Iamgold Corp [IMG-TSX, IAG-NYSE] on Monday released an initial resource estimate for the Gosselin zone discovery, centred approximately 1.5 kilometres northeast of its Cote gold construction project.
Cote Gold, located 175 kilometres north of Sudbury, Ontario and 125 kilometres southwest of Timmins, Ont., is currently under construction with commercial production expected to begin in the second half of 2023.
The Gosselin delineation drilling program was undertaken as part of the Cote Gold 70%:30% joint venture between Iamgold, as the operator, and Sumitomo Metal Mining Co. Ltd. of Japan.
The mineral resource estimate for the Gosselin deposit (on a 100% basis using a US$1,500 per ounce gold price) consists of 124.5 million tonnes of indicated resources averaging 0.84 g/t gold or 3.35 million ounces of gold. On top of that is an inferred resource of 72.9 million tonnes of 0.73 g/t gold or 1.71 million ounces.
Current reported mineral resources for the adjacent Cote Gold deposit, on the same basis, consist of a measured and indicated resource of 365.5 million tonnes of grade 0.87 g/t or 10.2 million ounces. On top of that is an inferred resource of 189.6 million tonnes, grading 0.63 g/t gold or 3.8 million ounces
“We believe that the Gosselin deposit will continue to enhance the long-term value and district-scale potential of the Cote Gold project,’’ said Craig MacDougall, Executive Vice-President, Growth at Iamgold.
“The Gosselin deposit remains open along strike to the northeast and has only been drilled to approximately half the depth of the Cote deposit itself, so there remains a significant potential to further expand the total resources,’’ he said.
Iamgold is an intermediate gold producer with operations in three regions globally: North and South America and West Africa. The company’s operating mines include Essakane in Burkina Faso, Rosebel in Suriname, and Westwood in Canada.
The company is targeting production this year of between 565,000 and 605,000 ounces of gold. Cote Gold will be the company’s fourth mine. It is expected to produce an average of 367,000 ounces of gold annually over a projected lifespan of 18 years at an average grade of 0.96 g/t.
Life of mine all-in-sustaining costs are estimated at US$771 an ounce, with the initial capital spend forecast at $1.3 billion. Iamgold’s expected go-forward capital obligation (exclusive of sunk costs) is $875 to $925 million for its 70% share of project construction costs.
The Gosselin zone discovery is located immediately northeast of the Cote Gold deposit and is accessible by construction roads on the developing mine property.
Iamgold said the resource estimation process has identified a number of areas with potential for resource expansions at depth, along strike and in areas where drill hole spacing remains too wide to classify resources at this time.
The saddle area between the Gosselin resource pit shell and the adjacent Cote Gold deposit design pit is a priority area to review for potential connection of mineralization.
On October 15, 2021, Iamgold shares closed at $3.37 and trade in a 52-week range of $5.43 and $2.75.