Alamos Gold poised for 9.0% production increase in 2023

Alamos Gold poised for 9.0% production increase in 2023
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TORONTO – Alamos Gold Inc. [AGI-TSX, NYSE] has released an updated production guidance covering the years 2023 through to 2025.

The company also reported record fourth quarter production of 134,200 ounces, bringing production for 2022 to 460,400 ounces.

Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America, including the Young-Davidson, and Island Gold mines in northern Ontario, and the Mulatos and El Chanate mines in Sonora Mexico.

The company said its production guidance has increased with 9.0% growth expected in 2023.  Production is expected to increase to between 480,000 to 520,000 ounces in this year and remain at similar levels in 2024 and 2025.

Under the 3.0-year plan, all-in-sustaining costs are expected to decrease by 5.0% to between US$1,125 and US$1,175 per ounce in 2023, and 18% by 2025 to between US$950 and US$1,050 an ounce.

“We have increased our production guidance or 2023 and 2024, reflecting a stronger outlook at both Mulatos and Island Gold,’’ said Alamos President and CEO John A McCluskey. “With higher production, and lower costs, we expect to generate growing free cash flow while funding phase 3.0 plus expansion at Island Gold,’’ he said. “Once completed in 2026, we expect this to drive a significant increase in production, a further reduction in costs and substantial free cash flow growth.”

Alamos Gold shares closed at $15.23 on January 12, 2023 and currently trade in a 52-week range of $14.94 and $8.30.

The company recently said drilling has extended high-grade gold mineralization beyond current estimated mineral reserves and resources at the Puerto Del Aire deposit within its Mulatos District operation in Mexico.

“These exploration results highlight the significant potential to add higher-grade mineral reserves and resources at Puerto Del Aire,’’ said McCluskey. “They are also a further demonstration of the potential within the Mulatos District and our long-term track record of exploration success,’’ he said.

Puerto Del Aire is a higher-grade underground deposit, adjacent to the main Mulatos pit, and consists of five zones, including PDA1, PDA2, Gap, Victor, and Estrella.

In February, 2022, Alamos announced an initial mineral reserve estimate at Puerto Del Aire of 428,000 ounces (2.85 million tonnes of grade 4.67 g/t gold. At that time it said measured and indicated resources stood at 124,000 ounces (77,000 tonnes of grade 5.05 g/t gold).

It said gold mineralization has been extended beyond the existing reserves and resources across multiple mineralized zones, including within a 200- metre gap between PDA1 and PDA2. This includes multiple intercepts that are well above the current reserve grade.

Highlights include 31.97 g/t gold (11.80 g/t cut) over 12.90 metres at Victor Gap.

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