QUEBEC — The results of the updated preliminary economic assessment (PEA) of the Westwood gold project are positive, according to IamGold Corp. The Westwood project is located not far from Rouyn-Noranda and two km east of the company's producing Doyon gold mine.
The company has approved a 2009 budget of $86 million with the aim of reaching production early in 2013. The PEA proposes production of 200,000 oz of gold annually at a cash cost of $290 per oz. Cost of the development is estimated to be $239 million, plus sustaining capital of $185 million over a 15-year mine life.
Next year's budget is earmarked for a number of projects. Shaft sinking will begin in Q2 and reach a depth of 500 metres by yearend. The ramp is to be driven a further 1,800 metres. A ventilation raise will be started and completed. An additional 5,000-tonne bulk sample will be collected from the 14 level exploration drift that will be combined with 5,000 tonnes already collected and this will be sent for pilot testing at the Doyon mill in the summer. Installation will begin on the hoist, headframe and support facility. Development work will include about 2,000 metres of drifting. Exploration drilling is budgeted at 32,000 metres. Finally, valuation and definition drilling is budgeted at 41,000 metres.
Additional details about the Westwood project are available at www.IamGold.com.
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