Leagold begins Los Filos mine expansion
Canada’s Leagold Mining (TSX: LMC) has kicked off the first of three major projects aimed at expanding facilities at its Los Filos gold mining complex in Mexico, 180 km south of the capital city.
The move is part of the Latin America-focused miner’s plan to become a 700,000 ounce-per-annum gold producer, having closed a previously announced $400 million financing.
The Vancouver-based company, which expects works to take about 2.5 years, said the Bermejal underground development would start in the third quarter of this year.
Work on the Guadalupe open pit , in turn, will get under way in the final quarter of 2019, and construction of the 4,000 t/d carbon-in-leach (CIL) plant would start in the third quarter of next year.
Leagold also said it would secure a portion of its revenue from gold sales over the time it takes to finish the parallel projects, which will require a $209.1 million investment.
The expanded Los Filos project will have a 20-year mine life (2019-28), during which 3.2 million ounces of gold are expected to be recovered.
From 2021 onwards, the average annual output will be 350,000 ounces. That number will rise to 420,000 ounces going forward until 2024.
The Canadian miner acquired Los Filos mine from Goldcorp in January 2017, in a deal valued at $438 million.
The gold giant had put the operation on the block the previous year, under a push to prioritize its biggest and best mines.