Alamos Gold to expand Island Gold operation to 2,400 tons/day

Jun. 29, 2022 11:49 AM ETAlamos Gold Inc. (AGI), AGI:CABy: Carl Surran, SA News Editor1 Comment

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Alamos Gold (NYSE:AGI) +2.8% in Wednesday's trading after saying it will proceed with a larger expansion of its Island Gold operation in Ontario to 2,400 metric tons/day, instead of the previously planned 2K tons/day, as it seeks "a larger, more profitable and valuable operation."

Alamos (AGI) said its Phase 3+ expansion study showed Island Gold production averaging 287K oz/year starting in 2026 upon completion of the shaft, a 22% increase from the 2020 Phase 3 expansion study.

Average mine-site all-in sustaining costs are estimated at $610/oz, compared to the midpoint of 2022 guidance of $875/oz.

Alamos (AGI) said Island Gold's mineral reserves and resources have increased to 5.1M oz, supporting the Phase 3+ rise in production rates.

The new expansion study is based on an 18-year mine life to 2039, four years more than the previous study.

"Island Gold continues to grow in every sense with our planned Phase 3+ Expansion driving the value of Island Gold to $2B at current gold prices," President and CEO John McCluskey said.

Alamos Gold (AGI) offers low valuation, growth and inflation protection, SomaBull writes in a bullish analysis published on Seeking Alpha.

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