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Alio Gold Announces Significant Progress at Florida Canyon Mine

Mining News - Published on Fri, 11 Oct 2019

Image Source: seekingalpha.com
Alio Gold Inc announced the signing of lease agreements for the acquisition of new loading and hauling equipment at the Florida Canyon Mine. The fleet is comprised of thirteen 90-tonne haul trucks and three matched front-end loaders. A maintenance and services contract has also been signed that provides guaranteed mechanical availability of the new fleet and encompasses all required maintenance activities over the life of the lease agreement. The lease agreements and accompanying maintenance contract are for an approximate 5 year term, depending on the actual hours of operation, after which the equipment can be purchased for approximately USD 2 million. The existing fleet will be retired as the new fleet becomes operational. Florida Canyon is well advanced on commissioning the new fleet with four trucks and one loader currently production ready; five additional trucks and one loader are currently on site in various stages of assembly; and the remaining four trucks and loader are due for delivery in October.

Mr Mark Backens President and CEO of Alio Gold said that “Acquiring the new loading and haulage fleet removes the primary cause for the underperformance of the mine. With availability now guaranteed, we will be better able to achieve our production objectives. Once the fleet is fully operational in November, we expect to see increased ore movement leading to higher gold production and lower cash costs. We look forward to providing the market additional guidance for 2020 once the new equipment is fully operational.”

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Posted By : Rabi Wangkhem on Fri, 11 Oct 2019
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