TSX-listed Iamgold has been granted a mining permit for the Boto gold project, in Senegal.
The mining permit is valid for an initial 20-year period and positions the project for a development decision and eventual production.
Work was under way to obtain approvals for the next steps, supporting either a decision to proceed to full construction or further derisk prior to construction approval, COO and president Gord Stothart commented in a statement on Monday.
Boto is one of Iamgold's most advanced growth projects, being able to produce an average 160 000 oz/y of gold during the first six years of operation. The mine can produce 130 000 oz/y for the remainder of the 11-year mine life, at an all-in sustaining cost of $842/oz.
Boto has an after-tax net present value of $219-million, assuming a gold price of $1 350/oz. The project contains 469 000 inferred gold ounces at a grade of 1.78 g/t gold.
"The Boto project generates impressive returns and margins, and we are pleased to now have the exploitation permit. We thank the government of Senegal for their ongoing support of this project," said Stothart.
Situated in the highly prospective Boto-Karita-Diakha gold district, Boto is well positioned to benefit from further discoveries.