en.Wedoany.com Reported - Canada's Alamos Gold's Young-Davidson mine recently experienced two earthquakes, one of which affected an active mining face. The incident caused no injuries, but infrastructure was damaged, rendering two high-grade stopes originally scheduled for Q2 mining inaccessible. Based on recent seismic activity, the company expects the mine's average mining rate to be approximately 5,000 tonnes per day for the remainder of the year.

In Q1 2026, the average mining rate at Young-Davidson was 7,205 tonnes per day. During that period, the mine completed repairs on one of three existing ore passes but faced delays in commissioning a new ore pass. In Q2, all four ore passes were operational, and the company had planned to increase the mining rate to 8,000 tonnes per day before this setback.

Additionally, a regional transmission line was damaged by a storm in late May, causing a power outage at the mine. The transmission line is located in a remote section between the town of Kirkland Lake and Young-Davidson, extending the utility's response time. This outage resulted in three days of unplanned downtime, impacting the quarter's mining rate and production.

President and CEO John A. McCluskey stated that the company is disappointed with the operational challenges at Young-Davidson and is working to review and optimize the mining sequence to support higher mining rates in the future. Despite a challenging first half, stronger production is expected in the second half, with a key driver being the Island Gold mine. Production ramp-up at that mine continues to improve, and shaft and large mill expansion work is progressing, expected to be significant growth drivers in the coming years.

Alamos Gold is revising its Q2 2026 gold production guidance to 130,000 to 135,000 ounces to reflect the production shortfall at Young-Davidson. The updated quarterly production guidance midpoint is 12% lower than the previous guidance. Q2 costs are also expected to be higher than prior guidance, reflecting lower production at Young-Davidson.

Given lower first-half production and the expected decline in the full-year mining rate at Young-Davidson for the second half, the company expects consolidated production to be below the lower end of its 2026 guidance, with costs exceeding the full-year guidance. Alamos Gold stated that it will provide revised 2026 consolidated production and cost guidance when it releases its Q2 financial results at the end of July.

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