Alamos books new gold in Manitoba and Quebec

[Ben Graham]

Alamos Gold (TSX, NYSE: AGI) said recent drilling at its Lynn Lake project in Manitoba and Qiqavik property in northern Quebec located new mineralization at both sites, potentially boosting the resource.

Highlight hole 25LWX082 at Lynn Lake’s Linkwood satellite deposit cut 5 metres grading 21.7 grams gold per tonne from 305 metres depth, Alamos said Wednesday. At Qiqavik, hole 25QKX014 in the Avinngaq target intersected 8 metres of 3.07 grams gold from 98 metres downhole.

“We view the drill results positively,” Desjardins Capital mining analyst Bryce Adams wrote in a note. He noted “the longer-dated timeline for these projects,” adding that Lynn Lake makes up 8.5% of his net asset value estimate for the company. Lynn Lake is about 1,000 km north of Winnipeg.

Lynn Lake and Qiqavik are two of the development projects that Toronto-based Alamos is counting on to lift gold production into the next decade. Lynn Lake is a past-producing mine whose life could be extended with the addition of Linkwood and another satellite deposit, Burnt Timber. Alamos inherited Qiqavik in April 2024 when it bought Canada’s Orford Mining and began drilling on the early-stage project last year.

Long-term assets

Alamos spent $3.4 million on exploration at Lynn Lake last year to complete 41 holes covering 7,268 metres. Efforts focused on extending mineralization beyond reserves at Burnt Timber and Linkwood. The latter remains open at depth and to the west.

Other drill highlights released Wednesday include hole 25BTX073 at Burnt Timber, which cut 16 metres grading 2.77 grams gold from 95 metres depth; and hole 25BTX074, also at Burnt Timber, which cut 10 metres grading 1.96 grams gold from 182 metres downhole.

Both Linkwood and Burnt Timber are expected to come into production about 12 years into the mine’s life.

A 2023 feasibility study for Lynn Lake envisioned a mine with a 27-year life starting in 2029, with average annual output of 176,000 oz. over the first decade.

Multiple targets

At Qiqavik, Alamos drilled 29 holes last year covering 8,736 metres at five target areas. Drilling intersected gold mineralization at all target areas and 72% of the holes returned grades exceeding 1 gram gold, Alamos said. This included hole 25QKX011, which cut 12.7 metres grading 1.75 grams gold from 85 metres depth. Located in Quebec’s Nunavik region, Qiqavik is about 1,850 km north of Montreal.

“Our 2025 exploration program was successful across our assets supporting both our near and longer-term growth initiatives,” CEO John McCluskey said.

“Our success at Lynn Lake is expected to drive additional mineral reserve and mineral resource growth and highlight the potential for further production upside over the life of the project. At Qiqavik, our first year of drilling on the project intersected high-grade gold mineralization across multiple targets demonstrating the potential for a significant discovery in the underexplored region.”

Alamos shares rose 0.5% to C$59.56 in Toronto trading Wednesday afternoon, valuing the company at about C$25 billion ($18.3 billion).