GDI Stracon’s contract entails developing the mine’s underground decline, and JDS will manage the contract and underground operations.

Specifically, the C$10 million (US$7.8 million) decline project will include 1,200m and take approximately seven months to complete. Underground drill station development is included in that plan. 

GDI is set to be mobilised at Ana Paula next month with the establishment of the first camp and permanent infrastructure, and anticipated progress is between five and seven metres daily. Decline construction should follow in January.

Once complete, the underground decline will stretch from a portal site located in an adjacent valley from the proposed pit to approximately 400m from the mine’s proposed mill site. 

“The underground decline at Ana Paula is expected to be completed in mid-2018, after which we will be able to commence an exploration program that has the potential to significantly enhance the value of the project,” Alio CEO Greg McCunn said.

A definitive feasibility study is now being conducted and should wrap up by the second quarter of next year. At that time the company will make a construction decision on the project. 

Alio Gold, formerly known as Timmons Gold, owns 100% of the Ana Paula project. It also owns the active San Francisco mine in Sonora, Mexico.