Alio Gold provides 2018 guidance for San Francisco mine
Wednesday, Jan 31, 2018
Alio Gold Inc announces 2018 production and cost guidance for the San Francisco Mine in Sonora, Mexico.


  • Forecast gold production to increase to between 90,000 and 100,000 ounces
  • All-in sustaining costs* (“AISC”) between $1,000 and $1,100 per ounce
  • Total capital and mine site exploration spending between $2.5 and $3.0 million

“After a turn-around year in 2017, we are expecting the San Francisco Mine to return to consistent gold production at 90,000 to 100,000 ounces this year compared to 83,558 ounces in 2017,” said Greg McCunn, Chief Executive Officer. “In 2017 we undertook a significant waste stripping campaign to open up the main pit.  As a result, we now have increased mining flexibility and the ability to deliver consistent ore feed to the leach pads.

"Additionally, we have implemented a dual cut-off strategy in the mining operations.  The strategy involves trucking lower grade run-of-mine ore to old heap leach pads while higher cut off grade material will be fed to the crusher. Subsequently, the waste stripping expansionary capital contemplated in the revitalization plan will now be included within AISC. During 2018 we will continue to focus on cost efficiencies to drive down our costs and improve overall productivity."

The mine’s 2018 total capital expenditure, including mine site exploration drilling, is expected to be between $2.5 and $3.0 million primarily for the expansion of the heap leach pad phase 6B.

*Assumptions used to forecast AISC and cash costs for 2018 include: $1,250 per ounce for gold, $18 per ounce for silver and the Canadian dollar and Mexican peso at $1.30 and 18.00 respectively to the US dollar.

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