Tuesday,
May 6, 2008
Alamos Gold Inc. Provides Operations and Corporate Updates;
Announces
Notice of Release of
First Quarter 2008 Results and Annual and Special Meeting
Toronto, Ontario Alamos
Gold Inc. (TSX: AGI) (?Alamos? or the ?Company?) is pleased to report continued
positive operating and corporate developments. The Company also announces that
it will release its financial results for the first quarter of 2008 on
Thursday, May 15, 2008, after market close. In addition, the Company announces
that its Annual and Special Meeting of Shareholders will be held at 4:30PM on
Thursday, May 15th, 2008 at the Toronto Stock Exchange ? Gallery at the
Exchange Tower, 130 King Street West, Toronto, Ontario.
Record monthly gold production at
the Mulatos mine in the month of April 2008 exceeded 12,000 ounces. Monthly
gold production in 2008 has demonstrated continued improvement, increasing from
10,700 ounces in January to 12,115 ounces in April 2008.
The new conveying and stacking
system was commissioned in April 2008 and has been successfully operating since
the start of May. The conveying and stacking system is expected to contribute
to higher gold recoveries.
Other key construction projects
including the new warehouse, truck shop, laboratory, camp improvements and
leach pad expansion are substantially complete and are expected to
significantly benefit future mining operations.
The Company has generated strong
cash flows from operations throughout the first four months of 2008. As a
result of high available cash balances, the Company has undertaken to reduce
the majority of its interest-bearing debt. The Company recently elected to call
for redemption all convertible debentures outstanding as at April 28, 2008.
Accordingly, the CDN$1.5 million convertible debenture liability was redeemed
through the issuance of 258,677 common shares of the Company and the repayment
of CDN$0.1 million. As a result, the Company had no outstanding convertible
debenture liability at April 30, 2008.
In addition, the Company has issued
a notice to its creditor of its intention to repay $5.5 million or approximately
70% of its capital lease obligation.
Appointment
of Vice-President, Corporate Development
The Company is pleased to announce the appointment of Dr. Charles Tarnocai to
the Company?s management team as Vice-President, Corporate Development. Dr.
Tarnocai brings a wealth of experience and technical expertise to the Company.
In his previous roles as Chief Geologist for Oro Silver and as Senior Project
Geologist and Technical Specialist for Placer Dome Exploration, Dr. Tarnocai
was responsible for evaluations of advanced stage projects and acquisitions
throughout North America, with a particular focus on Mexico. Dr. Tarnocai was a
key member in the team involved in the Cortez Hills discovery on the Battle
Mountain trend in Nevada. Dr. Tarnocai has significant experience with the
Mulatos deposit from his involvement as Technical Specialist and Advisor prior
to the development of the Mulatos mine. Dr. Tarnocai holds a Ph.D. in Geology
from University of Ottawa and a Bachelor of Science (Geology) from Brock
University.
Alamos is a
Canadian-based gold producer with operations, exploration and development
activities in Mexico. The Company employs approximately
400 people in Mexico and is committed to the highest standards of environmental
management, social responsibility, and health and safety for its employees and
neighbouring communities. Alamos is fully leveraged to increases in gold
prices. Alamos? common shares are traded on the Toronto Stock Exchange under
the symbol ?AGI?.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
John
A. McCluskey
|
Victoria
Vargas
|
President and Chief Executive
Officer
|
Investor Relations
|
Tel: 416-368-9932
|
Tel: 416-368-9932 x201
|
|
Email: vvargas@alamosgold.com
|
_________________________________________________________________________
The TSX has not reviewed and does
not accept responsibility for the adequacy or accuracy of this release.
No stock exchange, securities
commission or other regulatory authority has approved or disapproved the
information contained herein. This news release includes certain
?forward-looking statements?. All statements other than statements of
historical fact included in this release, including without limitation statements
regarding gold production, gold recoveries, cash flows from operations,
available cash balances, outstanding convertible debentures, capital lease
obligations and/or future plans and objectives of Alamos, are forward-looking
statements that involve various risks and uncertainties. These forward-looking
statements include, but are not limited to, statements with respect to past
expected production or future anticipated production, which may be subject to
final refinery settlement or audit, estimates of costs of production and
operating margins, projected recovery rates, anticipated future production
rates and mine life, operating efficiencies, mining rates, costs and
expenditures, changes in mineral resources and conversion of mineral resources
to proven and probable reserves, cash flows from operations and available cash
balances and other information that is based on forecasts of future operational
or financial results, estimates of amounts not yet determinable and assumptions
of management. These statements may be subject to change, and any changes could
be material.
Any statements that express or
involve discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions, or future events or performance (often,
but not always, using words or phrases such as "expects" or
"does not expect", "is expected", "anticipates"
or "does not anticipate", "plans", "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or
"will" be taken, occur or be achieved) are not statements of
historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in
the forward-looking statements.
There can be no assurance that
forward-looking statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from Alamos? expectations include, among others, risks related to
international operations, the actual results of current exploration activities,
conclusions of economic evaluations and changes in project parameters as plans
continue to be refined as well as future prices of gold and silver, as well as
those factors discussed in the section entitled ?Risk Factors? in Alamos?
Annual Information Form. Although Alamos has attempted to identify important
factors that could cause actual results to differ materially, there may be
other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements.
.