Canada-based miner Alamos Gold is getting closer to completing an updated mine plan for its Island Gold mine, in Ontario, CEO John McCluskey said on Wednesday, stating that the plan would be released by mid-year.

Given the significant growth in high-grade mineral reserves and resources since the completion of the Phase 3 expansion study, the updated mine plan would showcase a “significantly more valuable operation”, he said.

The 2020 Phase 3 expansion study outlined a 16-year mine life during which Island Gold is expected to expand from 1 200 t/d to 2 000 t/d, following the completion of a shaft in 2025. This will drive up production by 70% to an average of 236 000 oz/y at an all-in sustaining cost (AISC) of $534/oz.

Since the release of the study, mineral reserves and resources have increased by 37% to 5.1-million ounces of gold.

Alamos, which this month officially broke ground on the Phase 3 expansion, said it would spend between $180-million and $200-million at Island Gold this year, reflecting the ramp-up of construction activities on the Phase 3 expansion following the approval of the Closure Plan Amendment in March.

The exploration budget for Island Gold in 2022 was $22-million to follow up on the successful drilling campaign in 2021 that drove an 8% increase in high-grade mineral reserves and resources. Overall, Alamos’ exploration budget for the year is $40-million.

McCluskey also reported that the La Yaqui Grande mine, in Mexico, remained on track for initial production in the third quarter and that it was expected to drive production higher, and costs significantly lower, in the second half of the year.

Alamos produced 98 900 oz of gold in the first quarter, which was in line with its guidance, at an AISC of $1 360/oz. The company said it remained on track to achieve its full-year guidance and that it would produce between 100 000 oz and 110 000 oz in the second quarter.

The miner sold 98 466 oz at an average realised price of $1 874/oz for revenue of $184.5-million.