Ontario Construction News staff writer
Alamos Gold Inc. held a ground-breaking for the Island Gold Mine expansion expected to increase production, lower costs, and be an economic engine for the Algoma region.
During the construction phase of the expansion, employment is expected to double to 1,200 jobs.
“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,” said John A. McCluskey, president and CEO.
“By further investing in the Phase III expansion, we will more than double the mine life. 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 Phase III Expansion study published in July 2020 outlined a 16-year mine life during which Island Gold is expected to expand from 1,200 to 2,000 tonnes per day following the completion of the shaft in 2025.
- Since the completion of the Phase III Expansion study, Mineral Reserves and Resources have increased 37% to total 5.1 million ounces of gold as of the end of 2021.
- 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 and driving a 35 per cent reduction in greenhouse gas emissions over the Phase III mine life
“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,” said Greg Rickford, Ontario minister of Northern development, mines, natural resources and forestry.
“The project will bring good-paying jobs and prosperity throughout the region including northern and Indigenous communities.”
Island Gold’s employees account for over 20 per cent of total mining employment in the Algoma region with approximately 6 per cent belong to Indigenous communities – more than twice the mining industry average of 2.4 per cent in Ontario