Alio Gold Drills 19 m of 6.45 g/t Au at Ana Paula

Alio Gold Inc. TSX- ALO has provided the results of the first drill hole from its surface drill program at its 100-per-cent-owned Ana Paula project in Guerrero, Mexico. The 3,800-metre surface diamond drill program was initiated in January, 2018, and consists of six drill holes of 600 to 700 metres each targeting the complex breccia extension below the proposed open pit.

The first hole (AP-18-283) returned positive results from the near-surface hydrothermal breccia south of the proposed pit and on the southern edge of the alteration halo. This first hole intersected the western edge of the complex breccia.

Highlights include:

  • 6.45 grams per tonne gold over 19.0 m (from 367 m to 386 m at the southern edge of the alteration halo);
  • 1.3 g/t gold over 55.7 m (from 57.6 m to 113.3 m in the near-surface hydrothermal breccia).

“The results of our first drill hole targeting the high-grade breccia below the proposed pit validate our decision to commence the surface drill program ahead of drilling from the underground decline,” said Greg McCunn, chief executive officer. “The results will allow us to more fully understand the geometry of the complex breccia and the nature and extent of the mineralization ahead of drilling from the underground decline which is expected in the third quarter of 2018. An added objective of our program was to test a lower-grade hydrothermal breccia structure lying south of the proposed pit which have shown positive results from this initial hole. The lower-grade hydrothermal breccia lies outside of the proposed PFS pit outline.”

The company has initiated an extensive exploration program at Ana Paula which includes in addition to the surface drill program:

  • Exploration drilling from an underground decline targeting an extension to the high-grade breccia below the proposed open-pit and a skarn target below the breccia (decline construction commenced with drilling expected in the third quarter of 2018);
  • Surface drilling to test a high-priority target that is 100 metres north of the proposed open pit (drilling to commence following the completion of the surface drill program in the first quarter of 2018);
  • Regional exploration work on the 56,000 hectare land package including an airborne magnetic survey targeting further breccia or skarn targets (continuing in 2018).

The current program from surface has been progressing very well with 1,776 metres of the proposed 3,800-metre program drilled to date and assays are pending on the second drill hole. The third hole was completed on March 11, 2018, and the fourth hole is under way. As drilling progress rates have been better than planned, the company expects to be able to finish the program in the first quarter with a single drill rig operating.

                     CURRENT RESULTS FROM SURFACE DRILLING 2018
 
Hole No.        Depth from Depth to      Au  Interval length  Estimated true width
                       (m)      (m)   (g/t)              (m)                   (m)

AP-18-283             57.6    113.3    1.30             55.7                  20.6
AP-18-283            120.0    132.1    0.77             12.1                   4.5
AP-18-283            341.0    386.2    3.41             45.2                   N/A
including            341.0    358.1    1.74             17.1
and including        367.3    386.2    6.45             19.0
AP-18-283            472.9    476.3    0.93              3.4                   N/A
AP-18-283            516.3   520.25    1.92              4.0                   N/A
        
Note on true width calculation
For the complex breccia and surrounding halo mineralization and in the monolithic 
breccia (MBX), the calculation of a true width is inappropriate since these units 
are not tabular. For the mineralization outside of these units (that is, 
sediments (SED) and intrusive (INTRS)) the true width can be estimated since the 
mineralization is likely following the stratigraphy.   
 

About Alio Gold Inc.

Alio Gold is a growth-oriented gold mining company, focused on exploration, development and production in Mexico. Its principal assets include its 100-per-cent-owned and operating San Francisco mine in Sonora, Mexico, and its 100-per-cent-owned development-stage Ana Paula project in Guerrero, Mexico. Located within the highly prospective Guerrero gold belt on 56,000 hectares of underexplored land, the Ana Paula project is a high-grade, high-margin project currently in the definitive feasibility stage. An underground decline to provide access for an exploration drill program has been initiated targeting the continuation of the high-grade gold mineralization below the proposed pit which has the potential to significantly enhance the robust economics of the project.

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Pierre Desautels, PGeo, a qualified person as defined by National Instrument 43-101, who is an independent consultant to the company.

Quality assurance/quality control

Drill holes reported in this press release were drilled using PQ-sized diamond drill bits. Company personal were located at the at the drill site. Contractors and employees of Alio Gold conducted all logging and sampling. The core was logged, marked up for sampling using standard lengths of approximately 1.5 metres. Samples were then collected by sawing one-fourth of the PQ core using a diamond saw with the remaining three-fourths portion of the PQ core retained for metallurgical testwork. The samples were catalogued and placed into sealed bags and securely stored at the site until it was shipped to sample preparation laboratory owned by ALS Chemex in Guadalajra, Mexico. The core was dried and crushed and pulverized to 85 per cent passing 75 microns. The pulps were then shipped for assay to the ALS Chemex located in Vancouver, Canada. At that location, the samples were analyzed for gold using fire assay with an atomic absorption finish (FA-AA) on a 50-gram charge. Samples returning over 10 grams per tonnes were reassayed using a fire assay with a gravimetric finish. Samples were also analyzed for a suite of 35 elements using aqua regia inductively coupled plasma atomic emission spectroscopy (ICP-AES). Overlimits for silver, arsenic and zinc were reassayed using an ore grade ICP-AES method. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, the labs inserted their own quality control samples.

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