Iamgold Announces Updated Resource Estimate at Nelligan – Growing Resources BY 63% with 2.0 Million GOLD Ounces IN Indicated Resources and 3.2 Million GOLD Ounces IN Inferred Resources
TSX:
IMG
NYSE:
IAG
NEWS RELEASE
IAMGOLD ANNOUNCES UPDATED RESOURCE ESTIMATE AT NELLIGAN
–
GROWING RESOURCES BY 63% WITH
2.0 MILLION GOLD OUNCES IN INDICATED RESOURCES AND
3.2 MILLION GOLD OUNCES IN INFERRED RESOURCES
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto,
Ontario,
January
12,
2023
–
IAMGOLD
Corporation
(TSX:IMG,
NYSE:IAG)
(“IAMGOLD”
or
the
“Company”)
is pleased to announce an updated Mineral Resource Estimate (“MRE”) for the Nelligan Joint Venture
Project
(“Nelligan”)
(IAMGOLD:
75%,
Vanstar
Mining
Resources
Inc.
(“Vanstar”):
25%),
located
60
kilometres
southwest of Chibougamau, Quebec, Canada.
Highlights:
•
Nelligan Joint Venture Project updated
MRE
comprises
(on a 100% basis using a US$1,500 per ounce
gold price)
:
o
72.2 million tonnes of Indicated Mineral Resources averaging 0.85 grams of gold per tonne
for 1.97 million ounces of gold
o
114.1 million
tonnes of Inferred Mineral Resources averaging 0.88 grams of gold per tonne
for 3.24 million ounces of gold
•
Mineral Resources have increased by 92% in
tonnage,
with a
15%
decline
in
gold
grades,
for an
overall gain of 63% in metal content
–
relative to the 2019 Mineral Resource
estimate
•
Additional infill drilling completed from 2020 to 2022 and refinement of the deposit and structural
models contributed to the conversion of 62% of Inferred Mineral Resources to an Indicated Mineral
Resource category relative to the 2019 Mineral Resource
estimate
•
Potential highlighted for further resource expansion
The estimate was completed in accordance with the Canadian Institute of Mining, Metallurgy and Petro
leum (“CIM”)
Definition Standards incorporated by reference in National Instrument 43-101
–
Standards of Disclosure for Mineral
Projects (“NI 43
-
101”).
Craig MacDougall, Executive Vice President, Growth for IAMGOLD, stated: "We are very pleased to see that our
drilling programs have confirmed the anticipated expansion potential at Nelligan resulting in a significant increase of
Mineral Resources within a wide and persistent mineralized system. This Mineral Resource estimation has not only
resulted in a significant increase in resources, but also resulted in upgrading nearly 2 million ounces from Inferred
to an Indicated resource classification. Potential for further resource expansion appears favourable, noting that the
deposit has areas within the resource pit shell, along strike and at depth that remain open for further drilling. Our
exploration efforts continue to highlight the significance of this pure grass-root discovery.
”
“I also want to commend the exploration team which has conducted the recent dr
illing programs safely and through
challenging times with the wide ranging impacts of the COVID-19 pandemic, including costs increases and service
availability across our industry. We also thank all of our service providers who have worked with us to contribute to
the success of this project,” added Mr. MacDougall.
Since 2020, IAMGOLD has drilled 53 additional holes (for 22,045
metres) to expand the resource base particularly
to
the
west
and
at
depth.
As
at
December
31,
2021,
IAMGOLD
had
previously
reported
Mineral
Resources
at
Nelligan (on a 100% basis) comprised of Inferred Mineral Resources of 97.0 million tonnes grading 1.02 g/t Au for
3.2 million contained ounces (see news releases dated October 22, 2019 and February 23, 2022). Relative to the
Page | 2 of 6
2019 MRE, the current estimated Mineral Resources have increased by 92% in tonnage, with a 15% decline in gold
grades due to a reduction in the calculated cut -off grade from 0.50 g/t Au to 0.35 g/t Au, for an overall gain of 63%
in contained gold.
MINERAL RESOURCE STATEMENT – NELLIGAN PROJECT, CANADA
As at December 31st, 2022 (100% Basis)
Category Cut-off Grade
(g/t Au)
Tonnage
(Mt)
Grade
(g/t Au)
Contained Au
(koz Au)
Indicated 0.35 72.2 0.85 1 970
Inferred 0.35 114.1 0.88 3 238
Notes:
1. 2014 CIM definitions were followed for classification of Mineral Resources.
