Alio Gold Inc (TSE:ALO) (NYSE AMERICAN:ALO) released news in regards to its Florida Canyon Mine in Nevada on Tuesday, forecasting a rise in output in 2019.
The company announced its updated life-of-mine plan for the mine, forecasting gold production of 734,000 ounces over a 9.8-year mine life.
The company said proven and probable mineral reserves are put at 1.01 million ounces of gold based on a pit designed to maximize project economics at $1,250-per-ounce gold.
"This positive life-of-mine plan confirms the value of Florida Canyon that we saw when we acquired the mine last year," says Greg McCunn, chief executive officer. "The mine produced 47,400 ounces of gold in 2018 and the ramp-up progressed well over the fourth quarter. In 2019, we expect Florida Canyon to produce approximately 60,000 ounces of gold at a cash cost of approximately $1,000/oz.”
The company said it is looking for the mine to average 62,200 ounces in 2019, and to average 75,000 ounces per year for the next eight years.
"We expect to spend approximately $10-million in capital in 2019, including an expansion to the leach pad and key infrastructure around the crushing circuit to eliminate rehandling of the ore ahead of the crusher, which we expect will reduce operating costs," said McCunn in a release.
The company said it will look at opportunities to enhance the value of Florida Canyon in 2019, including the restart of the adjacent Standard mine and the strategic value of the sulphide deposit underlying the oxide reserves.
Shares of Alio Gold were down 5.5% at C$1.27 in Toronto and down 4.7% at US$0.90 in New York.