Iamgold proceeds with $1.3bn Ontario JV gold mine – by Mariaan Webb (MiningWeekly.com – July 21, 2020)


Gold miner Iamgold on Tuesday announced a construction decision for the $1.3-billion Côté gold project, in Ontario, Canada, creating more than 1 000 jobs during its construction.

The project, near Gogama, south-west of Timmins, is a 70:30 joint venture with Sumitomo Metal Mining.

The decision enables construction to start in the third quarter, with activities ramping up into the fourth quarter. The current timeline is to enter into commercial production in the second half of 2023.

“The Côté gold project is transformational to the future of Iamgold. At a gold price of $1 700, Côté’s expected net present value is over $2-billion, with a 22.4% internal rate of return,” president and CEO Gordon Stothart said in a statement.

Iamgold’s expected go-forward capital obligation, exclusive of sunk costs, is $875-million to $925-million for its 70% share of project construction costs, assuming the leasing of major mining equipment of about $80-million.

For the rest of this article: https://www.miningweekly.com/article/iamgold-proceeds-with-13bn-ontario-jv-gold-mine-2020-07-21

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