https://newsletter.mw.creamermedia.com
Exploration|Flow|generation|Gold|Infrastructure|PROJECT|Proximity|Resources|Underground|Flow|Infrastructure|Operations
Exploration|Flow|generation|Gold|Infrastructure|PROJECT|Proximity|Resources|Underground|Flow|Infrastructure|Operations
exploration|flow-company|generation|gold|infrastructure|project|proximity|resources|underground|flow-industry-term|infrastructure|operations

Alamos to triple Mulatos mine life with underground development

Mulatos has been operating for nearly 20 years.

Mulatos has been operating for nearly 20 years.

5th September 2024

By: Creamer Media Reporter

     

Font size: - +

Toronto- and New York-listed Alamos Gold has announced the results of a positive internal economic study completed on its Puerto Del Aire (PDA) project – a high-grade underground deposit adjacent to its Mulatos openpit in Mexico.

The PDA project, which will produce 127 000 oz/y in its first four years, is expected to nearly triple the mine life of the Mulatos district, extending production into 2035.

“Mulatos has been operating for nearly 20 years reflecting a long-term track record of exploration success with the discovery of multiple new deposits in the District. PDA is an extension of that success,” said president and CEO John McCluskey.

The PDA project has an aftertax internal rate of return of 46% and an aftertax net present value, using a 5% discount, of $269-million.

The initial capital of $165-million will be funded by strong free cash flow generation at the Mulatos district. This includes $51-million for underground development, and $109-million for the processing facility, including a 25% contingency.

Given its attractive economics and proximity to the existing Mulatos infrastructure, Alamos said that it expected to start development in 2025 with first production by mid-2027.

“The development of PDA and transition to underground sulphide milling operations will open up additional opportunities for growth in the Mulatos district. Given our ongoing exploration success at PDA, and newly defined and growing higher-grade zones of mineralisation at Cerro Pelon, we see excellent potential to further extend the mine life and add to already attractive economics,” stated McCluskey.

The PDA mine plan and economic analysis are based on mineral reserves that total 5.4-million tonnes, grading 5.61 g/t and containing 969 000 oz of gold. Additionally, the project hosts measured and indicated mineral resources of  2.1-million tonnes, grading 3.54 g/t gold and containing 240 000 oz of gold.

Edited by Creamer Media Reporter

Comments

Showroom

The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/11/2024)
15th November 2024 By: Martin Creamer
Magazine round up | 15 November 2024
Magazine round up | 15 November 2024
15th November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:1.022 1.116s - 130pq - 2rq
Subscribe Now