67: 4.57m @ 22.4 g/t Au K67 K3 Y San Carlos Adit El Victor 12
Slide 20: Puerto del Aire
Puerto del Aire • 15 holes (3273m) drilled to date • Previous high- grade intercepts. • Deep, 100-200m • Extension of Mulatos mineralization • Additional holes pending Focus on: ACHIEVING COMMERCIAL PRODUCTION EXPANDING RESERVES REGIONAL EXPLORATION 13
Slide 21: 2006 Mulatos Resource Expansion and District Exploration Program
2006 Mulatos Resource Expansion and District Exploration Program • 3 Phase IV (Resource and reserve definition) Escondida, El Victor, Gap • 3 Phase III (Step-out drilling of multiple intercepts) West Bajios, Realito, San Carlos • 3 Phase II (Mineralized intercepts) Jaspe, Halcon, Yaqui • 2 Phase I (
Slide 22: West Bajios Project
El Realito Mine Area Phase I Drilling • Phase I – 14 holes • Best intercept 24.4 m of 5.98 g/t Au in 04RE007 • Strongly oxidized system; Sauzal-style high sulfidation • Visible gold • Stage Undrilled rockI chip drilling restricted to gold central anomalies400m of system Rock chip gold anomaly 0 250m
Slide 23: El Jaspe Phase I Drilling
El Jaspe Phase I Drilling • 34 holes drilled (4566m) • Blind discovery of extensive thick (<95m) stratiform silica-sulfide breccia • Breccia moderately to strongly gold anomalous • Local strong Ag + Cu concentrations • Awaiting Phase II drilling 16