Name of the Project
Lynn Lake gold project.

Location
The project comprises two primary sites, MacLellan and Gordon, which are east of the town of Lynn Lake, in northern Manitoba, Canada.

Project Owner/s
Canadian gold miner Alamos Gold.

Project Description
Lynn Lake is one of the highest-grade openpit gold deposits in Canada. The deposits will be mined using conventional openpit mining methods, with a centralised processing plant and tailings management facility to be located at MacLellan. 

The 2023 updated feasibility study confirmed Lynn Lake as a long-life, low-cost project with attractive economics and significant upside potential.

The project has a 16.5-year mine life, up from ten years in the 2017 study. Life-of-mine production is estimated at 2.18-million ounces, a 46% increase from 1.5-million ounces reported in 2017. Total silver production is estimated at 2.62-million ounces.

The project proposes gold production of 207 000 oz/y over the first five years and 176 000 oz/y over the initial ten years. The ten-year average represents a 23% increase over the average of 143 000 oz/y in the 2017 feasibility study. 

The project has significant near-mine and regional exploration upside potential. The 2022 and 2023 exploration programmes focused on the Gordon, Burnt Timber and Linkwood deposits, as well as several advanced-stage greenfield targets, including the Maynard and Tulune targets. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at a 5% discount rate, of $670-million and an internal rate of return of 22%, at a gold price of $1 950/oz, with a payback of less than three years.

Capital Expenditure
Total initial capital for Lynn Lake was estimated to be $632-million in the 2023 feasibility study, based on input costs as of the fourth quarter of 2022. Given ongoing industry-wide labour and material inflation, which has averaged close to 5% a year since the end of 2022, initial capital is expected to increase by about 10%.

Planned Start/End Date
Construction activities are expected to ramp up through 2025, with initial production expected during the first half of 2028.

Latest Developments
Lynn Lake is expected to provide additional low-cost growth starting in 2028, with a construction decision announced on January 13.

With average production of 176 000 oz/y over its first ten years, it is expected to increase consolidated production to about 900 000 oz/y.

Key Contracts, Suppliers and Consultants
Worley Canada Inc (2023 feasibility study update); AGP Mining Consultants Inc (openpit final limits, phase development and long-term mine plan design); Stantec (support environmental planning, assessment, licensing and permitting); and WSP Canada Inc (feasibility-level design of the tailings management facility at the MacLellan site, providing slope design recommendations for the MacLellan and Gordon pits, waste dumps and stockpiles, as well as complete the layout and sizing of water management structures for both sites).

Contact Details for Project Information
Alamos Gold, tel +1 416 368 9932 or email info@alamosgold.com.