PFS for the Boto gold project demonstrates potential low-cost, long-life operation

IAMGOLD Corp has filed a NI 43-101 Technical Report on the PFS for the Boto gold project in Senegal, West Africa, reported in the news release dated February 12, 2018. The PFS was completed jointly by IAMGOLD and Lycopodium Minerals Canada, with inputs from technical studies completed by other consultants and has an effective date of December 31, 2017.

The results, which outline an economically viable project, justify the commencement of a feasibility study to further optimize the project development design and improve project economics. PFS Highlights:

  • Indicated Resources of 1.9 Moz grading 1.60 g/t Au
  • Proven and Probable Reserves of 1.4 Moz grading 1.64 g/t Au
  • Mine Life of 13.5 years with mill throughput of 2.0 Mt/y
  • Life of Mine (LOM) average annual production of nearly 100,000 oz, with higher production in the early years of operation
  • LOM direct cash costs of $707/oz and all-in sustaining costs of $829/oz
  • At $1,275/oz gold price, after-tax IRR of 13.3% and a NPV of $104 million (6% discount rate)
  • Initial capital expenditures of $249 million

Steve Letwin, President and CEO of IAMGOLD, explained “Boto lies on a mineralized trend that is host to several significant producing gold mines. The team has worked exceptionally hard to advance this project from the initial discovery to a potential development project with a long life and attractive all-in sustaining costs. It is important to understand that this is a work in progress, and although still short of our investment criteria typical for West Africa, the project provides excellent optionality at higher gold prices.  We are continuing to aggressively optimize the project design to improve the overall economics.  Importantly, the feasibility study currently underway and due for completion in the second half of 2018 uses a 25% higher mill throughput as the base case, which will accordingly increase annual gold production and has the potential for improved project returns. We continue to aggressively explore priority targets to enhance the total resource inventory, which would generate a positive impact on project economics and mine life.”