Minera Alamos Adds New Gold Project to Its PortfolioBy Alejandro Ehrenberg | Wed, 08/05/2020 - 11:07
Minera Alamos announced it has finalized definitive agreements to acquire the Cerro de Oro gold project in Zacatecas, subject to approval from the TSXV. The project consists of two concessions bounded by existing Minera Alamos concessions. The acquisition will bolster the company’s total claim holdings in the Concepcion del Oro district to approximately 6,500ha in size.
“The Cerro de Oro gold project has many characteristics that mimic the El Castillo gold mine our team developed under the Castle Gold Corporation banner from 2007 until its eventual sale in 2010,” said Darren Koningen, CEO of Minera Alamos. “Cerro de Oro contains a large disseminated gold system with a significant oxidation profile and a low implied strip ratio with the majority of mineralized areas outcropping at surface. Northern Zacatecas has a rich mining history and hosts some of the largest gold deposits in north-central Mexico. We look forward to working with the local community and Mexican mining authorities to rapidly advance permitting and establish a new mine in the district,” Koningen added.
The company reported that disseminated gold and skarn related mineralization at Cerro de Oro is represented by a gold porphyry system. The deposit is divided into two zones by an east-west fault. Initial drilling was conducted in the 1990s by Noranda and comprised 20 widely-spaced holes on approximately 100m to 200m spacings, Minera Alamos noted. Subsequent groups have completed approximately 4,000m of additional drilling that served to infill the Noranda program and extend the known mineralization to depths of up to 100-150m. All drill data for the project is currently being evaluated towards the completion of a NI 43-101 compliant resource estimate, the company pointed out.
“The team at Minera Alamos is extremely excited to have added the Cerro de Oro project to our pipeline of gold development projects for less than 1 percent dilution of our existing issued share capital. We will continue to pursue complementary asset level acquisitions that serve the best interests of our shareholders,” stated Doug Ramshaw, President of Minera Alamos. “Recent disposals of some non-core equity holdings have more than covered the initial payments for this new acquisition, even including our minimum planned expenditures as we initiate permitting related activities for the Cerro de Oro project in 2H20,” he commented.
Minera Alamos’ timely project development, coupled with soaring gold prices, has resulted in a rising share price. During a conversation in March with Mexico Business News, Ramshaw pointed out that the company’s target was C$0.50 (US$0.38) a share, which would put it at a C$200 million (US$150.8 million) market cap. The company’s shares now list at almost C$0.70 (US$0.53). “If we tick our internal boxes, our success will be multilayered. Slow and steady wins the race. If we manage to get up to 200,000 oz a year with our cost structure, the company could be worth a great deal more. A billion-dollar company is not unthinkable. As a team, there is a sense of fun and adventure, looking toward the future. We love operating in Mexico and are excited to build more mines after we complete our current projects,” he stated.