Alamos Gold to build new mine in Mexico

Canadian miner Alamos Gold (TSX: AGI) has decided to go ahead with plans to build La Yaqui Grande gold mine in Mexico, following results from a positive internal economic study.

The announcement comes on the heels of the company’s recent decision to begin phase three expansion at the Island Gold mine in Ontario, which is expected to boost Alamos’ output by 72%. 

Initial production at La Yaqui Grande, located 7km from the miner’s existing Mulatos operation, is slated for the second half of 2022.

The study estimates an initial investment of $137 million. At a $1,750 per ounce gold price, Alamos said Mulatos was expected to self-finance La Yaqui Grande’s development.

Average annual gold production at the five-year mine is expected to be 123,000 ounces, with all-in sustaining costs at $578 per ounce.

Low-cost, high-return

Alamos Gold president and chief executive, John McCluskey, said La Yaqui Grande represents the company’s next low-cost, high-return project in Sonora’s Mulatos district.

The project is adjacent to the past-producing La Yaqui Phase I operation and will be developed over the next 24 months with an independent heap leach pad and crushing circuit.

La Yaqui Grande received all necessary permits, including the final environmental impact assessment and a change of land use authorization in 2019.

Gold’s record run to almost $2,000 an ounce has injected fresh cash flows and driven a surge in shares of bullion producers. Analysts believe the ongoing rallywill become a new test of discipline for industry actors, who embarked on a spending a spree about decade ago and then paid for it when gold prices nosedived.

Compare Medium Chromium Steel With ZG40Cr1Mn1MoRe Alloy Steel Mill Liners

Ball mills are widely used in thermal power plants to crush coal powder. The quality of the ball mill liners, installation, and structure are reasonable, which are related to the safe operation and efficient production of ball mills. Ball mills are widely used in coal-fired power plants to crush coal powder. The quality of the ball mill liners, installation, and structure are reasonable, which are related to the safe operation and efficient production of ball mills.

There are two materials both can use to cast mill liners. Compare Medium Chromium Steel Mill Liner With ZG40Cr1Mn1MoRe Alloy Steel Mill Liners:

Material Comparison

Mechanical Character Comparison

The mill liners after heat treatment, its mechanical character is below:

• Medium Chromium Steel Mill liners. Impact Toughness: Ak ≥10 J/ cm2; Hardness: HRC 40～50
• ZG40Cr1Mn1MoRe Mill Liners. Impact Toughness: Ak ≥10 J/ cm2; Hardness: HRC 45～55

Microstructure Comparison

The mill liners after heat treatment, its microstructure analysis is below:

• Medium Chromium Steel Mill liners. The small number of eutectic carbide + tempered martensite + secondary carbide + small amount of retained austenite.
• ZG40Cr1Mn1MoRe Mill Liners. Tempered martensite + small amount of retained austenite.

ZG40Cr1Mn1MoRe Alloy Steel Mill Liners Advantages

• The alloy material is saved and the manufacturer reduces the production cost.
• It reduces the labor intensity of production and improves the working conditions of employees.
• The hidden danger of cracks is eliminated and the safe operation of the power plant is guaranteed.
• The hardness of the mill liner is increased, the wear resistance of the casting is increased, the life of the casting is increased, and the benefit of the power plant is increased.

@Nick Sun    [email protected]