Boyd, Roosen, Quartermain: It takes grit, invention, luck to make the big time
Mining industry legends discuss the backstories on their multibillion-dollar successes.
Alamos Gold (TSX, NYSE: AGI) has re-acquired a 3% net smelter return (NSR) royalty on production from the Island Gold mine in Ontario, Canada, for C$75 million ($54m), lowering its cost guidance for 2020 as a result.
The royalty was acquired from a privately held company and was payable on gold production within four patented claims comprising the majority of currently defined mineral reserves and resources within the Island Gold deposit.
The Canadian miner also reported a decrease of $40 per ounce, or 7%, in Island Gold’s 2020 total cash cost guidance to between $480 and $520. It also logged a $40 per ounce drop in mine-site all-in sustaining cost guidance to between $740 and $780 per ounce.
“Since we acquired Island Gold in 2017, the mineral reserve and resource base has doubled, with the deposit approaching four million ounces across all categories,” president and CEO John McCluskey said.
“With the deposit open laterally and down-plunge across several areas of focus, we see excellent potential for this growth to continue at a greatly reduced royalty on future production,” McCluskey said.
The company has other two producing mines — Young-Davison in Canada and Mulatos in Mexico.
