All amounts are in US dollars, unless
otherwise indicated.
Numbers in tables may not add due to
rounding.
TORONTO, June 5, 2018 /PRNewswire/ - IAMGOLD Corporation
("IAMGOLD" or the "Company") today announced positive results from
a Pre-feasibility Study ("PFS") for its Essakane Heap Leach Project
(the "Project") in Burkina Faso,
West Africa. The results, which
outline an economically viable project, justify the commencement of
a Feasibility Study ("FS") to further optimize the project
development design, secure long lead equipment and improve project
economics.
PRE-FEASIBILITY HIGHLIGHTS (100% BASIS)
- Probable Reserves increased by 39%, or 1.3 million ounces, to
4.7 million ounces.
- Indicated Resources increased by 19%, or 0.8 million ounces, to
5.1 million ounces.
- Inferred Resources increased by 54%, or 0.2 million ounces, to
0.6 million ounces.
- Mine Life of 8.5 years
(2018-2026) with mill throughput of 12.0 million tonnes per annum
and heap leach throughput of 10.0 million tonnes per annum
(2020-2026).
- Mine life extended by three years from the LOM reported in the
2016 Technical Report, with potential to extend further with the FS
and the drilling of prospective satellite prospects near
Essakane.
- Average annual production increases by 16% to 480,000 ounces
versus previously disclosed plan, once heap leach is
operational.
- Peak annual production exceeding 500,000 ounces.
- LOM cash costs of $707/oz and
all-in sustaining costs of $946/oz.
- Heap Leach initial capital expenditures of $155 million.
The infill drilling program, conducted to upgrade targeted
lower-grade inferred resources in support of the Heap Leach PFS,
intersected higher grades than anticipated in several
areas. The impact of these results is still being assessed and
may provide potential to outline additional zones of higher-grade
mineralization for processing at the existing carbon-in-leach
("CIL") plant. The drilling campaign is continuing and the results
will be used to complete the delineation of both the lower-grade
heap leach and higher-grade CIL mineralization to optimize the
development options as part of the recommended FS.
"I applaud the Essakane team," said Steve Letwin, President and CEO of IAMGOLD. "Not
only have they introduced a new processing method that allows for
economic incremental production, their success at the drill bit has
delivered a resource increase far greater than what we expected.
While we knew that heap leaching had the potential to unlock
additional reserves, we were positively surprised at, and benefited
from, intercepting higher grades, which account for more than
one-third of the 39% increase. Essakane is pursuing all avenues for
enhancing the value of this already high-performing operation,
including targeting additional resources from Essakane's large,
prospective land package. Stay tuned for an initial resource
estimate for the Gossey prospect in the fourth quarter of this
year. With these positive results and the future work we have
planned, we are targeting a mine life beyond 2030 and AISC below
$900 an ounce."
The PFS was completed jointly by IAMGOLD and Kappes, Cassiday
& Associates (KCA), with inputs from technical studies
completed by other consultants, and has an effective date of
June 5, 2018. 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 FS. Technical studies to support the completion
of the FS have commenced, with the study scheduled for completion
in the first quarter of 2019. As a result of the newly established
reserve estimate, and the intercepted high-grade material at depth,
the FS will also evaluate a lower capital option focused on
enhancing the CIL plant only to potentially reduce the LOM AISC
while improving the LOM NPV.
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
|
70.0 Mtpa
|
|
|
Carbon-in-leach (CIL)
Milling Capacity
|
12.0 Mtpa
|
Heap Leach (HL)
Processing Capacity
|
10.0 Mtpa
|
LOM Average Annual
Gold Production (CIL, 8.5 years)
|
416,000
oz.
|
LOM Average Annual
Gold Production (HL, 6.5 years)
|
72,000 oz.
|
LOM Average Annual
Gold Production (8.5 years)
|
471,000
oz.
