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Mining News July 30, 2020 10:45:40 PM

Alamos Gold to Build New Mexican Gold Mine

Paul Ploumis
ScrapMonster Author
The company estimates a total initial capital of $137 million.

Alamos Gold to Build New Mexican Gold Mine

SEATTLE (Scrap Monster): Canadian miner Alamos Gold has announced its decision to go ahead with the construction of La Yaqui Grande gold mine in Mexico. This follows the recent internal study report, which gave out positive results. The mine is located adjacent to its existing operation in the Mulatos district. The company had recently declared $1.07 billion capital project at Island gold mine.

The company estimates a total initial capital of $137 million, which will be spent over a two-year period commencing in the second half of the current year. Nearly $15-$20 million will be spent in 2020, whereas the remainder will be spent in 2021 and the first half of 2022. $74 million has been earmarked for pre-stripping activities. The initial production from the mine is slated for the second half of 2022.

ALSO READ: Canadian Miner Reported Robust Gold Output in Q2

According to the study, La Yaqui mine life is estimated to be five years. The average gold production is estimated at 123,000 ounces, at an all-in sustaining cost (AISC) of $587 per ounce. It must be noted that the mine has received all necessary permits, including the final environmental impact assessment.

John A. McCluskey, President and Chief Executive Officer stated that the mine represents its next low-cost, high-return project in the Mulatos District. The mine is expected to drive strong free cash flow growth in 2022 and beyond, he added.

 

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