Each one in plain English, with the numbers worked through for a shareholder.
19 Feb 2015resource reserve update▼ BadMajor
IAMGOLD's 2014 year-end statement shows attributable gold reserves down 15% (1.5M oz) to 8.6M oz, and measured and indicated resources down 9% (2.0M oz) to 21.4M oz, with 7.0M oz inferred. The reserve fall comes from Rosebel (-735,000 oz, changed economic and geotechnical parameters), depletion (-790,000 oz), and a lower gold price assumption ($1,300 vs $1,400/oz, -360,000 oz), partly offset by Sadiola (+269,000 oz) and Westwood (+117,000 oz). This continues the 2013 decline at Rosebel. Exploration spending is planned to fall from $69M in 2014 to $56M in 2015; the CEO says the reserve equals over 10 years of mine life at current production rates.
IAMGOLD reported final 2014 drilling results from Monster Lake in Quebec (17 holes, 8,233 m), including 9.18 m at 46.33 g/t gold (incl. 2.2 m at 182.8 g/t) in the 325-Megane zone, which remains open at depth. It plans an initial 5,000 m winter drilling program in 2015. This continues the TomaGold earn-in (50% for US$17.6M over five and a half years, now described as longer than the 'five years' previously noted); it is early-stage exploration with no resource declared.
IAMGOLD reported more drilling from its 100%-owned Boto project in Senegal: 16 infill holes (5,085 m) from a 15,824 m program completed in 2014, with Malikoundi intercepts such as 44 m at 4.46 g/t and 61 m at 2.91 g/t. The company says an updated resource estimate is due in its year-end statement in February 2015 and expects these results to positively affect future estimates; about 12,000 m more drilling is planned for 2015, with a further resource estimate scheduled for July. The existing resource is still the July 2013 figure (1.14M oz indicated, 81,000 oz inferred) until the update appears; no development decision is stated.
IAMGOLD reported more drilling from its 100%-owned Boto project in Senegal: 36 holes (over 9,200 m) this year, with Malikoundi intercepts such as 64 m at 3.37 g/t gold (including 38 m at 5.85 g/t). Management says results are expected to have a positive impact on the Malikoundi resource, and they feed an updated resource model for the ongoing scoping study; the resource stays at the July 2013 figures (1.14M oz indicated, 81,000 oz inferred) until updated, and no development decision is announced.
IAMGOLD reported final results of its phase one drilling (4,528 m, nine holes) at Monster Lake in Quebec and is starting a second phase of about 5,000 m, scheduled by the end of October 2014. The project is held under an earn-in with TomaGold, under which IAMGOLD can earn 50% of the Monster Lake, Winchester and Lac à l'eau jaune properties by paying cash and spending US$17.6M over five years. Phase one expanded the 325-Megane Zone and found two further zones, with intercepts such as 5.86 m at 2.62 g/t and 10.47 m at 11.55 g/t (reported earlier in May). This is an early-stage exploration project with no resource declared, and it is a new thread; it is the Quebec option deal alluded to in the earlier mention of new option agreements.
IAMGOLD filed SRK's NI 43-101 technical report (signed March 28, 2014) supporting the Pitangui São Sebastião maiden resource announced April 9: inferred 4.07M tonnes at 4.88 g/t for 638,000 oz, at a 3.0 g/t cut-off, effective January 9, 2014. It is based on 57 holes (about 19,575 m). SRK classes all blocks as inferred and mainly suited to underground mining. This is the supporting document, not a new estimate.
IAMGOLD declared a first resource for its 100%-owned Pitangui project in Brazil: inferred 4.07M tonnes at 4.88 g/t for about 0.64M oz (São Sebastião deposit, underground scenario, 3.0 g/t cut-off, by SRK). It also reported new Boto (Senegal) drilling, with the Malikoundi zone extended a further 300 m north and intercepts such as 23 m at 2.53 g/t. The 2014 Boto plan is 14,500 m of diamond drilling plus 9,000 m of aircore, supporting a scoping study now in progress. The Pitangui figure is an inferred resource only, and the Boto resource stands at the July 2013 figures until an update is made as merited.
