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Iamgold says Nelligan drilling results ‘positive’

31st May 2019

By: Creamer Media Reporter

     

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The 2019 delineation diamond drilling programme at the Nelligan joint venture (JV) project between Iamgold and Vanstar Mining near Chibougamau, Quebec, has delivered positive results.

The programme has successfully confirmed wide zones of mineralisation extending to surface, which senior VP for exploration Craig MacDougall said on Thursday would help complete a deposit model in support of a mineral resource estimate planned for the second half of the year.

“It is important to note that the mineralised zones remain open and are therefore believed to have favourable potential to continue to expand with additional drilling,” he added.

Assay results from the first 22 diamond drill holes have been received, with another 28 still outstanding.

The Nelligan project is held under an earn-in option to JV agreement with Vanstar. Iamgold holds an undivided 51% interest in the property, and holds an option to earn a further 24% undivided interest in exchange for cash payments totalling C$2.75-million and the delivery of a National Instrument 43-101-compliant resource estimate and technical report before March 2022.

Once vested to an undivided 75% interest, Iamgold will have a further option to acquire an additional interest of 5%, to hold an 80% interest in the Nelligan project, by completing and delivering a feasibility study. Vanstar would then retain a 20% undivided non-contributory carried interest until the commencement of commercial production, after which 20% undivided interest becomes participating, and Vanstar will pay its attributable portion of the total development and construction costs to the commencement of commercial production from 80% of its share of any ongoing distributions from the JV.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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