Minera Alamos Starts Mining at Nicho

Minera Alamos has reported progress at its Santana gold mine in Sonora. Mining and stacking activities began in June 2024 at the Nicho main zone deposit, resulting in approximately 900oz of gold being placed on the leach pad by the end of the month, reports the company.

Minera Alamos reported it is working to enhance access to the Nicho main gold mineralization by opening and extracting the initial benches. Plans include developing two simultaneous working areas to improve traffic flow for mobile equipment and optimize grade control and waste management. 

For the upcoming month, Minera Alamos estimates placing 1,300oz to 1,500oz of gold on the heap leach pad, nearing the lower end of the initial mining rate forecasts. The company will also add two trucks in July 2024 to expand the mobile fleet to its planned size.

Gold grades averaged approximately 0.9g/t through the end of June 2024. An update on grade reconciliation for the initial months of full operations at Nicho is expected after July's production data.

The andesite host rocks at Nicho, which are more brittle and weathered compared to previous materials, have resulted in finer mined material. The company is implementing measures to optimize blasting operations and adjust the crushing system to improve leaching conditions. Additionally, Minera Alamos is evaluating the mobilization of its agglomeration system, acquired in 2020, to increase operational flexibility.

Doug Ramshaw, President, Minera Alamos, indicated that the start of mining at the Nicho main zone has met expectations, with improvements in gold stacking activities at the Phase 1 leach pad. He expressed optimism about returning to cash-generative operations as gold prices rise and thanked the team and Trigusa, the mining contractor, for their efforts. “The operating team in Mexico is delivering on our previously announced plans and as the main pit continues to open up, the benefits of Santana returning to a steady state of operation should be comforting to shareholders and all our stakeholders on a go-forward basis,” Ramshaw concluded.