Vancouver-based Leagold Mining has initiated the expansion of its Los Filos mine, in Mexico, following the closing of $400-million in financing that it secured for a phased growth plan to become a 600 000 oz/y to 700 000 oz/y producer.
The company previously announced a tentative schedule for the 2.5-year expansion plan and this week reaffirmed that the Bermejal underground development would start in the third quarter of this year.
Work on the Guadalupe openpit would get under way in the final quarter of the year, while construction of the 4 000 t/d carbon-in-leach (CIL) plant would start in the third quarter of next year.
These three elements of the Los Filos expansion would require $209.1-million.
Once the expansion is wrapped up from 2021, Los Filos will produce an average of 350 000 oz/y at an all-in sustaining cost of $694/oz and between 2021 and 2024, output will average 420 000 oz/y.
Once the Los Filos expansion is completed, Leagold will start work on the Santa Luz project, in Brazil. It is a previously operating openpit mine and a CIL plant, which was shut down in 2014. Leagold will use resin-in-leach at Santa Luz, rather than CIL, and is aiming for gold recoveries of 84%.
The cost to complete and restart Santa Luz is estimated at $82-million. The project has the potential to add more than 100 000 oz/y to Leagold’s production profile.