from Toronto Alamos Gold said it had secured a key permit to move forward with another phase of underground mine expansion at its prolific Island Gold Mine outside Dubreuiville.
The mining company said its amendment to the Island Gold closure plan was filed by the provincial government.
Alamos can now proceed with the construction of its third phase of expansion, which includes the sinking of a new 1,379 meter shaft, which is expected to begin in the middle of this year. Around the same time, an updated mine plan will spread for Island Gold.
The shaft is positioned to access deeper, higher-grade parts of the steadily growing orebody in an area of the property the company calls Island East.
Alamos released its expansion plan in July 2020 for the $684 million shaft and processing plant expansion project.
The goal is to increase gold production by 70% to an average of 236,000 ounces per year and reduce the cost of mining to all-in sustaining costs of US$536 per ounce when the expansion will be completed in 2025. The mining and milling rate will increase from 1,200 tons per day to 2,000 tons.
Island Gold’s current mine life is 16 years, but it is expected to be extended as more gold zones continue to be discovered.
Alamos acquired Island Gold in 2017 and is leading a third phase of mine expansion, with the deposit having tripled in size over the past four years. From the original 1.8 million ounces at the time of acquisition, Island Gold now has 5.1 million ounces of gold reserves and resources.
The Island Gold mine is located 10 kilometers southeast of Dubreuilville and 83 kilometers northeast of Wawa.