Toronto-listed Alamos Gold is proceeding with an expansion of its Island Gold mine, in Ontario, Canada, which will significantly increase output, lower costs and turn it even more profitable.
Alamos points out that Island Gold was already one of the most profitable mines in Canada.
The Phase 3 expansion study showcases the growing value of Island Gold, says president and CEO John McCluskey.
The study focuses on expanding the operation from 1200t/d to 2000 t/d.
The expansion will require $1.066-billion in capital expenditure, comprising $514-million growth capital and the balance sustaining capital. The expansion will involve various infrastructure investments, including the installation of a shaft, paste plant, and an expansion of the mill and tailings facility. Following the completion of the shaft construction in 2025, the operation will transition from trucking ore and waste to skipping ore and waste to surface through the new shaft infrastructure, driving production higher and costs significantly lower.
The average gold production is expected to increase by about 72% to 2236 000 oz/y, while total cash costs will fall by 19% to $403/oz and the all-in sustaining cost will shrink by 30% to $534/oz.
The study calculated an after-tax net present value of $1.02-billion, at a 5% discount rate, and an after-tax internal rate of return of 17%, using a gold price of $1450/oz.
Based on a mineable resource of 9.6-million tonnes, grading 10.45 g/t gold, the expansion will ensure a 16 year mine life.
We acquired Island Gold in 2017 at a cost of approximately $600-million when it had 1.8-million ounces of Mineral Reserves and Resources. This high-grade deposit has more than doubled to 3.7-million ounces and we expect further growth yet, said McCluskey.
Alamos recently completed the lower mine expansion at its Young-Davidson mine, also in Ontario, with the commissioning of the Northgate shaft.
In addition to the Northgate shaft, the underground crusher and conveyor system have also been successfully commissioned. Mining rates are expected to ramp up through the second half of the year to 7 500 t/d by the end of 2020.
Follow this link:
Alamos announces shaft expansion at Ontario's Island Gold mine - Creamer Media's Mining Weekly
- Water Purification Island - November 8th, 2009 [November 8th, 2009]
- Private Islands: South China Sea Style - November 8th, 2009 [November 8th, 2009]
- The Best of Fiji - November 8th, 2009 [November 8th, 2009]
- High Cay: Bahamas - November 8th, 2009 [November 8th, 2009]
- The World: Back on the Market - November 8th, 2009 [November 8th, 2009]
- The Island Market is Back - November 8th, 2009 [November 8th, 2009]
- Haunted Halloween Island - November 8th, 2009 [November 8th, 2009]
- Ambergris Island Property - November 8th, 2009 [November 8th, 2009]
- Paradise Sinking - November 8th, 2009 [November 8th, 2009]
- Parrot Cay: Own a Piece of Privacy - November 8th, 2009 [November 8th, 2009]
- An Icky Day - November 8th, 2009 [November 8th, 2009]
- It's a Cory's! - November 8th, 2009 [November 8th, 2009]
- There she blows! - November 8th, 2009 [November 8th, 2009]
- Bye bye Whale - November 8th, 2009 [November 8th, 2009]
- No Bunting Mistake - November 8th, 2009 [November 8th, 2009]
- Whale of a time... - November 8th, 2009 [November 8th, 2009]
- Leaving day - November 8th, 2009 [November 8th, 2009]
- Look who's back... - November 8th, 2009 [November 8th, 2009]
- Lanced... - November 8th, 2009 [November 8th, 2009]
- Migrants role in... - November 8th, 2009 [November 8th, 2009]
- Pups away! - November 8th, 2009 [November 8th, 2009]
- Double take - November 8th, 2009 [November 8th, 2009]
- Northerly wind blows - November 8th, 2009 [November 8th, 2009]
