Alamos Gold Inc. (NYSE:AGI) Q3 2023 Earnings Call Transcript

John McCluskey: Mike, I’ll have to get back to you on that. I don’t have the details right now. But I’ll take that off line.

Michael Parkin: All right. Thanks. And then obviously, some pretty exciting news coming out later this quarter with PDA. Can you just give me — is there any ability to talk about like, you’re already added million ounces of total resource in bumped up the budget on the drilling a couple times already this year, recognizing that you’ve got the July cut off? But seems like things are going really well there. Do we have an idea of what we should be kind of thinking of in terms of scale, like it seems like it’s getting bigger and bigger and bigger? Is it going to be possibly a project that you would phase like, do a Phase 1, and then as it opens up, adding a second processing line in the mill? What is there anything you can kind of talk to?

Luc Guimond: Mike, Luc here again. Yes, so let me still kind of early stages. I mean, we’ve just recently completed some of the geotech drilling required for the mine design aspect of the operation. And in that mine design, we’ll put a mine plan together. We’ve also in conjunction in parallel been working to some technical studies with regards to the metallurgy and the mill design. So our expectation is we will have a development study completed by the end of the year with some preliminary numbers with regards to mining rates, and supporting milling rates. I mean, high level at this point, I mean, we’ve been kind of targeting 2000 times per day, based on what we’ve seen so far, with regards to the success we’ve had with the exploration and some early review of what we’ve been seeing with regards to the mine design and mill design.

But I mean, there’s always opportunity for expansion, I mean, we can certainly start on that basis with the mining week, the mining weeks can certainly increase over time, if it’s supported based on the geometry of the ore body and the strengthening to the ore body. And obviously, with regards to expanding the mill to support a higher mining rate, that opportunity also still exists, I mean, you can always add components to that mill circuit to be able to expand to a higher milling rate if required.

Michael Parkin: And do you guys have power to site now or you would have by the time you would build PDA?

Luc Guimond: We’re currently still on diesel generation. But we’re in the process of doing a conversion from diesel generation power to the site to grid power and the expectation on that would be by the end of this year. So that will provide obviously further upside for the longer term of La Yaqui, but also with PDA. Any other opportunities to develop within our Mulatos district.

Michael Parkin: Okay, so the PDA study would assume grid power connection.

Luc Guimond: Correct.

Michael Parkin: That’s it for me, guys. Thanks so much.

Operator: [Operator Instructions] Our next question is from Ovais Habib. Please, go ahead.

Ovais Habib : Hi, John, and Alamos team congrats on the Q3 beat and increase production guidance, just couple of questions for me. Number one, in regards to the parallel structures that was covered at Island Gold, at the site trip in mid-summer, you mentioned that you had already started to mine some of these structures. Now, are we expected to see some of these ounces from the structures in Q4 and going into 2024? Potentially what I’m trying to ask is, are these ounces expected to come into the Island Gold mine plan in the future?