IAMGOLD's 2013 year-end statement shows attributable gold reserves of 10.1M oz, down 11% (1.2M oz) from 11.3M oz after depletion, mainly from Rosebel (-1.4M oz, higher hard-rock mining costs) and Sadiola (-0.7M oz, gold price assumption change), partly offset by Essakane (+0.8M oz). Measured and indicated resources rose 4% to 23.4M oz, helped by Boto (+1.1M oz) and Essakane (+0.6M oz). Westwood reserves rose from 348,000 to 510,000 oz, and niobium probable reserves fell 3% to 1,707M kg. The release says a $125M company-wide cost reduction program included a $41M cut to the exploration plan. The Niobec rare earth resource was unchanged in 2013. Rosebel's reserves, held flat last year pending its feasibility study, have now been cut.
IAMGOLD filed technical reports as exhibits: a Westwood NI 43-101 report on its resource and reserve estimate as of December 31, 2012 (signed October 16, 2013), plus listed reports on updated rare earth resources at Niobec and an update on the Niobec expansion (December 2013). The visible text covers only signatures, certificates and the table of contents, with no new figures; the Westwood report supports the 348,000 oz reserve already reported for year-end 2012. The Niobec expansion report's contents are not shown, so any change to the Q3 2013 feasibility timeline is unknown.
IAMGOLD filed the full NI 43-101 technical report (dated June 30, 2013, by Roscoe Postle Associates) supporting the Boto resource announced July 29, with the same figures: indicated 21,960k tonnes at 1.62 g/t for 1,142k oz and inferred 1,861k tonnes at 1.35 g/t for 81k oz, from 423 holes (56,832 m). It notes the zones remain open and describes a three-year US$11.5M exploration program (30,000 m diamond, 10,000 m RC, 9,000 m aircore) that RPA considers reasonable. This is the supporting document, not a new estimate.
IAMGOLD declared the first resource estimate for its 100%-owned Boto project in Senegal: indicated 22 million tonnes at 1.62 g/t for 1.14 million oz, plus inferred 1.9 million tonnes at 1.35 g/t for 81,000 oz, effective April 19, 2013. This delivers the maiden estimate expected in Q2 (it arrived in late July), with much of it from the Malikoundi zone found in 2012. Next steps stated are resuming drilling after the rainy season and commissioning a scoping study in 2014; this is a resource, not a reserve, and no development decision is announced.
IAMGOLD reported results from 29 more diamond holes (7,325 m, Nov 2012 to Apr 2013) at its 100%-owned Boto project in Senegal, with intercepts such as 42 m at 2.16 g/t and 34 m at 2.20 g/t at Boto 2, and 29 m at 2.08 g/t at Boto 4. The company says they confirm earlier results and extend the zones. A first NI 43-101 resource estimate by RPA is in progress and is expected in the second quarter of 2013; about 11,000 m of drilling is planned for 2013, stopping when the rainy season starts. This continues the Boto thread; no resource has been declared yet.
IAMGOLD filed the NI 43-101 technical report (dated March 18, 2013) on the 2012 diamond drilling program for rare earth elements at the Niobec mine, the zone whose resource was first reported in the February 2013 year-end statement. The visible text is only the title page, consent, and table of contents (it lists the REE resource estimate, 2012 holes 029-061, and recommendations); no resource figures or conclusions appear in the portion provided. It is the supporting document for the earlier REE resource, not a new estimate.
IAMGOLD's year-end 2012 statement shows attributable gold reserves of 11.3M oz (13.3M oz a year earlier; down 2% excluding the 1.7M oz Quimsacocha sold in 2012), with Rosebel's reserves held at December 2011 levels net of depletion pending its feasibility study. Measured and indicated resources rose 24% to 22.6M oz, mainly from Côté Gold, and Westwood now has a declared reserve of 348,000 oz. Niobium probable reserves are about 1.8bn kg, and the rare earth zone near Niobec now has indicated resources of 531M tonnes at 1.64% TREO plus inferred 527M tonnes at 1.83% TREO. The CEO links the new Rosebel agreement to further exploration there.
IAMGOLD updated the Côté Gold resource (100% basis, 92.5% owned): indicated 269M tonnes at 0.88 g/t for 7.61M oz and inferred 44M tonnes at 0.74 g/t for 1.04M oz, based on 85 more holes since the October 4 estimate (indicated up 114%). It also reported 2012 attributable gold production of 830,000 oz, slightly below the 840,000-910,000 oz guidance range, which it attributes primarily to underperforming joint ventures. For 2013 it guides 875,000-950,000 oz at total cash costs of $850-925/oz (up from about $670-695 expected for 2012) and niobium of 4.7-5.1M kg. Côté Gold construction is now planned to start the year after development studies and permitting finish in 2014, with start-up expected in 2017. The CEO says the Sadiola underperformance has led the company to re-assess its joint venture strategy. Exploration in Mali is reduced as a precaution, though production there is undisrupted. This continues the Côté Gold resource thread and brings higher costs and a lower-than-guided 2012 output.
