Growth, Enterprise and Trade Minister Cliff Cullen today welcomed news that Canadian mining company Alamos Gold Inc. will soon begin work on a feasibility study at its Lynn Lake gold project.
“The decision by Alamos Gold Inc. to undertake a feasibility study of the geologic potential of their Lynn Lake project represents a significant step forward for this project and highlights the excellent opportunities that exist in Manitoba for expansion of the mining industry,” said Cullen. “Our government welcomes this commitment by Alamos and looks forward to continuing to develop our positive relationship with this and other interested mining corporations.”
A 2014 Preliminary Economic Assessment (PEA) completed by Alamos’s predecessor estimated an initial capital investment of $185 million in the Lynn Lake project would allow for average annual production of 145,000 ounces. That scale of production would generate annual revenues of approximately $250 million based on current gold prices, the minister said.
Alamos’ feasibility study is expected to advance the analysis provided by the 2014 PEA and will result in an updated estimate of the project’s potential costs and production volumes, the minister noted, adding Alamos expects the study to be completed by fall 2017.
Feasibility studies provide a verifiable analysis of the economic potential of a mineral deposit and represent an important step toward mine development. These studies generally include the following components;
• mineral resource estimate,
• metallurgical testing,
• production design and optimization,
• process plant site selection, and
• tailings management facility site selection and design.
Baseline environmental studies are already underway within the study area.