Ontario-based Alamos Gold is expanding its Island Gold mine to double the mine life, chief executive John McCluskey said.
Island Gold had 1.8 million ounces of mineral resources when Alamos Gold acquired it Richmont Mines in 2017, and has increased its mineral resources to 5.1 million ounces in mineral reserves and resources, McCluskey said.
The Phase III expansion will complete see the mine expand from 1,200 tonnes per day to 2,000 tpd following the completion of a shaft in 2025. The shaft will be connected to Ontario's grid power. Alamos Gold also anticipates using a smaller mobile fleet of haul trucks.
The reduced use of diesel will help bring down greenhouse gas emissions by 35%, the company said.
Alamos Gold is targeting production of 236,000 ounces of gold per year, a 70% increase in production.
Alamos Gold plans to release an updated mine plan in mid-2022 that will incorporate the expanded mineral resource.
In December 2020, Alamos Gold acquired Trillium Mining, granting it access to a large land package adjacent to the Island Gold mine.
Adding the 5,418 hectares increased Alamos' land package around the mine to 14,949 hectares, a 57% increase.
