Minera Alamos achieves commercial gold targets at Santana

Operational plans are currently being modified following a temporary shutdown over the Christmas holidays that allowed for a full review of 2022 operational data amongst the operations team and the mining contractor. As mentioned in previous announcements, the drought conditions experienced in northern Mexico since 2020 remain a challenge. Current forecasts call for the warmer/drier conditions related to a La Nina event now entering an unprecedented third straight winter to dissipate in the 1H23. Until such time that there is a clearer outlook on the overall water conditions in the region, the company remains cautious with respect to short term mine planning activities.

As a result of the continued strengthening of the balance sheet during 2022, the company has given priority to the acceleration of some waste removal (pre-stripping) activities during early 2023 which are not reliant on water availability. In addition, the company is currently mobilising for further exploration drilling to be initiated in 1Q23 to better define previously identified gold-bearing breccia pipes outside of the currently mined areas (delayed during the pandemic period). These activities combined with ongoing planning discussions with the company’s mine contractor aim to prepare the project for growth of the Santana operations beyond the starter pits and initial leach pad. Minera has been working to procure adequate supplies including pad liner to allow construction to begin rapidly upon receipt of the new permits which should avoid major disruptions as the expansion is commissioned.

The Santana project was envisioned as a classic ‘bootstrapped’ operation with multiple phases of planned pit and pad expansion. Built for approximately US$10 million, 2022 operational performance has already paid back the majority of the start-up capital. In determining whether commercial production thresholds had been reached, the company considered milestones associated with the first phase Santana operation focused on mining rates and gold recoveries from the Santana leach pad. In 2H22, the operation demonstrated the ability to operate at the initially targeted 10 000 t per day (combined mineralised material and waste). In addition, overall gold recoveries have been trending in excess of 70% for material under leach for a minimum of 45 – 60 days with residual leaching ongoing.

Darren Koningen, CEO, stated:

“We are pleased with the results from the Santana gold project during our first year of operations in 2022. Despite the difficulties that presented themselves during the year, both capital and operating costs continue to meet our expectations and provide a sound basis to inform the company’s plans for the development of the upcoming Cerro de Oro project.

As we move forward in 2023, the company is taking advantage of the drier months ahead to prioritise waste development activities in advance of the receipt of final approvals related to the next phase of Santana project expansion which should give rise to a stronger 2H23. The restart of exploration activities at site is especially exciting and will finally allow for better definition of the long-term potential of the area and facilitate planning for future expansion phases.”

Read the article online at: https://www.globalminingreview.com/mining/03022023/minera-alamos-achieves-commercial-gold-targets-at-santana/