Iamgold exercises Nelligan gold project option
Gold miner Iamgold has exercised its option to increase its interest in the Nelligan joint venture project by a further 24% to now hold an aggregate undivided interest of 75% in the property south-west of Chibougamau, Quebec.
Under the terms of the option agreement between Iamgold and Vanstar Mining Resources, the company exercised its option to increase its ownership interest in the property from 51% to 75% by completing a mineral resource estimate and making the remaining cash payments of C$2.35-million.
The project hosts pit-constrained inferred resources of 96.99-million tonnes averaging 1.02 g/t for 3.19-million ounces of contained gold.
The exercise of the option to increase Iamgold’s ownership consolidates Iamgold’s ownership in the new discovery, commented senior VP for exploration, Craig MacDougall.
With its current 75% interest, Iamgold retains a further option to acquire an additional interest of 5%, to hold an 80% interest in the project by completing and delivering a feasibility study.
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