This is the final permit the company needs to build a mine and heap leach processing facility to produce about 50,000 ounces a year for an initial three years and construction will commence later this year with first gold production planned for mid-2020. SEMARNAT approved the land use change in June.
"The receipt of the MIA permit approvals represents the culmination of our efforts over the last couple of years to transform Minera Alamos into a commercial gold producer," said CEO Darren Koningen.
The permit approves about 73 hectares for mining use, including the areas for initial development of the Nicho and Nicho Norte gold deposits as well as related gold extraction and recovery facilities. It allos Alamos to commence earthworks and construction activities in advance of mining operations.
It is valid for 33 years and includes several conditions to protect and monitor the environment which must be implemented by Alamos to satisfy the permit requirements. It also allows the company to apply for other state/local permits required in advance of commercial mine production related to activities such as water use and explosives.
A second phase of exploration is planned to demonstrate the potential of the project to host other deposits like Nicho with drilling to follow-up on step out holes from Nicho.
Alamos aims to feed a central leach pad from various deposits at the Santana project and use its cash flow generation to partially fund the development of its longer life 40,000-50,000oz/y La Fortuna project in Durango from 2021.
Shares in Minera Alamos (TSXV:MAI) are trading at C16¢, valuing the company at $60 million. Its share price has almost doubled since the start of the year.
