IAMGOLD Corporation announced the positive results of a Preliminary Economic Assessment for its Côté Gold Project (Project) in Northern Ontario.
The Company also received approval of the Project's provincial environmental assessment from the Ontario Ministry of Environment and Climate Change on January 25, 2017, which follows the positive decision on the federal environmental assessment issued by the Federal Minister of Environment and Climate Change in April 2016. Positive decisions on the federal and provincial environmental assessments for the Project clear the way for the Company to initiate applications on permits to support development following the completion of a pre-feasibility study.
Steve Letwin, President and CEO of IAMGOLD, said "The Côté Gold Project provides us with an exceptional option for future growth. Since acquiring Côté several years ago we have been focused on de-risking the project. Our drilling program, since IAMGOLD took over the Project, has led to a nine-fold increase in the indicated resource to eight million ounces with another one million ounce inferred resource. The positive results of the PEA demonstrate the potential for Côté Gold to be a low-cost, 21-year mine with attractive returns. The pre-feasibility study is in progress to validate the development concept set out in the PEA.
"Côté Gold is one of Canada's largest undeveloped gold deposits," continued Mr. Letwin, "so securing positive decisions on both the federal and provincial environmental assessments for the Project is a major regulatory milestone that confirms we can build and operate an environmentally sustainable mine that aligns with our Zero Harm goals. I thank all the many individuals and organizations for participating in these environmental reviews. By considering environmental and social impacts early in the mining process, we have been able to plan a mine that will benefit shareholders and indigenous communities, along with other stakeholders. We will continue to closely engage our indigenous partner communities and other stakeholders as we move the project forward, and to seek further opportunities for improvement as a responsible miner."
The PEA was completed jointly by IAMGOLD and Amec Foster Wheeler, with inputs from technical studies completed by other consultants. The PEA represents a conceptual study of the potential viability of the mineral resources that have been defined to date on the Project, where the accuracy of the cost estimates is -30%/+50%. The purpose of the PEA study was to assess the potential development alternatives available with an improved land position following the acquisition of additional ownership interests and claims, and to reduce the energy requirements of the Project while minimizing infrastructure development needs. The PEA study also identified additional testwork required to support a pre-feasibility study. We expect the pre-feasibility study to be completed by the end of the second quarter 2017.
Based on the PEA, the Project outlines an economically viable project that at a $1,200 per ounce gold price would generate an estimated 12.9% after-tax internal rate of return. The Project would have a 21-year mine life, producing on average 302,000 ounces of gold a year at average total cash costs of $564/oz and all-in sustaining costs of $686/oz.
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities. IAMGOLD is in a strong financial position with extensive management and operational expertise.
Bob Tait, VP Investor Relations,
Tel: (416) 360-4743
Mobile: (647) 403-5520;
Laura Young, Director,
Tel: (416) 933-4952,
Mobile: (416) 670-3815;
Investor Relations Associate,
Tel: (416) 933-4738,
Mobile: (647) 967-9942,