|
LOM Average Recovery
Rate (CIL)
|
92.1%
|
LOM Average Recovery
Rate (HL)
|
55.0%
|
Mine Life
(2018-2026)
|
8.5 years
|
LOM Average Cash
Costs (incl. Royalties)
|
$707/oz
|
LOM Average
AISC
|
$946/oz
|
Average diluted grade
CIL
|
1.17 g/t
Au
|
Average diluted grade
HL
|
0.43 g/t
Au
|
Average LOM Strip
Ratio (Remaining Pit)
|
2.34:1
|
Estimated Initial
Capital Expenditure* (millions)
|
$155
|
Gold Price Assumption
used in financial analysis
|
$1,275/oz
|
|
US$/C$ exchange rate
of 1:1.25. US$/€ exchange rate of: 1:0.83
|
*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) – June 5, 2018
|
Classification
|
Tonnes
(000)
|
Grade
(g/t
Au)
|
Contained
Ounces
(000)
|
Indicated
|
167,067
|
0.95
|
5,101
|
Inferred
|
20,994
|
0.88
|
595
|
|
Notes:
|
1.
|
CIM Definition
Standards were followed for classification of Mineral
Resources.
|
2.
|
Mineral Resources
reported at a cut-off grade for Essakane main zone of 0.33 g/t Au
for saprolite, 0.43 g/t Au for transition material and 0.30 g/t Au
for fresh rock material. Cut-off grades for Falagountou are
0.36 g/t Au for saprolite, 0.46 g/t Au for transition material and
0.52 g/t Au for fresh rock material.
|
3.
|
Mineral Resources do
not include 2018 depletion.
|
4.
|
Mineral Resources are
constrained within a pit shell estimated using a long-term gold
price of $1,500/oz and a US$/€ exchange rate of: 1:0.77 and a
US$/CFA exchange rate of 1:0.00198.
|
5.
|
Mineral Resources are
inclusive of Reserves quoted below.
|
6.
|
Mineral Resources are
reported on a 100% basis.
|
MINERAL RESERVES
The tonnes, grades, and classification of the Mineral Reserves
captured within the PFS mine plan are summarized below.
Mineral Reserve
(100% Basis) – June 5, 2018
|
Process
|
Classification
|
Tonnes
(000)
|
Grade
(g/t
Au)
|
Contained
Ounces
(000)
|
CIL
|
Proven
|
-
|
-
|
-
|
Probable
|
88,146
|
1.26
|
3,581
|
Stockpile
|
14,442
|
0.58
|
278
|
Total CIL
|
102,588
|
1.17
|
3,859
|
Heap
Leach
|
Proven
|
-
|
-
|
-
|
Probable
|
58,209
|
0.42
|
790
|
Stockpile
|
3,657
|
0.47
|
55
|
Total Heap
Leach
|
61,866
|
0.43
|
845
|
Total
|
|
164,454
|
0.89
|
4,704
|
|
|
|
|
|
Waste within Designed
Pit
|
342,944
|
|
|
Ore within Designed
Pit
|
146,355
|
|
|
Total Tonnage within
Designed Pit
|
489,299
|
|
|
|
Notes:
|
1.
|
Reserves estimated
assuming open pit mining methods.
|
2.
|
Reserves are based on
a gold price of $1,200/oz.
|
3.
|
Average weighted CIL
process recovery of 92.1% and Heap Leach process recovery of
55.0%.
|
4.
|
Mining costs ($/t
mined): $2.55/t. Processing costs: $12.36/t (CIL). Processing
costs $3.13/t (HL). General and Administrative costs (includes
refining cost) of $3.99/t for CIL only. Heap Leach bears no G&A
costs.
|
5.
|
Mineral Reserves are
reported on a 100% basis.
|
6.
|
Mineral Reserves do
not include 2018 depletion.
|
7.
|
Mineral reserves
include material from Essakane main zone and Falagountou
pits.
|
MINING AND PROCESSING
The PFS has identified the positive benefit of two extra mining
phases to the existing Essakane main zone (EMZ) open pit mining
operation combined with the addition of a heap leaching operation.
