Alamos ramps up construction at Mexico gold project

Alamos Gold ramped up construction activities at its La Yaqui Grande project in Mexico in the first quarter.

Capital spending on the project was US$15mn, bringing the total to date to US$25.1mn.

In addition, the company advanced US$14.7mn to contractors working on the project, it said in an earnings release.

La Yaqui Grande is being developed as a new deposit at Alamos’ Mulatos property, 7km away.

The project is expected to produce 123,000oz/y gold starting in 3Q22, at all-in sustaining costs of US$578/oz, compared to 2021 midpoint guidance of US$1,085/oz for Mulatos.

“With the mining contractor mobilizing to site late last year, construction activities ramped up significantly in Q1,” Alamos said.

About 800 workers and contractors are working on rotation at La Yaqui Grande.

Milestones for the quarter included advancing earthworks on the waste rock dump, heap leach facility and water treatment plant, and mining over 3Mt of waste, with the contractor reaching mining rates of 48,000t/d by end-March.

Camp facilities are substantially complete, Alamos said.

RESULTS

Mulatos produced 35,600oz gold in Q1, down from 42,600oz in the same quarter of 2020, due to lower tonnes of ore stacked on the leach pad and lower grades.

Alamos posted first quarter earnings of US$51.2mn compared to a net loss of US$12.3mn a year ago, with revenues rising to US$227mn from US$177mn on higher gold volumes sold and prices.

Companywide output was 125,800oz in Q1, up from 110,800oz in the same quarter last year.

Alamos also has producing mines in Canada and the Esperanza gold project in Mexico.