GOLD: Better economics for Iamgold’s Cote project

ONTARIO – Iamgold of Toronto has completed the feasibility study for its Cote gold project 20 km southwest of Gogama (halfway between Timmins and Sudbury), and the company reports “significantly improved” project economics when compared to the pre-feasibility study of June 2017. Iamgold studied both a base case mine plan aligned with the current permitting process and an extended mine plan that would add two additional years to the life of the project but may need permit amendments. The after tax net present value is estimated at US$795 million for the base case and US$905 for the extended case. The after tax internal rate of return is 15.2% for the base case and 15.4% for the extended option. The payback period for both cases is 4.4 years. A gold price of US$1,250 per oz. was used. Thanks to definition drilling, Cote has total proven and probable reserves of 30.0 million tonnes grading 0.93 g/t gold and containing 893,000 oz. of gold. Measured and indicated resources at Cote are 355.4 million tonnes at a grade of 0.87 g/t gold and containing a total of 9.97 million oz. The inferred resource is 112.8 million tonnes at 0.67 g/t and contains 2.43 million oz. Iamgold assumes an open pit mine with autonomous trucks and 34 m³ shovels. The mineral processing plant will contain three stages of grinding that finishes with high pressure rollers. There would also be ball milling, vertical stirred milling, a gravity circuit, a carbon-in-pulp circuit, carbon stripping and electrowinning. The tailings management area will be established to contain thickened tails. The project is a joint venture of Iamgold (64.75% and the operator) and Sumitomo Metal Mining Co. that holds 30%. Please visit www.Iamgold.com.