Boto gold feasibility study delivers significantly improved project economics

Posted by Daniel Gleeson on 23rd October 2018

IAMGOLD Corp reports positive results from a feasibility study for its Boto gold project in Senegal. The results outline an economically robust project with an anticipated low cost of production and long operating life. The study demonstrates a significant economic and operational improvement compared to the PFS results announced in February of this year. The FS will be used to support an application for a mining concession in the fourth quarter of 2018.

  • Proven and Probable Reserves increased by 0.51 Moz to 1.93 Moz grading 1.71 g/t Au versus the P&P Reserves from the PFS
  • Indicated Resources (including Reserves) of 2.49 Moz grading 1.61 g/t Au
  • Mine Life of 12.8 years with mill throughput of 2.75 Mt/y
  • Life of Mine average annual production of 140,000 oz, averaging 160,000 oz/y during the first six years
  • LOM cash costs of $714/oz and all-in sustaining costs of $753/oz
  • After-tax IRR of 23%, with a payback period of 3.4 years
  • NPV of $261 million (6% discount rate) at a gold price of $1,250/oz
  • Initial capital expenditures of $254 million.

Steve Letwin, President and CEO of IAMGOLD, said “Boto Gold has evolved from a grass roots exploration discovery to a robust development project with nearly 2 Moz in reserves. I congratulate the team for their success in improving the project economics by as much as they have. The 23% after-tax IRR and the 151% increase in the NPV at a lower gold price assumption are marked improvements from those reported in the prefeasibility study. This is a solid, low-cost project which is expected to deliver 140,000 oz annually, on average, for nearly 13 years. While a final investment decision is yet to be made, and there is still permitting work to be done, we’re looking at a high-value project that adds to IAMGOLD’s already impressive growth profile.”

The FS was completed jointly by IAMGOLD and Lycopodium Minerals Canada, with inputs from technical studies completed by specialist consultants. The FS represents a comprehensive study of the technical and economic viability of a mineral project that has advanced to a stage where a preferred mining method is established and an effective method of mineral processing is determined.