Los Filos Expansion

Potential to double annual production

The Los Filos expansion project contemplates enlarging the Los Filos open pit, adding a new open pit (Guadalupe), developing a second underground mine (Bermejal), and constructing a new 4,000 t/d CIL plant to complement the existing heap leach facilities.

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. The expansion project is estimated to cost $213 million.

Leagold commenced the Los Filos expansion in Q3-2019. The phased development plan prioritizes development of the Bermejal underground mine, which commenced in Q4-2019. Mining at the Bermejal underground is expected to ramp up to 1,500 t/d by the end of 2020. At Guadalupe, the access road was completed in Q3-2019 and stripping is now underway, with mining ore targeted to begin in Q3-2020. Construction of the CIL plant is scheduled to begin in Q3-2020.

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                        

Leagold commissioned an independent Feasibility Study in March 2019 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 tonnes per day (t/d) 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, for total initial capital costs of $213 million
  • At $1,250/oz gold price:
    • NPV0% of $884 million
    • NPV5% of $679 million
    • IRR of 86%

(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.).

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