- Northern visitors - November 8th, 2009 [November 8th, 2009]
- Siege! - November 8th, 2009 [November 8th, 2009]
- Storm time - November 8th, 2009 [November 8th, 2009]
- Storm season - November 8th, 2009 [November 8th, 2009]
- Storming over - November 8th, 2009 [November 8th, 2009]
- Sealing mission - November 8th, 2009 [November 8th, 2009]
- Still no go - November 8th, 2009 [November 8th, 2009]
- Over they go! - November 8th, 2009 [November 8th, 2009]
- All change - November 8th, 2009 [November 8th, 2009]
- Welcome back storms - November 8th, 2009 [November 8th, 2009]
- Fight club - November 8th, 2009 [November 8th, 2009]
- V Australia to Fiji - November 8th, 2009 [November 8th, 2009]
- Tahiti Sun Travel For Sale - November 8th, 2009 [November 8th, 2009]
- Cook Islands Travel Guide - November 8th, 2009 [November 8th, 2009]
- Perfectly Frank – Fiji - November 8th, 2009 [November 8th, 2009]
- Cook Islands Tax Hike - November 8th, 2009 [November 8th, 2009]
- Easter Island Travel Guide - November 8th, 2009 [November 8th, 2009]
- Surviving Paradise - November 8th, 2009 [November 8th, 2009]
- Canada Seal Hunt ‘09 - November 8th, 2009 [November 8th, 2009]
- Tuvalu Travel Guide - November 8th, 2009 [November 8th, 2009]
- Saudi Arabian Sojourn - November 8th, 2009 [November 8th, 2009]
- Laurent Pichot on Moorea - December 13th, 2009 [December 13th, 2009]
- The Largest Island for Sale in the World. - December 13th, 2009 [December 13th, 2009]
- Isla Kiniw: Incredible Island Rental - December 13th, 2009 [December 13th, 2009]
- Save at Sandals Resorts - December 13th, 2009 [December 13th, 2009]
- Marvelous Mediterranean: Skyropoula Island - December 13th, 2009 [December 13th, 2009]
- Branson Talks Necker Island - December 13th, 2009 [December 13th, 2009]
- Hog Island: Affordable Nova Scotia - December 13th, 2009 [December 13th, 2009]
- The Banyan Tree: Seychelles - December 13th, 2009 [December 13th, 2009]
- Celebrity Secret Vacation Spots - December 13th, 2009 [December 13th, 2009]
- Star Island - December 13th, 2009 [December 13th, 2009]
- 7 Islands in 7 Days - December 13th, 2009 [December 13th, 2009]
- Counting continues - December 13th, 2009 [December 13th, 2009]
- Life goes on - December 13th, 2009 [December 13th, 2009]
- Payback time - December 13th, 2009 [December 13th, 2009]
- No let up - December 13th, 2009 [December 13th, 2009]
- Game on - December 13th, 2009 [December 13th, 2009]
- Deal or No Deal? - December 13th, 2009 [December 13th, 2009]
- Food glorious food - December 13th, 2009 [December 13th, 2009]
- Mainland beckons... - December 13th, 2009 [December 13th, 2009]
- The tempest is coming - December 13th, 2009 [December 13th, 2009]
- Tought times ahead - December 13th, 2009 [December 13th, 2009]
- Tystie day - December 13th, 2009 [December 13th, 2009]
- Saying Goodbye...maybe - December 13th, 2009 [December 13th, 2009]
- Departure Day - December 13th, 2009 [December 13th, 2009]
- Seal pups - December 13th, 2009 [December 13th, 2009]
- Seabird Breeding Season 2009 - December 13th, 2009 [December 13th, 2009]
- Maritime Terminal Papeete Tahiti - December 13th, 2009 [December 13th, 2009]
- A splash of colour - December 14th, 2009 [December 14th, 2009]
- Tiger Woods Wife purchases Island Retreat - December 15th, 2009 [December 15th, 2009]
- New Flights to Fiji - December 18th, 2009 [December 18th, 2009]
- Five Star Fiji - December 19th, 2009 [December 19th, 2009]
- Go Farther in Nicaragua - December 19th, 2009 [December 19th, 2009]
- Zoo Island - December 21st, 2009 [December 21st, 2009]
- Seasons Greetings 2009 - December 23rd, 2009 [December 23rd, 2009]
- Green Ark Island - December 23rd, 2009 [December 23rd, 2009]
- Merry Christmas! - December 25th, 2009 [December 25th, 2009]