Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Minera Alamos (TSXV: MAI) says its first gold mine, Santana in Sonora state, Mexico, reached commercial production in 2022. The conventional truck and shovel open pit mine and heap leach is expected to produce 40,000 to 50,000 oz. annually.
In the second half of last year, the project moved 10,000 t/d combined ore and waste. Overall gold recovery was above 70% for material leached for a minimum of 45 to 60 days. Residual leaching continues. As of Dec. 31, 2022, estimated pad inventory was about 6,950 oz. of gold.
The preproduction capital investment was approximately $10 million, and the project pouted its first doré button in October 2021.
Alamos is concentrating on expansion this year with drilling planned on three new targets. The exploration results will assist planning for the future of a new leach pad and pit developments. However, the company says the lack of water in the region remains a challenge.
The initial resource estimate is anticipated in the second quarter of 2023.
