Further expansion's planned for a local mine.
Alamos Gold says its Phase 3+ Expansion Study for the Island Gold Mine "outlines a larger, more profitable, and valuable operation than outlined in the Phase III Expansion Study released in 2020", which would bring the operation to 2400 tonnes per day - which would make it one of the largest producing mines in the country - with average annual gold production of 287,000 ounces starting in 2026, upon completion of the shaft - a 22% increase from the previous study and a 121% increase from the mid-point of 2022 production guidance of 130,000 ounces.
The study notes "consistent cost structure" with the previous study - with "productivity gains and economies of scale offsetting inflation" - while proposing "larger, longer-life operation supported by significantly increased Mineral Reserve and Resource", extending the mine life by four years from that study, which would take it to 2039.
According to Alamos, it is "well positioned" to fund the expansion, expecting "significant free cash flow growth" in 2025 and beyond, as production ramps up at the mine.