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.
[caption id="attachment_1003717158" align="alignright" width="300"] 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.