Alamos receives permit for expansion of Island Gold mine

Toronto-based Alamos Gold has received the amended permit for expansion of the Island Gold mine to 1,200 t/d from the provincial Ministry of the Environment, Conservation and Parks. The mine is located about 83 km northeast of Wawa, Ontario, Canada.

Alamos said the permit was received ahead of schedule. Underground mining rates are to reach 1,200 t/d in 2020, and the company is seeking ways to reach that level before the end of 2019.

The benefits of the phase two expansion are a production increase to 125,000 oz. per year and a lowering of the all-in sustaining costs to $550.

The company is also conducting a large ongoing exploration program that has already increased the resources at Island Gold. The mine has proven and probable reserves of 3 million tonnes grading 10.28 g/t gold. Measured and indicated resources are 969,000 tonnes at 8.77 g/t, and inferred resources are 4.2 million tonnes at 11.71 g/t gold. There are close to 2.8 million oz. of gold contained in all categories. A phase three expansion study is also underway.

(This article first appeared in the Canadian Mining Journal)

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