 TORONTO (miningweekly.com) – Canada's Iamgold will look at buying assets with production or potential for at least 150 000 oz/y of gold and which would have a neutral or positive effect on the group's cost profile, CEO Joe Conway said on Tuesday.
The company is targeting a “significant” increase in output, through both organic and acquisitive growth, he said at the Denver Gold Forum, under way this week. The presentation was broadcast over the Internet.
The focus for the company will remain in its three priority regions – West Africa, the Guyana Shield and Quebec, and on advanced-stage exploration assets, Conway said.
The company will continue to add advanced-stage exploration assets, particularly ones that would add production beyond 2013.
Iamgold bought the Essakane project, in Burkina Faso, earlier this year when it acquired Canadian junior Orezone Resources, and has since accelerated production plans for the mine, with the start-up now scheduled for mid-2010.
Essakane is now expected to produce 135 000 oz in 2010, ramping up to an average of 315 000 oz/y over about a ten-year life-of-mine.
Based on its existing project pipeline, Iamgold believes it can ramp up output to around 1,4-million ounces by 2013, compared with a forecast of between 910 000 oz and 920 000 oz for this year, Conway said.
“And we also think there are opportunities, from an organic perspective, to grow even more.”
The company will look at even more expansions at its flagship Rosebel mine, in Suriname, as well as extending the mine life at the Sadiola operation, in Mali, among other things.
Once Essakane is up and running, the company hopes to start up its Quimsacocha project, in Ecuador, in 2012, followed by the Westwood mine, in Quebec, the following year.
Development of Quimsacocha has been delayed while the Ecuadorian government revised its mining and exploration policies, during which time activity in the country was halted.
Ecuador passed a new mining law in January, replacing the mandate that ordered a suspension of all mining and exploration work last year, and then in May issued new transitional regulations to expedite the resumption of mining activities.
Although Iamgold has been assured that the final go-ahead it requires will be issued soon, the firm is still waiting.
“We had thought that around the July/August period we would be ready to go,” Conway said.
“At the high level, at the presidential level, there is definitely a commitment for mining to go forward.”
However, because Ecuador does not have a history of mining, there are gaps in the bureaucracy and administrative structures, which can hamstring the permitting process.
“We continue to hear that in the next several weeks it will happen,” Conway said.
Once the permit is received, the company is confident it can complete a feasibility study within 12 months.
Iamgold shares rose 5% on Tuesday, to C$16,18 apiece by 12:16 in Toronto.
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