Alamos Gold Secures Key Environmental Permit for PDA Project
All monetary amounts are stated in United States dollars unless specified otherwise.
Overview of the Puerto Del Aire Project
Recently, Alamos Gold Inc. (TSX:AGI; NYSE:AGI) announced a significant development regarding the Puerto Del Aire (PDA) project. The company has received approval for an amendment to its existing environmental permit from Mexico’s Secretariat of Environment and Natural Resources. This milestone allows for the commencement of construction on the PDA project within the Mulatos District.
Alamos has enjoyed a solid track record with the Mulatos operation since its inception in 2005. John A. McCluskey, the President and CEO, emphasized the importance of the PDA project, noting that it would play a critical role in prolonging the mine life of the district due to its high-return potential. The rapid transition from discovery to construction highlights the promising exploration prospects within the district.
Planned Capital Expenditure and Construction Timeline
Construction activities for the PDA project are slated to ramp up in the near future. The forecast for capital expenditure in 2025 is projected to be between $37 million and $40 million, primarily aimed at advancing underground development and procuring essential long-lead items. In total, the estimated initial capital requirement for the project stands at $165 million, with major spending expected to continue through 2026 and 2027.
The PDA project, with its higher-grade underground deposit proximity to the main Mulatos pit, is supported by encouraging economic studies that were revealed recently. These studies indicated strong expected annual gold production, averaging 127,000 ounces during the first four years, followed by 104,000 ounces over the subsequent mine life. The mine-site all-in sustaining costs are projected to average around $1,003 per payable ounce.
Economic Impact and Exploration Potential
With low capital intensity, the PDA project boasts estimations of a robust after-tax Net Present Value of $269 million at a gold price of $1,950 per ounce and an Internal Rate of Return of 46%. Should gold prices rise to $2,500 per ounce, the after-tax NPV could soar to $492 million along with an IRR of 73%.
The exploration potential of the PDA project remains substantial, with the site open in several directions for further mining opportunities. Higher-grade mineralization has been found below the previously mined Cerro Pelon open pit, which is anticipated to support an initial underground resource update slated for release in the near future. This additional resource could provide extra feed to the PDA sulfide mill, potentially enhancing production rates beyond the current four-year mine plan.
About Alamos Gold Inc.
Alamos Gold Inc. operates as a Canadian-based mid-tier gold producer with diversified operations in North America, including substantial sites in Ontario and Sonora State, Mexico. The company not only focuses on gold production but also emphasizes sustainable growth through multiple expansion projects such as the Phase 3+ Expansion at Island Gold and the Lynn Lake project in Manitoba. Alamos employs a workforce of over 2,400 individuals committed to upholding the highest standards in sustainable mining practices.
Contact Information
For additional details, please reach out to:
Scott K. Parsons
Senior Vice President, Corporate Development & Investor Relations
(416) 368-9932 x 5439
Khalid Elhaj
Vice President, Business Development & Investor Relations
(416) 368-9932 x 5427
ir@alamosgold.com
Frequently Asked Questions
What is the Puerto Del Aire project?
The Puerto Del Aire project is a gold mining initiative by Alamos Gold Inc. located within the Mulatos District, aimed at enhancing production capabilities.
When is construction expected to begin for the PDA project?
Construction activities are projected to ramp up in the middle of 2025, following the approval of the environmental permit.
What are the initial capital expenditures projected for the PDA project?
The initial capital expenditure is estimated to be approximately $165 million, spread over the years 2025 to 2027.
What are the expected production rates for gold at the PDA?
Annual gold production is expected to average 127,000 ounces in the first four years and 104,000 ounces over an extended mine life based on current reserves.
What are Alamos Gold's sustainability commitments?
Alamos Gold is dedicated to sustainable development and environmental stewardship across all its operations, employing over 2,400 people in this mission.
