Alamos Gold outlines larger, more profitable operation at Island Gold in Ontario

Diversified North American gold producer Alamos Gold has reported results from its phase 3+ (P3+) expansion of the Island Gold mine in Northern Ontario, Canada.

The P3+ expansion study outlines a larger, more profitable operation than outlined in the Phase III expansion study released in 2020. The latest study will pave the way for an expansion of the underground operation to 2,400 tonnes per day.

Once the expansion is complete, the mine’s average annual gold production will rise to 287,000 ounces – from 125-135,000 ounces in 2022 – with industry low all-in sustaining costs of US$576 per ounce. The NPV of the project will also increase by 31% to $2 billion at a gold price of $1,850 per ounce.

Mineral Reserves and Resources have increased to 5.1 million ounces, supporting the P3+ increase in production rates, which will ‘create a bigger, longer-life, more profitable and valuable operation’, according to Alamos president and CEO John A. McCluskey.

“As a producing mine with a well-understood cost structure, this expansion is low risk from an execution perspective, and has a significantly reduced carbon footprint,” he added.

“The exploration story continues to unfold with a Mineral Reserve and Resource base that has nearly tripled over the past four years, and with the deposit open laterally and down-plunge, we expect Island Gold will be one of the lowest cost and most profitable mines for decades to come.”