Oct 8 (Reuters) - Canadian mining company Alamos Gold Inc (AGI.TO) said third-quarter production rose 7 percent with lower costs as the implementation of some new procedures helped mitigate the adverse effects of heavy seasonal rainfall.
Alamos said it produced 42,500 ounces of gold at total cash cost below $335 per ounce in the quarter, compared with 39,900 ounces at a total cash cost of $405 per ounce a year earlier.
Gold production at the Mulatos Mine continues to exceed budgeted levels, with 130,500 ounces of gold produced to the end of the third quarter this year, Alamos said.
The company, which operates in Mexico, said it continues to expect production from the Escondida high-grade mill to commence in the fourth quarter of 2011.
Alamos shares, which have shed more than 8 percent over the past month, closed at C$9.99 Wednesday on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Deepak Kannan)