IAMGOLD reported assay results from 44 drill holes (Dec 2011 to July 2012) at its 100%-owned Boto project in Senegal, with intercepts such as 58 m at 2.58 g/t and 74 m at 1.80 g/t at Boto 2. The company says results show good grades and confirm continuity at several zones along a 4 km trend; geological modeling to assess resource potential is under way. Drilling resumes in mid-November, aimed at infill to support a resource estimate. This builds on the earlier note that continuity was not shown at the Guemedji trend, but no resource has been declared.
IAMGOLD filed the full NI 43-101 technical report, dated October 24, 2012 and prepared by Roscoe Postle Associates, supporting the October 4 Côté Gold resource estimate. The visible text covers the table of contents and the introduction, which restates the Trelawney acquisition and the February 2012 resource; no new figures appear in the portion provided. This is the supporting document promised in the October 4 release, not a new estimate.
IAMGOLD reported an updated Côté Gold resource (100% basis; IAMGOLD holds 92.5%): indicated 131M tonnes at 0.84 g/t for 3.56M oz, and inferred 165M tonnes at 0.88 g/t for 4.66M oz, based on 79 more drill holes. Indicated ounces are up 274% from Trelawney's February 2012 figure (0.93M oz), and indicated is now over 44% of the resource versus 14%. Inferred ounces fell from 5.94M to 4.66M, largely as drilling converted them to indicated. This resolves the October resource update planned after the June acquisition. The company says a pre-feasibility study should start in Q4 2012 and finish in the second half of 2013, and a further update with data to Oct 1 is due with the year-end statement.
IAMGOLD reported assay results from 24 more drill holes at Côté Gold (the former Côté Lake project), with wide intervals of low-to-moderate grade gold, for example 454 m at 1.46 g/t uncut (0.91 g/t cut) in hole E12-205. Since the February 2012 estimate, 189 more holes have been drilled, and 12 rigs are running toward a 70,000-85,000 m program by year end. A revised resource estimate is planned for October and a pre-feasibility study is expected to start in Q4 2012. These are drill results, not new resources; the company states it is working to upgrade a significant portion of the inferred resources to indicated. IAMGOLD holds a 92.5% interest in the deposit through the Trelawney acquisition. Craig MacDougall is named as Senior Vice President, Exploration.
IAMGOLD filed the technical report for its Westwood project in Quebec, which confirms the February 23, 2012 development study except for a small grade change at Warrenmac (8.6 to 8.5 g/t). Start-up remains targeted for early 2013, with 2013 output forecast at 120,000-140,000 oz. The study shows pre-production capital of $518M (of which $198M remains for 2012), life-of-mine cash costs of $533/oz (higher than previously forecast, which the company attributes to a change in mining method, labour inflation, exchange rates and input costs) and an after-tax IRR of 9-11%. The report says the indicated resources (about 308,000 oz) are too small for the studies to count as feasibility or pre-feasibility level, and most of the mine plan relies on inferred resources (3.4M oz). This continues the Westwood completion thread; the Mouska mine is expected to wind down in 2014.
IAMGOLD's 2011 year-end statement shows gold reserves from continuing operations of 13.3M oz, down 0.74M oz (5%) net of depletion, mainly from Essakane (-0.54M oz) and Rosebel (-0.16M oz). Including the sold Tarkwa, Damang and Mupane mines, total reserves fell 3.1M oz. Measured and indicated resources are 18.2M oz and inferred 5.8M oz. For Niobec, the pre-feasibility study chose block caving and niobium probable reserves rose 616% to 1.7 billion kg of contained Nb2O5; a 34,000 m underground drill program is planned for 2012. The rare earth inferred resource (466.8Mt at 1.65% TREO) from the Feb 2 release is restated. This answers the open question on the Niobec pre-feasibility study, and the year-end resource update for Essakane.
