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Los Filos Expansion

  • Overview
  • Feasibility Study
  • Technical Report
  • Corebox Model

In March 2019, Leagold completed a Feasibility Study outlining the potential for development of the Bermejal underground mine, enlargement of the Los Filos open pit mine, re-phasing of the Bermejal open pit into two distinct sections (Bermejal and Guadalupe), and construction of a 4,000 tonne per day carbon-in-leach (CIL) processing facility to complement the existing heap leach facilities.

In May 2019, Leagold announced a refinancing plan to fully fund the Los Filos expansion, which is scheduled to commence in Q3 2019. The phased development plan prioritizes development of the Bermejal underground mine, which is scheduled to resume in Q3 2019. The start of mining of the Guadalupe section of the Bermejal open pit is scheduled to begin in Q4 2019, and construction of the CIL plant is scheduled to begin in Q3 2020. With this updated schedule, the capital cost  to develop the Bermejal underground and construct a new 4,000 tonne per day CIL plant with related infrastructure remains unchanged at $180 million, and no material changes in operating costs or AISC per ounce are expected. This phased development plan results in a smoothed capital expenditure profile that benefits from increased internal financing, and the expansion is now mostly self-financed from operations at current gold prices.

In creating the phased development plan, consideration was given to construction and implementation risks, which are being actively managed.

Los Filos Mine Complex Phased Development Plan

Key Projects Capital 2019 2020 2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Bermejal underground development $65M                        
Guadalupe open pit stripping $33M                        
CIL plant construction $115M                        

Feasibility Study

In March 2019 Leagold announced completion of a Feasibility Study prepared by independent consultants for the expansion of the Los Filos mine complex in Mexico. The Feasibility Study incorporates the potential for development of the Bermejal underground mine, enlarging the Los Filos open pit mine, re-phasing of the Bermejal open pit into two distinct sections (Bermejal and Guadalupe), and the construction of a carbon-in-leach (CIL) processing facility to complement the existing heap leach facilities.

Highlights include:

  • Gold production of 3.2 million ounces (Moz) over a 10-year mine life (2019 to 2028) at an average AISC1 of $740/oz
  • Post expansion (2021 onwards):
    • Average annual production of 350,000 oz at AISC1 of $694/oz
    • Average annual production exceeding 420,000 oz from 2021 to 2024
  • Proven and Probable mineral reserves of 104.2 Mt at 1.31 g/t containing 4.5 Moz2
  • Capital cost of $180 million to develop the Bermejal underground and construct a new 4,000 tonne per day (tpd) CIL plant with related infrastructure
  • Current operations to fund capitalized stripping during the initial expansion phase (2019 to 2020) at the Guadalupe and Los Filos open pits
  • At $1,250/oz gold price:
    • NPV0% of $884 million
    • NPV5% of $679 million
    • IRR of 86%

For details refer to the March 12, 2019 news release available here.

A technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) is available on www.sedar.com .

(1) AISC is a non-GAAP measure.

(1) Proven reserve of 36.9 million tonnes at 0.76 grams per tonne containing 0.906 Moz gold plus Probable reserve of 74.5 million tonnes at 1.44 grams per tonne containing 3.457 Moz gold (effective date of October 31, 2018, SRK Consulting (Canada) Inc.).