Mining News
Alamos Gold completes construction, starts initial production at its La Yaqui Grande gold mine in Mexico
(Kitco News) - Alamos Gold (TSX: AGI) today announced initial gold production from the La Yaqui Grande mine in Mexico, following the completion of construction this month, ahead of schedule.
The company said that stacking rates continue to ramp up with leaching activities beginning earlier in June, adding that a total of 991 ounces of gold were produced from the initial pour.
According to the company's statement, consistent with full year 2022 guidance, stacking rates at La Yaqui Grande are expected to ramp up through the second half of the year driving production higher and costs lower at Mulatos and company-wide starting in the third quarter.
La Yaqui Grande is expected to produce approximately 3,000 ounces in June, which is already factored into second quarter consolidated production guidance of between 100,000 and 110,000 ounces of gold, Alamos noted.
The company said that combined with lower capital spending with construction of La Yaqui Grande completed, Mulatos is expected to generate strong mine-site free cash flow starting in the second half of the year. Costs are expected to continue to improve into 2023 reflecting a full year of production from La Yaqui Grande.
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"First announced in July 2020 as Alamos Gold's next low-cost, high-return project in the Mulatos District, this large-scale construction project will extend the life of mine for at least five years thus sustaining the company's presence and importance in the production of gold in the state of Sonora, Mexico," Alamos noted in its press-release.
Importantly, the company added that La Yaqui Grande was completed ahead of schedule generating more than 1,000 jobs during the construction phase and will continue to sustain 450 direct jobs.
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.
