Alamos Gold reported the financial and operating results for the second quarter ended June 30, 2009, provide some drilling highlights from the Puerto del Aire (“PdA”) Extension, Gap, Escondida, and Cerro Pelon areas, and outlook for the second half of 2009. Consolidated earnings for the second quarter of 2009 were $13.0 million, or $0.12 per share, compared with $6.2 million or $0.06 per (diluted) share in the second quarter of 2008. During the quarter, the Company sold 45,420 ounces at an average realized price of $924 per ounce, compared to 35,482 ounces at an average realized price of $911 per ounce in the second quarter of 2008. Ounces sold were higher than ounces produced during the quarter due to the timing of sales. Additional drilling results include in Hole 09PA159 returned 29m at 2.80 g/t Au, in Hole 09PA162 intersected 22.9m with 3.32 g/t Au including 9.1m of 5.01 g/t Au and 62.5m of 1.57g/t Au and 99.1m at 1.19 g/t Au was found in Hole 09PA163.
Alamos Gold reported that in second quarter ending June 30, 2009, the production from Mulatos mine in Mexico was 42,000 ounces of gold at an expected total cash cost below $350 per ounce.
Alamos Gold announced that step-out drilling to the northeast of the Mulatos Pit, and on-trend with the Puerto del Aire zone, has confirmed the presence of a new gold-mineralized zone in Sonora, Mexico. Drilling within this zone has also resulted in a new higher-grade discovery. Drill hole 09PA144 encountered 50.30 m of higher-grade mineralization grading 10.06 g/t Au, including a 16.77 m interval grading 27.16 g/t Au.
