Alamos Gold has set some lofty goals for its Island Gold Mine in northeastern Ontario to be one of the industry’s lowest cost and most productive operations.
The Toronto mid-tier miner plans to boost annual gold production by 72 per cent to 236,000 ounces starting in 2025 when construction is scheduled to wrap up on a US$514-million shaft and processing mill expansion project.
The company unveiled its much-anticipated study detailing its third phase of expansion since Alamos acquired the high-grade underground operation in 2017 from Richmont Mines. The mine began production in 2007.
The Island Gold Mine is 10 kilometres southeast of Dubreuilville and 83 kilometres northeast of Wawa.
Coupled with operating costs, the shaft expansion represents a more than US $1 billion investment for Alamos over a now-doubled mine life of 16-22 years. In that span, Alamos expects to produce 3.2 million ounces of gold, grading at 10.45 grams per tonne.
Mining and milling rate will increase from 1,200 tonnes per day to 2,000 tonnes.
All-in sustaining costs should drop by 30 per cent to $534 per ounce once shaft construction is done.