Doug Ramshaw, President of Minera Alamos (TSX.V:MAI – OTCQX:MAIFF), joins us for an operations update at the Santa Mine where mining commenced at the Nicho Main Zone in June, and production will be expanding in 2024 in Sonora, Mexico.  We also discuss the further derisking work going on, while awaiting the permits, at the Cerro De Oro gold development project in Zacatecas, Mexico.  

At Santana, Mining and stacking operations commenced last month with approximately 900 ounces of newly mined gold stacked on the leach pad (through the end of June) during the initiation of mining operations at the new Nicho Main zone deposit. Access to the Nicho Main gold mineralization in the pit is steadily improving with the opening up and extraction of the first few benches. The Company plans to ultimately have access to two simultaneous working areas that, in addition to providing better traffic flow for the mobile equipment, will allow for more efficient planning for grade control and waste stripping management. Presently, estimates for the next month of mining and stacking operations are 1,300-1,500 ounces of gold placed on the heap leach pad which is approaching the lower end of the initial monthly mining rates included in the Nicho Main zone start-up plans. With mine access improving, plans are to activate two additional trucks in July which expands the mobile fleet size to the anticipated normal levels for the current mine plan. 

Doug outlines how there will be a lag effect to the gold production coming off the leach pads, but that Q3 and especially Q4 will see increased production, at low costs and good margins.  He further outlines the 12-month plan to build up more cash on the balance sheet, and then also describes the further upside expansion capabilities beyond this 12-month plan, where there can be further increases in the leach pads and production profile.

The company is still advancing permitting, engineering, metallurgical work, geological, and other geotechnical work to continue to de-risk the Cerro de Oro Gold Project as it moves down the pathway into production as the Company’s second operating gold mine. Engineering work continues to progress for Cerro de Oro in order to advance pre-development activities to coincide with the ultimate receipt of permits and a construction decision for the project.  Doug also wraps us up with his impression of the improving political environment after the Mexican presidential elections, and what that will mean for mining projects moving forwards.

Please email us with any follow up questions for Doug regarding Minera Alamos. Our email addresses are Fleck@kereport.com and Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Minera Alamos at the time of this recording. 

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