07:15 AM EDT, 05/16/2017 (MT Newswires) -- Alio Gold Inc (ALO.TO, ALO) -- formerly Timmins Gold Corp., and set to officially begin trading today under its new ticker 'ALO' on both the TSX and the NYSE -- announced Tuesday the results of a Pre-Feasibility Study on its Ana Paula Project, its 100% owned high-grade, open pit gold project located on the highly prospective Guerrero Gold Belt in Mexico.

HIGHLIGHTS OF THE PFS: Proven & Probable Mineral Reserves of 13.4 Mt at 2.36 g/t for 1,021,000 contained ounces of gold; NPV is equal to US$223 million and IRR of 34% after tax at $1,250/oz gold; Initial Capital Cost of $137.2 million; First quartile operating costs with cash costs of $489/oz and site All-in Sustaining Costs of $524/oz.

It also reported Gold recovery 85%; Mine life of 7.5 years from an open pit producing 868,000 ounces of gold; and Underground potential highlighted with Measured & Indicated Resources below the proposed pit of 3.0 Mt at 2.8 g/t for 266,700 contained ounces. It added a Definitive Feasibility Study will start in July and take approximately nine

months to complete.

Commenting on the PFS, Chief Executive Officer Greg McCunn said, "The Ana Paula Project has been significantly de-risked over the past six months with infill drilling now supporting a robust Mineral Resource Estimate, metallurgical test work defining an improved process design, capital and operating costs estimated to a high standard and our Environmental Impact Assessment approved by the regulators. The PFS has confirmed the project economics are very robust and we expect to continue moving the project forward to an investment decision in Q2 2018."

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