Alamos Gold (TSX: AGI; NYSE: AGI) is set to break ground on the Phase 3 expansion of the Island gold mine, which completed its final permitting milestone in mid-March.
On April 11, Alamos president and CEO John McCluskey was joined by Hon. Greg Rickford, Ontario Minister of Northern Development, Mines, Natural Resources and Forestry; Hon. Todd Smith, Ontario Minister of Energy; and Beverly Nantel, Mayor of Dubreuilville, to participate in a groundbreaking ceremony at the mine.
They will also be joined by dignitaries including MP Carol Hughes, MPP Michael Mantha, White River Mayor Angelo Bazzoni, Wawa Acting Mayor Pat Tait, Steven Murphy, and Micheal Reid from Michipicoten First Nation, and Chief Jason Gauthier and Deputy Chief Les Nolan from Missanabie Cree First Nation.
Located just east of the town of Dubreuilville, 83 km northeast of Wawa in northern Ontario, Island Gold is a high-grade, low-cost underground gold mine that entered commercial production in 2007 and since produced over 1 million oz. of gold.
The Phase 3 expansion involves various infrastructure investments including the installation of a shaft, paste plant, and an expansion of the mill and tailings facility. Pre-sink of the shaft is expected to begin mid-2022.
The shaft expansion is expected to expand Island Gold to 2,000 t/d from the current rate of 1,200 t/d. As outlined in the Phase 3 study released in July 2020, this investment is expected to drive production approximately 70% higher to average 236,000 oz. of gold per year at industry low mine-site all-in sustaining costs of US$534/oz. when completed in 2025.
“Island Gold has been a tremendous acquisition for Alamos Gold. We acquired Island Gold in 2017 at a cost of approximately US$600 million when it had 1.8 million oz. of mineral reserves and resources. This high-grade deposit has more than doubled to 3.7 million oz. and we expect further growth yet," McCluskey commented in 2020.
More information is available at www.AlamosGold.com.
April 18, 2024
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