Alamos Gold breaks ground on Island Gold Mine expansion
Alamos Gold has broken ground on the expansion of its Island Gold Mine in Dubreuilville, northeast of Wawa in the province’s north.
The mine, which is already one of the most profitable in the country, will be expanded to increase production, lower costs and create further economic benefit for the Algoma region.
The expansion, targeted for completion in 2025, will increase the mine’s capacity from 1,200 tonnes per day to 2,000. This is expected to drive production to an average of 236,000 ounces of gold per year at significantly lower costs. Construction work will also increase employment at the site from 600 jobs annually to 1,200.
“When we first acquired the Island Gold Mine we were aware of its potential. It had 1.8 million ounces of mineral reserves and resources, and through exploration investment we have increased this high-grade deposit to 5.1 million ounces of mineral reserves and resources,” said Alamos President and CEO John A. McCluskey. “By further investing in the Phase III expansion, we will more than double the mine life. This mine will be an economic engine for this region for years to come, and positively impact the closest town of Dubreuilville and surrounding communities.”
The addition of a shaft connected to low-carbon intensity grid power will support higher mining rates with a smaller mobile fleet of haul trucks resulting in significantly lower diesel consumption. This is expected to drive a 35-percent reduction in greenhouse gas emissions over the Phase III mine life.
The mine is a significant employer in the Algoma region. Employees account for about one-fifth of regional mining employees. Of them, 6 percent come from Indigenous communities – more than twice the province's mining-industry average.
Island Gold’s practice of local hiring has increased economic stability in the local communities of Dubreuilville, Wawa and White River, offering allowances and incentives to employees to move near the mine in Dubreuilville, indirectly helping to increase rural population as well as local resources and infrastructure.
The mine has also helped to create a highly skilled mining workforce by employing a wide range of tradespersons, including welders, truckers, surveyors, scoop operators, electricians, mechanics, bolters, millwrights, construction miners, geologists, blasters, conventional miners, engineers and drillers.
"The Island Gold expansion will help to strengthen the Algoma economy and is the latest in a series of recent success stories in Ontario's mining sector—successes that our government is proud to support,” said Northern Development, Mines, Natural Resources and Forestry Minister Greg Rickford. “The project will bring good-paying jobs and prosperity throughout the region including northern and Indigenous communities.”