Canada-based Alamos Gold has announced initial gold production from the La Yaqui Grande mine, in Mexico, following the completion of construction this month.
Stacking rates continue to ramp up with leaching activities beginning earlier in June.
Completing construction ahead of schedule while navigating a challenging environment over the past few years with Covid-19 was a significant achievement, said CEO John McCluskey on Monday.
First announced in July 2020 as Alamos' next low-cost, high-return project in the Mulatos district, this large-scale construction project will extend the life-of-mine for at least five years thus sustaining the company’s presence and importance in the production of gold in the state of Sonora.
“Given its higher grades and recoveries, La Yaqui Grande underpins a strong outlook for Mulatos with higher production and lower costs driving growing free cash flow in the second half of this year and beyond,” McCluskey added.
A total of 991 oz of gold were produced from the initial pour. La Yaqui Grande is expected to produce about 3 000 oz in June which is already factored into second quarter consolidated production guidance of between 100 000 oz and 110 000 oz of gold.
Consistent with full-year 2022 guidance, stacking rates at La Yaqui Grande were expected to ramp up through the second half of the year driving production higher and costs lower at Mulatos and company-wide starting in the third quarter.
Combined with lower capital spending, with construction of La Yaqui Grande completed Mulatos is expected to generate strong mine-site free cash flow starting in the second half of the year. Costs are expected to continue to improve into 2023 reflecting a full year of production from La Yaqui Grande.
La Yaqui Grande generated more than 1 000 jobs during the construction phase and would continue to sustain 450 direct jobs.