UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2019
Commission File Number: 001-31528
IAMGOLD Corporation
(Translation of registrant's name into English)
401 Bay Street Suite 3200, PO Box 153
Toronto, Ontario, Canada M5H 2Y4
Tel: (416) 360-4710
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
[ ] Form 20-F [ x ] Form 40-F
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SIGNATURES
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of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
IAMGOLD CORPORATION |
|
(Registrant) |
|
|
|
Date: November 6, 2019 |
By: |
/s/ Tim Bradburn |
|
|
Tim Bradburn |
|
Title: |
Vice President, Legal and Corporate Secretary |
IAMGOLD ANNOUNCES POSITIVE RESULTS FROM THE
ESSAKANE
CARBON-IN-LEACH AND HEAP LEACH PROJECT
FEASIBILITY STUDY; REFLECTING
INCREASED CASH FLOWS
AND EXTENDED MINE LIFE
All amounts are in US dollars, unless otherwise
indicated.
Toronto, Ontario, November 6, 2019 IAMGOLD Corporation
(IAMGOLD or the Company) today announced positive results from a Feasibility
Study ("FS") for the Carbon-in-Leach and Heap Leach Project (the Project) at
its Essakane operation in Burkina Faso, West Africa. The results support an
increase in current hard rock carbon-in-leach (CIL) plant capacity and
outlines an economically viable Heap Leach (HL) facility at the end of CIL
operations.
FEASIBILITY HIGHLIGHTS (100% basis)
|
Indicated Resources of 4.878 million ounces grading 0.98
g/t Au, inclusive of reserves on the Essakane Mining Concession, based on
a new Resource Model versus the pre-feasibility study (PFS); |
|
Proven and Probable Reserves of 3.985 million ounces
grading 0.96 g/t Au; |
|
Mine life of 12 years (2020-2031), with: |
|
o |
Mill throughput of 11.7 million tonnes per annum (Mtpa)
hard rock equivalent capacity, up from current design of 10.8 Mtpa at 100%
hard rock (2020-2026); |
|
o |
Heap Leach throughput of 8.5 Mtpa (2027-2031); |
|
Robust average annual production of 433,000 ounces during
CIL operations, representing a 4% increase above CIL output from the
previous study, including: |
|
o |
Peak year production exceeding 530,000 ounces using CIL;
|
|
Annual production of 73,000 ounces per year of HL
production at end of CIL production; achieving an annual gold output from
HL similar to previous study, but with 15% lower throughput; |
|
Minimal capital investment of $9.0 million required for
CIL optimization, with commissioning targeted for Q3 2020; |
|
Reduction, and deferral, of total HL capital expenditures
by $40 million to $115 million (2025-2026) from the previous study, while
maintaining the same HL production profile; |
|
After-tax NPV@6% of $874 million, life of mine direct
cash costs of $778/oz and all-in sustaining costs of $949/oz; |
|
Significant increase in HL recoveries to 67% (from 55%)
through the use of high pressure grinding rolls (HPGR) edges recycling in
closed circuit including agglomeration step and extended leach time;
|
|
5% increase in average diluted grade of CIL material to
1.24 g/t; |
|
Future Option retained to process the HL material either
through the HL development scenario as described in the FS or, if
prevailing metal prices are supportive, through the CIL for improved
recoveries and forgo the capital investment in the HL facility;
|
The FS concluded that increasing CIL plant capacity and
postponing the HL operation to the end of LOM defers capital and provides an
extension to the life of mine. Optimization work focused on increasing CIL
throughput to 11.7 Mtpa (at 100% hard rock equivalent capacity) compared to the
current design at 10.8 Mtpa (at 100% hard rock equivalent capacity) with minimal
capital of $9 million. The optimization of the CIL plant would indirectly result
in a reduction of the anticipated HL annual throughput from 10.0 Mtpa to 8.5
Mtpa. The production profile of the HL operation remains relatively unchanged as
reduced throughput is offset by an improved recovery of gold in HL from 55.0% to
67.0% . The capital cost of the HL facility was reduced by $40M, for the new
scenario, by re-using existing CIL plant equipment (primary & secondary
crushing circuits) at the end of CIL life and by optimizing the Heap Leach Pad
footprint. The optimization of the Heap Leach Pad footprint allows for the HL
infrastructure to remain within the current industrial complex of the mine,
versus the PFS scenario which would have required additional land outside of the
current complex, thus avoiding impact to communities and farmland.
