Alamos Gold hits key permitting milestone in Manitoba
Alamos Gold Inc. [AGI-TSX, NYSE] said it has hit a significant permitting milestone at its Lynn Lake gold project in Manitoba. The company said the Environmental Impact Assessment [EIS] for the project has been completed and approved by the Minister of Environment and Climate Change Canada.
The Province of Manitoba has also issued Environment Act Licenses for the MacLellan and Gordon sites [deposits].
Having achieved these objectives, the company will continue obtaining other project related permits. The negotiation of formal agreements with directly affected First Nations will also continue.
“Lynn Lake is a significant opportunity to drive the future growth of our business in Canada with the potential to increase our annual production to approximately 800,000 ounces per year,’’ said Alamos President and CEO John A McCluskey.
News that Ottawa has approved the EIS came after the close of trading on March 6, 2023, when Alamos shares were priced at $14.14 and currently trade in a 52-week range of $15.54 and $8.74.
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America, including the Young-Davidson, and Island Gold mines in northern Ontario, and the Mulatos and El Chanate mines in Sonora Mexico.
The company recently said its production guidance has increased with 9.0% growth expected in 2023. Production is expected to increase to between 480,000 to 520,000 ounces in this year and remain at similar levels in 2024 and 2025.
Since the completion of the 2017 feasibility study on the Lynn Lake Project, exploration successes around the Gordon and MacLellan deposits have driven a 27% increase in mineral reserves to 2.1 million ounces of gold (36.5 million tonnes of grade 1.75 g/t). This growth, along with additional exploration success over the past several years will be incorporated into an updated feasibility study which is expected to be completed during the first 2023.
With a large underexplored land package with significant potential, exploration will remain a key ongoing focus with $5 million budgeted at the Lynn Lake Project this year. This includes 8,000 metres of drilling focused on several advanced regional targets, expansion of mineral reserves and resources in proximity to the Gordon deposit, as well as targeting the evaluation of the Burnt Timber and Linkwood deposits. Burn Timber and Linkwood contain inferred resources totaling 1.6 million ounces of grade 1.1 g/t (44.4 million tonnes) as of December 31, 2022, and represent potential future upside.
The other key areas of focus for 2023 is the continued evaluation and advancement of a pipeline of prospective exploration targets within the 58,000-hectare Lynn Lake Property, including the Tulune greenfields discovery and Maynard target.