Minera Alamos to seek permit for Mexico open-pit gold project

Minera Alamos plans to submit permit applications for its Cerro de Oro gold project in Mexico following a “game changer” PEA, despite a pledge by authorities to block new open-pit operations.

The PEA showed a US$28.1mn pre-production capex open-pit operation, producing 58,400oz/y gold over an 8.2-year mine life.

Post-tax IRR for the 20,000t/d throughput heap leach mine is estimated at 111% – one of the highest in the industry – assuming US$1,600/oz gold prices.

“No permits have been granted for the development of the Cerro de Oro project,” Minera Alamos said in a release.

“The company intends to advance efforts related to the application for these documents prior to a decision being made to develop the project,” it added.

Work is underway to prepare environmental and change of land use permits, the company said.

Mexican environment ministry Semarnat reaffirmed a commitment earlier this year not to issue permits for new open pit operations, due to potentially negative environmental impacts.

A draft bill which includes a proposal to ban open-pit operations has also been drawn up by a senator of the ruling leftist Morena administration.