All amounts are in US dollars, unless
otherwise
indicated.
TORONTO, Feb. 12, 2018 /PRNewswire/ - IAMGOLD Corporation
("IAMGOLD" or the "Company") today announced positive results from
a Pre-feasibility Study ("PFS") for its Boto Gold Project (Project)
in Senegal, West Africa. The results, which outline an
economically viable project, justify the commencement of a
Feasibility Study to further optimize the project development
design and improve project economics.
PRE-FEASIBILITY HIGHLIGHTS
- Indicated Resources of 1.9 million ounces grading 1.60 g/t
Au
- Proven and Probable Reserves of 1.4 million ounces grading 1.64
g/t Au
- Mine Life of 13.5 years with
mill throughput of 2.0 million tonnes per annum
- Life of Mine (LOM) average annual production of nearly 100,000
oz, with higher production in the early years of operation
- LOM direct cash costs of $707/oz
and all-in sustaining costs of $829/oz
- At $1,275/oz gold price,
after-tax Internal Rate of Return of 13.3% and a Net Present Value
of $104 million (6% discount
rate)
- Initial capital expenditures of $249
million
Steve Letwin, President and CEO
of IAMGOLD, said "Boto lies on a mineralized trend that is host to
several significant producing gold mines. The team has worked
exceptionally hard to advance this project from the initial
discovery to a potential development project with a long life and
attractive all-in sustaining costs. It is important to
understand that this is a work in progress, and although still
short of our investment criteria typical for West Africa, the project provides excellent
optionality at higher gold prices. We are continuing to
aggressively optimize the project design to improve the overall
economics. Importantly, the feasibility study currently
underway and due for completion in the second half of 2018 uses a
25% higher mill throughput as the base case, which will accordingly
increase annual gold production and has the potential for improved
project returns. We continue to aggressively explore priority
targets to enhance the total resource inventory, which would
generate a positive impact on project economics and mine life."
The PFS was completed jointly by IAMGOLD and Lycopodium Minerals
Canada Ltd., with inputs from technical studies completed by other
consultants and has an effective date of December 31, 2017. The PFS 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
PFS to identify the preferred development option to demonstrate
economic viability of the Project, to support Mineral Reserve
disclosure, and to identify additional work recommended to support
the completion of a feasibility study. Technical studies to support
the completion of the feasibility study have commenced, with the
study scheduled for completion in the second half of 2018.
A technical report summarizing the PFS will be filed on SEDAR
within 45 days of the date of this news release.
PFS HIGHLIGHTS
Project Economics
and Key Parameters
|
|
|
Mining
Capacity
|
18.0 Mtpa
|
Milling
Capacity
|
2.0 Mtpa
|
LOM Average Annual
Gold Production
|
95,000 oz.
|
LOM Average Recovery
Rate
|
89.3%
|
Mine Life
|
13.5 years
|
LOM Average Direct
Cash Costs
|
$707/oz
|
LOM Average
AISC
|
$829/oz
|
Average
Grade
|
1.64 g/t
Au
|
Average LOM Strip
Ratio
|
6.5:1
|
Estimated Initial
Capital Expenditure (millions)
|
$249
|
Gold Price Assumption
used in financial analysis
|
$1,275/oz
|
After-tax NPV (6%)
(millions)
|
$104
|
After-tax
IRR
|
13.3%
|
Payback
Period
|
6.0 years
|
USD Currency used
with exchange rate of: CAD$ = US$0.7692
|
MINERAL RESOURCES
The Mineral Resource estimate used as the basis for the study is
summarized below.
Mineral Resources
– December 31, 2017
|
Classification
|
Tonnes
(000)
|
Grade
(g/t
Au)
|
Contained
Ounces
(000)
|
Indicated
|
37 408
|
1.60
|
1,922
|
Inferred
|
10 981
|
1.66
|
594
|
Notes:
|
1.
|
CIM Definition
Standards were followed for classification of Mineral
Resources.
|
2.
|
Mineral Resources
reported at a cut-off grade of 0.42 g/t Au for oxide and 0.54 g/t
Au for fresh material.
|
3.
|
Mineral Resources are
constrained within a pit shell estimated using long-term gold price
of $1,500 per ounce, and a US$/C$ exchange rate of
1:1.30.
|
4.
|
Mineral Resources are
inclusive of Reserves quoted below.
|
MINERAL RESERVES
The tonnes, grades, and classification of the Mineral Reserves
captured within the PFS mine plan are summarized below.
