Northern Ont. gold mine expansion to double lifespan, nearly triple mineral reserves

Ontario releases Critical Minerals Strategy Premier Ford along with Ministers Rickford and Fedeli unveiled the province's first-ever Critical Minerals Strategy.

Alamos Gold has broken ground on the expansion of one of its two northern Ontario mines Monday it says will more than double the life of the mine and nearly triple its mineral reserves and resources.

Island Gold Mine's third expansion in Dubreuilville will increase production and lower costs, officials said in a news release.

"When we first acquired the Island Gold Mine we were aware of its potential. It had 1.8 million ounces of mineral reserves and resources and through exploration investment we have increased this high-grade deposit to 5.1 million ounces of mineral reserves and resources," John McCluskey, president and CEO of Alamos Gold, said in a news release.

"This mine will be an economic engine for this region for years to come, and positively impact the closest town of Dubreuilville and surrounding communities."

The mining company said the construction phase of the expansion will see the number of jobs double to 1,200 with the completion of the shaft expected to be completed by 2025.

"The Island Gold expansion will help to strengthen the Algoma economy and is the latest in a series of recent success stories in Ontario's mining sector—successes that our government is proud to support. The project will bring good-paying jobs and prosperity throughout the region including northern and Indigenous communities," Ontario Minister of Northern Development, Mines, Natural Resources and Forestry Greg Rickford said.

Alamos will benefit from the recently announced electricity price reduction the Ontario government is giving the northern industrial sector.

"Our government has reduced electricity prices for large industrial customers like Alamos Gold by 15 per cent through our Comprehensive Electricity Plan," said Ontario Energy Minister Todd Smith, who is the MPP for Bay of Quinte.

A study on the Phase 3 expansion published in July 2020 outlined a 16-year mine life and will see production increase from 1,200 tonnes per day (tpd) to 2,000 tpd.

"This is expected to drive production approximately 70 per cent higher to average 236,000 ounces of gold per year at significantly lower costs," Alamos Gold said.

"The addition of a shaft connected to low-carbon intensity grid power in Ontario will support higher mining rates with a smaller mobile fleet of haul trucks resulting in significantly lower diesel consumption. This is expected to drive a 35 per cent reduction in greenhouse gas emissions over the Phase 3 mine life."

Alamos Gold owns another northern Ontario mine, Young-Davidson near Matachewan, and the Mulatos Mine in Sonora State, Mexico.