Alamos Gold starts clock on Lynn Lake mines

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This article was published 14/01/2025 (263 days ago), so information in it may no longer be current.

It’s official: Alamos Gold Inc. has announced it will build the province’s first new mine in a decade with the redevelopment of two old gold mines east of the town of Lynn Lake.

Construction is to start this year, with plans to go into production in 2028.

It is the first major resource development in northern Manitoba since HudBay Minerals opened the Lalor mine (gold, copper, zinc) near Snow Lake in 2014.

Alamos expects the bill to build the two open pit mines to be close to the $1 billion mark, factoring in inflation over the next three years.

On Tuesday, John McCluskey, CEO of Toronto-based Alamos, the third-largest gold producer in the country, said the company is also expanding its other Canadian gold mines.

“This investment in growth is expected to drive our production 24 per cent higher over the next three years,” said McCluskey. “We are pleased to announce the start of construction on Lynn Lake, another attractive project that will provide additional growth into 2028.”

The company already operates three successful gold mines in Ontario: one in the Kirkland Lake area and two others northeast of Wawa. It also operates a gold mine in the Mexican state of Sonora.

The company is forecasting the Lynn Lake project will produce about 176,000 ounces of gold per year in the first 10 years of an expected 17-year life span.

The construction phase is expected to employ 600 people and the with another 450 workers needed for the operation of the mines.

Alamos has been working in Lynn Lake (population roughly 600) since 2016, and already has about 40 people on the ground.

In 2023, it signed an agreement with the nearby Marcel Colomb First Nation. The deal includes commitments for jobs and training, heightened environmental protections and revenue sharing, including a milestone payment to the band when construction begins.

“Alamos will continue to prioritize the participation of Indigenous and local citizens including with new employment and training opportunities,” company spokesperson Rebecca Thompson said.

The current NDP government (and the previous PC one) has gone out of its way to encourage more exploration and investment from the mining industry.

Jamie Moses, minister of economic development, investment, trade and natural resources, said his government is excited about the development and is still working on finalizing its participation in the project.

“This is a really good signal,” Moses said. “When we say Manitoba is a trusted partner, this is what it means. When we say we can deliver better results for industry and the business community, this is what it means.”

It will be the first jolt of economic development in that portion of the province in many years.

The influx of construction workers, followed by miners will enliven a town that has been in decline ever since mines in Lynn Lake and Leaf Rapids closed more than 30 years ago.

Lynn Lake is located at the end of Highway 391, about 1,000 kilometres north of Winnipeg.

John Morris, co-director of the Mining Association of Manitoba, said the organization and its members were “delighted.”

“It’s great news for Manitoba,” he said. “They have a fantastic relationship with Indigenous communities. Alamos is a great company and we’re happy to support their initiative.”

Alamos says it will use electric shovels and drilling equipment in the open pit mining operation, making its emission per ounce of gold produced 58 per lower than the industry average.

It’s also keen on a couple of exploration projects within its 145,00-acre land package. An internal study will be completed and published in 2025 on two of the most advanced of the opportunities: the Burnt Timber and Linkwood deposits.

“Alamos Gold believes there is great potential in this large and under-explored greenstone belt that has yet to be realized,” Thompson said.

Construction activities in 2025 will be focused on access road upgrades, camp construction, bulk earthworks and orders for long lead-time items.

Thompson said contracts for certain activities, such as the camp installation, have been issued and the company is in the process of tendering more for upgrades to access roads and site preparation.

“These opportunities are extended to Indigenous participants,” she said.

“The province will continue to bolster the critical minerals sector and ensure that as a province we are meeting the needs of not only communities for good jobs, not only for industry in terms of what they need to be successful but in terms of all Manitobans when it comes to our responsibility to ensure that we do these projects the right way,” Moses said.

martin.cash@freepress.mb.ca