Alamos Gold (AGI-T) expects to release a resource estimate in March and a prefeasibility study at the end of the second quarter for its projects in Turkey, Agi Dagi and Kirazli.
In a progress report on the projects released earlier this week, the gold producer said it had drilled over 22,600 metres in 148 holes at the two projects in an effort to upgrade existing in-pit inferred resources to the measured and indicated category.
Alamos Gold anticipates reporting mineral reserves for the first time for the two projects as part of its preliminary feasibility study.
Alamos Gold drilled 113 holes at Agi Dagi and 29 holes at Kirazli.
Highlights from assay results from Agi Dagi’s Baba and Deli zones included 23.6 metres at 0.89 gram gold per tonne; 80.6 metres at 0.78 gram gold; 25 metres of 1.11 grams gold; 57.9 metres at 0.51 gram gold and 58.5 metres at 0.73 gram gold. At the Camyurt zone, which has the potential to be a separate zone of mineralization at Agi Dagi, assay results included 58.9 metres at 1.33 grams gold and 158.3 metres at 0.75 gram gold.
Notable results from the main zone at Kirazli included assays of 101.9 metres at 1.81 grams gold; 26.8 metres at 3.99 grams gold; 32.7 metres at 2.37 grams gold and 110.0 metres at 1.55 grams gold.
A mine plan laid out in the scoping study envisioned eight years of production from the Kirazli, Baba and Deli pits and assumed that Kirazli and Agi Dagi would each have stand-alone crushing, agglomeration, heap leach and process plant facilities, as well as separate owner-operated mining fleets.
Kirazli is about 25 km northwest of Agi Dagi, which is about 50 km southeast of Canakkale on the Biga Peninsula in northwestern Turkey.
At presstime in Toronto Alamos was trading at $17.23 per share and has traded in a 52-week range of $11.98 (Feb. 25 2010) and $21.65 (Dec. 7 2010).
Dan Rollins, an analyst at UBS Investment Research, has a 52-week target price on the stock of $21 per share.
Alamos has 116.4 million shares outstanding.
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