Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported
results of the positive internal economic study completed on its
fully permitted La Yaqui Grande project located in the Mulatos
District in Sonora, Mexico. Given the project’s strong economics
and its proximity to the existing Mulatos operation, the Company is
proceeding with construction of the project starting in the second
half of 2020.
La Yaqui Grande Project Highlights
- Average annual gold production of 123,000 ounces per
year starting in the third quarter of 2022. This will
replace higher cost production from the main Mulatos pit, keeping
combined production at approximately 150,000 ounces per year
- Mine-site all-in sustaining costs of $578 per
ounce, significantly reducing Mulatos District all-in
sustaining costs from the mid-point of previous 2020 guidance of
$960 per ounce
- After-tax net present value (“NPV”) of $165 million at
a 5% discount rate and an after-tax internal rate of return (“IRR”)
of 41%, using a base case gold price assumption of $1,450
per ounce and a MXN/USD foreign exchange rate of 21:1
- After-tax NPV of $260 million and an after-tax IRR of
58% at a 5% discount rate using a gold price assumption of
$1,750 per ounce and a MXN/USD foreign exchange rate of 21:1
- Mine life of five years, extending production from the
Mulatos District to 2027, based on current Mineral
Reserves
- Initial capital of $137 million to be spent over a two
year period starting in the second half of 2020. At a
$1,750 per ounce gold price, Mulatos is expected to self finance
the development of La Yaqui Grande following which the operation is
expected to generate strong free cash flow 1
“La Yaqui Grande represents our next low-cost, high-return
project in the Mulatos District. This follows the success of the La
Yaqui Phase I and Cerro Pelon projects which were both developed on
budget and ahead of schedule. Given its bigger scale and low-cost
profile, La Yaqui Grande is expected to drive strong free cash flow
growth from the Mulatos District in 2022 and beyond,” said John A.
McCluskey, President and Chief Executive
Officer.
La Yaqui Grade Project Highlights |
Life of Mine1 |
Production |
|
Mine life (years) |
5 |
|
|
Total gold production (000 ounces) |
616 |
Total silver production (000 ounces) |
1,471 |
|
|
Average annual gold production (000 ounces) |
123 |
|
|
Total ore mined (000 tonnes) |
19,205 |
|
|
Average tonnes of ore mined & stacked (tonnes per day
(“tpd”)) |
10,000 |
|
|
Average gold grade (grams per tonne) |
1.17 |
|
|
Gold recovery (%) |
85% |
Silver recovery (%) |
15% |
|
|
Waste-to-ore ratio (Life of Mine including pre-strip) |
5.50 |
Waste-to-ore ratio (post pre-strip) |
4.04 |
|
|
Operating Costs |
|
Mining costs per tonne of material (life of mine, including
pre-stripping) |
$2.42 |
Processing costs per tonne of ore |
$5.05 |
|
|
G&A costs per tonne of ore |
$2.34 |
|
|
Total cash cost (per ounce sold)2 |
$539 |
Mine-site all-in sustaining cost (per ounce sold)2 |
$578 |
|
|
Capital Costs (millions) 1 |
|
Initial capital expenditure3 |
$137 |
Sustaining capital expenditure |
$24 |
Reclamation |
$35 |
Total capital expenditure, including reclamation |
$196 |
|
|
Base Case Economic Analysis1 |
|
IRR (after-tax) |
41% |
|
|
NPV @ 0% discount rate (millions, after-tax) |
$226 |
NPV @ 5% discount rate (millions, after-tax) |
$165 |
|
|
Gold & silver price assumption (average, per ounce sold) |
$1,450 / $18 |
Exchange Rate (Mexican Peso/US Dollar) |
21 |
|
|
Economic Analysis at $1,750 per ounce Gold
Price1 |
|
IRR (after-tax) |
58% |
|
|
NPV @ 0% discount rate (millions, after-tax) |
$345 |
NPV @ 5% discount rate (millions, after-tax) |
$260 |
|
|
Gold & silver price assumption (average, per ounce sold) |
$1,750 / $18 |
Exchange Rate (Mexican Peso/US Dollar) |
21 |
|
|
- Capital spending and economic analysis (NPV and IRR) are
calculated starting January 1, 2020
- Total cash costs and mine-site all-in sustaining costs include
royalties and silver as a by-product credit
- Initial capital is offset by $5 million of pre-production
revenue less operating costs
Mineral Reserves and Resources
The La Yaqui Grande mine plan and economic analysis are based on
Mineral Reserves as of December 31, 2019 which total 19.2 million
tonnes (“Mt”), grading 1.17 grams per tonne of gold (“g/t Au”) and
15.88 grams per tonne of silver (“g/t Ag”), containing 724,000
ounces of gold and 9.8 million ounces of silver. Additionally, the
project hosts Measured and Indicated Mineral Resources which total
1.3 Mt, grading 1.01 g/t Au and 8.0 g/t Ag, containing 43,000
ounces of gold and 340,000 ounces of silver. These Mineral
Resources were not included in the mine plan and represent
potential upside.
