Alamos Gold announced a comprehensive expansion study for its Island Gold District that will add a 20,000‑tonne‑per‑day (TPD) mill capacity and lift mineral reserves by 30 % to 8.3 million ounces. The study projects average annual production of 534,000 ounces over a 10‑year life‑of‑mine, a 27 % increase from the base case and a 31 % reduction in all‑in sustaining cost (AISC) to $1,025 per ounce, down from $1,530 in 2025.
The expansion’s economic upside is driven by the integration of the Magino mill, which will process ore from both the Island Gold and Magino underground operations. The larger mill will achieve higher throughput and lower per‑ounce processing costs, while the 30 % reserve growth provides a longer mine life and a higher resource base. At a gold price of $4,500 per ounce, the after‑tax net present value (NPV) rises to $12.2 billion, compared with $8.2 billion at $3,200 per ounce, underscoring the project’s strong sensitivity to gold price and the scale of the cost savings.
Production growth is supported by a 20,000‑TPD expansion that will allow the company to process more ore without proportionally increasing capital or operating expenses. The study’s 534,000‑ounce output is expected to be achieved by 2028, with the higher reserve base ensuring that the mine can sustain this level of production for a decade. The 31 % AISC reduction reflects both the economies of scale from the larger mill and the lower operating costs of the Island Gold underground operation, which has a proven track record of efficient ore extraction.
CEO John A. McCluskey highlighted the strategic importance of the expansion, noting that the increased reserves and lower costs “unlock the true potential of the Island Gold District” and position Alamos Gold as one of Canada’s lowest‑cost gold producers. He also emphasized the company’s commitment to sustainability, citing a planned 56 % reduction in greenhouse‑gas intensity per ounce through the use of grid‑connected power for the expanded mill.
The expansion study aligns with Alamos Gold’s long‑term growth strategy, which has focused on scaling high‑grade underground operations and integrating new assets such as the Magino mine. The projected NPV and cost reductions are expected to enhance shareholder value and provide a strong foundation for future capital allocation decisions. The study’s positive financial metrics are likely to be viewed favorably by investors seeking exposure to low‑cost gold production in Canada.
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