06:52 AM EDT, 05/14/2024 (MT Newswires) -- Alamos Gold Inc. ( AGI ) was at last look up less than 0.1% in US premarket trade as it reported Tuesday new results from its underground exploration program at the Young-Davidson mine. In a statement it said underground exploration drilling from the mid-mine intersected a new style of higher-grade gold mineralization in zones within the hanging wall of the Young-Davidson deposit.

Tuesday's statement noted these zones are located between 10 and up to 200 metres south of existing infrastructure and Mineral Reserves and Resources, highlighting the "upside potential with grades intersected well above the current Mineral Reserve grade of 2.31 grams per tonne of gold".

On the Young-Davidson Hanging Wall Zones, AGI noted high grade gold mineralization intersected within the hanging wall, in proximity to existing infrastructure and south of existing Mineral Reserves and Resources. It said "this represents a new style of mineralization at Young-Davidson, hosted in hanging wall stratigraphy including a folded sequence of Timiskaming assemblage conglomerates and sediments". Gold mineralization is associated with 3-20% pyrite and occurs both as wide, low- to moderate-grade mineralization, and also within narrower, high-grade structures, it added.

"Young-Davidson is a consistent, long-life operation with a long-track record of Mineral Reserve replacement having maintained at least a 13-year Mineral Reserve life since 2011," said President and Chief Executive John A. McCluskey. "With the deposit open at depth and to the west, we expect this track record to continue well into the future as we extend gold mineralization within the Young-Davidson syenite. The new zones being discovered in the hanging wall highlight the significant exploration potential outside of the syenite. This is a new style of higher-grade mineralization, near our existing underground infrastructure, which has the potential to provide meaningful production upside."