Some good news - Increase Reserves at Rosebel IAMGOLD Reports 51% Reserve Increase at Rosebel Gold Mine Driven by the Declaration of Reserves At Saramacca - Increasing Production and Extending Rosebel's Mine Life to 2033
TORONTO, Sept. 23, 2018
All amounts are in US dollars, unless otherwise indicated.
Numbers in tables may not add due to rounding.
TORONTO, Sept. 23, 2018 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") today announced an updated Resource and Reserve estimate for its Rosebel Gold Mine ("Rosebel") in Suriname, which includes a declaration of reserves from the Saramacca deposit, located approximately 25 kilometres from the Rosebel mill.
Highlights (Attributable basis)1,2
- Consolidated Reserves increased by 51%, or 1.6 million ounces, to 4.7 million ounces, which include 1.0 million ounces from the Saramacca deposit.
- Consolidated Measured and Indicated Resources increased by 2%, or 0.1 million ounces, to 9.3 million ounces.
- Saramacca Measured and Indicated Resources increased by 72%, or 0.5 million ounces, to 1.2 million ounces.
- Mine life of 15 years (2018-2033) with average mill throughput of 10.9 million tonnes per annum (excluding 2033).
- Mine life extended by five years from the Life-of Mine ("LOM") plan reported in the 2017 Technical Report.
- Average annual production of 281,000 ounces (318,000 ounces on a 100% basis) over 15 years, with peak annual production of 362,000 ounces (415,000 ounces on a 100% basis)
- Average annual production increases by 11% to 295,000 ounces (337,000 ounces on a 100% basis) from 2020 to 2032, when Saramacca will be in or close to full production.
| 1 Attributable ounces: 95% Rosebel (excluding Saramacca), 66.5% Saramacca. |
| 2 All comparisons include depletion prior to September 1, 2018 (for RGM only). |
Consolidated gold reserves at Rosebel increased by 51%, resulting from the significant contribution from the Saramacca deposit, as well as overall improvements to the current LOM Plan allowing for the inclusion of the Koolhoven deposit. The declaration of reserves at Saramacca contributed 1.0 million ounces, accounting for 64% of the increase, while the inclusion of Koolhoven contributed another 0.4 million ounces. The increase was achieved with no changes to the $1,200 per ounce gold price assumption for estimating reserves. The additional reserves extend Rosebel's mine life by five years to 2033, with future average annual production estimated at 318,000 ounces on a 100% basis.
While providing direct positive impacts to the overall reserves and the Rosebel operation, the future development of Saramacca also positions the Company to further unlock the exploration potential of its consolidated land holdings along the Saramacca - Brokolonko trend.
Steve Letwin, President and CEO of IAMGOLD, commented, "Saramacca has delivered. Within only a year of confirming the resource, Rosebel has rapidly advanced Saramacca to reserve status and incorporated the additional ounces into the overall LOM plan. I congratulate the exploration and engineering teams for these excellent results and their dedication to moving this project quickly towards production. The significance of this accomplishment stands out at a time when reserve replacement is no longer easy in our industry. In gaining another five years, Rosebel is only half way through its life expectancy of nearly three decades.''
The inclusion of Saramacca in Rosebel's reserves followed positive results from advanced technical studies jointly led by IAMGOLD, SRK Consulting (Canada) Inc. ("SRK") and other consultants. The studies outlined an economically viable project for Saramacca and justified fast tracking the development of the project to achieve a mining start in the second half of 2019.
Over the last few months, IAMGOLD issued an Environmental and Social Impact Study (ESIA) to the Surinamese environmental regulators to begin the public consultation process.
A technical report summarizing the technical studies will be filed on SEDAR within 45 days of the date of this news release.
SARAMACCA FUTURE WORK
Saramacca is on track to commence mining in the second half of 2019. Due to the fast track nature of the Saramacca Project, ongoing technical studies are at various levels of advancement, ranging from pre-feasibility to detailed engineering, and construction has been initiated for various elements of the Project. Firm orders have been placed for the acquisition of the mining fleet, and the haul road between Saramacca and the current Rosebel concession is currently in the final phases of detailed engineering. Pre-construction preparation activities started earlier this month.
On-going optimization studies on pit slope dewatering and subsequent slope design improvements will be completed by the end of 2018. Metallurgical recovery optimization test work and design will be carried out in the fourth quarter 2018, with the objective to further improve recoveries. Potential mill circuit upgrades will be evaluated as part of this work.
Drilling will continue to target specific areas of interest within the known pit shell, as well as lateral and at-depth extensions of the deposit. The Rosebel team continues to work at identifying opportunities to further optimize project economics related to the development of the open-pit Saramacca mine.
Project execution capital expenditures are estimated at $128 million (±15%).
ROSEBEL CONCESSION (EXCLUDING SARAMACCA)
The current reserve estimate for the open pits in the Rosebel Concession follows from work developed for the previous disclosure. There were no major changes to the key parameters, with the exception of the inclusion of Koolhoven in this reserve estimate, which was made possible, in part, by the addition of Saramacca, which allows greater flexibility with the mill blending strategy.
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