The heap leaching operation would be run in parallel to the
existing process plant. Dedicated primary (gyratory) and secondary
(cone) crushing circuits, tertiary crushing using a high pressure
grinding rolls (HPGR) unit, material handling and stacking
conveyors, and a carbon in column (CIC) adsorption plant would be
installed. Loaded carbon would be transported to the existing
plant facilities for stripping and refining where minimal
infrastructure upgrade would be required. Where possible, the
specified equipment would be the same model as that used in the CIL
plant to improve maintainability and to reduce parts
inventories.
Additional major infrastructure included in the PFS are the
leach pad, solution distribution and collection systems, solution
ponds, camp upgrade and power generation capacity increase.
Remaining open pit mining includes approximately 343 Mt of waste and 146
Mt of ore over an 8.5-year-period of production mining. This
volume of waste would decrease if in-pit inferred resources can be
converted to CIL or Heap Leach ore through infill drilling.
Stockpile reclaim would commence in 2020 until depletion at the end
of the mine life. Maximum mining rate is 70 Mt per annum. The
average mined grade is 0.94 g/t Au and the LOM stripping ratio is
2.34:1.
The average processed grade is 0.89 g/t (1.17 CIL and 0.43
HL).
FUTURE WORK
The PFS recommends the completion of a FS to validate and detail
the elements of the development concept set out in the PFS, and
would include additional infill and condemnation drilling,
additional lab column testing, engineering studies and construction
planning.
Environmental studies, resettlement action planning and
permitting initiatives which have all been initiated during the PFS
stage will also continue during the FS. Environmental and social
baseline evaluation has been completed and a permit application is
planned for the third quarter 2018.
The recommended FS work has already been initiated and is
expected to be completed in the first quarter of 2019, using a 10
Mt per annum heap leaching processing rate. In addition, the FS
will evaluate additional development alternatives, such as a
gravity circuit upgrade and an increase in grinding capacity. This
strategy aims to increase the throughput and recovery of the CIL
and gravity circuits in parallel, in order to bring additional
value to the processing plant.
QUALIFIED PERSONS
The 2018 Essakane Heap Leach PFS was prepared by IAMGOLD and
Kappes, Cassiday & Associates, and incorporates the work of
IAMGOLD and Kappes, Cassiday & Associates, SRK consulting,
Soutex and GMining (QPs) (as defined under National Instrument
43-101). KCA's, SRK, Soutex and GMining 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 2018 Essakane Heap Leach PFS, upon which
the technical report will be based, are:
IAMGOLD QPs
- V. Blanchet, Eng., Property description and location,
accessibility, climate, local resources, infrastructure and
physiography, history, geological setting and mineralization,
deposit type, exploration, drilling, sample preparation and
analysis and security, data verification, and mineral resource
estimate
- P. Chabot, Eng., Mining method and mineral reserve
estimate
- R. Beauprie, Eng., Recovery method – CIL, mineral processing
and metallurgical testing - CIL
- D. Isabel, Eng., Environmental studies, permitting, and social
or community impacts
- L-B Denoncourt, Eng., Infrastructure, market studies and
contract, capital and operating cost estimate, financial
evaluation, other relevant data and information
KCA QPs
- T. Manning, P. Eng., Mineral processing and metallurgical
testing – Heap Leach, Recovery method – Heap Leach, Heap leach
infrastructure, Heap leach operating costs
SRK QPs
- E. Saunders, P. Eng., Open pit mine stability, waste rock pile
stability
- C.Scott, P. Eng., Heap leach stability
Soutex QPs
- E. Bouchard-Marchand, Eng., CIL plant upgrade (Strip circuit,
carbon handling, refining)
GMining QPs
- R. Sirois, Eng., Falagountou deposit resource
The information in this news release was reviewed and approved
by Lise Chénard, Eng., Director Mine
Geology and Daniel Vallières, Eng., Director Technical
Services. Both Ms. Chénard and Mr. Vallières work for IAMGOLD and
are Qualified Persons 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 Essakane mine 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, 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.
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
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 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.
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