2. Mineral resources are estimated at a cut-off grade of 0.35 g/t Au.
3. Mineral Resources are reported using a gold price of US$1,500 per ounce and a US$ : C$ exchange rate of 1:1.2.
4. Mineral Resources are constrained by a Datamine Studio NPVS Scheduler optimized pit shell using a 0.35 g/t Au cut-off
grade and are considered to have reasonable prospects for eventual economic extraction.
5. High grade assay values have been capped from 7 g/t Au to 40 g/t Au in the main mineralized domains of Renard and
Footwall, and from 3 g/t Au to 12 g/t Au in the other domains. The spatial influence of high grade samples within Footwall,
Renard and Liam domains were further controlled using high grade restriction distance parameters within the respective
search ellipsoids.
6. Bulk density values were determined by measurements on core and range from 2.70 to 2.75 g/cm3 for the different domains
and host lithologies, to 2.00 g/cm3 for overburden.
7. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
8. All figures have been rounded to reflect the relative accuracy of the estimates.
The updated MRE for the Nelligan Project used all available validated data, and includes results incorporated into
the resource model from the 2020 to 2022 drilling programs (53 holes for a total of 22,045 metres drilled), as well as
an additional 24 historic drill holes previously located outsid e mineralized domains, for a total of 84, 490 metres in
267 diamond drill holes. Drill holes are variably spaced from 35 to 100 metres apart in the core resource area. The
deposit was modelled using Leapfrog to create domains using lithology, structure and alteration type (or
assemblage) and intensity, with gold grade continuity analysis of each domain. The mineralized domain model
comprises five (5) main gold -bearing domains (Renard Footwall, Renard, Z36, Liam and Dan) cut by a northeast -
striking post-mineralization fault which locally cuts and offsets several domains.
The estimate was prepared using a block model approach (10.0 x 5.0 x 5.0 metres block dimensions) employing
Ordinary Kriging (OK) interpolation constrained by 3D wireframes using hard domain b oundaries during
estimation. A Datamine Studio NPVS Scheduler Mine Planning Software was run on the block model to constrain
the resource and to support the CIM requirement that Mineral Resources have “reasonable prospects for eventual
economic extraction”. Pit slopes in rock were assumed at 45° and at 18.4° in overburden and the resource estimate
assumes a long -term gold price of US$1,500 per ounce. Gold recoveries are assumed at 83% as indicated by
metallurgical test work completed to date. Only mineraliz ation contained within the optimized pit shell has been
included in the resource estimate. The resource estimate was completed by SRK Consulting (Canada) Ltd. (“SRK”)
with an effective date of December 31st, 2022 and is reported at a 0.35 g/t Au cut-off grade.
IAMGOLD will file an updated NI 43-101 technical report for the updated Mineral Resources estimation for Nelligan
on SEDAR at www.sedar.com within 45 days of the date of this news release.
Page |
3
of
6
Category
Cut
-
off Grade
(g/t Au)
Tonnage
(Mt)
Grade
(g/t Au)
Contained Au
(koz Au)
Indicated
0.15
103.4
0.67
2 225
0.25
89.0
0.74
2 132
0.35
72.2
0.85
1 970
0.45
57.8
0.96
1 785
0.50
51.6
1.02
1 691
0.6
0
41.1
1.14
1 507
0.75
29.8
1.32
1 262
1.00
17.8
1.62
928
Inferred
0.15
155.8
0.72
3 585
0.25
137.4
0.78
3 464
0.35
114.1
0.88
3 238
0.45
93.3
0.99
2 972
0.50
84.2
1.05
2 833
0.60
68.6
1.16
2 559
0.75
50.1
1.34
2 158
1.00
29.3
1.68
1 583
Figure 1:
Inclined View of the Nelligan 2022 resource pit shell
showing estimated blocks above 0.35 g/t
with
reference to the 2019 resource pit shell.
The
table
below
displays
the
sensitivity
of
the
mineral
resource
estimate
at
different
cut-off
grades
for
a
pit-
constrained scenario. The reader should be
cautioned that the numbers provided in the table below should not be
interpreted as a mineral resource statement. The reported quantities and grade estimates at different cut-off grades
are presented with the sole purpose of demonstrating the sensitivity
of the resource model to the selection of a
reporting cut-off grade.
