07:39:48 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Iamgold releases first 43-101 Pitangui resource study

2014-04-09 07:10 ET - News Release

Mr. Bob Tait reports

IAMGOLD PROVIDES UPDATE ON ADVANCED EXPLORATION PROJECTS MAIDEN RESOURCE ESTIMATE - PITANGUI PROJECT, BRAZIL DIAMOND DRILLING RESULTS - BOTO GOLD PROJECT, SENEGAL

Iamgold Corp. today provided an update from continuing exploration activities at the Pitangui project in Minas Gerais state, Brazil, and the Boto gold project in Senegal. Drilling programs are currently under way at both sites with the objective to delineate and expand current mineral resources in alignment with the company's strategic mandate for organic growth. All monetary figures are expressed in United States dollars.

Pitangui project, Brazil

A maiden mineral resource estimate has been completed in accordance with National Instrument 43-101 for the company's 100-per-cent-owned Pitangui gold project located approximately 110 kilometres northwest of Belo Horizonte, the capital city of Minas Gerais state, Brazil. The mineral resource incorporates assay results available up to Dec. 6, 2013, from 57 diamond drill holes totalling 19,600 metres and was completed by SRK Consulting (Canada) Inc.

Iamgold identified and staked the Pitangui property from late 2007 to mid-2008 and commenced systematic grassroots exploration activities in 2009. The initial scout drilling program completed in late 2011 to test prioritized targets led to the discovery of the Sao Sebastiao gold deposit. Since its discovery, delineation drilling has been completed on nominal 100-metre-by-100-metre centres to support the maiden mineral resource estimate reported herein. The mineral resource estimate, based on an underground mining scenario, comprises an inferred resource of 4.07 million tonnes grading 4.88 grams of gold per tonne for 640,000 million contained ounces, at a cut-off grade of 3.0 grams of gold per tonne (see the table).


           MINERAL RESOURCE STATEMENT, PITANGUI PROJECT, BRAZIL
                      (effective date: Jan. 9, 2014)

                                   Tons    Gold grade    Contained ounces
Classification         Deposit    (000)      (g/t Au)          (Au) (000)

Inferred         Sao Sebastiao    4,070          4.88                 638

CIM definitions were followed for classification of mineral resources. Mineral resources are estimated at a cut-off grade of 3.0 grams per tonne gold. Mineral resources are estimated using a gold price of $1,500 per ounce. High-grade capped assay values vary from 10 g/t Au to 15 g/t Au based on geological area. Bulk density, as determined from 2,570 measurements, varies from 3.06 grams per cubic centimetre to 3.24 grams per cubic centimetre based on geological area. Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.

Craig MacDougall, senior vice-president, exploration, for Iamgold, stated:

"The Sao Sebastiao gold deposit is an example of an outstanding grassroots discovery made by our Brazilian exploration team, who have worked hard to bring this project from a concept to an established resource. I am highly encouraged with the results achieved to date and with the potential for additional discoveries."

The estimate was prepared using a block model constrained with three-dimensional wire frames of the principal mineralized domains constructed on 14 vertical sections spaced at approximately 100 metres. Values for gold were interpolated into blocks using ordinary kriging. The resource estimate was further constrained by cost assumptions derived from comparable operating underground mines to support the CIM requirement that mineral resources have reasonable prospects for economic extraction. These assumptions include $70 per tonne for mining, $18 per tonne for processing, and $10 per tonne for general and administrative costs. The resource estimate assumes a long-term gold price of $1,500 per ounce and a gold metallurgical recovery of 93 per cent based on preliminary metallurgical test work results.

Drilling has confirmed the presence of several parallel and complexly folded horizons of banded-iron formation within the Archean Pitangui greenstone belt. Within the iron formations, gold mineralization is associated with sulphide replacement of primary magnetite bands, characterized by the presence of pyrrhotite and lesser amounts of arsenopyrite, pyrite and chalcopyrite. To date, mineralization has been outlined for approximately 1,400 metres along strike and over 500 metres down dip. A significant proportion of the current resource estimate is derived from one shallowly plunging mineralized horizon (Biquinho zone). This horizon remains the focus of the continuing delineation drilling program, which is targeting a structurally thickened shoot to expand the current resource inventory.

Several active mining operations located in the Brazilian iron quadrangle exploit gold deposits of a comparable age, host rock type and mineralization style. These deposits typically comprise multiple mineralized shoots with high plunge to strike-length ratios, a result of complex structural controls on gold distribution. Examples include AngloGold Ashanti's Cuiaba and Lamego deposits.

Next steps

Drilling continues with the objective to 1) increase the confidence in and expand the resources of the currently identified structurally thickened core area of the Biquinho horizon with a 50 m by 50 m infill drill program and 2) extend the limits of the mineralization and search for additional higher-grade and thickened shoots within the mineralized footprint. On the remainder of the 180-square-kilometre Pitangui property, exploration is continuing with the objective to identify additional target areas within the host BIF sequence for drill testing. A 600-line-kilometre airborne versatile-time-domain electromagnetic survey is planned for this spring with the objective to detect the presence of any conductive anomalies that may represent sulphide accumulations within the iron formation. Such anomalies would represent priority exploration targets.

