Hope for Merrix re IMG first mineral resource estimate on Boto ?
2013-07-29 07:16 ET - News Release
Mr. Bob Tait reports
IAMGOLD REPORTS FIRST MINERAL RESOURCE ESTIMATE ON THE BOTO GOLD PROJECT IN SENEGAL
Iamgold Corp. today released the first mineral resource estimate in accordance with National Instrument 43-101 for its 100-per-cent-owned Boto gold project in eastern Senegal, West Africa. With the discovery of the new Malikoundi zone in 2012, Iamgold significantly expanded its exploration drilling program, culminating in the completion of the first mineral resource estimate for the project.
The resource estimate, which includes resources calculated for the Boto 2, 4, 5 and 6 deposits, as well as the new Malikoundi deposit, is composed of indicated resources totalling 22 million tonnes averaging 1.62 grams of gold per tonne for 1.14 million ounces and inferred resources composed of 1.9 million tonnes averaging 1.35 grams of gold per tonne for 81,000 ounces. A significant portion of the estimate is derived from the newly discovered Malikoundi deposit, which overall displays higher grades than most of the previously discovered zones.
Craig MacDougall, senior vice-president, exploration, for Iamgold, stated: "The Malikoundi discovery in 2012 is a testament to the effort and persistence of the exploration team to take this project to the next level and is the cornerstone of the current resource estimate. With several of the deposits, including Malikoundi, still open along strike and at depth, we plan to continue the drill program with the goal of expanding the existing mineral resource inventory."
The mineral resource incorporates assay results from 423 diamond and reverse circulation drill holes totalling 56,832 metres. The estimate was prepared using a block model constrained with 3-D wire frames of the principal mineralized domains. Values for gold were interpolated into blocks using inverse distance cubed (ID3). A preliminary open pit optimization algorithm was run on the estimated grade block model to constrain the resource and to support the Canadian Institute of Mining, Metallurgy and Petroleum requirement that mineral resources have "reasonable prospects for economic extraction." The resource estimate assumes a long-term gold price of $1,500 (U.S.) ounce. Only mineralization contained within the preliminary pit shell has been included in the resource estimate.
The mineral resource estimate is summarized in the table at a cut-off grade of 0.60 gram of gold per tonne. The effective date of this resource estimate is April 19, 2013.
BOTO GOLD PROJECT -- MINERAL RESOURCE ESTIMATE -- APRIL 19, 2013
Tonnage Gold grade Contained ounces
Zone (000) (g/t Au) (Au) (000)
Classification Malikoundi 14,491 1.68 783
Boto 2 514 1.15 19
Indicated Boto 4 2,980 1.27 121
Boto 6 2,362 1.14 86
Boto 5 1,612 2.54 132
Total indicated 21,960 1.62 1,142
Malikoundi 702 1.37 31
Boto 2 5 0.72 0
Inferred Boto 4 646 1.12 23
Boto 6 420 1.53 21
Boto 5 87 2.16 6
Total inferred 1,861 1.35 81
CIM definitions were followed for the classification of mineral resources. Mineral resources are estimated at a cut-off grade of 0.60 gram per tonne gold. Mineral resources are estimated using a gold price of $1,500 (U.S.) per ounce. High-grade capped assay values vary from 15 grams per tonne gold to 30 grams per tonne gold based on geological area. Bulk density varies from 1.61 grams per cubic metre to 2.62 grams per cubic metre based on weathering code. The resources are constrained by a Whittle pit shell.
The Daorala-Boto permit covers an area of 236 square kilometres and is located in the Kedougou region of eastern Senegal along the borders with Mali and Guinea. The geological setting of the project area is similar to the Sadiola and Loulo gold districts in adjacent Mali, being underlain by highly prospective, Birimian-aged metasedimentary, volcanic and intrusive rocks along a seven-kilometre strike length of the Senegal-Mali shear zone.
Next steps
Drilling to date has not completely defined the limits of the mineralization at Boto 2, 4, 6 or Malikoundi, and these mineralized zones remain open along strike and at depth. Although the 2013 drilling program has now ceased with the onset of the annual rainy season, which generally persists in the region from mid-July to October, the company expects to resume drilling as conditions improve.
The company plans to continue to advance the project toward the commissioning of a scoping study in 2014 and will complete further resource updates as merited.