Economic Analysis
La Yaqui Grande’s estimated after-tax IRR is 41% and after-tax
NPV is $165 million using a 5% discount rate and assuming a gold
price of $1,450 per ounce, silver price of $18 per ounce, and
MXN/USD foreign exchange rate of 21:1.
Assuming a $1,750 per ounce gold price and $18 per ounce silver
price, the after-tax IRR increases to 58% and after-tax NPV
increases to $260 million using a 5% discount rate. The mine plan,
operating parameters, and capital estimates incorporated in the
study are based on actual operating experience, and mining
contractor agreements that have been established for the life of
the project. The project economics are sensitive to metal price
assumptions as detailed in the following table.
La Yaqui Grande After-Tax NPV (5%) and IRR Sensitivity
to Gold Price
Gold Price |
After-Tax NPV5% ($M) |
After-Tax IRR (%) |
$1,250 |
$101 |
28% |
$1,350 |
$133 |
35% |
$1,450 |
$165 |
41% |
$1,550 |
$196 |
47% |
$1,650 |
$228 |
52% |
$1,750 |
$260 |
58% |
$1,850 |
$292 |
63% |
$1,950 |
$324 |
68% |
Permitting and Project Overview
La Yaqui Grande is located approximately 7 kilometres (straight
line) from the existing Mulatos operation and is adjacent to the
past producing La Yaqui Phase I operation. As with La Yaqui Phase
I, La Yaqui Grande will be developed with an independent heap leach
pad and crushing circuit.
La Yaqui Grande is fully permitted for construction having
received approval of the environmental impact assessment (“MIA”) in
the second quarter of 2019 and the Change of Land Use permit in the
third quarter of 2019. The project will be developed over the next
24 months with initial production expected in the second half of
2022.
Mining and Processing
La Yaqui Grande will be mined using conventional open pit
methods. Ore will be mined and stacked at a rate of 10,000 tpd over
a five year mine life based on existing Mineral Reserves. Contract
mining will be employed and a jaw crusher and cone crushers from
the past producing El Chanate mine will be relocated to the La
Yaqui Grande project area. Ore will be crushed through a
three-stage crushing circuit, agglomerated, stacked, and leached on
an independent leach pad. The resulting gold bearing solution will
be processed through carbon columns following which the loaded
carbon will be transported to the existing Mulatos plant for final
processing.
The La Yaqui Grande deposit is highly oxidized with expected
average recoveries of 85% over the life of the operation. This is
based on metallurgical test work which demonstrated recoveries
above 85%, and operating experience at La Yaqui Phase I which hosts
similar metallurgy and yielded life of mine recoveries of 90%.
Operating Costs
Total cash costs are expected to average $539 per ounce and
mine-site all-in sustaining costs $578 per ounce over the life of
the operation. La Yaqui Grande is expected to supply the majority
of annual production from the Mulatos District starting in the
second half of 2022, driving a significant reduction in total cash
costs and mine-site all-in sustaining costs from the mid-point of
previous 2020 guidance of $860 and $960 per ounce,
respectively.
