Alamos Gold Inc. formed out of the merger of Alamos Minerals Ltd. (TSXV:AAS) and National Gold Corporation (TSXV:NGT).

The Salamandra Property in the Mulatos District has seen US $30 million in development and was the subject of a feasibility study to mine 2.2 million ounces of gold in the Mulatos Deposit. At the time the study was completed the project economics were marginal with gold at less than $300 per ounce. A scoping study completed by Pincock, Allen and Holt (PAH) in September 2002 focused on a higher grade portion of the deposit know as the Estrella Zone containing 1.8 million ounces of gold. PAH concluded that with a gold price of $300 per ounce the Estrella Zone could be mined profitably and generate an Internal Rate of Return of 19.3%. The project is currently the subject of an engineering evaluation to determine the effect of higher gold prices on future development plans.


Alamos Gold Inc.           [AGI:TSE]        

Mexican subsidiaries are Minera Bienvenidos, S.A de C.V.; Minas La Fortuna S.A. de C.V.; Durango Fern Mines S.A. de C.V. Alamos Pacifico S.A. Also owns 40% interest in Cia. Minera Vulcan S.A. de C.V. as a 40/60 JV with Queenstake. At one point Vulcan controlled 33,118 Ha in Mexico

Alamos Minerals and National Gold have reached an agreement to merge the two companies into a new entity called "Alamos Gold". Move would entail a 1 for 2 roll-back of Alamos and a 1 for 2.32 rollback for National. Merger subject to regulatory and shareholder approval. Expected to be complete by end of 1Q03. The Chairman and President of Alamos Gold Inc. will be Chester Millar, founder of Glamis Gold Ltd. and Eldorado Gold Corp. Mr. Millar is a pioneer in the field of open pit heap leach technology and has developed several mines to profitable production. John McCluskey will be Vice President and CEO of Alamos Gold Inc. and Stephen Stine will be Vice President and COO. Under the terms of the amalgamation, shareholders of Alamos Minerals Ltd. will receive one share of Alamos Gold Inc. for each 2 shares of Alamos Minerals Ltd. held. Shareholders of National Gold Corporation will receive one share of Alamos Gold Inc. for each 2.352 shares of National Gold Corporation held. The capital structure of Alamos Gold Inc. will consist of 32.8 million shares issued and outstanding and 44.9 million shares on a fully diluted basis.
The merger consolidates the ownership of the Salamandra Property which hosts the large Mulatos gold deposit in Sonora, Mexico. The merger will provide a greater asset base and capitalization, facilitate financing, and reduce administrative and overhead costs, leading to a more cost effective and efficient development of the Mulatos Deposit.

Press Release 28Oct02


Chester Millar, Chairman, Alamos Minerals Ltd. and Albert Matter, President, National Gold Corporation are pleased to announce that Alamos Minerals and National Gold have entered into a Joint Venture Option Agreement whereby Alamos Minerals may earn a 50% interest in National Gold's Salamandra property. The Salamandra Camp located in state of Sonora Mexico 220 km east of Hermosillo is host to seven large gold bearing epithermal systems. In excess of US$30 million study has been spent on the property in geological exploration and development programs including a feasibility study. As reported in National's July 13th, 2001 news release, one of these systems alone, the Mulatos Deposit, hosts a 3,400,000 ounce gold resource within 68.8 million tonnes as calculated (by Tendoramex SA de CV.) on the basis of 511 drill holes totaling 295,000 feet and 994 underground samples using a 0.8 gram per tonne cutoff grade. When using a 2 gram per tonne cutoff grade the Tendoramex calculated the higher grade core of the Mulatos deposit (the Estrella Zone) to contain 1.16 million ounces of gold measured and indicated within 11.5 million tonnes grading 3.16 grams per tonne. The Salamandra Camp, while not a currently a producer, is amongst the top 50 largest gold
resources in North American. To earn the 50% interest Alamos, the operator, will be responsible for the expenditure of the next C$2.375 million of exploration, development, metallurgical test leaching, property costs and Vendor payments during the next 12 months. Upon the property being placed into profitable production a further C$2 million will be payable to National Gold Corporation over the following 4 years. Drilling will commence immediately upon equipment mobilization.

