Alamos Gold Nov 2009 Presentation

8/14/2019 Alamos Gold Nov 2009 Presentation

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Double Gold Production to 300,000+ Ounces per Year by 2012Continuing to improve heap-leach performance at Mulatos

Processin hi h- rade ore at Mulatos b 2012

Corporate StrategyFocused on Sensible and Sustainable Growth

Advance A i Dai & Kirazli towards production for 2013 1

Grow Gold ReservesRapidly advance new and satellite projects up the development pipeline

Growth Through Acquisitions and ExplorationFocus on gold districts, not just gold projects

Geophysics, geologic detective work, and drill, drill, drill!

Continue to Be a Low-Cost ProducerExpect to remain in the lowest quartile of total cash cost per ounce

Maintain a Solid Financial Profile

Strong cash balance, no debt, and remain unhedged to the price of gold1 Management estimate and conditional on closing of project acquisition

3

Financial Position Capital StructureStrongest Balance Sheet in Companys History

Shares Outstanding 1 108,833,406Options 1 6,437,500 (5.6%)

Fully Diluted115,270,906

Recent Share Price 2 C$11.70Market Capitalization C$1.273 Billion


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Project ocationsroject ocations

Alamos is currently evaluating Agi Dagi and Kirazli under an option to purchase agreement from the vendors anddoes not own these projects

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Mulatos Mineulatos Mine

Located in northwestern Mexico in the State of Sonora,near the border of Chihuahua State

Open pit, heap leach operation~10-year reserve life at the end of 2008

2009 production guidance of160,000 to 170,000 ouncesOver 150,000 ounces produced by the end of October

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Alamos Gold: Mulatos Mine & Salamandra Concessions

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2 8 Mulatos Mine Reserve and Resource StatementContinuing to Replace Reserves and Grow Resources

4

5

2P Reserves

Measured & Indicated

Inferred

3.02 1 93

1.66

1.69

2.05

2

3

O u n c e s

( m i l l i o n s )


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Mulatos Mine istoryulatos Mine istory

2005: First gold pour

H1-2006: Commercial roduction declared A ril

H2-2006: Mine-teething and ramp-up issues

H2-2007: Turn around in-effect2008: The Comeback Kid

Appreciated 58.23% during 2008

#2 performer in the S&P / TSX Composite Index

2009 and beyond: Organic growth, growth by acquisition

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Relative Performanceelative Performance

100%100%

0%

25%

50%

0%

25%

50%


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Produced 151,000 ounces of goldCash operating costs of $345 per ounce

2008Record Performance

Total cash costs of $389 per ounceSold 151,560 ounces at a realized average price of $877per ounceEarnings per share of $0.31Appreciated 58.23% during 2008

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index was down 35.03% in 2008

#2 performer in the S&P/TSX Global Gold Index

index gained 0.76% in 2008

Produced 130,500 ounces of gold in 2009 by end of Q3

Total cash costs of $330 / ounce (includes 5% royalty)

2009 Year to Date

Record Performance Continues

Cash operating costs of 284 / ounce

YTD-Q3 earnings per share of $0.34

$0.09 in Q1, $0.12 in Q2, $0.13 in Q3

Several exciting new discoveries at Mulatos

2 high-grade extensions to Escondida and a largeextension to PdA


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Initiatives Complete

Upgrade On-Site Facilities

Expanding Production from Existing OperationsWhat We Have Done to Improve Operating Performance

Camp Improvements and ExpansionNew Warehouse & OfficesDiesel Station, Laboratory, Truck ShopPower House Expansion

Camp Improvements and ExpansionNew Warehouse & OfficesDiesel Station, Laboratory, Truck ShopPower House Expansion

100%100%100%>53%

100%100%100%>53%

100%Installation Complete

100%Installation Complete

Optimize the Crushing CircuitFourth CrusherClose Crushing Circuit (100% passing 3/8 screen)

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Under ReviewUnder ReviewScoping Study for 33% Expansion

Inter-lift LinersStacker Conveyor SystemDrum Agglomeration

Inter-lift LinersStacker Conveyor SystemDrum Agglomeration

100%100%

100%

100%100%

100%

Improve Recovery Ratio


All Infrastructure Completed


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Stacking System Completed and Inter-lift Liners Installed

Recovery Ratio ImprovingRatio of Ounces Produced to Ounces Stacked

80%

90%

100%

80%

90%

100%

Drum Agglomeration Commenced

Stackin S stem Installed

30%

40%

50%

60%

70%

30%

40%

50%

60%

70%Starting Using Interlift Liners

4th Crusher


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Improving Financial PerformanceIncreasing Cash Margins Support Expansion and Exploration

$1,0001 000

$1,200$/oz.

