TORONTO, CANADA (Commodity Online): Alamos Gold Inc. (TSX:AGI)has entered into a Memorandum of Understanding to acquire 100% of the Agi Dagi and Kirazli gold projects from Fronteer Development Corp.(TSX:FRG)(NYSE Amex:FRG) and Teck Resources Limited ("Teck") (TSX:TCK.B)(NYSE:TCK), through the acquisition of certain Turkish subsidiaries held by Teck and Fronteer.

Alamos is to pay a total of US$40 million and issue a total of four million shares to the vendors in consideration for these two projects. In addition to statutory compensation that may apply to the projects, a third party has a 2% Net Smelter Return Royalty on production from the Agi Dagi project.

Fronteer and Teck have agreed to negotiate exclusively with Alamos. Completion of the transaction is subject to 60-day due diligence period, the execution of definitive agreements, and the approval of Alamos' Board of Directors and the TSX.

Agi Dagi and Kirazli are advanced-stage gold exploration projects that form part of the Biga Mineral District, a recently established gold-copper mineral district, which is located in the Biga Peninsula of northwestern Turkey. The Biga Mineral District features a growing number of high-sulfidation epithermal gold and associated porphyry copper-gold deposits, drawing comparisons to world-class districts such as Yanacocha, Pierina, and Alto Chicama in Peru.

Agi Dagi is located about 50 kilometres southeast of Canakkale near the town of Can. Kirazli is located approximately 25 km, by paved road, northwest of Agi Dagi. The region is well-serviced with electricity, transmission lines, and electrical generating facilities.

In June 2007, Fronteer published NI 43-101 compliant resources for the Agi Dagi and Kirazli gold properties. Fronteer defined three gold deposits that collectively contain measured and indicated oxide resources of 1.293 million ounces of gold and 8.4 million ounces of silver, plus inferred oxide resources of 702,000 ounces of gold, and 5.254 million ounces of silver at a cut-off of 0.5 grams of gold per tonne ("g/t Au"). These oxide resources are open for expansion and summarized in Table 1. In addition to the oxide resources, significant sulphide resources are also contained within these three deposits.

Since publishing these results, Fronteer and Teck have completed an additional 81 holes of core and reverse-circulation drilling on the three main mineralized zones. Based on Alamos' initial review, it is expected that these drill results will add to the resource when incorporated into the model.


In addition to the defined gold resources, only five holes have been completed on other targets on these concessions. Alamos believes there is potential to develop additional resources at other areas on the concessions over time.

Preliminary metallurgical studies on oxide materials from all three deposits indicate average recoveries of approximately 90%, rapid leach times, and low reagent consumptions.

The combined properties have the immediate potential to be developed into low-cost oxide gold heap-leach operations. The projects include an established camp facility, available water supply, are located on the power grid, and are road accessible.

Commenting on these potential acquisitions, John A. McCluskey, Alamos' President and CEO stated, "Turkey is an emerging gold producing country and it is management's opinion that it is a jurisdiction of low political risk. We feel this is evidenced by the fact that there are currently 14 mines in operation in the country, five of which are gold mines, with four other gold mines currently under development."

"These two projects represent a growing global resource of well over two million oxide ounces of gold plus a considerable amount of silver. These ounces, combined with the preliminary metallurgical studies, should result in very compelling project economics in the current gold market."

"This potential acquisition represents significant upside for Alamos shareholders as we are also acquiring a dominant land position in a mineral-rich district that contains high-sulphidation epithermal gold deposits. The Company's existing gold operations in the Mulatos District of Mexico are also based upon high-sulphidation epithermal gold deposits, from which we will be able to leverage our geological expertise and heap-leach operating and mine-building experience."

"Alamos remains focused on acquisition opportunities in politically safe jurisdictions in the Americas. Alamos management believes that the Agi Dagi and Kirazli projects represent a compelling opportunity for the Company as it begins an aggressive campaign for growth." (Courtesy: Marketwire)

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