La Fortuna Au-Ag-Cu property purchased from San Fernando Mining Co. Located 70 km NNE of Culiacan, Sinaloa just over the border into Durango. Reserves 2.915 MMT at 2.57 g/t Au, 34.8 g/t Ag. (278,000 eAu or 245,000 oz Au and 3,000,000 oz Ag). Another estimate states 236,000 ounces of Au and 3,200,000 oz Ag. A third figure was presented for the deposit and was estimated to host a proven and probable resource of 3.4 MM tonnes at 3.18 grams Au and 38 grams Ag and 0.27% Cu. Reserves in all categories are estimated at 5.947 M tonnes at 2.16 gpt Au, 29 gpt Ag and 0.22% Cu, but not all of these are open-pittable. Project is on hold awaiting better metal prices.

Alamos intended to place San Antonio in production first before attempting to restart activities at La Fortuna (but they subsequently dropped San Antonio prior to picking up half of Mulatos). As part of the final stage of feasibility study a 20,000 ton bulk leach test was progress as of May '97. Initially anticipated putting into production at 22,000 oz/yr beginning in 1998; however, work has been cut back and project mothballed due to the depressed price of gold. Rather than continue with the open pit mining and crushing of a significant amount of ore for heap leaching, a smaller amount of ore derived from the underground workings was sent to a laboratory in Durango for column testing.

GCN #45 5Mar97

San Antonio Au Project, Sonora. (Dropped it) Optioned the right to explore and develop some real estate Laminco controls in central Sonora. Located adjacent to the part of the same property that Laminco has optioned out to Placer Dome's Mexican subsidiary Minera Can Mex S.A. de C.V. During the period 1993 to date Laminco has drilled over 240 holes and established a resource base of around 1 million ounces in all categories. Alamos can earn up to 70% in two steps. The first 35% upon successfully completing production scale metallurgical tests on San Antonio type ores. The second 35% is tied to a 4.5 year $4M commitment to explore and develop property. First stage test was to drill 50 or so shallow closely spaced holes into the California outcrop to prove out 30,000 tonnes of soft, friable material that runs 2.7 gpt Au in oxidized leachable material. Next they are going to construct a 20,000 tonne leach processing facility near the old mill site 7 km from the California outcrop. permitting and road building are taking place in anticipation of construction of the leach pad. Mining and leaching will expand as permits etc. allow. 

Alamos terminated its activities at the San Antonio property in Sonora, Mexico as of May 24, 2001. A bulk mining-leaching test that was initiated last year is now winding down. The test was confined to material mined from the California zone. Bulk test results showed that the tonnages and grades amenable to open pit mining were less than expected and the minerals indicated characteristics that hinder heap leaching. The costs involved in proving up a long term ore supply and in solving the metallurgical problems could not be provided from cash flows as originally expected. Placing the project into commercial operation would require Alamos to provide substantial additional financing which is beyond the Company's present capability. Although the owner of the San Antonio property, Zaruma Resources Inc., made an offer to provide additional financing, the net result to Alamos was not attractive. Management believes other projects in Mexico may provide a better return on the remaining US$430,000 cash in treasury and the mining fleet that Alamos currently owns. (El Viejo Gambusino thinks between the lines he sees Chester Millar directing his efforts towards Mulatos!)

Press Release 24May01
Press Release 19Oct99
Press Release 14Jun99

Guinoloza Property (formerly Yecorato 51), Chihuahua 1,850 hectare inlier claim largely within Francisco Gold's holdings which include El Sauzal. Staked in 1995 in response to remote sensing interpretation. Discovery at El Sauzal reportedly near the boundary with Alamos/Queenstake JV ground. Directors of Vulcan JV partner, Queenstake, visited property on March 23rd 1996 and all were impressed by size and appearance of alteration zone. Drilled with negative results in 1Q99. An initial 8 hole Phase I 800m RC program tested silicified zones in lower volcanics. Holes were from 36 to 260m deep. Anomalous Ba, Pb, Zn and As in surface rocks and coincident IP and chargeability anomalies were tested. Both Au and Ag were below detection in most samples. Highest gold values were 200 ppb.