$38$44

$50

$76 $261

$313$488 $665

$24

$458

$579

$735

$877

$400

$600

$800

,

20202009 estimate based on $1,000 gold price and 2009 budget Mexican peso : USdollar exchange rate of 12.6:1

$382$294

$384 $345 $285

$0

$200

2005A 2006A 2007A 2008A 2009ECash Operating Cost Royalt y (5%) Margi n Reali zed Price

$700

$800

Lowest Quartile of Production Total Cash Cost 1Gold Co Product Total Cash Cost for 2008

$200

$300

$400

$500

$600


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$667$700

$800

/ o z

)

Continue to be Low Total Cash Cost Producer 1Q2 2009 Total Cash Costs Amongst the Lowest in the Industry

$322 $324 $326$390 $394

$423 $433 $434 $452 $466

$483

200

$300

$400

$500

$600

0 0 9 T o

t a l C a s

h C o s

t s ( U S $

2222

1 Source: RBC CM Research (Aug 24, 2009)

$0

$100

ELD AGI AEM G YRI NEM Wgt Avg

K AB X J AG IMG CG

Q 2 - 2

Increasing Production

300,000

350,000

160,000 - 170,000

151,000

106,200101,170

150,000

200,000

250,000

P r o

d u c

t i o n

( o z . )


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Pro Fo rma Mill Production 1

Effective Grade Annualized Production 2

Organic Growth from Existing OperationsMill to Process High Grade Ore at Mulatos

10.54 g/t Au 3 54,900 oz. Au

15 g/t Au 78,100 oz. Au20 g/t Au 104,200 oz. Au

25.48 g/t Au4

132,700 oz. Au

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1 oz./t Au 162,000 oz. Au

1 Based on 500 tpd milling scenariowith mill tailingsbeing stackedon the heap leach pad2 Some numbers may not compute due to rounding and truncationerrors3 Based on NI 43-101 compliant reserves of 289,000 tonnes of milling ore at an average drill-indicated grade of10.54 g/t Au as of December 31, 20084 Calculated mean grade 2007 bulk sample that was approximately 50 that of the drilling samples

1 Based on 500 tpd milling scenariowith mill tailingsbeing stackedon the heap leach pad2 Some numbers may not compute due to rounding and truncationerrors3 Based on NI 43-101 compliant reserves of 289,000 tonnes of milling ore at an average drill-indicated grade of10.54 g/t Au as of December 31, 20084 Calculated mean grade 2007 bulk sample that was approximately 50 that of the drilling samples

500 tpd Milling Operation (based upon 10.54 g/t Au)

Gravity Mill to Process High Grade OresBase Case Economics

Initial Capital Cost 1: $17.5 million (includes 20% contingency)Mill Operating Costs 2: $12.08 per tonne of ore

$39.62/oz. Au at 10.54 g/t Au

IRR of 101% at $700 gold, IRR of 150% at $950 gold 3


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LAMOSLAMOS OLDOLD NCNC.

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Exploration

Exploration


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Significant district-wide exploration potential within30,325 hectare land package

Reserves and Resources Outlook dding Ounces Through the Drill Bit

ocus pr mar y on upgra ng near-p t resources toreserves and making near-pit discoveries

Gap, Cerro Pelon, Escondida, PdA, PdA Extension, La YaquiExploration drilling ongoing with three rigs:San Carlos (2 RC)Puerto del Aire Extension(1 RC)

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2009 Exploration Budget of$10M:> 65,000 m of drilling in over 330 drill holes completed this yearPlan to drill up to 75,000 m in 2009, nearly double 2008s drilling

Advance select regional grassroots targets to the drill-ready stage

DetectionDetection DiscoveryDiscovery DefinitionDefinition DesignDesign DevelopmentDevelopment