Steve Letwin, President and CEO of IAMGOLD, commented With our
self-funding lens in place, the IAMGOLD team reviewed the CIL/HL feasibility
study and produced a robust, low cost plan with optionality in the future. I would like to thank our COO Gord Stothart, his
project team and our consultants for their excellent work in defining the future
plan for Essakane.
The FS was completed by IAMGOLD, with inputs from technical
studies completed by other consultants, and has an effective date of November 6,
2019. The FS represents a comprehensive study of the technical and economic
viability of a mineral project that has advanced to a stage where a preferred
mining method has been established and an effective method of mineral processing
has been determined. IAMGOLD is using the FS to support a $9.0 million
investment in the current plant to improve its capacity to 11.7 Mtpa (at 100%
hard rock equivalent capacity) and plan for a Heap Leach facility to be deployed
in 2027. This study supports the updated Mineral Reserve disclosure.
FS HIGHLIGHTS
Project Economics and Key
Parameters |
|
PFS |
FS
|
Peak Mining Capacity |
70.0 Mtpa |
57.0
Mtpa |
|
|
|
CIL Design Milling Capacity (100% Hard Rock Equivalent) |
10.8 Mtpa |
11.7
Mtpa |
HL Processing Capacity |
10.0 Mtpa |
8.5
Mtpa |
LOM Average Annual Gold Production (CIL years / oz) |
8.5 / 416,000 |
7 /
433,000 |
LOM Average Annual Gold Production (HL years / oz) |
6.5 / 72,000 |
5 /
73,649 |
LOM Average Annual Gold Production (years / oz) |
8.5 / 476,000 |
12 /
283 441 |
LOM Average Recovery Rate (CIL) |
92.1% |
92.1%
|
LOM Average Recovery Rate (HL) |
55.0% |
67.0%
|
Mine Life |
8.5 years |
12
years |
LOM Average Direct Cash Costs |
$707/oz |
$778/oz |
LOM Average AISC |
$946/oz |
$949/oz |
After-tax NPV (6%) |
|
$874
M |
Average diluted Grade CIL |
1.17 g/t Au |
1.24
g/t Au |
Average diluted Grade HL |
0.43 g/t Au |
0.40
g/t Au |
Average LOM Strip Ratio (remaining pit) |
2.34:1 |
2.42:1 |
Initial Capital Expenditure* (millions),+20%/-15% |
$155 |
$115
|
Gold Price Assumption used in financial analysis |
$1,275/oz |
$1,350/oz |
US$/CA$ exchange rate 1.25, US$/€
exchange rate of: 1.20.
* Initial capital expenditures exclude
fleet
MINERAL RESOURCES
The Mineral Resource estimate used as the basis for the study
is summarized below.
Mineral Resources (100% Basis)
August 31, 2019 Essakane Mining Concession
|
|
Tonnes |
Grade |
Contained Ounces |
Classification |
(000) |
(g/t Au) |
(000) |
Indicated |
154,854 |
0.98 |
4,878 |
Inferred |
12,823 |
1.10 |
454 |
Notes: |
|
1. |
CIM (2014) definitions were followed for Mineral
Resources. |
2. |
Mineral Resources are estimated at a cut-off grade which
varies between 0.25 and 0.55 g/t Au depending on material type and
pit. |
3. |
Mineral Resources are estimated using an average
long-term gold price of US$1,500 per ounce. |
4. |
A minimum mining width of 10 m was used for Falagountou
and 10 m for EMZ. |
5. |
Bulk density is estimated by ordinary kriging by
weathering type. |
6. |
Mineral Resources are inclusive of Mineral
Reserves. |
7. |
Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability. |
8. |
Does not include Mineral Resources at the Gossey
satellite deposit which is located on an adjacent exploration concession
and which was not included as part of the production study. |
9. |
Numbers may not add due to
rounding. |
2
MINERAL RESERVES
The tonnes, grades, and classification of the Mineral Reserves
captured within the FS mine plan are summarized below.
