After digesting a series of acquisitions made at lower gold prices, Alamos Gold (TSX: AGI; NYSE: AGI) president and CEO John McCluskey says the company aims to grow production by 80% from 500,000 oz. gold this year to 900,000 oz. in the medium term.
That growth will come from a US$750-million expansion at its Island Gold mine, a 10-year mine life extension at its Mulatos mine in Mexico, and the purchase of Argonaut Gold’s (TSX: AR) Magino mine this year.
“We’ve spent years building a foundation for growth. The Magino acquisition alone has taken our production run rate to 600,000 oz. combined with the Island Gold expansion, it positions us for even more aggressive growth,” McCluskey said.
Alamos Gold seized on key acquisitions during the gold price trough from 2015 to 2017, securing Young-Davidson in Ontario, Lynn Lake in Manitoba, and Island Gold.
When built, Lynn Lake will add 200,000 oz. of production, while a new development plan for the Puerto del Aire underground deposit next to the Mulatos open pit in Mexico adds a decade to the mine life.
Alamos remains one of the few gold majors increasing reserves, with 13 million oz. currently on hand—up from 2 million oz. in 2015.
Watch the full interview below with The Northern Miner’s western editor, Henry Lazenby.
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