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Alamos Gold permitted to expand Dubreuilville-area mine

High-grade ore body pushes third wave of expansion at Island Gold
Island Gold Mine
Island Gold Mine (Alamos Gold photo)

Toronto's Alamos Gold said it landed a key permit to push ahead with another phase of underground mine expansion at its prolific Island Gold Mine outside Dubreuiville.

The mining company said its closure plan amendment for Island Gold has been filed by the provincial government.

Alamos can now move with construction for its third phase of expansion, which includes the sinking of a new 1,379-metre shaft, expected to begin sometime during the middle of this year. At roughly the same time an updated mine plan will spill out for Island Gold.

The shaft is being positioned to access deeper and higher-grade portions of the constantly growing ore body in an area of the property the company calls Island East.

Alamos released its expansion plan in July 2020 for the $684-million shaft and processing mill expansion project. 

The goal is to boost gold production 70 per cent to average 236,000 ounces annually and lower the cost of mining to all-in-sustaining costs of US$536 per ounce when the expansion is finished in 2025. Mining and milling rate will increase from 1,200 tonnes per day to 2,000 tonnes.

Island Gold's current life of mine is 16 years but that's expected to be extended as more gold zones continue to be discovered.

Alamos acquired Island Gold in 2017 and is steering a third phase of mine expansion as the deposit has tripled in size over the last four years. From the initial 1.8 million ounces at the time of acquisition, Island Gold now boasts 5.1 million ounces in gold reserves and resources.

Island Gold Mine is 10 kilometres southeast of Dubreuilville and 83 kilometres northeast of Wawa.