Alamos Gold (US:AGI) Globenewswireยท2025-01-29 11:55Core Viewpoint - Alamos Gold Inc. has received approval for an amendment to its environmental impact assessment, enabling the construction of the Puerto Del Aire project, which is expected to significantly extend the mine life of the Mulatos District and enhance production capabilities [2][3]. Project Overview - The Puerto Del Aire (PDA) project is located within the Mulatos District and is anticipated to begin construction in mid-2025, with capital spending projected to be between $37 million and $40 million in 2025 [4]. - The total initial capital estimate for the PDA project is $165 million, with first production expected by mid-2027 [4]. Economic Potential - PDA is characterized as a higher-grade underground deposit, with an expected annual gold production averaging 127,000 ounces over the first four years and 104,000 ounces over an eight-year mine life [5]. - The mine-site all-in sustaining costs are projected to average $1,003 per payable ounce [5]. - The project has an estimated after-tax Net Present Value (NPV) of $269 million at a gold price of $1,950 per ounce, and an after-tax Internal Rate of Return (IRR) of 46% [6]. Exploration Upside - The PDA project has significant exploration potential, with mineralization open in multiple directions and higher-grade mineralization identified below the past-producing Cerro Pelon open pit [7]. - An initial underground Mineral Resource at Cerro Pelon is expected to be updated by the end of 2024, which could provide additional feed to the PDA sulphide mill [7]. Company Background - Alamos Gold Inc. is a Canadian-based intermediate gold producer with diversified operations in North America, including the Mulatos District in Mexico and the Island Gold District in Canada [8]. - The company is committed to sustainable development and employs over 2,400 people [8].