Iamgold to apply for Senegal mining concession

23rd October 2018 By: Mariaan Webb - Creamer Media Senior Researcher and Deputy Editor Online

The outcome of the feasibility study for the Boto gold project is a significant improvement on the results outlined in the prefeasibility study (PFS) and will be used to support an application for a mining concession before the end of the year, Canadian gold miner Iamgold reported on Monday.

The study outlines a “robust” project, which will produce 140 000 oz/y, on average, for nearly 13 years, at a life-of-mine cash cost of $714/oz and all-in sustaining costs of $753/oz.

Iamgold president and CEO Steve Letwin said that although a final investment decision on the $254-million Boto project was yet to be made, the asset represented a “high-value project” that would add to the group’s growth profile.

The feasibility study, jointly completed by Iamgold and Lycopodium Minerals Canada, calculated an after-tax internal rate of return of 23%, with a payback period of 3.4 years. The net present value, at a 6% discount rate, is $261-million, using a gold price of $1 250/oz.

“Boto Gold has evolved from a grass roots exploration discovery to a robust development project with nearly two-million ounces in reserves. I congratulate the team for their success in improving the project economics by as much as they have,” Letwin said in a news release.

Compared with the February 2018 PFS, the proven and probable reserves have increased by 0.51-million ounces to 1.93-million ounces, grading 1.71% gold.

Iamgold would use the feasibility study to support an application for a mining concession in the fourth quarter with approval expected in the first half of 2019.