Alamos Gold Announces Development Plan for High-Return Burnt Timber and Linkwood Satellite Deposits

Core Viewpoint - Alamos Gold Inc. has reported positive results from an internal economic study on the Burnt Timber and Linkwood satellite deposits, which are expected to significantly extend the mine life of the Lynn Lake project to 27 years and enhance its economics with a low initial capital requirement and a high after-tax Internal Rate of Return (IRR) of 54% [2][3][8]. Economic Analysis - The after-tax IRR for the Burnt Timber and Linkwood project is estimated at 54%, with an after-tax Net Present Value (NPV) of $177 million at a gold price of$ 2,200 per ounce [6][15]. - At a higher gold price of $2,800 per ounce, the after-tax IRR increases to 83%, and the NPV rises to$ 292 million [6][15]. - The payback period is less than one year based on the base case gold price [19]. Production and Costs - Average annual gold production is projected at 83,000 ounces over a 10-year mine life, with total cash costs of $1,140 per ounce and all-in sustaining costs of$ 1,164 per ounce [6][33]. - Initial capital expenditure is estimated at $67 million, with total life of mine capital costs expected to reach$ 88 million [6][36]. - The total all-in cost per ounce produced is projected to be $1,241 [6]. Mineral Reserves and Resources - The combined Mineral Reserves for the Lynn Lake project, including Burnt Timber and Linkwood, have increased by 40% to 3.3 million ounces of gold [6][10]. - The initial Mineral Reserve at Burnt Timber and Linkwood is 940,000 ounces, grading 0.95 grams per tonne [10][11]. Project Overview - The Burnt Timber and Linkwood deposits will be mined using conventional open pit methods, with mining activities expected to overlap for a combined mine life of 10 years [27][23]. - Ore will be processed at the MacLellan mill, which has a nominal capacity of 8,000 tonnes per day [29][30]. Exploration Potential - There is significant exploration upside at Burnt Timber and Linkwood, with plans for a 2025 drill program to expand mineralization beyond current reserves [43][45]. - The Lynn Lake project covers a large area with multiple regional targets, indicating potential for additional satellite deposits [45][46].