Press Release 24Feb99
Press Release 14Jan98
CSW 4Apr97
CSW 7Feb97

Baroyeca Ag  Property, Sonora. The Company signed a Memorandum of Agreement with the Sierra Madre Syndicate of Vancouver to acquire the Baroyeca silver mine located east of Ciudad de Obregon in the state of Sonora, Mexico. The proposed terms called for all payments to be in Alamos shares to be issued from treasury, subject to the approval of the Vancouver Stock Exchange. A 1.5% NSR is payable to the underlying claim owner. The Company had a 90 day period to conduct due diligence, legal and preliminary exploration activities prior to a final agreement. A program of reverse circulation drilling commenced as soon as permitting and the completion of an access road allowed. They did the due diligence and then they bailed - decided not to exercise option.

Baroyeca was discovered in the 1700's and operated in the 1800's until it was shut down during a period of protracted civil unrest. The deposit is a near-vertical vein/shear ranging in width to 25m and occurs within a larger area of visually distinguishable altered rocks. The old workings show mineralization of barite, fluorite and silver chloride.

Press Release January 14, 1998

Piedras Verdes, Sonora. A 1,353 ha. project adjacent to AZCO/PD's project of same name. Completed initial drilling on the Tabelo Zone in July, 1996. Sold it to the AZCO/PD JV on the adjacent land for $1M (more than twice their acquisition cost). Received final $700,000 in 4Q97.

GCN #232 3Dec97
GCN #246 20Dec96
GCN #237 9Dec96

Owns 40% interest in Cia. Minera Vulcan S.A. de C.V. a Mexican corporation which is a 60/40 participating JV between Queenstake Resources and Alamos Minerals. Queenstake Resources (QTR-VSE) is the operator. Vulcan Gold controls 23 properties in Mexico which cover a combined area of 33,118 ha. including:

Baboyahui Cu prospect, Sonora. (Part of Queenstake JV ). Mapping and sampling have defined an oxide target 200m by 700m. Drilling planned. Located near Piedras Verdes Project above.

Jabali Au Project, NW Sonora near La Choya around 60 km S of Lukeville, AZ. (Part of Queenstake JV ). A 6 hole, 1,200m drilling program was carried out in mid-1996.

CSW 18Oct96
NMN v82#21 07/22/96
GCN 15Jul96
GCN #136 15July96
NewsMine 7Aug96

National Gold Corporation acquired option on Placer/Kennecott's Mulatos Property and became an instant player in Mexico. Bring high-grade core into production along with Alamos in a JV. Latest plan is to merge two companies by 1Q03.

National Gold Corporation   NGT   (TSX)

Alamos Minerals and National Gold have reached an agreement to merge the tow companies into a new entity called "Alamos Gold". Move would entail a 1 for 2 roll-back of Alamos and a 1 for 2.32 rollback for National. Merger subject to regulatory and shareholder approval. Expected to be complete by end of 1Q03.

Press Release 28Oct02

Mulatos District, Sonora. National Gold Corporation has signed a contract with subsidiaries of Placer Dome Inc. and Kennecott Minerals Inc. (the Partners) for the acquisition of the 15,000 ha Salamandra property located in the state of Sonora, Mexico. With this acquisition National Gold (NGT:TSX) will become one of the top 50% of all North American gold companies as ranked by size of their gold resources.

