EXPLORATION & DEVELOPMENT

Island Gold gets nod for Phase II expansion

Alamos Gold incorporating growing resource base in Phase III expansion study

Staff Reporter
Alamos Gold has received approval to increase Island Gold's production rate

Alamos Gold has received approval to increase Island Gold's production rate

The Ontario Environment, Conservation and Parks Ministry agreed to amend the permit to allow the mine to use its completed phase-one expansion to 1,200t/d, which was completed in 2018.

The amendments came ahead of schedule (originally expected late in 2019) and will allow underground mining and mill throughput rates to increase from the previously permitted rate of 1,100t/d.

Underground mining rates were expected to increase to 1,200t/d in 2020, the company said, adding it would pursue opportunities to ramp up mining rates to 1,200t/d before the end of 2019. The new permit does not affect the company's 2019 production and cost guidance.

It does not expect the Phase II expansion to require more capex since the mine and mill can both already support throughput rates of 1,200t/d.

In parallel, Alamos said it was moving ahead with a large exploration programme at Island Gold that had to date been successful in driving significant growth in reserves and resources the past several years.

This was feeding a Phase III expansion study beyond 1,200t/d, expected to be completed over the next year.

Alamos, with a market capitalisation of C$2.31 billion, has seen its Toronto-listed equity grow 21.62% in value in the year to date, but the stock is down 15% over the past 12 months. At $6.02 apiece on Tuesday, the stock was trading at about the midpoint of its 12-month range.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.