On Thursday, IAMGOLD Corporation (TSX: T.IMG, Stock Forum) announced results from an updated Preliminary Assessment Study on its Westwood Gold Project in Quebec.
“The results of the Study provide confidence for Westwood to move forward with a target for production in early 2013, and with an $86 million budget approved for 2009,” says IAMGOLD.
"Westwood is an important part of IAMGOLD's growth strategy. The Study shows that Westwood has the potential to produce 200,000 ounces of gold per year at a cash cost of $290 per ounce, well under industry average and in one of the lowest political risk jurisdictions for mining in the world. We have a strong and experienced team in this area of Quebec to move the project forward into production. The proximity to our producing Doyon and Mouska Mines is of great advantage from the standpoint of operating experience, manpower and infrastructure," says Joseph Conway, president and CEO of IAMGOLD. The project is located two kilometres east of IAMGOLD's Doyon Mine.
The company notes that the $86 million budget for the year has been approved for a number of areas including the collection of an additional 5,000 tonne bulk sample from the 14 level exploration drift and the start of installation on the hoist, headframe and support facility.
In 2008, a total of 68,000 metres of drilling were completed at Westwood, while this year, a further 73,500 metres are planned of which 41,200 metres will contribute to upgrading existing inferred resources while the remaining 32,300 metres will systematically test the highest priority exploration target areas, says the company.
According to IAMGOLD, the Preliminary Assessment Study for an underground operation at Westwood shows that during the first thirteen years, production will average about 200,000 ounces of gold per year at an average diluted grade of 8.1 g Au/t and with cash costs averaging $290 per ounce.
The operation will reportedly generate pre-tax cash flow of $287 million over the first five years. Capital expenditures to bring Westwood into production are estimated at $329 million.
“Over a projected mine life of 15 years, based on current resources, Westwood will produce an average of 187,000 ounces of gold per year at an average cash cost of $298 per ounce, generating a pre-tax operating cash flow of $665 million,” says IAMGOLD.
Shares of IAMGOLD were up 1.9% to $6.88 Thursday.
