Gold price heads for weekly drop as traders weigh Trump, Fed outlook
Bullion declined by as much as 1% Friday, on track for its biggest weekly fall since May.
Alamos Gold (TSX: AGI; NYSE: AGI) has drilled the highest grade intersection yet at its Island Gold mine about 85 km from Wawa, Ontario. Hole MH25-08 returned an uncut 71.21 g/t gold (39.24 g/t cut) over 21.33 metres. Hole MH25-07 returned an uncut 34.87 g/t gold (38.87 g/t cut) over 5.98 metres.
Both the previous holes were drilled from surface at the Island East target and the results have allowed Alamos to extend the high grade gold mineralization 20 metres more to the east from the nearest inferred resource block. The widths were reported to be significantly greater as well.
Underground directional drilling at the Island West target extended high grade mineralization 50 metres below the nearest Inferred resource block and partially closed the 185-metre gap between two high grade inferred blocks. Hole 740-471-41 returned an uncut 31.58 g/t gold (38.74 g/t cut) over 2.43 metres.
Alamos has budgeted C$25 million for the 2021 exploration program at Island Gold, up from C$13 million in 2020. The goal is to continue definition of new near-mine resources across the 2-km long Main zone.
Guidance for 2021 at the Island Gold mine is 130,000 to 145,000 oz. of gold at an all-in sustaining cost of $750 to $800 per oz.
(This article first appeared in the Canadian Mining Journal)
