TORONTO-- Alamos Gold Inc. has acquired Trillium Mining Corp. for cash consideration of $19.6 million. Trillium holds a large land package comprised of 5,418 hectares directly adjacent to, and along strike from the Island Gold Deposit within the Michipicoten Greenstone Belt.
The acquisition has expanded the company’s land package around Canada’s Island Gold mine by 57%. This newly acquired land includes significant exploration potential in proximity to existing high-grade Mineral Resources and regionally.
“The acquisition of Trillium is consistent with our strategy of consolidating prospective land in proximity to our Island Gold mine where we have had tremendous exploration success over the last several years,” President and CEO John A. McCluskey said.
Based on the current geological interpretation of the E1E structure which hosts the Island Gold Deposit, there is strong potential for the structure to extend onto the Trillium mineral tenure. This is further supported by recent drilling, including the best surface exploration hole to date, MH25-04 grading 28.97 grams per ton of gold (“g/t Au”) (26.89 g/t cut) over 21.76 meters true width, and MH25-03 grading 15.38 g/t Au (14.19 g/t cut) over 15.02 m (both previously reported).
These intercepts extended high-grade gold mineralization over significantly greater widths up to 100m down-plunge from the nearest Inferred Mineral Resource block in Island East. The deposit remains open laterally and down-plunge.
Regional exploration potential
The Trillium land package also provides significant regional exploration potential, adding 10 kilometers of strike extent within the Goudreau Lake Deformation Zone, a primary control on gold mineralization within the Goudreau-Lochalsh segment of the Michipicoten Greenstone Belt. Alamos’ consolidated land package now covers a total of 17 kilometers of highly prospective structures and stratigraphy within the GLDZ. In addition to the Island Gold and Kremzar deposits, this now includes the two past producing gold mines, Cline and Edwards, as well as several historic high-grade gold showings, including the Markes and Vega Zones.
The larger consolidated land package will allow for Alamos to apply a systematic, district scale approach to exploration with targeting based on greenstone belt scale structural and stratigraphic controls on gold mineralization.
Included within the Trillium land package is the Highland Property which is in the final year of a five year option agreement. Following the exercise of the option, expected on February 26, 2021, Alamos will own 100% of the Highland Property.
“Island Gold’s mineral reserve and resource base has more than doubled since 2017,” McCluskey said. “We see excellent potential for this growth to continue given ongoing exploration success.”