GRASS ROOTSEXPLORATIONGRASS ROOTSEXPLORATION

El CarricitoLas Carboneras

ggressive Exploration Program to Drive GrowthPipeline of Projects

an co as

STEP-OUT DRILLING OFMULTIPLEINTERCEPTS

STEP-OUT DRILLING OFMULTIPLEINTERCEPTS

MINERALIZEDINTERCEPTSMINERALIZEDINTERCEPTS

El JaspeEl HalconLos Bajios

San Carlos

El Realito


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Alamos 2009 2010 Exploration ProgramsMulatos District / Salamandra Concessions

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2009 Exploration Activity009 Exploration Activity Greaterreater Mulatosulatos Pit Areait Area(View to South)View to South)

Estrella

Cerro Pelon

Escondida

Puerto del Aire(PdA) El Salto/Mina ViejaPdA

Extension


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3 km from the leach pad

Core drilling on 25-m centres delineated a continuous

erro Pelon

-

cumulative strike of 250 m, 30 to 80 m wide, and 70 to 150 mthick

Typically grades between 2 and 3 g/t Au

Resource estimate in Q4-2009:

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a or y o resources are expec e o e c ass e w n emeasured and indicated categories

Feasibility studies and development likely tocommence in 2010


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Objective: Convert inferred resources to the measuredand indicated categories:

Filling in the Gap Between the Mulatos andEl Victor Pits

Core drilling on 50-m sections completed in Q1-2009

RC drilling on 25-m centres completed in Q3-2009

Goal: Confirm continuity between the Mulatos and ElVictor pits:

A single 2.1-km northeast trending mineralized horizon

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Upside: Potential for a new high-grade zones:Promising assay results

Escondida Gap El VictorSilica lteration


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Northeast discovery expected to significantlyincrease the life of the Escondida milling operation

Northeast High Grade and SW Extension ofEscondida Discoveries

xtens on expecte to a to t e m ne- e o t ehigh-grade Escondida zone

Highlights the potential for more high-grade zones

Drill Indicated Dimensions

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NE High-Grade Extension 70 m 50 m Up to 15 m

SW High-Grade Extension 30 m 30 m Up to 8 m

Stepped out 750 m from the Mulatos Pit to the NE in early 2009

Drilling revealed a new, large system of intense silica alteration

PdA Extension

Preliminary minimum drill-indicated dimensions:

> 750 m of strike

> 200 m of width

25 m to 125 m thick

Initial grades in the 1 to 3 g/t Au range


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Pd Extension Exploration ModelNE Longitudinal Section Gold Grade Block Model

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Phase I San Carlos drilling was completed in 2006consisting of 33 RC holes (6,303 m):

San Carlos dvancing nother Near Pit Project

. .

48.8 m @ 4.69 g/t Au4.6 m @ 36.11 g/t AuSimilar geologic characteristics and setting to high-gradeportion of Escondida:

High potential to be another high-grade zone


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San CarlosAdvancing Another Near Pit Project

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Continue to Increase Productionand Reduce Costs

Continue to Increase Productionand Reduce Costs

Main Growth Drivers for 2 9 and 2 1

Commence Construction of High Grade MillCommence Construction of High Grade Mill

Increase Near Pit ReservesIncrease Near Pit Reserves


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Closing the Circuit ( 100% passing 3/8" screen)4 to 7% increase in recoveries expected

Q4-2009

Near Term Catalysts

ssays resu s rom x ens on1 RC rig drilling now

ngo ng

Cerro Pelon Resource Estimate

4 km from SW of Mulatos Pit, exposed at surface

Q4-2009

Assay results from San CarlosPotential for a new high-grade discoveries2 RC rigs drilling now

Ongoing

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Closing of the acquisition of the Agi Dagi and Kirazligold projects in Turkey

Phase I Drilling of El Carricito Regional TargetFavourable alteration, anomalous gold valuesMassive footprint that has never been drilled

Q4-2009

Q1-2010

Other Exploration and Development ProjectsOther Exploration and Development Projects

Appendices

Resources at December 31, 2008Resources at December 31, 2008

Proven and Probable Reserves at December 31, 2008Proven and Probable Reserves at December 31, 2008


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Other Exploration Development ProjectsAdvancing Satellite Projects Up the Development Pipeline

