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Alamos Gold has wrapped up an agreement to acquire its Dubreuilville neighbour, Trillium Mining, for $25 million.
Trillium's namesake gold project is comprised of 5,418 hectares located to the east of Alamos' Island Gold Deposit. It hosts the former Edwards and Cline gold mines. Dubreuilville is 15 kilometres to the west.
In a Dec. 17 news release, Alamos said this acquisition more than doubles their land position in the area by 57 per cent. The company will have almost 15,000 hectares at its disposal in Michipicoten Greenstone Belt of this northeastern Ontario gold camp.
To Alamos, Trillium promises significant exploration potential to add to the high-grade gold resource base at Island Gold.
Alamos said based on their interpretation of the geological structure which hosts the Island Gold deposit - labelled as E1E - there is strong likelihood of making more high-grade discoveries along strike into the Trillium property.
The gold miner points to recent drilling at their Island East deposit, which returned high-grade assays up to 100 metres down, which look open for more discoveries laterally and at depth.
The Trillium property, Alamos said, provides them with 17 kilometres of geological structure to explore along, what's called, the Goudreau Lake Deformation Zone, known for its gold-bearing veins with the Michipicoten Greenstone Belt.
The Edwards and Cline Mines on the Trillium property once produced 144,000 ounces of gold, at 11.5 grams per tonne, and 65,000 ounces at at 6.8 grams per tonne, respectively.
With other historic high-grade showings there, Alamos said assembling this consolidated land package allows them to take a "systematic, district scale approach to exploration" to get a better handle on the area's geological settings.
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 Feb. 26, Alamos will fully own the Highland Property.
“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," said Alamos president-CEO John A. McCluskey in the news release.
"Island Gold’s mineral reserve and resource base has more than doubled since 2017. We see excellent potential for this growth to continue given ongoing exploration success. The acquisition of these claims ensure we maintain full ownership over future growth of the existing deposit and regionally where there have been a number of high-grade gold occurrences including two past producing mines,”
Besides running the Island Gold Mine, Alamos operates the Young-Davidson Mine at Matachewan, near Kirkland Lake, and has the Mulatos mine in Sonora State, Mexico, along with a slew of gold exploration projects in the development pipeline in Canada, the U.S., Mexico and Turkey.