Minera Álamos is planning a $42.8 million investment for its Cerro de Oro project, located near Zacatecas, Mexico. The company is expecting to attain approximately 70,000 oz/y of gold in a period of one to four years.

With some 6,500 hectares, Cerro de Oro (hill of gold) is strategically located in the mining district of Concepción del Oro, which includes several mines and gold and polymetallic deposits, such as the Newmont’s Peñasquito gold/silver mine and Fresnillo’s Noche Buena gold mine.

“Based on our team’s collective experience building mines in Mexico, the preliminary assessment of Cerro de Oro is a game changer for Minera Álamos as we strive to reach our initial goal of producing more than 100,000 ounces of gold per year,” Minera Álamos President Doug Ramshaw said.

The company reported that it has calculated a mine life of around 8.2 years. The orebody has a grade of 0.37 grams of gold per metric ton. The project is expected to yield 477,000 oz of gold.