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Leagold outlines plans for expanded Los Filos mine

18th January 2019

By: Creamer Media Reporter

     

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The Los Filos gold mine in Mexico that Leagold bought from Goldcorp almost two years ago has the potential to be expanded to 350 000 oz/y, the Canadian company reported this week, announcing the results of an expansion feasibility study.

The study incorporates the potential for the development of the Bermejal underground mine, enlarging the Los Filos openpit mine, rephrasing the Bermejal openpit into two distinct openpits and constructing a carbon-in-leach (CIL) processing facility to complement the existing heap leach facilities.

The study forecasts a ten-year mine life – 2019 to 2028 – during which 3.3-million ounces will be produced at an average all-in sustaining cost (AISC) of $795/oz. Production will average 350 000 oz/y and between 2021 and 2023, it will exceed 400 000 oz/y.

To develop the Bermejal underground mine and construct a new 4 000 t/d CIL plant, Leagold will have to put down $180-million in capital.

The company said that its current operations would fund capitalised stripping during the initial expansion phase at the Guadalupe and Los Filos openpits.

The study returned a net present value, at a 5% discount, of $565-million and an internal rate of return of 87%. The expansion capital payback period is less than a year.

“When we acquired Los Filos in April 2017 from Goldcorp, we identified its potential to be developed into a long life, low-cost operation with significant scale. During the 20 months since the acquisition, we have carried out extensive exploration programmes for both openpit and underground deposits, developed a 1 330-m ramp to access the orebody at Bermejal underground, completed the Bermejal underground mine design, completed comprehensive metallurgical testwork on all of the mineral deposits to support the CIL plant design, and learned a lot from current operations. Our investment in this work to date is approximately $30-million,” commented CEO Neil Woodyer.

The Los Filos mineral reserves have increased to 4.5-million ounces, from 1.7-million ounces at the acquisition in 2017.

Woodyer said that the study identified a new operating strategy. The Los Filos expansion would also benefit from existing operations and excellent infrastructure. About 51% of the gold production in the life-of-mine plan is from the CIL plant and 49% is from the existing heap leach facility.

“With this very positive study completed, we are now putting its findings into our overall corporate business model for planning and corporate financing purposes. It is obviously a project we should undertake and, therefore, we are preparing a Los Filos development plan that includes construction planning, optimising the sequencing of the major expansion projects, and recognising the social and economic benefits created by the expansion opportunities and the engagement required from employees, contractors, unions and community members.”

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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