Alamos Gold Enhances Reserves and Resources for 2024 Growth
Alamos Gold Reports Significant Increases in Mineral Reserves and Resources
All amounts are expressed in United States dollars, unless stated otherwise.
Recent reports from Alamos Gold Inc. (TSX:AGI; NYSE:AGI) highlight a major uptick in their mineral reserves and resources, as of December 31, 2024. This positive development is influenced by a series of strategic acquisitions and ongoing exploration successes. The detailed summary shows growth across various assets, reinforcing Alamos’s position in the mining industry.
Notable Highlights of Mineral Reserves
The company has reported a remarkable 31% increase in global proven and probable mineral reserves, now totaling 14.0 million ounces of gold (298 million tonnes at a grade of 1.45 grams per tonne of gold). This significant growth can be attributed to the acquisition of the Magino gold mine in 2024, alongside substantial additions at the Island Gold mine and the introduction of initial reserves from the Burnt Timber and Linkwood projects.
Detailed Mineral Reserves Growth by Project
- Proven and Probable Reserves excluding Magino increased by 12% to 11.9 million ounces of gold (230 million tonnes at a grade of 1.62 g/t Au), showcasing Alamos’s successful exploration efforts. The rate of replacement for mineral sees a notable 249% increase, even higher when including Magino.
- Island Gold’s reserves surged by 32% to 2.3 million ounces, with grades improving to 11.40 g/t Au, signifying gains driven by higher-grade discoveries across the main structure.
- Initial Mineral Reserve from Burnt Timber and Linkwood reached 0.9 million ounces (30.7 million tonnes at a grade of 0.95 g/t Au), reflecting successful transitions from resources.
- Magino contributes 2.0 million ounces at a grade of 0.91 g/t Au, aligning closely with pre-acquisition internal estimates.
Exploration and Future Plans
Alamos Gold intends to leverage its robust global exploration budget of $72 million for 2025, which stands as the largest in the company's history. This budget will support extensive exploration initiatives across the Island Gold District and the Qiqavik project. The future strategies aim to continue bringing high-return projects to fruition, particularly as the mining industry faces increased commodity demands.
Mineral Resources Overview
In terms of resources, Measured and Indicated Mineral Resources ramped up by 50% to 6.6 million ounces at average grades of 1.13 g/t Au, driven primarily by the addition of Magino's resources. Excluding Magino, these resources increased by 6%, and a steady growth trajectory is expected as new deposits are identified.
Inferred Mineral Resources Highlights
- Inferred Mineral Resources slightly decreased by 2% to 7.1 million ounces, reflecting a successful conversion from resources to reserves in certain areas, especially at Burnt Timber and Linkwood.
- The decrease was somewhat offset by resource growth at Island Gold and new contributions from the recently acquired Magino mine.
Future Developments Within the Island Gold District
Alamos’s plans for the Island Gold District include deeper drilling programs aimed at defining new reserves close to current production levels. The Phase 3+ Expansion Study released earlier outlines potential for a longer mine-life based on recent reserve and resource increments.
Future sector analyses and planning will incorporate these substantial upgrades. The company anticipates releasing an updated life-of-mine plan mid-2025 alongside a detailed exploration study in the fourth quarter. Collectively, these plans are poised to enhance annual production capabilities significantly in the upcoming years.
Frequently Asked Questions
What recent updates has Alamos Gold announced regarding its mineral reserves?
Alamos Gold reported a 31% increase in proven and probable mineral reserves, totaling 14.0 million ounces as of December 31, 2024, driven mainly by the acquisition of the Magino mine.
How has the Island Gold project performed in terms of growth?
The Island Gold project saw its mineral reserves increase by 32% to 2.3 million ounces, with grades improving to 11.40 g/t Au, showcasing strong exploration success.
What is Alamos Gold's exploration budget for 2025?
Alamos Gold's exploration budget for 2025 is set at a historic high of $72 million, targeting expansive growth across its various projects, especially the Island Gold District.
How has the company's inferred mineral resources changed recently?
Inferred mineral resources slightly decreased by 2% to 7.1 million ounces, reflecting successful conversions to reserves offset by growth in other areas.
When can we expect updates on new mine plans from Alamos Gold?
Alamos Gold plans to release an updated life-of-mine plan and exploration study in mid-2025, which promises to drive increased production potential.
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