Adding the Magino open-pit mine to the Alamos Gold stable helped the Toronto gold company post a record third quarter in a number of areas.
Across its mines in Northern Ontario and Mexico, Alamos posted a record 152,000 ounces of gold, up nine per cent from the previous quarter. That’s a reflection, the company said of the performance of its pair of Dubreuilville-area gold mines, Island Gold and Magino.
Last week the company posted its financial results for the quarter ending Sept. 30.
The mid-tier miner put up record revenue of $361 million during the quarter, the third consecutive quarter of increased revenue.
Quarterly gold production increased 12 per cent from the same time in 2023 and net earnings came in at $84.5 million, way up over the 39.4 million during the same quarter last year.
Blending Magino operations with Island Gold is “well advanced” following the acquisition of its Dubreuilville neighbour Argonaut Gold in July. The two operations are being merged together on the processing side as Alamos decided to expand the larger and newer mill at Magino, rather than spend the money on expanding capacity at an existing one at Island Gold. A new haul road is being constructed from the underground portal to the Magino mill to allow ore to be processed at the larger facility starting in early 2025.
Island Gold produced 40,500 ounces during the quarter, up 11 per cent from last year, while Magino brought 16,800 ounces to the mix while under the Alamos flag.
Island Gold is in the midst of the third wave of a major expansion, designed to boost mining rates from 1,200 tonnes per day to 2,400 tonnes.
That means building a new shaft and a paste plant. When the $796-million project is done in early 2026, the operation will shift from trucking ore up a ramp to the surface to skipping ore and waste rock up to through the new shaft. It will help increase gold production and reduce operating costs. The new shaft was at the 812-metre mark at the end of October, more than halfway down to its planned depth of 1,373 metres.
“We achieved a number of operational and financial records in the third quarter. Production increased to a record 152,000 ounces reflecting the addition of Magino and continued strong performances from Island Gold and Mulatos (in Mexico),” said Alamos president-CEO John McCluskey in a Nov. 6 new release.
The company views the acquisition of Magino as a growth opportunity in an area dubbed the Island Gold District by Alamos.
When the Island Gold expansion is done, Alamos expects to have one of Canada’s largest and low-cost operations with a short-term opportunity to increase gold production by 20 per cent and a favourable exploration opportunity to keep mining in the region in the long run.
An extensive exploration campaign, year over year, shows high-grade extensions of gold beyond Island Gold’s main deposit, coupled with high-grade gold opportunities below the Magino pit.
