Minera Alamos wins key Mexico gold mine permits
Minera Alamos Inc. [MAI-TSXV] said Wednesday November 25 that it has received the complete approval documentation required for its La Fortuna gold project in Durango, Mexico.
The company said it now possesses all of the key federal approvals that are necessary for the construction of a commercial scale mine and associated processing facilities at the Fortuna project site.
A construction decision on La Fortuna could be made in late 2020 or early 2021, the company said.
Minera Alamos is an advanced-stage exploration and development company with a portfolio of Mexican development assets, including the La Fortuna open-pit gold project in Durango and the Santana open-pit heap leach development project in Sonora.
Last year, the company arranged a $14 million combined equity and royalty financing package with Osisko Gold Royalties Ltd. [OR-TSX, NYSE]. The funds were earmarked to finance construction of Minera’s 100%-owned Santana gold mine. The 8,500-hectare Santana Project is accessible by pave highway and will be an open pit heap leach operation.
“We are pleased to be able to provide the positive update regarding our La Fortuna gold project,” said Minera Alamos CEO Darren Koningen. “The company has been focused over the last year with construction activities at Santana, which now have Minera poised to join the ranks of gold producers by early 2021,” he said. “As that work is nearing completion, we have been able to turn some of our attention back to other parts of our development pipeline.”
A preliminary economic assessment for La Fortuna envisages a five-year mine life based on a currently defined +300,000-ounce gold resource. The PEA is forecasting average annual production of 43,000 ounces of gold, 220,000 ounces of silver and 1,000 tonnes of copper (50,000 gold equivalent ounces) during a mine life of five years.
The pre-production capital required is estimated to be US$26.9 million and a life of mine all-in-sustaining cost of US$440 an ounce.
Permits allow for an expansion in production volumes up to 2,000 tonnes-per-day in order to accommodate potential new regional sources of mineralization.
On Wednesday, Minera Alamos shares eased 1.5% or $0.01 to 67 cents. The shares are currently trading in a 52-week range of 78 cents and 16 cents.