Alamos Gold Inc (US) (NYSE:AGI) Study Reveals Presence Of Gold Near Manitoba, To Provide Economic Boost

Alamos Gold Inc (US) (NYSE:AGI) feasibility study report says that the two open-pit mines located near the northern Manitoba town can produce gold of 1.6 million ounces. The company carried out the positive feasibility study on its Lynn Lake Gold Project in Canada’s Manitoba.

It is good news for the Northern Manitoba province as these new developments can boost economic condition of the region.

The report says that the capital cost of building the mine in the vicinity of Manitoba is stipulated to be the $338 million. The two pits are estimated to have a potential of providing net income of $123 million after tax deduction based on the current gold price of $1,250 per ounce.

Although it certainly is good news for the Northern Manitoba, according to an Alamos spokesman it is still too early to confirm anything. It is because the positive feasibility study serves only as the medium for taking decisions related to mine construction.

Jim Fielder Says The News Is Exciting For The Province

According to the chief administrator For Lynn Lake Town, Jim Fielder, it is exciting news for the province. If the Alamos Gold Company gives a green flag to the construction of the mine in the Northern Manitoba province, it will provide hundreds of jobs for the people in the area. This new development is also expected to give an economic boost to the region.

The demands for basic needs including hydroelectricity, food, trucking, and gasoline are expected to increase tremendously. The company spokesman said that the mine construction will create a requirement of around 500 jobs and the same number of people will be required to operate the mine once it begins operations.

The company’s mining experts have been carrying out mineral explorations ever since the site was purchased for $20 million in 2016. The latest feasibility study report does not include the recent results of explorations, which are expected to increase the profitability of the venture for the company. Even then, it seems the jobs and the excitement will have to hold for some time, as the mine’s construction will take at least four years more to commence.

Brown Terrel

Brown Terrel

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.