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.
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