Mineral Reserve (100% Basis)
August 31, 2019 |
Process |
Classification |
Tonnes (000)
|
Grade (g/t
Au) |
Contained Ounces
(000) |
CIL
|
Proven |
- |
- |
- |
Probable |
72,690 |
1.36 |
3,181 |
Probable (Stockpile) |
13,501 |
0.59 |
255 |
Total CIL |
86,191 |
1.24 |
3,436 |
Heap
Leach |
Proven |
- |
- |
- |
Probable |
35,058 |
0.39 |
439 |
Probable (Stockpile) |
8,049 |
0.42 |
110 |
Total Heap Leach |
43,107 |
0.40 |
549 |
Total |
|
129,299 |
0.96 |
3,985 |
|
|
|
|
|
Waste within Designed Pit |
261,434 |
|
|
Ore within Designed Pit |
107,748 |
|
|
Total Tonnage within Designed Pit |
369,172 |
|
|
Notes: |
|
1. |
CIM (2014) definitions were followed for Mineral
Reserves. |
2. |
Mineral Reserves estimated assuming open pit mining
methods. |
3. |
Mineral Reserves are estimated at a cut-off grade which
varies between 0.31 and 0.61 g/t Au depending on material type and
pit. |
4. |
Mineral Reserves are estimated using an average long-term
gold price of US$1,200/oz. |
5. |
Average weighted CIL process recovery of 92.1% and heap
leach process recovery of 67.0%. |
6. |
Mineral Reserves are reported on a 100% basis. |
7. |
Mineral Reserves include material from EMZ and
Falagountou pits. |
8. |
Numbers may not add due to
rounding. |
MINING AND PROCESSING
Remaining open pit mining includes approximately 261 Mt of
waste and 107 Mt of ore over a 7-year-period of production mining. HL ore that
is mined during this period is stockpiled until the CIL ore is exhausted and the
HL facility is constructed. The volume of waste will decrease if in-pit inferred
resources can be upgraded to indicated resources for either CIL or HL extraction
through infill drilling. The mining rate was reduced from 70 to 57 Mtpa in the
FS mainly due to the postponement of the HL operation and a redesign of the
phase 6 mining push back. The average mined grade is 1.05 g/t Au and the LOM
stripping ratio is 2.42:1.
The FS has confirmed the positive benefit of two extra mining
phases to the existing Essakane main zone (EMZ) open pit mining operation with
the addition of a heap leaching operation and a modest increase of CIL plant
throughput to 11.7 Mtpa.
The heap leaching operation would be executed following the end
of the existing CIL process plant operations. Use of the existing primary
(gyratory) and secondary (cone) crushing circuit at the end of CIL plant reduce
capital intensity of HL scenario with an optimized annual production rate of 8.5
Mtpa. The HL development scenario envisages the installation of tertiary
crushing using an HPGR unit, material handling conveyors, and a carbon in column
(CIC) adsorption plant. Loaded carbon would be transported to the existing plant
facilities for stripping and refining where no infrastructure upgrade would be
required.
Additional major infrastructure included in the FS are the
leach pads, solution distribution and collection systems, and solution ponds.
The existing camp capacity and power generation exceed the capacity required
during HL operations and thus a reduction in manpower and general and
administration costs will be realized during HL operations versus current CIL
operations. Mining operations from the pit will cease at end of CIL life leading
to a reduction in mine equipment and staff to support the subsequent HL
operations.
The average processed grade is 1.24 g/t for CIL and 0.40 g/t
for HL.
