Iamgold to Add Resources in Suriname


Iamgold has signed an agreement with the government of Suriname to acquire an interest in the Saramacca property approximately 30 km southwest of the company’s Rosebel gold mine and mill in the country. The terms of the acquisition included an initial payment of $200,000, allowing Rosebel’s exploration team access to the property and to data from previous exploration activity.

Provided Iamgold is satisfied with the results of a due diligence review, it will pay $10 million and $3.125 million Iamgold common shares to be held in escrow and released to the government in three approximately equal tranches over 12-month intervals following the ratification of the agreement. Adjustments to the purchase price will be calculated depending on the success of a drill program carried out by the Rosebel exploration team over the first 24 months but will be capped at $10 million.

The Saramacca property has been explored since the 1990s, principally by Golden Star and later by a joint venture between Golden Star and Newmont. Much of the previous work focused on the discovery and delineation of Anomaly M, where more than 50 diamond drill holes and 200 auger holes were completed in the anomaly area. Evaluation of this work suggests an exploration target potential of between 8 million and 40 million mt grading between 1 and 1.8 g/mt gold for potentially 500,000 to 1.4 million oz of contained gold.

This potential quantity and grade is conceptual, and insufficient work has been completed to define a mineral resource. The target ranges are consistent with deposits currently being mined at Rosebel.

The Rosebel mine is owned 95% by Iamgold and 5% by the government of Suriname. Production attributable to Iamgold during 2016 is forecast at 285,000 oz to 295,000 oz.


As featured in Womp 2016 Vol 10 - www.womp-int.com