Canada approves Alamos Gold’s Lynn Lake project

The Lynne Lake gold project is located in Manitoba.

The Lynne Lake gold project is located in Manitoba.

7th March 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online


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Canadian miner Alamos Gold on Monday announced significant permitting milestones at its Lynn Lake project, in Manitoba, gaining federal and provincial approvals for the MacLellan and Gordon sites.

Alamos will redevelop two previously operational mines, which will operate for 13 years, supporting economic development near the town of Lynn Lake, about 1 000 km north of Winnipeg.

“Achieving both of these important regulatory milestones for the Lynn Lake gold project represents a multi-year, collaborative effort by our team and our commitment to environmental sustainability,” said company president and CEO John McCluskey.

“Lynn Lake is a significant opportunity to drive the future growth of our business in Canada, with the potential to increase our annual production to approximately 800 000 oz/y of gold.”

Having achieved these milestones, the company will continue obtaining other project-related permits. The negotiation of formal agreements with directly affected First Nations will also continue.

Since the completion of the 2017 feasibility study on the Lynn Lake project, exploration success around the Gordon and MacLellan deposits has driven a 27% increase in mineral reserves to 2.1-million ounces of gold (36.5-million tonnes grading 1.75 g/t.

This growth along with additional exploration success over the past several years will be incorporated into an updated feasibility study, which is expected to be completed during the first half of 2023.

With a large underexplored land package with significant potential, exploration will remain a key ongoing focus with $5-million budgeted at the Lynn Lake project in 2023. This includes 8 000 m of drilling focused on several advanced regional targets, expansion of mineral reserves and resources in proximity to the Gordon deposit, as well as targeting and evaluation of the Burnt Timber and Linkwood deposits. Burnt Timber and Linkwood contain inferred mineral resources totalling 1.6-million ounces grading 1.1 g/t gold at December 31, 2022 and represent potential future upside.

The other key area of focus for 2023 is the continued evaluation and advancement of a pipeline of prospective exploration targets within the 58 000-ha Lynn Lake property, including the Tulune greenfield discovery and the Maynard target.

Environment and Climate Change Minister Steven Guilbeault said that government was committed to ensuring proposals like the Lynn Lake project moved forward in a way that was sustainable and protected the environment. As a result, the decision statement established 177 conditions the proponent must comply with throughout the life of the project. These conditions include measures to protect the health and socioeconomic conditions of indigenous peoples, their traditional and cultural practices, woodland caribou (boreal population), migratory birds, fish and fish habitat, the atmospheric environment, and water quality and quantity.

For example, in taking certain precautions to protect the population of woodland caribou and its habitat, Alamos must conduct site-clearing activities for the project outside of the species' calving and calf-rearing period. It must avoid the destruction or alteration of woodland caribou habitat, and also participate in habitat restoration initiatives, including a collaring programme, led by Manitoba Natural Resources and Northern Development as part of its Provincial Caribou Recovery Strategy.

"The Government of Canada is committed to protecting the environment for future generations while supporting economic development and job opportunities in Canada's Northern Region. My decision to approve the Lynn Lake gold project was informed by a thorough federal environmental assessment based on scientific evidence and Indigenous knowledge. I am confident the strong legally-binding conditions established for the project will safeguard the environment and create a sustainable path forward,” said Guilbeault.

Natural Resources Minister Jonathan Wilkinson added that the decision was good news for workers in Manitoba.

“The development of Canada's vast resources can, and must, be done in a manner that is science aligned and respects our environment,” he said.

The Lynn Lake project is the fourth mining project that has been approved following the completion of a robust federal assessment process in the last year. The other mines are the James Bay lithium mine project, the Marathon palladium project and the Valentine gold project.

Edited by Creamer Media Reporter



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