Name of the Project
La Yaqui Grande project.

Location
La Yaqui Grande is located in the Mulatos district in Sonora, Mexico, about 7 km from the existing Mulatos operation and adjacent to the past-producing La Yaqui Phase I operation.

Project Owner/s
Alamos Gold.

Project Description
La Yaqui has a life-of-mine (LoM) of five years and is expected to produce about 616 000 oz of gold and 1.47-million ounces of silver over the LoM. The project’s mine plan is based on total mineral reserves – as at December 31, 2019 – of 19.2-million tonnes grading 1.17 g/t gold and 15.88 g/t silver, containing 724 000 oz of gold and 9.8-million ounces of silver.

Average gold production of 123 000 oz/y is expected, starting in the third quarter of 2022.

La Yaqui Grande will be mined using conventional openpit methods.

Ore will be mined and stacked at 10 000 t/d over a five-year mine life based on existing mineral reserves. Contract mining will be employed and a jaw crusher and cone crushers from the past-producing El Chanate mine will be relocated to the La Yaqui Grande project area.

As with La Yaqui Phase I, La Yaqui Grande will be developed with an independent heap-leach pad and crushing circuit.

Ore will be crushed using a three-stage crushing circuit, and then agglomerated, stacked, and leached on an independent leach pad. The resulting gold-bearing solution will be processed through carbon columns, following which the loaded carbon will be transported to the existing Mulatos plant for final processing.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $260-million and an internal rate of return of 58% using a gold price assumption of $1 750/oz.

Capital Expenditure
Initial capital expenditure is estimated at $137-million.

Planned Start/End Date
The project will be developed over 24 months, with initial production expected in the second half of 2022.

Latest Developments
The project is expected to start construction in the third quarter of 2020.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Alamos Gold, tel +1 416 368 9932 or email info@alamosgold.com.