Alamos to triple Mulatos mine life with underground development
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.
Comments
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation