Record Monthly Gold Production in July as Water Availability Continues to Improve.
Minera Alamos Inc. (the “Company” or “Minera Alamos”) (TSX VENTURE:MAI) is pleased to provide an
update on the continuing progress at the Company’s Santana gold mine as well as a financial update for
the Quarter ending June 30th, 2022.
As noted previously, the Company’s operations were impacted by the severe drought conditions
experienced throughout the US and Mexico Sonora desert region and which prevailed through to the end
of Q2 (as indicated and forecast in the news release dated 31 May 2022). Despite reduced access to water
for gold leaching operations the Company was able to continue to operate in a cash-flow
neutral/moderately cash flow positive state with gold sales of approximately 3,100 oz in the second full
quarter of pre-commercial production ramp-up. Monthly mine production rates were consistently
maintained at initial commercial production targets (approximately 300,000 tonnes). Following the
opening of the Nicho Main Zone during the second quarter, the Company is now in a position to ramp up
production levels further as soon as local water conditions return to traditional levels.
“Despite the impact of the lengthy drought in 2022, the Company was able to see cash and working capital
increases in the most recent quarter. Equally encouraging has been our stable cost profile through this
period with direct production costs in line with those experienced in the first quarter.” stated Darren
Koningen, CEO. ”I am extremely proud of our operating team’s ability to adjust quickly to this period of
difficult conditions. Minera’s strict adherence to appropriate capital management sets a strong
foundation for the Company with a strengthening balance sheet as we finalize ramp up of operations at
Santana and begin to advance the Cerro de Oro project through permitting activities.”
Following the onset of the seasonal rains toward the end of June, the Company was able to ramp up gold
recovery operations to those more representative of planned commercial levels. July gold recovery was
approximately 2,275 oz, almost twice that of any previous month this year. As of July, a total of 21,000
oz have been stacked on the leach pads of which approximately 10,000 oz have been recovered to date -
- only 5,687 oz of which had been sold as of June 30, 2022 due to normal start-up lags between extraction
and sales. Gold recoveries from areas under leach in excess of 30 days have consistently trended towards
75% or greater with residual leaching ongoing and ultimate recoveries on track to approach those from
test pad operations conducted prior to the Santana gold project construction. Based on results to date
the Company estimates approximately 6,000 oz of additional recoverable gold currently remains on the
pad which will systematically be brought under leach extraction as solution availability increases. While
extraction rates from areas under leach have been consistent throughout the ramp up phase of
operations, the erratic nature of the recent drought conditions remains the final hurdle to the Company
being in a position to declare commercial production at the mine. The ultimate timing for this declaration
will continue to be assessed with the help of operational data and climate forecasting.
Other notable highlights:
• The Santana project site assay lab is now complete and operational. An ability to quickly turn
around production control assays from the mine and processing plant was a critical prerequisite
prior to the Company initiating larger scale mining operations at the Nicho Main Zone and will
reduce costs currently associated with off-site third-party analysis of control samples.
• The final sign off of documentation for the Cerro de Oro surface rights agreement (see news
release dated June 21, 2022) was formally completed in August with the local ejido allowing the
Company to move forward with the permitting process for the construction of its second gold
operation.
• The Company is nearing completion of a NI 43-101 compliant Preliminary Economic Assessment
(“PEA”). The document will incorporate the details and economics of the Company’s current
development plans for its second planned mining operation at the Cerro de Oro gold project in
Zacatecas. The PEA is planned for completion next month.
• Definitive Documents have been signed for the working capital facility with Ocean Partners. This,
when combined with the C$4.37 million equity raise completed in July 2022, serves to bolster that
Company’s available working capital that stood at approximately C$17 million as of June 30, 2022.
• Improvements made to the Santana project site infrastructure following the heavy rains received
during the end of construction in 2021 have mitigated issues from the most recent precipitation
events resulting in only minor road damage that was repaired promptly by the mine contractor
and had minimal impact on overall mine haulage rates.
Selected Financial Data:
The following selected financial data is summarized from the Company’s unaudited condensed interim
consolidated financial statements and related notes thereto (the “Interim Financial Statements’) for the
three months ended June 30th, 2022, and the Management’s Discussion and Analysis (“MD&A”) for the
three months ended June 30th, 2022 (all numbers in Canadian dollars unless otherwise stated). A copy of
the Financial Statements and MD&A is available on SEDAR at www.sedar.com.
In accordance with the adoption of the Amendment to International Accounting Standard (“IAS”) 16
Property, Plant & Equipment, Proceeds Before Intended Use, the Company is providing revenues and costs
of goods sold for the period ending June 30th 2022. A more thorough explanation of this new accounting
rule is outlined in the financial statements (note that these costs pursuant to the IFRS accounting rule for
their treatment do not factor in depletion or depreciation)
• Revenues totalled $7,269,242 (3128.58 oz of gold) with cost of goods sold amounting to
$3,258,791. Revenues through the first 6 months of 2022 totaled $12,429,268 (5,286.27 oz of
gold) with costs of goods sold amounting to $5,514,096.
• Direct costs of production in Q2 were similar to those recorded in Q1 experiencing an approximate
$16/oz (~1.5%) increase.
• Income from operations of $2,578,102 compared with a loss of $772,667 in the corresponding
quarter of 2021
• Net income of $2,730,220 for the quarter amounted to $0.006/share compared to Net income of
$1,317,932 in the corresponding quarter of 2021.
• Cash and Cash Equivalents (including marketable securities) totalled $9,031,977 compared to
$8,177,510 at March 31st 2022 and S9,379,190 at Dec 31st 2021.
• Subsequent to quarter end the Company arranged a US$3 million working capital facility and
announced and closed a $4.38 million equity raise of common shares at $0.55/share. The
combination of both enhancing the Company’s working capital position as development work
extends to the advancement of the Cerro de Oro gold project.
Upcoming Conference Attendance
The Company will be presenting operational advancements of the Santana gold mine as well as
development plans and updates at Cerro de Oro at both the Beaver Creek and Denver Gold Shows to be
in held in Colorado, U.S., from September 13-21st and welcome the opportunity to speak with the
investment community for the plans both this year and next.
Cautionary Statement
The Company made its production decision and has started the development and production of the
Santana gold mine without having completed a feasibility study demonstrating economic and technical
viability. As such, there may be increased uncertainty of achieving planned production levels, estimated
recovery of gold, the costs associated with such recovery, including increased risks associated with
developing a commercially mineable deposit. Historically, such projects have a much higher risk of
economic and technical failure. Failure to commence production would have a material adverse impact
on the Company's ability to generate revenue and cash flow to fund operations.
Mr. Darren Koningen, P. Eng., Minera Alamos’ CEO, is the Qualified Person responsible for the technical
content of this press release under National Instrument 43-101.
For Further Information Please Contact:
Minera Alamos Inc.
Doug Ramshaw, President Victoria Vargas de Szarzynski, VP Investor Relations
Tel: 604-600-4423 Tel: 289-242-3599
Email: dramshaw@mineraalamos.com Email: vvargas@mineraalamos.com

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