IAMGOLD Corporation this week announced an updated resource estimate in accordance with National Instrument 43-101 for its recently acquired C├┤t├® Gold Project, located halfway between Timmins and Sudbury in northern Ontario.
The mineral resource estimate incorporates assay results from an additional 79 holes (44,856 metres) since the February 24, 2012 estimate announced by Trelawney Mining and Exploration Inc. (“Trelawney”).
The new C├┤t├® Gold resource estimate consists of an Indicated Resource of 131 million tonnes averaging 0.84 grams of gold per tonne for 3.56 million ounces and an Inferred Resource of 165 million tonnes averaging 0.88 grams of gold per tonne for 4.66 million ounces.
The updated resource estimate, based on a cut-off grade of 0.30 grams of gold per tonne, represents a 274 percent increase in Indicated Resources from the previous estimate as reported by Trelawney, also based on a cut-off grade of 0.30 grams of gold per tonne. The updated C├┤t├® Gold resource estimate benefited from both infill drilling that substantially upgraded the quality of the estimate through conversion of Inferred Resources to Indicated Resources as well as step-out drilling to expand the overall resource base compared to the prior resource.
Stephen Letwin, President and Chief Executive Officer of IAMGOLD, said, “The substantial increase in resource tonnes and ounces at C├┤t├® Gold further validates the confidence that we have had in this project all along. Our belief that we had acquired a very promising deposit with the potential to add significant value to our portfolio of assets reflects months spent subjecting this project to rigorous due diligence. I applaud the hard work of our exploration team in achieving a seamless transition since the acquisition of the property in June and refocusing efforts on infill drilling. With over 44 percent of the resource now in the Indicated category compared to 14 percent previously, we’ve come a long way in improving the quality of the mineral resources required to support detailed economic studies.”
Commented Craig MacDougall, Senior Vice President Exploration: “Drilling continues at the site with the intent of converting a significant proportion of the remaining Inferred Resource to the Indicated category. With the delineation drilling program progressing so well, and completion expected early next year, our exploration team is now starting to broaden its focus towards additional exploration targets within our large land position.”
The mineral resource estimate has been carried out by Roscoe Postle Associates Inc. (“RPA”) and reported in accordance with National Instrument 43-101 requirements and CIM Estimation Best Practice Guidelines. The resource estimate was prepared by RPA Associate Principal Geologist Jamie Lavigne, P.Geo. with geostatistical input and verification provided by Mohan Srivastava, P.Geo. An updated NI 43-101 Technical Report will be posted on SEDAR at www.sedar.com on or before October 24, 2012.
A preliminary open pit optimisation algorithm was run on the estimated grade block model to constrain the resource and to support the CIM requirement that Mineral Resources have reasonable prospects for economic extraction. The resource estimate assumes a long term gold price of US$1600/ounce. All production cost and technical parameters assumed for the new estimate are more conservative than parameters used for the prior resource estimate. Only mineralisation contained within the preliminary pit shell has been included in the resource estimate.
The table below presents the mineral resource at the 0.30 grams of gold per tonne cut-off as well as at several additional cut-off grades for comparison purposes. The effective date of this resource estimate is October 4, 2012 and includes all validated drill results as at August 1, 2012.