Minera Alamos Advances in Key Developments at the Santana Project

Minera Alamos provided a status update regarding the mining activities at its Santana gold mine in Sonora, Mexico. Furthermore, the company announced that it has signed a new agreement to gain additional financial flexibility for mining and development activities at the Nicho Main Zone (NMZ) and Nicho Norte operations.

In a press release, the company announced that the development of the NMZ is progressing steadily, since the access and transport road is practically completed, as is as the removal process of vegetation and surface cover. Moreover, Minera Alamos emphasized that after the start of mining activities, as pit areas begin to expand, it will be able to reach a greater scale of the NMZ, which will help increase extraction rates to levels planned for commercial operation.

"This advancement of the Nicho Main Zone is a significant and positive development and the final major milestone in the ramp-up of operations at Santana. The development of the second and larger pit will provide access to the main source of known mineralization at the project supplementing current starter pit operations and allowing the company to ultimately exit the project's pre-commercial phase of production," stated Darren Koningen, CEO, Minera Alamos.

Regarding the Nicho Norte Operations, Minera Alamos reported that to date 18,000oz of gold have been mined and stockpiled on the leach pad, along with 7,000oz of gold recovered from concentrate. The company explained that its operations were affected by severe drought in May, an issue that that has strongly impacted Sonora in recent years. However, Minera Alamos said that the upcoming rainy season, between June and September, will restore its water reservoirs and further accelerate the recovery of accumulated gold in leach pads in 3Q22.

In addition, Minera Alamos explained that with the recently acquired explosives storage permit, the company now carries out all its production drilling and blasting activities. The company highlighted that with the permit, it has reduced blasting costs by 80 percent and improved the programming of sequences between blasting and operation. Additionally, Minera Alamos announced that its on-site laboratory will be operational in the coming weeks. The company said the new lab will allow it test samples faster, which is key to maintaining effective mine and plant production controls.

Minera Alamos also announced that to add financial flexibility to mining activities at the Nicho Norte and NMZ open pits, the company signed for Ocean Partners USA's US$3 million unsecured working capital facility. Minera Alamos said it has worked with Ocean Partners in the past and believes the new facility will be an engine for growth at the Santana project.