TORONTO, ONTARIO–(Marketwired – Aug. 18, 2015) – Minera Alamos Inc. (the "Company" or "Minera Alamos") (TSX VENTURE:MAI) outlined today its near-term objectives for the development of its Los Verdes copper-molybdenum project in Sonora, Mexico. As previously reported (Press Release dated April 22, 2015) the Company is in the process of moving towards a production decision, targeting project construction to commence in 2016. Minera Alamos intends to issue an updated Preliminary Economic Assessment (the "PEA") prior to the end of the year.
"The introduction of new technologies and re-sizing of the operation requires us to revisit most aspects of the plan," said Chris Frostad, CEO, Minera Alamos Inc. "Key work requirements and responsibilities have been defined and work is now well underway."
Los Verdes – Primary Work Packages
Testing is now underway to evaluate the effect of rock sorting on the economics of the project. The "starter pit" identified within the existing 43-101 compliant resource model for Los Verdes contains average grades approaching 2.0% CuEq (1). By eliminated low-grade rock after crushing, there is further potential to improve that grade by 50-100% prior to processing, resulting in significant reductions in capital and operating costs. Completion of this test work is currently scheduled for late September 2015.
The Company intends to initiate definition drilling on the Los Verdes North Deposit (formerly Potreritos) in order to update the historic resource to NI 43-101 compliant standards. This will allow for consideration of its inclusion in the PEA thereby extending the current mine life. With permits already in hand, drilling activities are set to begin immediately and be complete by late October 2015.
The Company's existing EIS permit (issued in 2009) covered the environmental impact of the construction of the Los Verdes processing plant and related infrastructure. Minera Alamos, working with a local consultant, is currently preparing a schedule of required updates to that permit as well as all additional permits that will be necessary leading up to a production decision.
The Company will soon begin a detailed plan for the mining of the starter pit. That work should begin early in September and be complete for inclusion in the PEA.
Plant Re-Design and Equipment Sourcing
The Company intends to complete the updated engineering plans for a reduced scale processing operation. These specifications will be used to source appropriate equipment suppliers and initiate a review of available used equipment for the project prior to the completion of the upcoming PEA.
The town of Santa Ana, which is located close to the Los Verdes deposit, has a population of approximately 300 residents who hold the surface rights over much of the Minera Alamos mineral concessions. The Company has maintained a positive and ongoing relationship with the leadership of the community and its residents who have been supportive of a return to mining in the region. The Company is currently working to finalize the terms of a surface rights agreement with the town.
About Minera Alamos
Minera Alamos is a junior exploration and development company. Its flagship project is the Los Verdes open pit copper-molybdenum project in Sonora, Mexico that is currently in development.
(1) Copper equivalent grades (CuEq) are based on metal prices of: copper (Cu) US$2.75 per lb, molybdenum (Mo) US$8.25 per lb and silver (Ag) US$16.00 per oz. The starter pit contains measured resources of 1,070,000 tonnes at 1.33% Cu and 0.16% Mo, plus indicated resources of 230,000 tonnes at 1.44% Cu and 0.14% Mo determined at a cut-off grade of 1% Cu
Mr. Darren Koningen, P. Eng., Minera Alamos Inc.'s President, is the Qualified Person responsible for technical content of this release. Mr. Koningen has supervised the preparation of, and approved the scientific and technical disclosures utilized in this news release.
Investors should note that a feasibility study has not been completed and at this time there is no certainty that the proposed operation will be economically or technically viable.
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