UPDATE 1-Alamos' proved, probable reserve at Mulatos up 17 pct
Wed Mar 31, 2010 2:35pm EDT
reuters.com
* Backs 2010 production forecast
* To install new screening plant at Mulatos
March 31 (Reuters) - Canada's Alamos Gold Inc (AGI.TO) said proved and probable mineral reserves at its Mulatos mine in Mexico rose 17 percent in 2009, and the company backed its 2010 production forecast.
The miner plans to install a new screening plant for about $6.5 million that would increase crusher throughput by up to 20 percent.
Alamos expects to complete the project, which will primarily shield the production profile at Mulatos from rising gold prices, by the third quarter.
With the additional screening, crushing capacity at Mulatos is expected to range between 15,300 tonnes per day (tpd) and 16,200 tpd, up from the current capacity of 13,500 tpd.
The company said proven and probable mineral reserve at the Mulatos mine increased 17 percent to 2.39 million ounces in 2009.
Alamos reaffirmed its 2010 production forecast of 160,000 to 175,000 ounces at a total cash cost of $338 per ounce of gold.
Shares of the company were down 1 Canadian cent at C$13.65 in afternoon trade Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Ratul Ray Chaudhuri) |
