Consistent gold production, huge upside at Island Gold, Young-Davidson reaps budgetary rewards
Exploration means longevity to a mine’s operating life. Alamos Gold is making substantial investments to extend the successful runs with its two underground operations in northeastern Ontario.
The Toronto gold company’s Island Gold Mine, near Dubreuilville, and the Young-Davidson Mine, outside Matachewan, show no signs of slowing down, and the exploration budget for both underground operations is being boosted this year. Alamos released its fourth-quarter and 2023 year-end production results on Jan. 10, showing record gold production of 529,300 ounces, up 15 per cent from the prior year.
Both Young-Davidson and Island Gold reached their 2023 production goals with 185,000 ounces and 131,400 ounces, respectively. With its mines showing good returns, low cost growth and strong cash flow, president-CEO John A. McCluskey expects “this strong performance to continue with growing production and declining costs over the next several years.”
Exploration has been the driving force behind Island Gold’s sustained high-grade gold production success ever since Alamos acquired the operation in 2017. So it comes as no surprise that the 2024 exploration budget continues to grow, up 24 per cent from last year.