Announcement • Feb 20
Alamos Gold Reports Mineral Reserves and Resources for the Year-Ended 2024
Alamos Gold Inc. reported its updated Mineral Reserves and Resources as of December 31, 2024. For a detailed summary by asset, refer to the tables below. Highlights: Global Proven and Probable Mineral Reserves increased 31% to 14.0 million ounces of gold (298 million tonnes (“mt”) grading 1.45 grams per tonne of gold (“g/t Au”)), driven by the acquisition of Magino in 2024, continued high-grade additions at Island Gold, and an initial Mineral Reserve at Burnt Timber and Linkwood; Excluding Magino, Proven and Probable Reserves increased 12% to 11.9 million ounces of gold (230 mt grading 1.62 g/t Au) reflecting continued exploration success. Mineral Reserve additions more than replaced depletion at a rate of 249% (646% including Magino); Island Gold’s Mineral Reserves increased 32% to 2.3 million ounces with grades increasing 11% to 11.40 g/t Au (6.2 mt), driven by significantly higher-grade additions across the main structure; Burnt Timber and Linkwood initial Mineral Reserve of 0.9 million ounces (30.7 mt grading 0.95 g/t Au) reflecting the successful conversion of Mineral Resources; Magino Mineral Reserve of 2.0 million ounces (68.4 mt grading 0.91 g/t Au), consistent with internal estimates completed ahead of the acquisition in 2024; Island Gold’s Mineral Reserves and Resources increased 9% to 6.7 million ounces at substantially higher grades, including an 11% increase in Mineral Reserve grades to 11.40 g/t Au, and 13% increase in Inferred Mineral Resources grades to 16.52 g/t Au; Island Gold District Life of Mine plan will incorporate the significant growth since the Phase 3+ Expansion Study, with the increase in grades expected to support higher average annual gold production from Island Gold over the longer-term. The Life of Mine plan (incorporating Island Gold and Magino) is expected to be released mid-2025, with an Expansion Study expected to follow in the fourth quarter; Global Measured and Indicated Mineral Resources increased 50% to 6.6 million ounces of gold (181 mt grading 1.13 g/t Au), primarily reflecting the acquisition of Magino. Excluding Magino, Measured and Indicated Mineral Resources increased 6% to 4.7 million ounces of gold, reflecting additions at Burnt Timber and Linkwood, and an initial Mineral Resource at Cerro Pelon Underground; Global Inferred Mineral Resources decreased 2% to 7.1 million ounces of gold (125 mt grading 1.76 g/t Au), with the successful conversion of Mineral Resources to Reserves at Burnt Timber and Linkwood largely offset by the addition of Magino, and growth at Island Gold; Gold price assumption of $1,600 per ounce used for estimating Mineral Reserves and $1,800 per ounce for estimating Mineral Resources, up from $1,400 and $1,600 per ounce, respectively in 2023, reflecting the significantly higher gold price environment. Both remain conservative relative to the three-year trailing average gold price of approximately $2,044 per ounce and Global exploration budget of $72 million in 2025, the largest in the Company’s history supporting broad based success across its asset base with expanded budgets at the Island Gold District and the Qiqavik project in Quebec. Mineral Reserves: Global Proven and Probable Mineral Reserves total 14.0 million ounces of gold as of December 31, 2024, a 31% increase from 10.7 million ounces at the end of 2023. The increase reflects the addition of the Magino mine, which was acquired in July 2024, as well as further high-grade additions at Island Gold, and an initial Mineral Reserve at Burnt Timber and Linkwood. Grades decreased 12% to 1.45 g/t Au reflecting the addition of relatively lower grade Mineral Reserves from Magino and Burnt Timber and Linkwood, partially offset by growth in significantly higher-grade Mineral Reserves at Island Gold. Excluding Magino, Global Proven and Probable Reserves increased 12%, or 1.3 million ounces to 11.9 million ounces, net of depletion, at slightly lower grades of 1.62 g/t Au. This was driven by strong ongoing exploration success with additions significantly outpacing mining depletion of 506,000 ounces in 2024. This marked the sixth consecutive year Mineral Reserves have increased for a cumulative increase of 44% (23% excluding the acquisition of Magino). Island Gold’s strong pace of growth continued with Mineral Reserves increasing 32% to 2.3 million ounces, net of depletion, marking the 12th consecutive year of growth. Grades also increased 11% to 11.40 g/t Au, an impressive outcome given the higher grades mined during 2024, which averaged 12.47 g/t Au. The increase was driven by higher-grade additions across the main structure (C/E1E-zones), particularly in the Island Main and East areas. With the main structure open laterally and at depth, and several recently defined high-grade zones in the hanging wall and footwall, this long-term pace of growth is expected to continue. Magino’s Mineral Reserve of 2.0 million ounces grading 0.91 g/t Au is consistent with the internally modelled estimate conducted by Alamos prior to the acquisition of Argonaut. This represents a decrease from the 2.3 million ounces grading 1.16 g/t Au reported by the previous owner reflecting more realistic assumptions, including lower capping factors, increased dilution, and smaller areas of influence around higher grade intercepts. Grades mined to date have been consistent with Alamos’ updated block model and Mineral Reserve estimate. Lynn Lake’s combined Mineral Reserves increased 42% to 3.3 million ounces grading 1.29 g/t Au), driven by the successful conversion of Mineral Resources to Reserves at Burnt Timber and Linkwood. An initial Mineral Reserve was declared at Burnt Timber and Linkwood totaling 0.9 million ounces grading 0.95 g/t Au. Both deposits are expected to be incorporated into the Lynn Lake project as high-return satellite deposits which will serve as a source of additional mill feed. Mineral Reserves for the MacLellan and Gordon deposits increased slightly to 2.4 million ounces. Mulatos District Mineral Reserves decreased slightly (61,000 oz), to 1.4 million ounces with mining depletion at La Yaqui Grande largely offset by growth at Puerto Del Aire (“PDA”). Grades increased 16% to 3.14 g/t Au with the higher-grade PDA deposit representing an increasing portion of the Mulatos District’s Mineral Reserves. PDA’s Mineral Reserve increased 9% to 1.1 million ounces with grades largely unchanged at 5.45 g/t Au. Ongoing exploration success at PDA and Cerro Pelon continues to demonstrate the strong potential for growth in higher-grade Mineral Reserves at both deposits, enhancing already strong economics for the PDA project. Young-Davidson’s Mineral Reserves decreased 7%, or 0.2 million ounces, to 3.0 million ounces grading 2.26 g/t Au, primarily due to mining depletion.