Name: Mulatos mine.

Location: The Mulatos mine is located within the Salamandra concessions, in the Sierra Madre Occidental mountain range, in east-central Sonora, Mexico.

Controlling Company: Alamos Gold.

Brief History: The Mulatos project was acquired in February 2003 for $10-million. Following completion of a feasibility study, construction began in the third quarter of 2004. First gold pour was completed in 2005. Commercial production followed on April 1, 2006. The operation was initially contemplated as a 10 000 t/d operation; however, with future expansion potential in mind, major components of Mulatos, including the crusher/conveyor and gold recovery plant, were sized for a 15 000 t/d operation. Through various expansions and productivity improvements over the years, the mine today operates at a throughput rate of about 17 500 t/d, which includes 700 t/d from the gravity mill.

In addition to the existing heap-leach operations at the Mulatos mine between 2009 and 2012, the company developed the Escondida high-grade zone and built a mill to process high-grade ore from the deposit.

Brief Description: The Mulatos mine is a conventional openpit, heap-leach operation, with gold recovered through a carbon-in-column circuit. In addition to the heap-leach operation, high-grade ore is processed through a gravity mill budgeted at 700 t/d in 2014.

Geology/Mineralisation: The Mulatos deposit comprises the contiguous Estrella, El Salto, Mina Vieja, and Puerto del Aire resource areas. The Escondida deposit is the faulted extension of the Mina Vieja and El Salto deposits and mineralisation is believed to be continuous to the north-east to the Gap, El Victor and San Carlos mineralised areas. Although zones are often bounded by post-mineral faults, together they form a trend of 2.7 km of gold mineralisation starting at the north end of the Estrella pit to the San Carlos deposit.

Within the larger Salamandra concessions, geologically similar high-sulphidation gold deposits, occurrences or prospects are known. The principal ones, some of which are being evaluated and/or drill-tested, are Cerro Pelon, La Yaqui, El Realito, El Carricito, El Halcon, Las Carboneras, El Jaspe, Puebla, Los Bajios, and La Dura.

Precious metal mineralisation at Mulatos is associated with intense silicic alteration (mostly vuggy silica), advanced argillic alteration and the presence of hydrothermal breccias. Gold mineralisation occurs primarily within areas of pervasive silicic alteration of the volcanic host rocks and, to a lesser extent, within advanced argillic alteration assemblages proximal to silicic alteration. The gold-bearing advanced argillic zones are dominated by pyrophyllite or dickite alteration. Silicic rocks host about 80% of the contained gold within the deposit.

Reserves: Total proven and probable mineral reserves as at December 31, 2013, were estimated at 54.77-million tonnes grading 1.15 g/t gold.

Resources: Total measured and indicated mineral resources (exclu- sive of mineral reserves) as at December 31, 2013, were estimated at 73.76-million tonnes grading 1.06 g/t gold. Inferred mineral resources were 10.69-million tonnes grading 0.93 g/t gold.

Products: Gold and minor amounts of silver.

Mining Method: Mining at Mulatos is by conventional openpit methods, with the addition of underground mining operations expected to start this year.

Major Infrastructure and Equipment: Lower-grade ore from the openpit is processed through four stages of crushing to a target size of 95% minus 3/8 inches. Run-of-mine ore is delivered to the primary crusher feed hopper by rear-dump haul trucks.

Ore is withdrawn from the coarse ore stockpile by two variable- speed apron feeders and conveyed to three tertiary crushers, each with a dedicated vibrating feeder. The tertiary crushed ore is conveyed to vibrating screens where oversized ore is transferred to and crushed in the single quaternary cone crusher. The quaternary crushed ore is discharged onto the crusher conveyor and recirculated to the vibrating screen. The undersized screened ore flows to the fine-ore collection conveyor and ultimately to the fine ore stockpile.

After crushing, lime and cement are added and the ore is conveyed to a pair of agglomerators. Once agglomerated, the ore is delivered to the leach pad for stacking and leaching through a series of portable conveyors ending with a radial stacking conveyor. The heaps are underlain by an impermeable plastic layer on top of a layer of compacted clay.

To extract the gold from the ore, a low-concentration cyanide solution is applied to the ore on the leach pad using a low-pressure irrigation sprinkler system. The resulting gold-bearing solution is channelled to the pregnant solution pond and is then pumped to the carbon-in-column circuit, where gold is recovered from the solution. The barren solution is then recirculated to the heap with added cyanide.

Prospects: None stated.

Contact Person: Director of investor relations Scott K Parsons.

Contact Details:
Alamos Gold,
tel +1 416 368 9932,
fax +1 416 368 2934, and
email sparsons@alamosgold.com.