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The latest exploration release from Alamos Gold’s Island Gold mine suggests presence of high-grade mineralization up to 200 metres outside of the current resource limits. The company reported intercepts from three gold-bearing zones below and to the east of existing mine workings.
Drill highlights include:
Based on the continuity of mineralization and the density of drill intercepts, Alamos expects to estimate an inferred resource for the new zone. The year-end resource and reserve update for the asset is expected in February.
“We had another exceptional year at Island Gold, operationally, financially and through the drill bit,” said John McCluskey, the company’s president and CEO, in a release. “We expect further growth in Island Gold’s mineral reserves and resources with our year-end update. This growth will be incorporated into the phase III expansion study which we plan to complete during the second quarter of 2020.”
Last year, the underground mine produced 150,400 oz. of gold, a new record for the asset. In September 2018, Alamos completed the first mill expansion, to 1,100 t/d, and received a permit for a second build-out, to 1,200 t/d, in May of 2019. The study evaluating a third expansion is expected in the first half of this year.
The total exploration budget for Island Gold this year stands at C$21 million, for both surface and underground exploration. The company plans to continue testing the continuity of the new mineralized zone between the main and eastern extensions of the Island Gold orebody.
Current proven and probable reserves for Island Gold currently total 3 million tonnes grading 10.28 g/t gold for a total of 1 million oz.
(This article first appeared in the Canadian Mining Journal)
