Alamos Gold Broke Ground on Third Phase of Island Gold Mine Expansion

SEATTLE (Scrap Monster): Alamos Gold announced the groundbreaking for the third phase of expansion of the Island Gold Mine in Ontario, Canada. In addition to positioning the mine to benefit from additional exploration success, it will boost production, reduce costs and become an economic engine for the Algoma region for the years to come.

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Commenting on the development, John A. McCluskey, President and Chief Executive Officer noted that exploration investment has boosted the Island Gold Mine’s Mineral Reserves and Resources from 1.8 million ounces at the time of acquisition to 5.1 million ounces. The Phase-III expansion will more than double the mine life, thus positively impacting Dubreuilville and surrounding communities, he added.

The construction phase of the expansion project is expected to double the employment to around 1,200 jobs. The expansion study published in July 2020 had outlined a 16-year mine life during which the mine is projected to expand from 1,200 tonnes per day to 2,000 tonnes per day, upon completion of the shaft in 2025. This in turn will drive production by around 70% to average nearly 236,000 ounces of gold per year at a significantly lower cost.

The shaft connected to low-carbon intensity grid power is projected to drive 35% reduction in greenhouse gas emissions over the mine life.