Alamos Launches Phase III Expansion of Island Gold Mine

On April 11, Alamos Gold Inc. broke ground for the Island gold mine expansion in Ontario. Already one of the most profitable mines in Canada, the expansion will increase production, lower costs, and be an economic engine for the Algoma region, according to the company. “When we first acquired the Island gold mine, we were aware of its potential,” President and CEO John A. McCluskey said. “It had 1.8 million ounces (oz) of mineral reserves and resources, and through exploration investment we have increased this high-grade deposit to 5.1 million oz of mineral reserves and resources.”

By further investing in the Phase III expansion, the company will more than double the mine life. “The Island Gold expansion will help to strengthen the Algoma economy and is the latest in a series of recent success stories in Ontario’s mining sector — successes that our government is proud to support,” The Hon. Greg Rickford, Ontario minister of Northern Development, Mines, Natural Resources and Forestry, said. “The project will bring good-paying jobs and prosperity throughout the region including northern and Indigenous communities.”

Island Gold mine sustains more than 600 jobs annually. During the construction phase of the expansion, employment is expected to double to 1,200 jobs. The Phase III Expansion study published in July 2020 outlined a 16-year mine life during which Island Gold is expected to expand from 1,200 metric tons per day (mt/d) to 2,000 mt/d following the completion of the shaft in 2025. This is expected to drive production approximately 70% higher to average 236,000 oz of gold per year at significantly lower costs.

As featured in Womp 2022 Vol 05 - www.womp-int.com