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Jan 08, 2008 09:02 ET
Alamos Gold Inc. Increases Quarterly Production by 43% in Q4 2007
TORONTO, ONTARIO--(Marketwire - Jan. 8, 2008) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") announces that gold production for the fourth quarter 2007 was approximately 31,100 ounces. Gold production in
the fourth quarter of 2007 increased 43% over the 21,674 ounces produced in the third quarter, a period in which gold production was adversely affected by record rainfall. The Company exceeded its fourth quarter production target of 30,000 ounces of gold by 1,100 ounces.
Quarterly production benefited from improved crusher throughput, averaging 13,000 tonnes per day, up 41% from the third quarter 2007 average of 9,200 tonnes per day.
The Company also achieved increased gold sales in 2007 of 108,296 ounces, 17,076 ounces or 19% higher than the 91,220 ounces of gold sold in 2006.
Unaudited revenue for 2007 was $74 million compared with $54.7 million for 2006, an increase of 35%. The Company benefited from both increased gold sales and higher gold prices in 2007 compared with 2006.
The following table sets out gold production in Q3 and Q4 2007 (fourth quarter production is subject to final refinery settlements):
------------------------------------------------------------------------- Q3 October November December Q4-------------------------------------------------------------------------Gold production (oz) 21,674 9,200 10,050 11,850 31,100-------------------------------------------------------------------------
Strong cash flows from operations combined with the recovery of outstanding tax receivables enabled the Company to repay the $7 million balance outstanding on its bank debt in the fourth quarter. The Company reports that it recovered approximately $6 million in Mexican value-added tax receivables in the fourth quarter.
The Company also announces that certain initiatives which are expected to improve gold recoveries are progressing. The Company is currently evaluating the effects of solution pH, solution flow rates and cement agglomeration on gold recoveries. Interim data from column tests at an independent facility indicated that gold recoveries improved when crushed ore was agglomerated with cement. The Company will assess all test results and recommendations when the final report is received. A second initiative involves placing ore on the leach pad using a leach pad stacking/conveying system, which is expected to be operational in the first quarter of 2008.
2007 Year-end Results
Alamos will report its fourth quarter and year-end 2007 results on Tuesday, March 11th, 2008, after market close. The Company will host a conference call on Wednesday, March 12th, 2008 at 11:00 a.m. (EST).
Live Conference Call:Local Access: 416-641-6121Toll-Free Access: 1-866-225-9256
Instant Replay Access information:
Local Access: 416-695-5800Toll-Free Access: 1-800-408-3053Passcode: 3247816Expiry Date: March 26th, 2008