An agreement in principle has been reached between the Company and well known mine operator Chester Millar to place the high grade Estrella zone within the Mulatos deposit into metallurgical test production.  Mr. Millar, a pioneer of low cost heap leach mining in the Western United States, was among the first to initiate and successfully apply the technology. He has agreed to invest US$1,000,000 to complete the test. Mr. Millar stated, "By commencing production from the higher grade oxide component of the Estrella mineralization, the cash flow should be sufficient to meet the subsequent property payments and allow a scale-up to full production of the eleven million tonnes of high grade ore". This agreement will allow Mr. Millar to work as either a mine contractor, taking his profit in cash or gold, or convert his interest into an equity position in National Gold Corporation, and will not prevent National Gold from continuing its negotiations for a joint-venture partner for this or other parts of the property. (10May01)

A feasibility study conducted by Placer Dome Inc. and Kennecott Minerals Inc. in 1997, and pit optimization work concluded in 1999, identified a measured and indicated recoverable gold resource of 1.5 million ounces (using a US$300 per ounce gold price) in the Mulatos deposit, the most advanced of the seven auriferous epithermal systems discovered to date on the Salamandra property. This resource was calculated on the basis of 511 drill holes totaling 295,000 feet and 994 underground channel samples using a 0.8 gram per tonne cutoff grade.

These 1.5 million ounces of gold are contained within the 1999 optimized smoothed pit containing 2.2 million ounces in 43.5 million tonnes grading 1.58 grams per tonne gold at a 66.2% recovery rate. Within this resource is a higher grade core containing 1.2 million ounces of gold in 11.5 million tonnes grading 3.2 grams per tonne gold. The Partners also calculated an all categories measured, indicated and inferred resource for the Mulatos deposit of 3.4 million ounces. This resource is contained in 68 million tonnes grading 1.6 gram per tonne gold at a 0.8 gram per tonne cutoff grade. Much of the Mulatos deposit's gold mineralization remains open to expansion along strike and to depth.

The total purchase consideration for 100% of the Mulatos Gold resource and the six satellite systems (the 'Salamandra property') is C$10.5 million. In addition, National is required to maintain the property in good standing during the four year term of the transaction, and the Partners retain a 2% Net Smelter Royalty on the first 2,000,000 ounces of gold production. The signing of the contract took place on December 21st, 2000 in Hermosillo, Mexico. The closing is scheduled for February 28th, 2001.

The C$10.5 million is payable as to C$3.0 million over the first year with the remaining C$7.5 million secured by a debenture with payments due at the end of the fourth year with interest thereon at 7% payable semi-annually. National may, at its option, prepay the debenture at the end of the second year for a reduction of C$2.0 million or at any time thereafter during the remaining term of the debenture for a pro-rated reduction. 

The Salamandra property sits within the famed Sierra Madre gold belt in the northernmost Mexican state of Sonora, 400 kilometers due south of Tucson, Arizona and some 220 km east of Hermosillo, the capital of the state. It is owned 70/30% respectively by Placer Dome Inc. and Kennecott Minerals Inc. The Partners have spent in excess of C$50 million in exploration and development programs over the past seven years. 

"The divided ownership of the property, the changing priorities of the Partners, and the opportunity for the Partners to realize on their $50 million tax loss during this period of devastated gold prices have combined to present National Gold with this extraordinary opportunity to purchase the Salamandra gold deposits", continued Mr. Matter. "With this purchase we achieve the first of our objectives within one year of being listed on the CDNX".

National Gold has been mining the Internet and other information sources for the past year seeking a property with established gold resources and the best possible expansion potential that could be purchased on favorable terms from companies reducing their commitment to exploration. Once focused on the Salamandra property, National deployed a due diligence team of experts including engineers, metallurgists and landsmen along with legal, environmental, political and social consultants.

More significantly comments Mr. Matter, "The Mulatos and its associated epithermal system occupies only 15% of the area covered by the seven auriferous epithermal systems identified on the Salamandra property by the Partners. As such the remaining 85% represents an exciting opportunity for National Gold to develop additional resources of gold. This, coupled with recovering gold prices could transform the Salamandra property into a significant North American gold mining camp in the historically very productive Sierra Madre District."

Scoping study underway by Nevada mining Consultants and Mintec Inc. on the high grade Estrella Zone consisting of 11.5 million tonnes grading 3.16 gpt containing 1.2 million ounces as calculated by Placer Dome using a 2 gram cut-off. 

Press Release 8May01
Press Release 27Dec00