ONTARIO – Iamgold Corp. of Toronto has filed a positive preliminary economic assessment for its Cote gold project 20 km south of Gogama, halfway between Timmins and Sudbury. The project has already received its provincial and federal environmental approvals.
Work at the Cote project done in 2011 by former owner Trelawney Mining and Exploration.
Based on the PEA using a gold price of US$1,200/oz., the Cote mine is a viable project that would generate an estimated 12.9% after tax internal rate of return. The project would have a 21-year mine life, producing on average 302,000 oz. of gold a year at average total cash costs of US$564/oz. and all-in sustaining costs of US$686/oz. The initial capital expenditure is projected to be US$1.03 billion.
The Cote project has one of Canada’s largest undeveloped gold resources containing close to 9.5 million oz. of gold. The indicated resource is 289.2 million tonnes grading 0.90 g/t gold, and the inferred portion is 66.9 million tonnes at 0.55 g/t gold. A cut-off grade of 0.30 g/t was used in for the estimate.
Iamgold expects to complete a prefeasibility study for the project by the end of the second quarter of 2017.
More details of the Cote PEA are available at www.Iamgold.com.