Boto gold project, Senegal

The Boto gold project comprises 236 square kilometres of exploration licences located in eastern Senegal along the Senegal-Mali border. The geological setting of the project area is similar to the world-class 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.

The project hosts an indicated resource of 22 million tonnes averaging 1.62 grams of gold per tonne for 1.14 million ounces and an inferred resource of 1.9 million tonnes averaging 1.35 grams of gold per tonne for 81,000 ounces (see news release dated July 29, 2013). A significant percentage of the total resources was derived from the newly discovered Malikoundi deposit, which is the largest deposit discovered to date on the property.

Subsequent to the effective date of the resource estimate, assay results have been received for a further 9,400 metres of diamond drilling completed on the Boto gold project to the end of 2013. The drilling campaign aimed to complete infill drilling on the Boto 4 and Boto 6 deposits and extend the potential limits of the Malikoundi deposit at depth and along strike to the north beyond the current resource limits.

The drilling results are provided in the tables and include the following highlights.

Malikoundi deposit:

  • Drill hole DBDD-2158 -- eight metres grading 3.72 g/t gold;
  • Drill hole DBDD-2159 -- 23 metres grading 2.53 g/t gold, including two metres grading 16.88 g/t gold;
  • Drill hole DBDD-2171 -- four metres grading 10.67 g/t gold;
  • Drill hole DBDD-2173 -- 20 metres grading 1.68 g/t gold.

Boto 4 deposit:

  • Drill hole DBDD-2150 -- 21 metres grading 1.45 g/t gold;
  • Drill hole DBDD-2151 -- 17 metres grading 1.84 g/t gold;
  • Drill hole DBDD-2154 -- 13 metres grading 2.12 g/t gold;
  • Drill hole DBDD-2155 -- 30 metres grading 1.28 g/t gold.

Boto 6 deposit:

  • Drill hole DBDD-2165 -- 23 metres grading 1.03 g/t gold;
  • Drill hole DBDD-2166 -- 54 metres grading 0.66 g/t gold;
  • Drill hole DBDD-2168 -- 41 metres grading 0.83 g/t gold.

Craig MacDougall, senior vice-president, exploration, for Iamgold, stated:

"The ongoing delineation drilling program continues to confirm the continuity of the defined resources and, more importantly, continues to expand the Malikoundi zone north along strike for a further 300 metres beyond the original estimated resource limits. Our exploration team continues to target further expansions to this new discovery."

These new results from the continuing infill and expansion drilling program are associated with wide intervals of hydrothermal alteration and sulphide mineralization in Birimian metasedimentary host rocks. The northern strike extension of identified gold mineralization at the Malikoundi deposit was expanded by a further 300 metres in 2013 and remains open.

Next steps

The company's approved 2014 exploration program for the Boto gold project includes 14,500 metres of diamond drilling targeting the potential northern strike extension of the Malikoundi deposit and will support a scoping study currently in progress. Results will be incorporated into an updated resource model as merited. An additional 9,000 metres of air-core drilling are planned to evaluate several new exploration targets identified from a recently completed regional HeliTEM survey over the Boto concession area.

Technical information and quality control notes

Pitangui project, Brazil

SRK has reviewed exploration practices and the resultant database used to complete the mineral resource estimate reported herein, and has expressed the opinion that it is satisfied that the work carried out by Iamgold has been conducted in a manner consistent with generally recognized industry best practices and that the exploration data are sufficiently reliable for the purpose of supporting a mineral resource estimate.

Boto gold project, Senegal

The Boto gold drilling results contained in this news release have been prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The sampling of, and assay data from, drill core are monitored through the implementation of a quality assurance-quality control program designed to follow industry best practice. Drill core (HQ and NQ size) samples are selected by the Iamgold geologists and sawn in half with a diamond saw at the project site. Half of the core is retained at the site for reference purposes. Sample intervals are generally one metre in length. Prior to August, 2013, samples were analyzed at the ALS Chemex Analytical Laboratory in Bamako, Mali, using a standard fire assay with a 50-gram charge and an atomic absorption finish. From August, 2013, onward, samples were prepared at the Veritas preparation laboratory in Kedougou, Senegal, and analyzed using a standard fire assay with a 50-gram charge and an atomic absorption finish at the Veritas analytical laboratory in Abidjan, Cote d'Ivoire.

Qualified persons

The Pitangui mineral resource estimate was completed by SRK and reported in accordance with National Instrument 43-101 requirements and CIM estimation best practice guidelines. The resource estimate was prepared by SRK senior resource engineer Dorota El-Rassi, PEng, and all technical work was supervised by SRK principal consultant (resource geology) Glen Cole, PGeo. Ms. El-Rassi and Mr. Cole, who are qualified persons independent of Iamgold for the purposes of National Instrument 43-101, have reviewed and approved the contents of this release as it pertains to the Pitangui project. A supporting National Instrument 43-101 technical report will be posted on SEDAR on or before May 24, 2014.

