Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America, including the Young-Davidson and Island Gold Mines in Northern Ontario, Canada; and the Mulatos Mine in Sonora, Mexico.
Alamos Gold will invest around US$130mn in Mexico next year as it pushes ahead with two projects.
The company unveiled a US$125-135mn capex budget for its Mulatos gold asset in Sonora state, compared to US$30-40mn planned for 2020.
The 2021 figure includes US$95-100mn of growth capex for the La Yaqui Grande project at Mulatos, which is expected to begin production in 3Q22, Alamos said in a release.
The focus in 2021 will be ongoing stripping activities, and construction of the camp, heap leach facilities and crushing circuit, said the company.
The increase in capex at Mulatos also reflects pre-stripping activities at the El Salto deposit.
Alamos also plans to invest several million dollars on permitting and community engagement activities at its Esperanza project in Mexico.
Capex and exploration on the company’s development projects is expected to total US$10mn, including US$6mn at Lynn Lake in Canada and the majority of the remaining US$4mn at Esperanza.
Esperanza is expected to produce over 100,000oz/y gold over an initial six-year mine life. Progress had been held up by opposition in the previous Morelos state government.
Alamos expects Mulatos to produce 150,000-160,000oz gold in 2021, up from 140,000-150,000oz this year.
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