The average mill throughput is expected to increase to 2,400 tonnes per day from 2,000 tonnes per day, while the mine life is estimated to increase to 18 years from 16 in the previous study. The project’s capital expenditure has been pegged at $756 million, up from $538 million.
At a 5% discount rate, the phase 3+ study forecasts the project will generate a post-tax net present value of $2 billion, compared to $1.5 billion previously. The post-tax internal rate of return is now estimated at 25%, compared to 22%, using a metal price of $1,850 per oz. gold.
“This is going to be one of the largest and most profitable gold mines in Canada. In terms of scale, it will rank as the seventh largest gold producer in Canada,” John McCluskey, Alamos Gold’s CEO, told The Northern Miner.
“It will be the lowest cost gold mine in Canada and one of the top five most profitable in Canada. At 18 years, Island Gold’s mine life will be one…
