Canadian Mining Journal

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GOLD: Alamos says Lynn Lake to yield 170,000 oz. per year



The Lynn Lake gold project in northern Manitoba includes both the MacLellan and Gordon deposits. (Image: Alamos Gold)

MANITOBA – Alamos Gold of Toronto has released the feasibility study for its Lynn Lake gold project, situated 40 km east of the town. The company expects to recover a total of 1.5 million oz. of gold and 1.3 million oz. of silver over about 10 years of mine life, or an average of 170,000 oz/year..

After taxes the project will have an internal rate of return of 12.5% and a net present value at a 5% discount of $123.4 million.

The Lynn Lake property is the site of a former gold producer, and it will take $330.0 million to put an open pit into production. There are also sustaining capital expenditures of $126.6 million and reclamation costs of $21.1 million.

Alamos says the two deposits it proposes to  mine have total proven and probable reserves of 26.8 million tonnes grading 1.89 g/t gold and 2.99 g/t silver. Contained gold is estimated to be over 1.6 million oz. There are a further 4.8 million measured and indicated tonnes at 1.58 g/t gold and 1.4 million inferred tonnes at 1.48 g/t gold. The planned mill will include carbon-in-pulp technology.

“As we advance the project through permitting over the next two years, we see excellent potential to further enhance its overall economics through a number of avenues, including incorporating recent exploration success. We expect stronger economics prior to making a construction decision,” said John A. McCluskey, Alamos president and CEO.

Details are available at www.AlamosGold.com.