Canadian gold major Iamgold on Tuesday announced the assay results from 16 drill holes completed in the 2019 winter drilling programme at the Monster Lake joint venture (JV) that it shares with TomaGold near Chibougamau, Quebec, including “bonanza-grade intersections”.
The 2019 drilling programme set out to test three priority areas along the strike of the main structural corridor hosting the 325-Megane zone for additional mineralisation and yielded positive results in the Annie and Big Mama areas.
In the Annie shear zone system, 357 g/t gold at 0.8 m were intersected, as well as 3.85 g/t gold at 6.8 m and 133 g/t gold at 0.5 m.
In the Big Mama shear zone area, 13 m, grading 2.27 g/t gold, were intersected, including 1.39 m grading 6.45 g/t and 1.47 m grading 7.65 g/t.
"The bonanza-type grades intersected in the Annie area once again demonstrate the solid high-grade gold potential of the Monster Lake project," said TomaGold president and CEO David Grondin. "What's even more interesting is that these holes were intercepted in the area of hole M-12-60, which returned 236.60 g/t gold over 5.7 m in 2012. We strongly believe that Monster Lake's potential over the 4-km-long corridor has yet to be revealed."
The Monster Lake project currently hosts a National Instrument 43-101-compliant resource comprising 1 109 700 t of inferred resources averaging 12.14 g/t for 433 300 oz of contained gold assuming an underground mining scenario.
Iamgold senior VP for exploration Craig MacDougall commented that the positive results continued to demonstrate the potential for the discovery of additional mineralised shoots along the Monster Lake structural corridor.
The results from the assays will be incorporated into the structural and deposit model and used to guide the next drilling programmes.
The Monster Lake project is under an earn-in option JV agreement between Iamgold and TomaGold. Iamgold holds an undivided 50% interest in the property, and holds an option to earn a further 25% undivided interest, for a total 75% undivided interest in the project, should it spend a total of C$10-million on the project within a seven-year period, beginning January 1, 2015. Should a development decision be made by the JV, or should the JV declare commercial production, TomaGold would be entitled to a further C$1-million payment. Under the terms of the option agreement, Iamgold continues to conduct exploration on the project with a view to increase its ownership to 75%.