Minera Alamos Inc (CVE:MAI) shares gained ground as it revealed it was amending the scope of its existing Santana gold project test mining permits such that it can become a commercial scale gold mine.
The firm is eyeing Santana in Mexico as its first commercial mining operation.
"Since the closing of the transaction between Minera Alamos and Corex Gold in April the company has aggressively advanced the Santana project's engineering work culminating in our recent submission for these permits," said Darren Koningen, chief executive of Minera Alamos.
"We have received extremely positive community support for our plans and based on currently available information we anticipate the receipt of final approvals later this year.
"Construction could begin in Q1 2019 with Santana the first of three planned operations in our development pipeline."
Three gold mines
The company's aim is to have three gold mines up and running in around as many years, potentially generating 150,000 ounces a year of gold.
For the past 18 months, Santana has been undergoing continuous bulk heap-leach testing.
In all, around 35,000 tonnes of mineralized material has been placed on the leach pads and the results of the bulk test fully support the on-going development of the project.
Meanwhile, drilling has started at Santana following the receipt of successful community approvals associated with combining Minera Alamos' Los Verdes claim into the Santana plan of development.
Updates on this 20-hole, 3000-metre programme will be provided in due course, Minera said.
Shares added 4.17% to C$0.125.