ElEl CarricitoCarricito: :High-priority grassroots regional target with massivealteration footprintSoil geochemical sampling and mapping ongoing to identifydrill targetsDrilling expected to commence during Q1-2010

La Yaqui:La Yaqui:Being advanced up the development pipeline

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San Carlos:San Carlos:Drilling nowRe-modelling and re-estimation for 2010 reserve and

resource statement

EastEast EstrellaEstrellaGeophysics

Other Exploration Development ProjectsAdvancing Satellite Projects Up the Development Pipeline

Developing drill targetsDrilling expected to commence in Q1-2010

LasLas CarbonerasCarbonerasEarly stage explorationSurface geochem


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Proven and Probable Reserves at December 31 2008 1 2

ProbableProbable Proven & ProbableProven & ProbableProvenProven

Mulatos Pit 7,394 1.73 410,019 33,129 1.23 1,309,858 40,523 1.32 1,719,877

Gra e(g/t Au)

Gra e(g/t Au)

Tonnes(000s)Tonnes(000s)

ContaineOunces

ContaineOunces

Gra e(g/t Au)

Gra e(g/t Au)


ContaineOunces

ContaineOunces

Gra e(g/t Au)

Gra e(g/t Au)


ContaineOunces

ContaineOuncesAreaArea

El Victor Pit 2,347 1.09 82,432 2,725 0.99 87,082 5,072 1.04 169,514

ExistingStockpiles

2,059 2.36 156,363 - - - 2,059 2.36 156,363

Total 11,800 1.71 648,814 35,854 1.21 1,396,940 47,654 1.35 2,045,754

1. Reserve cut-off is determined as a net of process value of $0.10 per tonne, for each model block. The determination was based on a $700 perounce gold price, a February 2009 recovery model, and November 2008 actual cost figures from current mining operations.

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2. ,CIM Standards on Mineral Resources and Reserves, Definition and Guidelines as per Canadian Securities Administrators National Instrument 43-101 (NI 43-101) requirements.


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Resources at December 31 2008

Exclusive of Reserves

IndicatedIndicated InferredInferredMeasuredMeasured Measured + IndicatedMeasured + Indicated

AuCutoff(g/t)

Tonnes

(000)

Grade

(g/t Au)

Contained

Ounces

Tonnes

(000)

Grade

(g/t Au)

Contained

Ounces

Tonnes

(000)

Grade

(g/t Au)

Contained

Ounces

Tonnes

(000)

Grade

(g/t Au)

Contained

Ounces

2.00 731 3.200 75,201 2,533 3.155 256,938 3,264 3.165 332,139 2,310 3.353 265,051

1.50 1,370 2.503 110,270 4,872 2.458 384,969 6,242 2.468 495,239 3,696 2.736 340,590

. , . , , . , , . , , . ,

0.70 6,679 1.286 276,148 23,709 1.264 963,287 30,388 1.269 1,239,435 17,453 1.335 761,342

0.50 10,673 1.026 352,172 41,972 0.968 1,306,416 52,645 0.980 1,658,588 32,580 0.986 1,043,857

0.30 16,102 0.813 421,051 76,538 0.706 1,736,131 92,640 0.724 2,157,182 70,148 0.664 1,508,202

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Management and Board of Directors

Executives and Management

Directors

.President and CEO

Jon MordaChief Financial Officer

Manley Guarducci

Chairman

David Gower

ce res en an e pera ng cerHerve Thiboutot

Vice President of ExplorationCharles Tarnocai

Vice President of Corporate Development

Eduardo Luna

James M. McDonaldJamie Porter

Vice President of FinanceMarc Jutras

Director of Mineral ResourcesKen Balleweg

John F. Van De Beuken

John A. McCluskeyPresident and CEO

Exploration Manager - MexicoSharon L. FlemingCorporate Secretary

Jeremy Link

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LAMOS OLD NC.LAMOS OLD NC.

For more information, please contact:For more information, please contact:

Jeremy Link, M.Eng., P.Eng.Manager, Investor Relations416.368.9932 201866.788.8801 201

Jeremy Link, M.Eng., P.Eng.Manager, Investor Relations416.368.9932 201866.788.8801 201

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[email protected]

www.alamosgold.com

[email protected]

www.alamosgold.com

Alamos Gold Nov 2009 Presentation

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