Minera Alamos is a gold development company aiming to become a producer in 2021. The Company has three high-quality Mexican assets, including the 100%-owned Santana open-pit, heap-leach development project that is currently under construction. They also have the newly acquired 100%-owned Cerro de Oro oxide gold project that has considerable past drilling and metallurgical work completed and could enter the permitting process rapidly. The La Fortuna open pit gold project (100%-owned) has an extremely robust and positive preliminary economic assessment (PEA) completed and the main Federal permits in hand.
Minera Alamos is built around its operating team that has brought 3 mines into production in Mexico over the last 13 years.
The Santana project is a fully-funded CAD$12m operation and started construction in June, post-Covid delays, aiming to have the heap-leach carbon plant completed by the end of March. Materials will go onto the pad in early April and first Gold production is expected by the end of Q2, ramping up during the first 6 months of production towards 2022 when they will be at formal production guidance.
The No 2 project at Cerro de Oro has published a conservative resource estimate as a starting point for the resource which will get bigger with further expansion drilling and metallurgical work as they head towards production. The plan is to get Santana into production and then to start on the construction of Cerro de Oro, hoping to be in production there in 2022.
Minera Alamos started the year with CAD$18m in cash with zero debt. They have enough capital to get Santana completed and into production and also to start construction at Cerro de Oro. Once Santana is producing Gold, this cash flow will be aimed at completing Cerro de Oro ready for production. There will be no need to go back to the market for additional capital fundraising.
The project at Fortuna might well be pushed back a little as Minera Alamos concentrates on Santana and then Cerro de Oro to get production up and running but work will continue there adding value to the project, aiming for production in 2024.
The strategy for Minera Alamos is to develop very low capex, heap leach assets, all of which can be profitable even in a low Gold environment. We look forward to lots of news flow from Minera Alamos this year on Santana as it heads towards production and Cerro de Oro as the expansion of the resource continues.
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Company page: https://www.mineraalamos.com/
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