Lower costs reflect La Yaqui Grande’s favourable metallurgy and
higher grades which, at 1.17 g/t Au, are 31% higher than the grade
of Mineral Reserves in the main Mulatos pit. This also reflects
lower unit mining costs of $2.42 per tonne of material with La
Yaqui Grande benefitting from lower haulage distances and improved
contract mining rates with significantly higher mining rates
relative to the current Mulatos operation.
Capital Costs
Total initial capital is estimated to be $137 million and
expected to be spent over a two year period starting in the second
half of 2020. This includes $15 to $20 million to be spent in the
second half of 2020 with the remainder to be spent in 2021 and the
first half of 2022. Initial capital includes $74 million for
pre-stripping activities and the remainder is for project
infrastructure including the construction of the heap leach pad,
waste rock dump, water treatment plant and an independent camp to
house the workforce, as well as the installation of the crushing
circuit from El Chanate. The remaining life of mine capital
includes $24 million of sustaining capital and $35 million for
reclamation activities.
A breakdown of the initial and total capital requirements is
detailed as follows.
Capital Cost ($ millions) |
|
Pre-stripping |
$74 |
Infrastructure (heap leach facilities, carbon columns, camp,
crushing circuit) |
$63 |
|
|
Total Initial Capital |
$137 |
|
|
Sustaining capital |
$24 |
Reclamation costs |
$35 |
|
|
Total Capital |
$196 |
Technical Disclosure
Chris Bostwick, FAusIMM, Alamos Gold's Vice President,
Technical Services, has reviewed and approved the scientific and
technical information contained in this news release. Mr.
Bostwick is a Qualified Person within the meaning
of Canadian Securities Administrator's National
Instrument 43-101 ("NI 43-101").
About Alamos
Alamos is a Canadian-based intermediate gold producer with
diversified production from three operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern
Ontario, Canada and the Mulatos mine in Sonora State, Mexico.
Additionally, the Company has a significant portfolio of
development stage projects in Canada, Mexico, Turkey, and the
United States. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons |
Vice
President, Investor Relations |
(416)
368-9932 x 5439 |
All amounts are in United States dollars, unless otherwise
stated.
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking
Statements
This news release includes certain statements
that constitute forward-looking information within the meaning of
applicable Canadian and U.S. securities laws ("forward-looking
statements"). All statements in this news release, other than
statements of historical fact, which address events, results,
outcomes or developments that Alamos expects to occur are
forward-looking statements. Forward-looking statements are
generally, but not always, identified by the use of forward-looking
terminology such as “continue”, "expect", “believe", "anticipate",
"plan", “forecast”, "estimate", "intend", “budget” or “potential”
or variations of such words and phrases and similar expressions or
statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved
or the negative connotation of such terms. In particular, this news
release contains forward-looking statements including, without
limitation, with respect to the La Yaqui Grande Project’s capital
and operating costs, mining methods and processing, production
timeline and anticipated free cash flow, changes in Mineral
Resources, and other information that is based on forecasts and
projections of future operational, geological or financial results,
estimates of amounts not yet determinable and assumptions of
management.
Forward-looking statements are necessarily based
upon a number of factors and assumptions that, while considered
reasonable by management at the time of making such statements, are
inherently subject to significant business, economic, technical,
legal, political and competitive uncertainties and contingencies.
Known and unknown factors could cause actual results to differ
materially from those projected in the forward-looking statements,
and undue reliance should not be placed on such statements and
information.
