Dual-listed Alamos Gold has published the results of internal economic study for the Puerto Del Aire (PDA) underground gold project in Mexico, indicating positive financials for the mine.
The company expects that PDA mine will produce 127 000 oz/y in its first four years and nearly triple the mine life of the adjacent Mulatos open-pit mining district, extending production into 2035.
The internal rate of return for the PDA is 46%, while the initial capital investment will amount to $165 million. The project will be funded by strong free cash flow generation at the Mulatos district. $51 million will be allocated to underground development, and $109 million to the processing plant.
“Mulatos has been operating for nearly 20 years reflecting a long-term track record of exploration success with the discovery of multiple new deposits in the District. PDA is an extension of that success,” said president and CEO John McCluskey.
“The development of PDA and transition to underground sulphide milling operations will open up additional opportunities for growth in the Mulatos district. Given our ongoing exploration success at PDA, and newly defined and growing higher-grade zones of mineralisation at Cerro Pelon, we see excellent potential to further extend the mine life and add to already attractive economics.”
PDA mine’s mineral reserves amount to 5.4 million tons of ore at 5.61 g/t for a total of 969 000 oz of gold. The first production at the PDA is expected to commence in mid-2027.
Theodor Lisovoy, Managing Editor, Rough&Polished
