The company reported strong intersections from surface and underground exploration drilling on the main extension that included the best surface directional drilling intersection to date. New highlights included 118.58 grams per tonne gold (39.99g/t cut) over 6.66m; 21.5g/t (13.70g/t cut) over 7.8m; and 31.7g/t (14.51 g/t cut) over 3.81m.
Alamos said high-grade mineralisation now extended nearly 1,000m east of the current mine workings and remained open to the east and down-plunge.
Drilling on the western extension confirmed high-grade mineralisation extended laterally and down-plunge from existing inferred resource. The new highlights included 78.26g/t gold (67.74 g/t cut) over 2.29 m; and 19.69g/t (19.69 g/t cut) over 2.79m.
The company also reported drilling on the eastern extension confirmed high-grade mineralisation extended below and east of existing inferred and indicated resources. Mineralisation remained open down-plunge. Highlights from this area included 46.13g/t gold (44.17 g/t cut) over 2.83m; and 13.72g/t (13.72 g/t cut) over 7.6m.
"Island Gold continues to impress. In less than a year since we acquired the mine, we've seen a 17% increase in mineral reserve grades and significant growth in mineral reserves and resources across all categories," CEO John McCluskey said.
He suggested the ongoing exploration success across all three extensions of the ore body, including the best surface directional hole drilled to date, demonstrated strong potential for this to continue.
Alamos shares edged 2.36% higher Monday to C$5.20, which gave the company a market value of $2.03 billion.
