Alamos Gold Targets 1 Million Ounces by 2030 on Island Gold Expansion

Alamos Gold (NYSE:AGI) outlined plans to increase annual gold production from more than 500,000 ounces currently to 1 million ounces by 2030, driven primarily by expansions at its Island Gold District in Ontario and the development of the Lynn Lake project in Manitoba.

The company said its operations are entirely in North America and that its growth projects are fully permitted and funded. Management expects the additional production to carry lower costs than current operations, targeting cash costs and all-in sustaining costs in the range of approximately CAD 1,200 to CAD 1,300 per ounce.

Island Gold Expansion Targets More Than 530,000 Ounces

Island Gold is expected to be the company’s principal growth driver. Alamos said it has increased proven and probable reserves at the underground mine to more than 5 million ounces, while grades have risen to about 11 grams per tonne from roughly 9 grams per tonne when the company acquired the asset at the end of 2017.

The company has completed a shaft extending to 1,382 meters and expects to finish equipping it by year-end, followed by commissioning in the first quarter. Mining through the shaft is expected to begin during 2027, supporting an initial underground mining rate of roughly 2,400 tonnes per day, about double the current rate.

Alamos plans to increase underground throughput to 3,000 tonnes per day during 2028 as mine development advances. By the end of that year, the Island Gold District is expected to reach an annualized production rate of about 535,000 ounces, including approximately 400,000 ounces from underground operations and about 130,000 ounces from the open-pit Magino operation.

The company is also advancing an expansion of the district’s milling complex to 20,000 tonnes per day from 10,000 tonnes per day. The project includes a new gyratory crusher and a second mill line.

Magino Reliability Improvements Underway

Management said the acquired Magino mill had been operating at fewer than 6,000 tonnes per day when Alamos took control and required modifications to address design limitations, particularly in northern Canadian winter conditions.

The company said it has now brought the operation to its 10,000-tonne-per-day capacity. A key improvement involves replacing the mill’s previous front-end grizzly arrangement with a higher-capacity gyratory crusher. Alamos is also preparing to replace a compressed natural gas power system with grid power, which is expected to arrive in the first quarter of next year.

Management said grid power should improve reliability and lower costs by reducing dependence on CNG tank deliveries that could be disrupted by road closures and heavy snowfall.

Exploration Continues to Expand District Potential

Alamos highlighted continued exploration success across the Island Gold District, including high-grade drill results at Island Gold and nearby areas. The company said it expects to release a maiden resource estimate for the Cline-Pick-Edwards area, east of Island Gold, at year-end or early next year.

The company also cited recent drilling 250 meters west of its nearest existing hole, where two holes intersected 12 grams per tonne over true widths of 5 meters. Management said mineralization remains open to the east and west and described the broader district’s growth potential as substantial.

Young-Davidson Recovery Expected to Take Several Quarters

At the Young-Davidson mine, Alamos said it is revising its mining sequence following a seismic event that contributed to lower 2026 guidance. The event occurred below the 1,000-meter level while the company was conducting mining activity and ground-support rehabilitation work.

Management said the event did not quarantine the gold on the affected level and that the company expects to ultimately return to mine it. However, the revised plan will require additional development to provide greater operating flexibility and direct mining stresses toward the outer portions of the mine.

Young-Davidson is currently operating at approximately 5,000 tonnes per day. Alamos expects production to increase through 2027 and into 2028, ultimately returning to more than 7,000 tonnes per day. The company said the operation remains profitable at its current rate.

M&A Opportunities Seen as Limited for Now

On acquisitions, Alamos said its purchase of Argonaut Gold provided significant operational synergies and strengthened the Island Gold District. Management said the transaction generated more than CAD 500 million per year in synergies beyond what the company paid for the mine, while also adding reserves and exploration potential.

The company said it prefers to make acquisitions countercyclically and views its organic pipeline as sufficient to support its objective of becoming a major gold producer. While management said attractive acquisition opportunities are limited at present, it indicated that Alamos would remain prepared to act when compelling opportunities emerge.

About Alamos Gold (NYSE:AGI)

Alamos Gold Inc is a Canadian-based gold producer engaged in the acquisition, exploration, development and operation of gold mines. The company produces gold doré and related by-products from its wholly owned mining operations in Canada and Mexico, and also maintains a portfolio of exploration and development projects.

Alamos Gold’s principal Canadian assets are the Island Gold and Young-Davidson mines in Ontario, along with the Magino mine near Dubreuilville, Ontario. In Mexico, the company operates the Mulatos mining district in Sonora, which includes the La Yaqui Grande mine.