3
FUTURE WORK
The FS recommends to initiate the detailed engineering for the
mill upgrade to 11.7 Mtpa. The project schedule is estimated to 12 months and is
expected to be commissioned in Q3 2020. For the HL, study assumptions will be
validated on a yearly basis during the LOM process. Some additional test work
will also be initiated to evaluate low grade transition material within the CIL
reserve that may be amenable to HL with the addition of agglomeration.
As construction of the HL facility is not required until 2025,
the business retains the option of re-evaluating the economics of that
construction project at that point in time. Given that the CIL process generates
higher recovery and doesnt require additional capital investment, it is
recognized that there may be a case where the existing stockpiled ore planned
for the HL process generate superior economics by processing through the
existing CIL circuit, especially in scenarios with higher gold prices than have
been used for the current study.
QUALIFIED PERSONS
The 2019 Essakane Heap leach FS was prepared by IAMGOLD and
incorporates the work of Kappes, Cassiday & associates and SRK Consulting
(QPs) (as defined under National Instrument 43-101). KCAs and SRK Qualified
Persons are independent of IAMGOLD and have reviewed and approved this news
release. IAMGOLD Qualified Persons are not independent of IAMGOLD and have
reviewed and approved this news release. The affiliation and areas of
responsibility for each Qualified Person involved in preparing the 2019 Essakane
Heap leach FS, upon which the technical report will be based, are:
IAMGOLD QPs
- V. Blanchet, P.Eng., data verification, mineral resource estimate,
adjacent properties
- F. Sawadogo, MAIG, property description, historical setting, geological
setting, deposit types, exploration, drilling, and sample preparation,
analyses and security
- P. Chabot, P.Eng., mining method and mineral reserve estimate
- L-B Denoncourt P. Eng., infrastructure, capital cost estimate
- D. Isabel, P. Eng., environmental studies, permitting, and social or
community impacts
- S. Rivard, P. Eng., recovery method CIL, mineral processing and
metallurgical testing - CIL
KCA QPs
- T. Manning, P.E., mineral processing and metallurgical testing HL
SRK QPs
- B. Burnley, P.E., heap leach pad design and stability
Forward-Looking Information
All Mineral Reserve and
Mineral Resources estimates reported by the Company were estimated in accordance
with the Canadian National Instrument 43-101 and the Canadian Institute of
Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These
standards differ significantly from the requirements of the U.S. Securities and
Exchange Commission. Mineral Resources which are not Mineral Reserves do not
have demonstrated economic viability.
This document contains "forward-looking information" within the
meaning of Canadian securities legislation and "forward-looking statements"
within the meaning of the United States Private Securities Litigation Reform Act
of 1995. This information and these statements, referred to herein as
"forward-looking statements" are made as of the date of this document.
Forward-looking statements relate to future events or future performance and
reflect current estimates, predictions, expectations or beliefs regarding future
events and include, but are not limited to, statements with respect to:
(i) the estimated amount and grade of
Mineral Resources and Mineral Reserves;
(ii) the FS representing a viable
development option for the Project;
(iii) estimates of the capital costs of
constructing mine facilities and bringing a mine into production, of sustaining
capital and the duration of financing payback periods;
4
(iv) the estimated amount of future
production, both produced and metal recovered; and,
(v) estimates of operating costs and
total costs, net cash flow, net present value and economic returns from an
operating mine.
Any statements that express or involve discussions with respect
to predictions, expectations, beliefs, plans, projections, objectives or future
events or performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates", "envisages",
"assumes", "intends", "strategy", "goals", "objectives" or variations thereof or
stating that certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and may be
forward-looking statements.