The information in this news release was prepared under the supervision of Craig MacDougall, PGeo, senior vice-president, exploration, for Iamgold. Mr. MacDougall is a qualified person as defined by National Instrument 43-101.


      BOTO GOLD PROJECT DRILLING RESULTS -- MALIKOUNDI DEPOSIT 

Hole               EOH       From         To     Length       Gold
No.                (m)        (m)        (m)        (m)      (g/t)

DBDD-2158          350         95        120         25       0.95
                     1         29        137          8       3.72
                     1         50        159          9       0.98
                     1         80        206         26       0.83
                     2         61        263          2       3.16
DBDD-2159          250         51         74         23       2.53
Including            6          5         67          2      16.88
                     1         18        128         10       0.63
                     2         08        212          4       1.09
DBDD-2160          200         15         19          4       1.02
                     8          6         89          3       1.86
                     9          7         99          2       1.26
                     1         68        170          2       6.23
DBDD-2161                              No significant intersection
DBDD-2162          200         84         86          2       1.55
                     1         35        137          2       1.48
DBDD-2171          300        207        219         12       0.63
                     2         28        240         12       1.28
                     2         53        269         16       0.92
                     2         82        286          4      10.67
                     2         95        297          2       1.84
DBDD-2172          250        166        175          9       1.24
                     1         94        199          5       1.81
                     2         09        228         19       1.17
                     2         40        242          2       1.68
DBDD-2173          250         92         95          3       1.10
                     1         10        130         20       1.68
                     1         41        143          2       1.19
                     1         66        178         12       0.55
                     2         14        219          5       2.68
DBDD-2174          200         54         56          2      18.62
                     1         51        171         20       1.19
DBDD-2175          350        267        269          2       1.04
                     2         95        298          3       1.62
                     3         11        313          2       1.13
                     3         32        338          6       1.18
DBDD-2176          325        175        177          2       1.32
                     2         48        250          2       1.15
                     2         60        272         12       1.15
                     2         90        296          6       1.21
DBDD-2177          325        128        140         12       2.75
                     2         29        231          2       1.12
                     2         61        263          2       1.47


        BOTO GOLD PROJECT DRILLING RESULTS -- BOTO 4 DEPOSIT 
  
Hole                EOH       From         To     Length       Gold
No.                 (m)        (m)        (m)        (m)      (g/t)

DBDD-2149           250        143        145          2       1.02
                               175        177          2       1.08
DBDD-2150           300        142        144          2       1.21
                               188        190          2       4.06
                               201        217         16       1.39
                               238        259         21       1.45
DBDD-2151           300        128        145         17       1.84
                               155        181         26       0.72
                               287        289          2       1.62
DBDD-2152           250         97        115         18       1.42
                               122        133         11       0.83
                               205        217         12       0.58
                               237        239          2       2.99
DBDD-2153           250         36         38          2       1.46
                                55         57          2       1.74
                                75         79          4       1.45
                               148        150          2       1.13
DBDD-2154           350        184        202         18       1.58
                               225        238         13       2.12
                               270        274          4       4.78
DBDD-2155           250         17         20          3       1.34
                                30         42         12       1.68
                                52         82         30       1.28
                               207        209          2       1.40
DBDD-2156           200         87         89          2       1.22
                               176        184          8       1.15
DBDD-2157           100                 No significant intersection


        BOTO GOLD PROJECT DRILLING RESULTS -- BOTO 6 DEPOSIT 
   
Hole                 EOH       From         To     Length       Gold
No.                  (m)        (m)        (m)        (m)      (g/t)

DBDD-2163            250         93        105         12       0.55
                                139        143          4       1.11
DBDD-2164            300         16         28         12       0.74
                                 56         59          3       1.24
                                154        159          5       1.08
                                166        189         23       1.03
                                211        220          9       1.68
                                254        280         26       0.71
                                287        297         10       0.70
DBDD-2166            250         98        152         54       0.66
                                203        215         12       1.04
                                222        241         19       1.13
DBDD-2167            200                 No significant intersection
DBDD-2168            300        184        198         14       0.51
                                256        297         41       0.83
DBDD-2169            200         12         60         48       0.66
                                 68         80         12       0.57
                                119        121          2       3.70
DBDD-2170            200         43         54         11       0.57
                                 65         94         29       0.79
                                136        138          2       1.50

Drill hole intercepts are calculated using a minimum downhole length of two metres, a cut-off grade of 0.5 g/t gold, a global assay cap of 25 g/t gold and may include up to five metres of internal dilution.

For brevity, drill hole intercepts with a downhole length of less than 10 metres and grading less than 1.0 g/t gold are not reported.

The true widths of intersections are unknown at this time, but are interpreted to approximate the reported downhole lengths.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.