Canadian bullion producer IAMGOLD Corp. (TSX IMG), (NYSE: IAG) said on Wednesday it was confident about the potential of its Quebec-based Rouyn gold project, which it optioned from Yorbeau Resources (TSX:YRB) in December.
Additional drill results from the 2019 winter program at the asset, located about 40km southwest from IAMGOLD’s operating Westwood mine and mill, aims at determining whether mineral resources along the targeted Cadillac Break may be developed into satellite deposits for the company’s nearby operation.
The Toronto-based miner reported assay results from 21 diamond drill holes totalling 6,181 meters, after previously reporting for 10 holes totalling 2,257 meters.
The new outcomes included one hole of 10.9 meters grading 6.6 grams per tonne of gold, another with 29.7 meters grading 9 g/t, another of 12.8 meters grading 3.7 g/t, and yet another with 3.3 meters grading 9 g/t.
“Once the remaining assay results are in hand, the exploration team will work to develop a preliminary deposit model to support a future initial resource estimate,” said Craig MacDougall, senior vice president, exploration.
In December, the company inked a deal with Yorbeau Resource, which gave it an option to buy the Rouyn project.
As part of the agreement, IAMGOLD committed to spend up to C$9 million on exploration over four years, making incremental cash payments totalling C$4 million. The company will then pay a final C$30 million within two years of posting a new resource estimate at the end of the initial four-year option period (or pay C$15 per resource ounce, whichever is the lesser amount).
The miner also agreed to pay a 2% net smelter royalty on any production from Rouyn, 40km from its operating Westwood mine and mill.
IAMGOLD must complete 20,000m of diamond drilling as part of its commitment to earn 100% of the Yorbeau property.
The company, which has four operating mines, froze in January construction of its Côté gold project in Ontario. It added it would wait for improved market conditions before going ahead with the $1.1bn investment.