11:23 AM EDT, 07/23/2024 (MT Newswires) -- Alamos Gold ( AGI ) on Tuesday reported new drilling results from the Island Gold Mine in Ontario, extending high-grade gold mineralization at the site.

Highlights include 36.54 grams per tonne (g/t) gold over 7.20 meters, 7.24 g/t gold over 9.97 meters and 79.93 g/t gold over 2.01 meters.

"We continue to have broad-based exploration success across the Island Gold deposit," chief executive John McCluskey said in a release.

Alamos said the results may result in an increase of reserves and resources at the operation.

"This growth is supporting a longer mine life at Island Gold, which already exceeds 20 years, and additional synergies to be realized by processing Island Gold ore through the larger Magino mill," McCluskey added.

Alamos said it plans to spend $19 million on exploration at Island Gold in 2024, targeting 41,000 meters of underground exploration drilling and 32,000 meters of underground delineation drilling.

The company also aims to complete 2,500 meters of near-mine surface exploration drilling and 10,000 meters of regional exploration drilling.

National Bank of Canada maintained its outperform rating and $26.50 price target on Alamos following the news.

"Our Outperform rating is supported by Alamos' attractive medium-term growth outlook driven by existing operations in politically stable jurisdictions," the bank said in a Tuesday note.

Alamos shares were last seen down $0.10 to $23.46 on the Toronto Stock Exchange.

Price: 23.46, Change: -0.10, Percent Change: -0.42