IAMGOLD declared a first rare earth inferred resource of 466.8M tonnes at 1.65% total rare earth oxides next to Niobec, from 13,798 m of drilling in 29 holes, calculated by an independent consultant. The resource is only inferred, the recovery assumed for now is 53.5%, and a scoping study is still to come. The company plans to look at joint ventures or strategic alliances to develop it, without affecting its gold business, and a 2,750 m follow-up drill program began in January. This resolves the 2011 drilling thread into a resource estimate and opens a development question.
IAMGOLD updated its rare earth drilling next to Niobec in Quebec: over 7,000 m drilled by end of August 2011 in the rare earth zone, with the first four holes confirming historical grades (e.g. 2.097% total rare earth oxides over 232.8 m in one hole). Early testwork recovered 58-70% in a bulk concentrate, and 18 more holes await assays. This follows the REE testwork flagged in May. It is early-stage exploration, and the CEO says the next task is to assess whether and how it could be mined and processed.
IAMGOLD says it is on track with a $97M 2011 exploration program of more than 500,000 m of drilling, and reports new results near Essakane (Gossey-Korizena trend), at Koemboe near Rosebel and elsewhere. The release says Gossey-Korizena shows promise but its oxide potential is limited by shallow weathering. At Kalana, IAMGOLD must deliver a resource of at least 2 million oz as a precondition to vesting, with an estimate targeted for Q3 2012. The Charmagne project is now referred to as the Overman deposit. This continues the earlier exploration threads and these are exploration results, not resources.
IAMGOLD announced it filed the Niobec technical report, repeating the May results (691% rise in measured and indicated resources, up to $2.0 billion after-tax value). New: the company plans in the near term to sell 10-20% of Niobec to raise part of the expansion capital, aiming to fund the expansion without using gold-business cash flow. The pre-feasibility study is planned for completion by end of 2011. This turns the May talk of 'monetizing' into a stated plan, with no buyer or price given.
IAMGOLD filed the full technical report (dated June 17, 2011, by Roscoe Postle Associates) behind the May 2011 Niobec study. It repeats the headline results: 458.11 million tonnes of measured and indicated resource at 0.42% niobium pentoxide, a 42-year mine life in the open pit case, and ore throughput rising from 2.2 to 10 million tonnes a year. The report says open pit mining is technically feasible and economically viable at this early level and should advance to pre-feasibility, and it flags niobium price and waste rock dump locations as key risks. It adds no new results; it is the formal filing of what was announced in May.
An independent preliminary study on the wholly-owned Niobec niobium mine in Quebec shows measured and indicated resources up 691% to 1.93 billion kg of contained niobium pentoxide (from 243.8 million kg at end 2010). It examines switching to open pit or block caving to raise output to 13-15 million kg a year (roughly triple current levels), with after-tax asset value of $1.6-2.0 billion and estimated capital of $1.4 billion. The study is preliminary, partly based on inferred resources, and is to be followed by a pre-feasibility study in 2011. The CEO says the company has been exploring opportunities to monetize the asset, but no deal is stated.
IAMGOLD set a record 2011 greenfields exploration budget of $43.5M (about 118,000 m of drilling, plus 46,425 m of aircore at Essakane), after an estimated $37.6M in 2010. Kalana (Mali) has a remedial re-assay program, begun in October after sample preparation irregularities, about 50% complete and now due in February; the company says it is confident it will support its view of the potential. At Siribaya, C$6.8M of the C$10.5M earn-in had been spent by end 2010. The Eagle Mountain project in Guyana is subject to a September 2010 earn-in with Stronghold Metals (option to buy 100% for $11M plus 6M Stronghold shares). The filing is truncated.
IAMGOLD has launched a full feasibility study on expanding Essakane, based on positive drilling and a completed conceptual study, due Q3 2011. If it works out, the plan is to double hard-rock mill capacity to about 10.8M tonnes a year and lift output from the current 315,000 oz/yr life-of-mine average to 450,000-470,000 oz/yr. It has committed $14M, and construction could start as early as Q4 2011. This is a new growth thread that builds on the Essakane start-up and is not yet a decision to build.
IAMGOLD filed an updated technical report on the Rosebel mine in Suriname (dated March 29, 2010), prepared by a Rosebel company geologist. It states IAMGOLD holds an indirect 95% interest, that reserves use a US$850/oz gold price and resources US$1,000/oz, and that more than 80,000 m of drilling is planned for 2010. It notes the block models have consistently underestimated production grade and tonnage, and recommends improving laboratory performance. The reserve and resource numbers are in the truncated part of the filing, so the year-end increase expected in the October 2009 update is not confirmed here.
