October 7, 2010 / 11:16 AM / in 7 years

UPDATE 1-Alamos Gold's Q3 production drops 29 pct

* Q3 production 30,200 gold oz vs 42,500 oz year ago

* Says Q3 production hurt by intense rainy season

* Says currently producing over 600 oz per day

* Maintains 2010 production view at 160,000-175,000 oz

Oct 7 (Reuters) - Alamos Gold Inc’s (AGI.TO) quarterly production fell 29 percent year-over-year, hurt by long rainy season and processing related issues at its flagship mine in Mexico.

The Canadian miner, however, kept its 2010 production forecast of 160,000-175,000 ounces of gold, expecting strong recovery. It had produced 178,500 ounces in 2009.

For the July-September quarter, Alamos’ Mulatos Mine produced 30,200 ounces of gold at a cash operating cost which was above the company’s 2010 guidance of $288 per once.

The Toronto, Ontario-based company said its current gold production was more than 600 ounces per day.

Alamos said at its Mulatos mine the rainy season arrived later than expected and intense rains continued to affect its operations until the end of September.

It also said the fourth quarter production is likely to benefit from increased capacity of the gold recovery plant and crusher throughput.

Alamos shares, which have gained over 20 percent in the last six months, closed at C$16.80 Wednesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Maju Samuel)

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