A resource update for Alio Gold Inc.'s Florida Canyon gold mine in Nevada increased contained gold in the measured and indicated categories by 52% as compared to the previous estimate completed in 2016.
The mine hosts measured and indicated resources containing 1.7 million ounces within 132.9 million tonnes grading 0.40 g/t, with inferred resources estimated to contain another 22,000 ounces of gold within 1.4 million tonnes grading 0.43 g/t.
The estimate incorporates all drilling and mining completed as of July 31 and was constrained using a US$1,350/oz gold price pit shell, the company said Oct. 18.
CEO Greg McCunn said the company is on track to deliver a life-of-mine plan for Florida Canyon by year-end, noting it will be based only on oxide material.
The technical report is expected to include recommendations for further work to bring the adjacent Standard gold mine into production and to further investigate the sulfide deposit underlying oxide resources.
Alio Gold recently agreed to sell noncore Nevada assets for US$19 million in shares of Coeur Mining Inc.