Minera Alamos (TSXV: MAI) has given its Copperstone gold project the green light, releasing a pre-feasibility study that paints the past producing Arizona asset as a high return, low capital build while approving construction the same day.
Using a base case gold price of $3,500 per ounce, the study pegs Copperstone’s after-tax net present value at $374 million on a 5% discount rate, with an internal rate of return of 108% and payback inside 1.2 years. Net cashflow over the life of mine comes to $512 million.
Running the same model at a spot price of $4,500 per ounce and the economics stretch to an after-tax NPV of $537 million, the IRR jumps to 154%, and payback shrinks to roughly ten months, with net cashflow reaching $725 million.
The operation behind those figures is modest in footprint. Copperstone is envisioned as a near-term underground mine, with open pit mining viewed as a potential future option. The mine is slated for an initial 6.3-year mine life producing 291,000 ounces of gold, or an average of 46,000 ounces annually. Total cash costs are estimated at $1,070 per ounce, with all-in sustaining costs of $1,314 per ounce.
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Initial capex sits at just $58 million, against $77 million in sustaining capital across the mine life. That initial figure is expected to be covered by the company’s $46 million cash balance, room under a recently closed $75 million revolving credit facility, and cashflow from its producing Pan mine in Nevada.
The study also delivered a meaningfully larger resource. Measured and indicated resources rose to 4,054,000 tonnes grading 4.83 g/t gold for 630,000 contained ounces, a 110% increase over the prior estimate. Maiden proven and probable reserves stand at 1,934,000 tonnes at 4.87 g/t for 303,000 ounces.
As for next steps, full engineering, procurement and construction begin in June, with an underground mining contractor mobilizing within two to three months. The fully permitted project notably has seen pre-construction activities occur on site since early this year, cutting development timelines. Construction should take about a year, with the first gold pour expected to occur in mid 2027.
“The Copperstone PFS results show a high-return, low capital underground gold mining project with first gold production anticipated in mid-2027 and which will more than double our Company’s annual gold production once ramped up,” commented Darren Koningen, President of Minera Alamos.
Minera Alamos last traded at $7.08 on the TSX Venture.
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