NELLIGAN CUT-OFF GRADE SENSITIVITY ANALYSIS ON THE
PIT-CONSTRAINED
INDICATED AND
INFERRED RESOURCES
Page | 4 of 6
The Nelligan Project
The Nelligan Gold Project is held under an earn-in option to joint venture agreement with Vanstar (IAMGOLD: 75%;
Vanstar: 25%) where IAMGOLD has a further option to acquire an additional interest of 5%, to hold an 80% interest
in the Nelligan project by completing and delivering a Feasibility Study. Vanstar would then retain a 20% undivided
non-contributory carried interest until the commencement of commercial production, aft er which: (1) the 20%
undivided interest becomes participating; and (2) Vanstar will pay its attributable portion of the total development
and construction costs to the commencement of commercial production from 80% of its share of any ongoing
distributions from the Joint Venture. Vanstar will also retain a 1% NSR royalty on selected claims of the project.
Next Steps
The resource estimation process has identified a number of areas with potential for resource expansion along strike,
at depth and in areas whe re drill hole spacing remains too wide to classify resources at this time. These areas will
be assessed to guide future resource delineation drilling programs.
Planning is well advanced for the 2023 exploration program and IAMGOLD will soon initiate its di amond drilling
program of approximately 10,000 metres. The objectives of the drilling program include: testing for extensions to
expand the known resources in specific areas; infill drilling to continue to convert Inferred Resource to the Indicated
category; and evaluation of newly defined exploration targets. Regional exploration activities and future exploration
programs continue to be guided by the Nelligan Resource geological model and the incorporation and compilation
of exploration data to refine geological, geochemical and structural exploration models to help identify and prioritize
additional targets within the large project land package.
Additional metallurgical testing is also planned to further evaluate recoveries across a range of ore domains an d
grades to help identify optimal metallurgical processing options.
Qualified Persons, Technical Information and Quality Control Notes
The mineral resource estimate, including verification of the data disclosed, has been completed by SRK Consulting
(Canada) Inc. and has been prepared in accordance with NI 43 -101 and CIM Estimation Best Practice Guidelines.
The resource estimate was prepared by Sandeep Prakash, M. Sc., P. Geo., who is a Senior Consultant, Resource
Geology with SRK, under the supervision of Oy Leuangthong, PhD, P.Eng., Corporate Consultant, Geostatistics
with SRK. Mr. Prakash and Dr. Leuangthong are independent “qualified person”, as defined by NI 43-101 (a “QP”),
and both have reviewed and approved the contents of this news release.
The QPs responsible for the supervision of the supporting drilling programs, data validation and verification
(including sampling, analytical and test data), deposit modelling and review of the technical information in this news
release are Maxime Douëllou, P. Geo, Consultant Geologist and Shana Dickenson, P. Geo, Senior Geologist both
attached to the IAMGOLD Val-d’Or Regional Exploration Office, Québec. Each of Mr. Douëllou and Mrs. Dickenson
is a QP for the purposes of NI 43-101 with respect to the technical information being reported on in this news release.
The technical information has been included herein with the consent and prior review of the above noted QPs.
The information in this news release was also reviewed and approved by Marie -France Bugnon, P.Geo., General
Manager Exploration for IAMGOLD, who is also a QP.
The sampling of, and assay data from, the drill core is monitored through the implementation of a quality assurance
- quality control (QA -QC) program designed to follow industry best practice. Drill core (NQ size) is logged and
samples are selected by the IAMGOLD geologists and sawn in half with a diamond saw at the project site. Half of
the core is retained at the site for reference purposes. Sample intervals may vary from 0.5 to 1.5 metres in length
depending on the geological observations. Half-core samples are packaged and transported in sealed bags to ALS
Minerals Laboratory ( “ALS”) located in Val -d’Or, Québec. A formal chain -of-custody procedure was adopted for
security of samples until their delivery at the laboratory. Samples are coarse crushed to a -10 mesh and then a 1,000
gram split is pulverized to 95% passing -150 mesh. ALS processes analytical pulps directly at their facilities located
in Val-d’Or which is ISO / IEC 17025 certified by the Standards Council of Canada. Samples are analyzed using a
Page | 5 of 6
standard fire assay with a 50 gram charge with an Atomic Absorption (AA) fi nish. For samples that return assay
values over 5.0 grams per tonne, another pulp is taken and fire assayed with a gravimetric finish. Core samples
showing visible gold or samples which have returned values greater than 10.0 grams per tonne are re -analyzed by
pulp metallic analysis. IAMGOLD inserts blanks and certified reference standards in the sample sequence for quality
control. In accordance with our QA -QC program, additional check analyses are also re -assayed at a secondary
(umpire) laboratory.
