EXPLORATION & DEVELOPMENT

Iamgold moves on Nelligan option

Canadian gold producer lifts Nelligan stake believing in more discovery potential

Staff Reporter
Iamgold has exercised an option to lift its ownership in the Nelligan project in Quebec to 75%

Iamgold has exercised an option to lift its ownership in the Nelligan project in Quebec to 75%

The company reported an initial inferred resource of 97 million tonnes grading 1.02gpt for 3.2 million ounces gold.

Iamgold has increased its interest in the Nelligan joint venture with junior Vanstar Mining Resources from 24% to 75% after making its last cash payment of C$2.35 million.

Craig MacDougall, Iamgold's SVP of exploration, said the move underscored Iamgold's view "of the favourable exploration potential for the discovery of additional resources".

"We look forward to continuing to work with Vanstar as we advance our exploration efforts on the project," he said.

Iamgold can increase its stake to 80% by delivering a feasibility study.

"It is reassuring to see that our partner completes all the requirements more than two years before the deadline set in the agreement. This confirms well the great potential of the Nelligan project," said Vanstar CEO Guy Morissette.

JV operator Iamgold said next steps included further metallurgical test work to help optimise recoveries and the flow sheet.

Planning is also underway for more drilling including infill, extension drilling at depth, and step-out targeting along strike. The company will also undertake prospecting on several high-priority regional targets.

Iamgold shares (TSX:IMG) gained more than 2%, or C10c, on Wednesday to $4.57 taking 12-month gains to 5%. The company has a market capitalisation of $2.1 billion (US$1.6 billion).

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.