Name of the Project
Island Gold District (IGD) expansion.

Location
Ontario, Canada.

Project Owner/s
Precious metals miner Alamos Gold.

Project Description
The IGD, which combines the Island Gold underground operation with the Magino openpit mine, is being advanced through a district-wide expansion that materially enlarges scale and throughput. 

The plan is built around an estimated 30% increase in reserves to about 8.2-million ounces and a doubling of Magino’s milling capacity to 20 000 t/d through the addition of a new 10 000 t/d parallel circuit.

Under the expanded configuration, underground mining and processing are expected to increase by about 25%, to 3 000 t/d, while openpit processing increases by about 70%, to 17 000 t/d. The new circuit is designed to treat a blended stream of higher-grade underground ore and openpit ore, while the existing circuit is expected to focus on openpit material.

A key point in understanding the IGD expansion is that Phase 3+ at Island Gold is the enabling underground stage within the broader district plan, rather than a standalone growth case. Targeted for completion in the fourth quarter of 2026, Phase 3+ is expected to shift deeper materials handling from trucking to shaft skip-ping, improve underground logistics and lift mining rates. This progression supports a ramp-up from about 1 400 t/d to 2 000 t/d by the end of 2026, then to about 2 400 t/d in 2027, with a further increase to 3 000 t/d by 2029 as IGD reaches full operating stride.

During the transition, the Island Gold mill is expected to keep operating in 2026 and 2027, processing about 1 265 t/d of higher-grade underground ore until the Magino expansion is completed in the first quarter of 2028. Remaining underground tonnes are planned to be blended at increasing rates, with openpit feed and processed at Magino. 

Once the expanded facility is commissioned, all underground and openpit ore are expected to be treated through the larger, centralised Magino plant, with the Island Gold mill scheduled to close.

Supporting upgrades at Magino include additional ore bins, a redesigned truck-dump arrangement for direct tipping, and a centralised gyratory crusher providing front-end crushing capacity of more than 20 000 t/d. 

Openpit mining is also expected to increase to average about 80 000 t/d of total material, including roughly 17 000 t/d of ore, underpinning stronger district production over the next five years at lower unit costs.

Potential Job Creation
Not disclosed.

Net Present Value/Internal Rate of Return
The IGD expansion study estimates an after-tax net present value (NPV), at a 5% dis-count rate, of $8.16-billion and an internal rate of return (IRR) of about 53%, assuming a long-term gold price of $3 200/oz. At a $4 500/oz gold price, the after-tax NPV increases to $12.24-billion, with the IRR increasing to about 69%.

Capital Expenditure
Growth capital for the IGD expansion is estimated at $542-million, primarily for expansion of the Magino mill, accelerated underground development and additional mining equipment. 

Including the remaining Phase 3+ spending, total growth capital is estimated at about $704-million.

Planned Start/End Date
The Phase 3+ expansion is scheduled for completion in the fourth quarter of 2026, while completion of the IGD expansion to 20 000 t/d is targeted for the first quarter of 2028.

Underground mining rates are expected to continue ramping thereafter, with the 3 000 t/d underground rate expected by 2029.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None disclosed.

Contact Details for Project Information
Alamos Gold, tel +1 416 368 9932 or email info@alamosgold.com.