Minera Alamos Inc (TSXV:MAI) completed its 2018 development activities at the La Fortuna gold project located in Durango, Mexico.
One of the key highlights is the completion of a Preliminary Economic Assessment demonstrating robust project economics including an after-tax internal rate-of-return of 93% and an all-in sustaining cost (AISC) of $440 per oz, the company said.
The PEA showed an average annual contained-metal production of approximately 50,000 oz gold equivalent. The five-year mine life is based on an initial resource "starter pit."
"As one of two foundational assets that have been rapidly advanced this year, La Fortuna now has key permitting and technical milestones in place. This provides a path to a commercial production decision in the second half of 2019," said CEO Darren Koningen.
"Minera can now begin development activities at La Fortuna that will run in parallel with the proposed development of the Santana gold project and allow for our development team to transition from Santana to Fortuna as the year progresses," he added.
The company is in receipt of a positive notification from the Mexican environmental authorities confirming the successful completion of the technical review phase of the company's application for the change of land use to construct mining and processing facilities at the Fortuna project area.
Following completion of the change of land use payments made earlier this month, the government is now in a position to issue the formal approval documentation for the project.
The completion of the geotechnical studies and design of the dry-stack tailings containment facilities for the project were submitted to the Mexican Federal Environmental Agency as part of the mine permitting process.
The company has also identified a new area called La Pista approximately 1,300 meters southwest of the La Fortuna Main Zone resource that contains significant near surface disseminated gold/silver mineralization.
Rock sampling surrounding the new target zone has returned assays up to 8 grams/ton of gold and 30 grams/ton of silver over a mineralized area of approximately 500 x 300 meters.
Plans were completed to include testing of the new area in addition to other known areas of historical mining as part of the company's Fortuna exploration plans for 2019.
Minera Alamos is an advanced-stage exploration and development company with a growing portfolio of Mexican assets.
They include the La Fortuna open-pit gold project in Durango, the Santana open-pit heap-leach development project in Sonora with test mining and processing completed and the Guadalupe de Los Reyes open-pit gold-silver project in Sinaloa with mine planning in progress.
Contact Rene Pastor by [email protected]