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Alamos beat output forecasts in 2009

TORONTO (miningweekly.com) – Toronto-based Alamos Gold surpassed its own expectations on gold production in 2009, with output of 178 500 oz, the firm reported on Thursday.

Alamos produces gold from the Mulatos mine, in Mexico, and bought two development projects in Turkey this week from Teck Resources and Fronteer Development Corp.
The company produced a best-ever 48 000 oz in the fourth quarter, at a total cash cost of around $335/oz, the firm said in a statement.

Cash costs for the year are estimated at below $335/oz.

At the beginning of the year, Alamos said it would produce between 145 000 oz and 160 000 oz, but increased its guidance later in the year to between 160 000 and 170 000 oz.

The most recent forecast for annual cash costs was $335/oz.

“The primary factor driving higher gold production has been increased recoveries from the heap leach pad,” the company said in a statement.

In 2010, the Mulatos mine is expected to produce between 160 000 oz and 175 000 oz, at a total cash cost of $338/oz.

Alamos has budgeted $64,6-million for capital spending at Mulatos this year, most of which is for mine development…read more at the Mining Weekly