IAMGOLD Hits 342 Metres Of 1.99 g/t Gold At Gosselin Deposit

IAMGOLD (TSX: IMG) continues to prove out the Gosselin deposit, which is found adjacent to its Cote Gold deposit in Ontario. The firm this morning released additional drill results from the deposit, which focused on drilling outside of the current resource boundaries of the deposit’s model.

“We are very pleased to see that the results from the 2022 drilling program support the anticipated expansion potential at Gosselin, specifically south of and below the interpreted resource boundaries of the deposit model. Future drilling programs at Gosselin will continue to target the extensions of the deposit towards the goal of defining further potential resource expansion and resource classification upgrades,” commented Craig MacDougall, Executive VP of Growth for IAMGOLD.

A total of 27 drill holes saw their assays released this morning, which represents 14,660 metres of drilling conducted from January through to November last year. Highlights from the results include:

  • GOS22-105: 342.2 metres of 1.99 g/t gold from 206.9 metres depth
  • GOS22-118: 388.5 metres of 0.66 g/t gold from 39.0 metres
  • GOS22-122: 262.0 metres of 0.77 g/t gold from 141.0 metres
  • GOS22-126: 313.0 metres of 1.29 g/t gold from 511.0 metres depth
  • GOS22-129: 181.0 metres of 1.50 g/t gold from 512.0 metres

The results are said to have outlined areas for potential expansion of the resource at depth as well as to the south of the current resource boundary. Further drilling is said to now be underway to further test the expansion target areas, with technical studies initiated in 2022 focused on including mineralization from Gosselin into future Cote Gold life of mine plans, among other items, slated to continue into 2023.

Rosebel Gold Mine Sale

The release of results this morning follows the announced closing of the sale of the firms Rosebel Gold Mine, found in Suriname. The mine was sold for $360 million in cash, with proceeds of the sale to be put towards furthering the development of the Cote Gold project. The sale also freed up $41 million on the firms balance sheet, which was in the form of equipment lease liabilities.

As of the end of the third quarter, Rosebel accounted for 27.5% of the firms attributable gold production in 2022, producing 145,000 ounces of gold during the nine-month period at an average cash cost of $1,316 per ounce, with all-in sustaining costs sitting at $1,845 per ounce. Total guidance for 2022 expected the mine to produce between 175,000 and 200,000 ounces of gold.

READ: IAMGOLD Closes $360 Million Sale Of Rosebel As It Works To Fund Cote Project

The mine however accounted for 35.1% of sustaining capital expenditures during the period, and 81.8% of expansion expenditures, resulting in total CapEx during the period of $98.4 million, or 40.5% of all expenditures.

Overall, the mine produced revenues of $282.3 million as of September 30 for IAMGOLD, or 27.3% of the $1,033.9 million in revenues recognized for the nine month period.

IAMGOLD last traded at $3.83 on the TSX.

Information for this briefing was found via Edgar and Refinitiv. 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.

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