Iamgold reports 39% reserve, 16% output rise at Burkina Faso project

6th June 2018

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

TSX- and New York-listed gold producer Iamgold has announced positive results from a prefeasibility study (PFS) for its Essakane heap leach project, in Burkina Faso.

The results, which outline an economically viable project, justify the start of a feasibility study (FS) to further optimise the project development design, secure long lead equipment and improve project economics.

The PFS highlights include a 39% increase in probable reserves from 1.3-million ounces to 4.7-million ounces. Indicated resources increased from 800 000 oz to 5.1-million ounces, while inferred resources increased from 200 000 oz to 600 000 oz.

The PFS indicates a mine life of 8.5 years with mill throughput of 12-million tonnes a year and heap leach throughput of ten-million tonnes a year. This is an extension of three years to the mine life, compared with the 2016 technical report.

There is potential for a further mine life extension with the FS and the drilling of prospective satellite prospects near Essakane.

Further, the PFS reported a possible average yearly production increase of 16% to 480 000 oz, with peak yearly production exceeding 500 000 oz. The mine would be able to produce at all-in sustaining cost (AISC) of $946/oz.

The initial heap leach capital expenditure requirement is estimated at $155-million.

The infill drilling programme, conducted to upgrade targeted lower-grade inferred resources in support of the heap leach PFS, intersected higher grades than anticipated in several areas.

The impact of these results is still being assessed and may provide potential to outline additional zones of higher-grade mineralisation for processing at the existing carbon-in-leach (CIL) plant.

The drilling campaign is continuing and the results will be used to complete the delineation of both the lower-grade heap leach and higher-grade CIL mineralisation to optimise the development options as part of the recommended FS.

IAMGOLD CEO Steve Letwin commented that not only has the company been introduced to a new processing method that allows for economic incremental production, but also the company’s success at the drill bit has delivered a resource increase far greater than expected.

“While we knew that heap leaching had the potential to unlock additional reserves, we were positively surprised at, and benefited from, intercepting higher grades, which account for more than one-third of the 39% probable resources increase.

“Essakane is pursuing all avenues for enhancing the value of this already high-performing operation, including targeting additional resources from Essakane's large, prospective land package,” said Letwin.

Meanwhile, an initial resource estimate for the Gossey prospect is expected in the fourth quarter.

“With these positive results and the future work we have planned, we are targeting a mine life beyond 2030 and AISC below $900/oz."

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION