IAMGOLD
IAMGOLD Reaffirms Long-Term Production Guidance for Westwood and Files NI 43-101 Technical Report
Toronto, Ontario - (Newsfile Corp. - August 5, 2020) - IAMGOLD Corporation (TSX: IMG) ("IAMGOLD" or the "Company") today announced the Company has filed a National Instrument 43-101 ("NI 43-101") Technical Report ("Technical Report") on the Feasibility Study ("Study", or "FS") for its 100%-owned underground Westwood Gold Mine ("Westwood"), located in Quebec, Canada, with an effective date of April 30, 2020. The results of the FS are in-line with expectations and the Company re-affirms long-term production guidance ("Production Guidance") originally disclosed in December 2019 (see news releases dated December 12, 2019 and May 4, 2020).
The Company is also providing an updated Mineral Reserve and Mineral Resource estimate that reflects modified mining methods and operational assumptions, derived from ongoing operating experience at Westwood.
Over the past year, the Company had undertaken a comprehensive review of the technical and economic viability of Westwood that included preferred mining methods, mineral processing, and operational practices, with the overall objective of improving economic returns and establishing an achievable pathway to a safe and profitable long-life underground mine.
"The long-term Production Guidance establishes an achievable operational base case foundation, built upon conservative assumptions, and positions the asset for long-term safe and profitable exploitation," commented Gordon Stothart, IAMGOLD President and CEO. "We have adopted a cautious and empirical based approach that reflects current operational reality, with significant opportunities to improve on the base case. Additionally, given significant mill capacity availability, we are actively pursuing a 'hub-and-spoke' strategy at Westwood that could bring regional exploration value forward from assets like the recently acquired Fayolle Property and the optioned Rouyn Gold Project, and enhance the overall value of Westwood with incremental production growth from supplementary feed."
As is typical for underground operations, and supported by reasonable assumptions in-line with historical operating experience, the Company continues to work on converting its significant underground mineral resources to mineral reserves over time. The revised production profile established by the Production Guidance in December 2019 underpinned the Westwood impairment charge referenced in the full-year 2019 results release (see news release dated February 19, 2020).
The Study was completed by IAMGOLD, with inputs from technical studies completed by other consultants. The Technical Report can be found on the Company's website at www.iamgold.com or under the Company's profile at www.sedar.com and www.sec.gov/edgar.shtml.
MINERAL RESOURCES
Total attributable Measured and Indicated Resources (inclusive of Reserves) increased by 6% to 1.557 million ounces grading 10.2 g/t Au. Total attributable Inferred Resources increased by 4% to 1.771 million ounces grading 8.6 g/t. Gold price assumptions were maintained at $1,200 per ounce gold price for estimating underground resources, and $1,500 per ounce for estimating the Grand Duc open pit resources.
Notes:
- CIM (2014) definitions were followed for Mineral Resources.
- Underground mineral Resources are estimated at a cut-off grade of 5.5 g/t Au over a minimum width of 2.4 metres; Grand Duc open pit Mineral Resources are estimated at a cut-off grade of 0.44 g/t Au (pit shell $1,500/oz).
- Underground Mineral Resources are estimated using an average long-term gold price of $1,200/oz and exchange rate of 1.25.
- Mineral Resources are inclusive of Mineral Reserves.
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Numbers may not add due to rounding.
MINERAL RESERVES
Total attributable Reserves decreased by 48% to 0.618 million ounces grading 7.1 g/t Au. While overall Mineral Resources have remained largely unchanged, Mineral Reserves were impacted primarily by more conservative geotechnical assumptions related to specific zones located in higher seismic risk areas.
Notes:
- CIM (2014) definitions were followed for Mineral Reserves.
- Mineral Reserves estimated assuming underground mining methods for Westwood and open pit mining for Grand Duc.
- Underground Mineral Reserves are estimated at a cut-off grade of 5.5 g/t over a minimum width of 2.4 metres.
- Underground Mineral Reserves are estimated using an average long-term gold price of $1,200/oz. An economic cut-off grade of 0.56 g/t Au at a gold price of $1,500/oz and an exchange rate of 1.25 is applied for Grand Duc Mineral Reserves.
- Mineral Reserves as of April 30, 2020 include a dilution between 46-99% at a grade of 0.5 g/t.
- Mine recovery used for Mineral Reserves as of April 30, 2020 varies between 59%-89%. Grand Duc Mineral Reserves as of April 30, 2020 include a dilution of 10% with a planned recovery of 100%.
- Gold recovery is estimated to be 92.6% for Westwood underground and 89.0% for Grand Duc.
- Numbers may not add due to rounding.
MINING METHOD
Long-hole open stoping ("LHOS") is the primary mining method used at Westwood. Stopes are approximately 25 to 30 metres high with a strike varying from 12 to 15 metres in length. The mining width depends on the true width of the mineralization, lens configuration and geotechnical constraints applied to the area, with a minimum mining width of 2.4 metres. Access to production stopes is typically either transverse or longitudinal, with short longitudinal retreat utilized for reducing delays associated to rehabilitation and exposure to induced stress.
Historically, mining has been carried out using bottom-up LHOS methods, either in a pillarless or in a primary and secondary stope configuration. In areas of higher seismic risk the Company intends to utilize underhand LHOS (top to bottom) for better induced stress management. As a result, depending upon the area, either underhand LHOS or bottom-up LHOS mining methods are employed.
FUTURE WORK
The Company continues to advance various geomechanical studies to minimize uncertainty of mineral reserve and resource extraction, and to improve operational reliability of mining in adverse ground conditions. This includes utilization of a geotechnical stress model to identify areas of potential poor ground conditions. The Company continues to closely work with third party consultants with experience in seismically active, narrow-vein underground mines to further reduce geotechnical risk associated with mining and development at Westwood. An oversight committee comprised of subject matter experts has been established which continuously evaluates measures, controls and procedures associated with ground control management, with the intention of maximizing safety and mine recovery in higher risk areas.
HUB-AND-SPOKE DISTRICT MODEL
As noted above, the Company continues to utilize excess mill capacity at Westwood with supplemental material feed from the adjacent Grand Duc open pit satellite deposit. The deposit is anticipated to provide ore feed at a rate of 40,000 tonnes per month until mid-2021 at grades of ~1.0 g/t Au.
Taking into consideration the long-term Production Guidance, the Company recognizes significant opportunity to realize incremental value from excess mill capacity by pursuing a regional "hub-and-spoke" district strategy. The objective is to provide supplemental mill feed from properties within trucking distance of the Westwood mill.
In this context, the Company is focusing its regional exploration and development efforts on the newly acquired Fayolle Property located ~35 km northeast of Rouyn-Noranda, Quebec, and the optioned Rouyn Gold Project, located ~4 km south of Rouyn-Noranda, Quebec. Both of these properties have the potential to provide additional feed to the Westwood mill, following the anticipated depletion of the Grand Duc deposit in mid-2021.
IAMGOLD intends to continue with its extensive regional exploration initiatives to identify the most value accretive sources of incremental feed to maximize value from excess mill capacity at Westwood.
Technical Information and Qualified Person/Quality Control Notes
The Mineral Resource and Reserve estimates contained in this news release have been prepared in accordance with NI 43-101. The "Qualified Person" responsible for the resource estimate contained herein is Mr. Donald Trudel, P.Geo., senior geologist, Westwood Mine. The "Qualified Person" responsible for the underground reserve estimate contained herein is Mr. Mauril Gauthier, P.Eng., senior mine engineer. The "Qualified Person" responsible for the open pit reserve estimate contained herein is Mr. Philippe Chabot, P.Eng., Director mining, Technical services at Longueuil. The "Qualified Person" responsible for the information concerning exploration sites is Marie-France Bugnon, P. Geo., General Manager Exploration.
The information in this news release was reviewed and approved by Daniel Vallieres, Vice President, Operations Services for IAMGOLD.
All the above individuals are employees of IAMGOLD and considered Qualified Persons, as defined by NI 43-101 for the technical information reported on. IAMGOLD Qualified Persons are not independent of IAMGOLD and have reviewed and approved this news release. The technical information has been included herein with the consent and prior review of the above noted Qualified Persons. The Qualified Persons have verified the data disclosed, and data underlying the information or opinions contained herein.
About IAMGOLD
IAMGOLD is a mid-tier mining company with three gold mines on three continents, including the Essakane mine in Burkina Faso, the Rosebel mine in Suriname, and the Westwood mine in Canada. A solid base of strategic assets is complemented by the Côté Gold development project in Canada, the Boto Gold development project in Senegal, as well as greenfield and brownfield exploration projects in various countries located in West Africa and the Americas. On July 21, 2020, the Company, together with joint venture partner Sumitomo Metal Mining Co. Ltd., announced the decision to proceed with the construction of the Côté Gold Project.
IAMGOLD is committed to maintaining its culture of accountable mining through high standards of ESG practices and employs approximately 5,000 people. IAMGOLD's commitment is to Zero Harm, in every aspect of its business. IAMGOLD is one of the companies on the JSI index.
IAMGOLD is listed on the Toronto Stock Exchange (trading symbol "IMG") and the New York Stock Exchange (trading symbol "IAG").
For further information please contact:
Indi Gopinathan, VP, Investor Relations & Corporate Communications, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883
Philip Rabenok, Senior Analyst, Investor Relations, IAMGOLD Corporation
Tel: (416) 933-5783 Mobile: (647) 967-9942
Toll-free: 1-888-464-9999 info@iamgold.com
Source: https://www.iamgold.com/English/investors/news-releases/news-releases-details/2020/IAMGOLD-Reaffirms-Long-Term-Production-Guidance-for-Westwood-and-Files-NI-43-101-Technical-Report/default.aspx
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Junior Ground Control Engineer
- Design and supervision of construction of geotechnical and hydrological structures such as foundations, slopes, excavations, diversion ditch, and dams;
- Investigation of ground instabilities and recommending and designing mitigation measures
Procurement Officer
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