Mineral Reserve –
December 31, 2017
|
Classification
|
Tonnes
(000)
|
Grade
(g/t
Au)
|
Contained
Ounces
(000)
|
Proven
|
-
|
-
|
-
|
Probable
|
26,841
|
1.64
|
1,415
|
Proven &
Probable
|
26,841
|
1.64
|
1,415
|
|
|
|
|
Waste within Designed
Pit
|
175,700
|
|
|
Total Tonnage within
Designed Pit
|
202,500
|
|
|
Notes:
|
1.
|
Reserves estimated
assuming open pit mining methods
|
2.
|
Reserves are based on
a gold price of $1,200/oz
|
3.
|
Fixed process
recovery of 89.3%
|
4.
|
Mining costs ($/t
processed): $15.00/t. Processing costs: $14.76/t.
G&A (Include refining cost): $3.55.
|
MINING AND PROCESSING
The PFS study has identified the preferred development option to
be a conventional truck and shovel open pit mining operation, and
has determined an effective method of mineral processing to be a
processing circuit incorporating primary crushing, grinding,
gravity concentration and cyanide leaching, followed by gold
recovery using carbon-in-pulp, stripping and electrowinning.
Open pit mining includes approximately 15 Mt of stripping and
preproduction mining during a two year pre-production period
followed by 13.5 years of production mining along with stockpile
reclaim in the final years of the operation. Maximum mining
rate is 18 Mt per annum. The average grade is 1.64 g/t Au and
the LOM stripping ratio is 6.5:1.
FUTURE WORK
The PFS recommended the completion of a feasibility study to
validate and detail the elements of the development concept set out
in the PFS, and which would include additional drilling,
engineering studies and environmental studies, including
hydrological, hydrogeological and geotechnical analyses. The
recommended feasibility study work has already been initiated and
is expected to be completed in the second half of 2018, using a
base case processing rate of 2.5 Mtpa versus the 2.0 Mtpa used for
the prefeasibility study. In addition to the feasibility study, we
continue to conduct exploration activities on the Boto exploration
concession to evaluate high priority targets on trend for
additional mineral resources.
QUALIFIED PERSONS
The 2017 Boto Gold PFS was prepared by IAMGOLD and Lycopodium
Minerals Canada Ltd. and incorporates the work of IAMGOLD and
Lycopodium Qualified Persons (QPs) (as defined under National
Instrument 43-101). Lycopodium 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 2017 Boto PFS, upon which the technical report will be based,
are:
Lycopodium QPs
- N. Lincoln, P. Eng., Project infrastructures, permitting,
investment and operational costs and economical model
- R. Willis, P. Eng., Metallurgical testing and mineral
processing
- W. Muir P. Eng. (Knight Piésold Ltd.), Tailings and water
management
- G. Zurowski, P. Eng. (AGP Mining Consultants), Mine design,
capital and operating costs, reserve estimate
IAMGOLD QPs
- V. Blanchet, P.Eng., Data verification, and mineral resource
estimate
- H. Fisette, P.Eng., Site description, historical setting,
drilling, sample preparation and analysis and security, data
verification, and mineral resource estimate
The information in this news release was reviewed and approved
by Craig MacDougall, P.Geo., Senior
Vice President, Exploration for IAMGOLD. Mr. MacDougall is a
Qualified Person as defined by National Instrument 43-101.
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 PFS 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;
(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 Boto Gold Project at estimated grades;
(ii) the geotechnical and
metallurgical characteristics of rock conforming to sampled
results; including the quantities of water and the quality of the
water that must be diverted or treated during mining
operations;
(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;
* anticipated mining losses and
dilution;
(xi) metallurgical
performance;
(xii) reasonable contingency
requirements;
(xiii) success in realizing
proposed operations;
(xiv) receipt of permits and other
regulatory approvals on acceptable terms; and
(xv) 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 IAMGOLD's Annual Information Form filed with
SEDAR in Canada (available at
www.sedar.com ) for the year ended December
31, 2016 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.
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:
Ken Chernin, VP Investor
Relations, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883
Laura Young, Director,
Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4952 Mobile: (416) 670-3815
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 CNW Group's website at
www.newswire.ca. 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.
SOURCE IAMGOLD Corporation