All forward-looking statements are based on IAMGOLD's or its
consultants' current beliefs as well as various assumptions made by them and
information currently available to them. The most significant assumptions are
set forth above, but generally these assumptions include:
(i) the presence of and continuity of
metals at the Essakane mine at estimated grades;
(ii) the geotechnical and metallurgical
characteristics of rock conforming to sampled results;
(iii) the capacities and durability of
various machinery and equipment;
(iv) the availability of personnel,
machinery and equipment at estimated prices and within the estimated delivery
times;
(v) currency exchange rates;
(vi) metals sales prices and exchange
rate assumed;
(vii) appropriate discount rates
applied to the cash flows in the economic analysis;
(viii) tax rates and royalty rates
applicable to the proposed mining operation;
(ix) the availability of acceptable
financing under assumed structure and costs;
(x) anticipated mining losses and
dilution;
(xi) reasonable contingency
requirements;
(xii) success in realizing proposed
operations;
(xiii) receipt of permits and other
regulatory approvals on acceptable terms; and
(xiv) the fulfillment of environmental
assessment commitments and arrangements with local communities.
Although management considers these assumptions to be
reasonable based on information currently available to it, they may prove to be
incorrect. Many forward-looking statements are made assuming the correctness of
other forward looking statements, such as statements of net present value and
internal rates of return, which are based on most of the other forward-looking
statements and assumptions herein. The cost information is also prepared using
current values, but the time for incurring the costs will be in the future and
it is assumed costs will remain stable over the relevant period.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and risks exist
that estimates, forecasts, projections and other forward-looking statements will
not be achieved or that assumptions do not reflect future experience. We caution
readers not to place undue reliance on these forward-looking statements as a
number of important factors could cause the actual outcomes to differ materially
from the beliefs, plans, objectives, expectations, anticipations, estimates
assumptions and intentions expressed in such forward-looking statements. These
risk factors may be generally stated as the risk that the assumptions and
estimates expressed above do not occur as forecast, but specifically include,
without limitation: risks relating to variations in the mineral content within
the material identified as Mineral Resources and Mineral Reserves from that
predicted; variations in rates of recovery and extraction; the geotechnical
characteristics of the rock mined or through which infrastructure is built
differing from that predicted, the quantity of water that will need to be
diverted or treated during mining operations being different from what is
expected to be encountered during mining operations or post closure, or the rate
of flow of the water being different; developments in world metals markets;
risks relating to fluctuations in the Canadian dollar relative to the
US dollar; increases in the estimated capital and operating costs or
unanticipated costs; difficulties attracting the necessary work force; increases
in financing costs or adverse changes to the terms of available financing, if
any; tax rates or royalties being greater than assumed; changes in development
or mining plans due to changes in logistical, technical or other factors;
changes in project parameters as plans continue to be refined; risks relating to
receipt of regulatory approvals; delays in stakeholder negotiations; changes in
regulations applying to the development, operation, and closure of mining
operations from what currently exists; the effects of competition in the markets
in which IAMGOLD operates; operational and infrastructure risks and the
additional risks described in IAMGOLDs Annual Information Form filed with SEDAR
in Canada (available at www.sedar.com ) for the year ended December 31, 2017 and
in the Corporation's Annual Report Form 40-F filed with the U.S. Securities and
Exchange Commission on EDGAR (available at
https://www.sec.gov/edgar/searchedgar/companysearch.html). IAMGOLD cautions that
the foregoing list of factors that may affect future results is not
exhaustive.
5
When relying on our forward-looking statements to make
decisions with respect to IAMGOLD, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events.
IAMGOLD does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by IAMGOLD or on our behalf,
except as required by law.
About IAMGOLD
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.
For further information please contact:
Indi Gopinathan, Investor Relations Lead, IAMGOLD
Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883
Martin Dumont, Senior Analyst Investor Relations,
IAMGOLD Corporation
Tel: (416) 933-5783 Mobile: (647) 967-9942
Toll-free: 1-888-464-9999 info@iamgold.com
Please note:
This entire news release may be accessed
via fax, e-mail, IAMGOLD's website at www.iamgold.com and through Newsfile's
website at www.newsfilecorp.com. All material information on IAMGOLD can be found at
www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué,
veuillez consulter le http://www.iamgold.com/French/accueil/default.aspx.
6
This regulatory filing also includes additional resources:
exhibit99-1.pdf
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