Alamos Gold (TSX: AGI) announced this morning that it would be suspending its operations at its Island Gold mine in Northern Ontario for a period of 14 days. The suspension is a result of the ongoing pandemic, mixed with the reality that the camp for the mine is located in the town of Dubreuilville, Ontario.
The measure to suspend operations is a means for the company to reduce the potential impact to the local community, given the location of the camp. With employees from various regions frequently flying in and out for work at the mine, it increases the exposure of the local community to the pandemic. As a cautionary action, operations at the firms Island Gold property have been suspended for a period of two weeks.
The company did not provide an estimated impact to the temporary suspension of operations at the mine. The Island Gold property was anticipated to yield between 130,000 and 145,000 ounces of gold for fiscal year 2020, with studies for additional expansion to occur in June. At this time the company has not adjusted prior guidance or pushed out the expansion studies, however the firm has indicated that it will institute additional measures as appropriate.
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The property as a result has reduced to care and maintenance mode.
The ongoing pandemic has not impacted Alamos two other operational mining properties of Young-Davidson and Mulatos, however the company has said that it is taking additional measures to address the pandemic and reduce spread, including medical screening and mandatory two week quarantine for those that arrived from out of country.
Alamos Gold last traded at $7.36 on the TSX.
Information for this briefing was found via Sedar and Alamos Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
