IAMGOLD (TSX: IMG) has extended the life of its Westwood mine complex after the completion of an updated mineral resource and mineral reserve estimate. The complex, which previously had an estimated life of mine through to 2025, has now extended its planned operations through to 2032.
The remaining life of the mine is expected to see total production of 925,000 ounces of gold, with production to average 146,000 gold ounces in the first three years, with recoveries estimated at 95%. Estimated operating costs over the life of mine are estimated at $231.91 per tonne processed, with total sustaining capital expenditures of $260.7 million.
“The updated mine plan demonstrates the ability of Westwood to continue to expand underground operating areas, with a mine plan based on reserves of nearly a million ounces and mining assumptions at a $1,500 per ounce reserve gold price. This plan provides a good frame of reference for our stakeholders, and it is worth highlighting that underground mining activities at Westwood have historically extracted a significant portion of resources alongside reserves during day-to-day operations – particularly during periods of higher gold spot prices,” commented Renaud Adams, CEO of IAMGOLD.
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The new estimates are based on revised mineral resource and reserve estimates at both the Grand Duc mine and the Westwood deposit. Highlights of those estimates include:
- Proven and probable reserves:
- Westwood: 955,400 ounces at 11.45 g/t gold
- Grand Duc: 56,300 ounces at 1.02 g/t gold
- Measured and indicated resources:
- Westwood: 1.6 million ounces at 12.80 g/t gold
- Grand Duc: 121,000 ounces at 1.25 g/t gold
- Inferred resources:
- Westwood: 1.8 million ounces at 13.03 g/t gold
- Grand Duc: 3,300 ounces at 1.28 g/t gold
Much of the future production is expected to come from Westwood, where IAMGOLD intends to pull 955,400 ounces from the underground operation, with average grades of 11.45 g/t gold.
“Financially, in the last two quarters, we have seen Westwood begin to generate significant value, reporting total mine-site free cash flow of $42.6 million in this period. As mining continues to upgrade ounces and open up new mining areas through improved ground control methods and seismicity mitigation measures, we see high potential for further mine life extension and expansion of the current mineralized envelope,” continued Adams.
IAMGOLD last traded at $7.97 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