Such factors and assumptions underlying the
forward-looking statements in this news release include: the actual
results of current exploration activities, conclusions of economic
and geological evaluations, changes in project parameters as plans
continue to be refined, operations may be exposed to widespread
pandemic; the impact of the COVID-19 pandemic on the broader
market; provincial and federal orders or mandates (including with
respect to mining operations generally or auxiliary businesses or
services required for our operations) in Canada, Mexico, the United
States and Turkey; the duration of regulatory responses to the
COVID-19 pandemic; changes in national and local government
legislation, controls or regulations, failure to comply with
environmental and health and safety laws and regulations; labour
and contractor availability (and being able to secure the same on
favourable terms); disruptions in the maintenance or provision of
required infrastructure and information technology systems;
fluctuations in the price of gold or certain other commodities such
as, diesel fuel, natural gas, and electricity; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges and changes to
production estimates (which assume accuracy of projected ore grade,
mining rates, recovery timing and recovery rate estimates and may
be impacted by unscheduled maintenance; changes in foreign exchange
rates (particularly the Canadian dollar, U.S. dollar, Mexican peso
and Turkish Lira); the impact of inflation; employee and community
relations; litigation and administrative proceedings; disruptions
affecting operations; availability of and increased costs
associated with mining inputs and labour; inherent risks and
hazards associated with mining and mineral processing including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures and cave-ins; the risk that
the Company’s mines may not perform as planned; uncertainty
with the Company's ability to secure additional capital to execute
its business plans; the speculative nature of mineral exploration
and development, risks in obtaining and maintaining necessary
licenses, permits and authorizations, contests over title to
properties; expropriation or nationalization of property; political
or economic developments in Canada, Mexico, the United States,
Turkey and other jurisdictions in which the Company may carry on
business in the future; increased costs and risks related to the
potential impact of climate change; the costs and timing of
construction and development of new deposits; risk of loss due to
sabotage, protests and other civil disturbances; the impact of
global liquidity and credit availability and the values of assets
and liabilities based on projected future cash flows; and business
opportunities that may be pursued by the Company.
For a more detailed discussion of such risks and
other factors that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained
in this news release, see the Company’s latest 40-F/Annual
Information Form and Management’s Discussion and Analysis, each
under the heading “Risk Factors” available on the SEDAR website at
www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be
reviewed in conjunction with the information found in this news
release.
Cautionary Note to U.S. Investors - Mineral Reserve and
Resource Estimates
All Mineral Resource and Reserve estimates
included in this news release or documents referenced in this news
release have been prepared in accordance with Canadian National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101") and the Canadian Institute of Mining, Metallurgy and
Petroleum (the "CIM") - CIM Definition Standards on Mineral
Resources and Mineral Reserves, adopted by the CIM Council, as
amended (the "CIM Standards"). NI 43-101 is a rule developed by the
Canadian Securities Administrators, which established standards for
all public disclosure an issuer makes of scientific and technical
information concerning mineral projects. The terms "Mineral
Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve"
are Canadian mining terms as defined in accordance with NI 43-101
and the CIM Standards. The United States Securities and
Exchange Commission (the “SEC”) permits mining companies, in their
filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce.
Alamos may use certain terms, such as “Measured Mineral Resources”,
“Indicated Mineral Resources”, “Inferred Mineral Resources” and
“Probable Mineral Reserves” which differ materially from the
definitions in SEC Industry Guide 7 under the United States
Securities Exchange Act of 1934, as amended. Investors are
cautioned not to assume that all or any part of mineral deposits in
these categories will ever be converted into Mineral Reserves.
“Inferred Mineral Resources” have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, except in very limited circumstances. Disclosure of
“contained ounces” in a Mineral Resource is permitted disclosure
under Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute “Mineral
Reserves” by SEC standards as in place tonnage and grade without
reference to unit measures.
The SEC has adopted final rules, effective
February 25, 2019, to replace SEC Industry Guide 7 with new mining
disclosure rules under sub-part 1300 of Regulation S-K of the U.S.
Securities Act (the “SEC Modernization Rules”).
The SEC Modernization Rules replace the historical property
disclosure requirements included in SEC Industry Guide 7. As a
result of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of “Measured Mineral Resources”, “Indicated
Mineral Resources” and “Inferred Mineral Resources”. In addition,
the SEC has amended its definitions of “Proven Mineral Reserves”
and “Probable Mineral Reserves” to be substantially similar to
international standards. The SEC Modernization Rules will become
mandatory for U.S. reporting companies beginning with the first
fiscal year commencing on or after January 1, 2021.
Alamos Gold (NYSE:AGI)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Alamos Gold (NYSE:AGI)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024