About IAMGOLD
IAMGOLD is a n intermediate gold producer and developer based in Canada with three operating mines in North
America, South America and West Africa. The Company is building the large -scale, long life Côté Gold project in
Canada in partnership with Sumitomo Metals & Mining of Japan, which is expected to commence production in early
2024. IAMGOLD employs approximately 5,000 people and is committed to maintaining its culture of accountable
mining through high standards of Environmental, Social and Governa nce ("ESG") practices, including its
commitment to Zero Harm®, in every aspect of its business. IAMGOLD is listed on the New York Stock Exchange
(NYSE:IAG) and the Toronto Stock Exchange (TSX:IMG) and is one of the companies on the Jantzi Social Index
(“JSI”), a socially screened market capitalization -weighted consisting of companies which pass a set of broadly
based environmental, social and governance rating criteria.
IAMGOLD Contact Information
Graeme Jennings, Vice President, Investor Relations
Tel: 416 360 4743 | Mobile: 416 388 6883
Toll-free: 1 888 464 9999
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING DISCLOSURE OF MINERAL RESOURCE ESTIMATES
The mineral resource estimates contained in this news release have been prepared in accordance with NI 43 -101. These
standards are similar to those used by the United States Securities and Exchange Commission (the “SEC”) Industry Guide No. 7,
as interpreted by the SEC staff. However, the definitions in NI 43 -101 differ in certain respects from those under Industry Guide
No. 7. Accordingly, mineral resource information contained in this news release may not be comparable to similar information
disclosed by United States companies.
As a result of the adoption of amendments to the SEC’s disclosure rules (the “SEC Modernization Rules”) , which more closely
align its disclosure requirements and policies for mining properties with current industry and global regul atory practices and
standards, including NI 43 -101, and which became effective on February 25, 2019, the SEC now recognizes estimates of
"measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources." In addition, the SEC has
amended definitions of "proven Mineral Reserves" and "probable Mineral Reserves" in its amended rules, with definitions that are
substantially similar to those used in NI 43 -101. Issuers must begin to comply with these SEC Modernization Rules in their firs t
fiscal year beginning on or after January 1, 2021, though Canadian issuers that report in the United States using the
Multijurisdictional Disclosure System ("MJDS") may still use NI 43-101 rather than the SEC Modernization Rules when using the
SEC's MJDS registration statement and annual report forms.
United States investors are cautioned that while the SEC now recognizes "measured Mineral Resources", "Indicated Mineral
Resources" and "Inferred Mineral Resources", investors should not assume that any part or all of the mineral deposits in these
categories will ever be converted into a higher category of Mineral Resources or into Mineral Reserves. These terms have a great
amount of uncertainty as to their economic and legal feasibility. Under Canadian regul ations, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances. Investors are cautioned
not to assume that any "measured Mineral Resources", "Indicated Mineral Resources", o r "Inferred Mineral Resources" that the
Company reports in this news release are or will be economically or legally mineable.
Page | 6 of 6
Further, "Inferred Mineral Resources" have a great amount of uncertainty as to their existence and as to their economic and legal
feasibility. It cannot be assumed that any part or all of an Inferred mineral resource will ever be upgraded to a higher category.
The mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages
and grades will be achieved or that the Indicated level of recovery will be realized.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events
or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements.
Forward-looking statements are generally identifiable by, but not limited to, the use of the words “may”, “will”, “should”, “would”,
“continue”, “expect”, “expected”, “budget”, “forecast”, “anticipate”, “estimate”, “believe”, “intend”, “appear” “plan”, “sche dule”,
“guidance”, “outlook”, “potential”, “favourable”, “plans”, “targeted”, or “project” or th e negative of these words or other variations
on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many
of which are beyond the Company's ability to control or predict, that may cause the actual results to differ materially from those
discussed in the forward -looking statements. Factors that could cause actual results or events to differ materially from current
expectations include, among other things, without limitation, differences in the mineral content within the material identified as
Mineral Resources or Mineral Reserves from that predicted, the failure to accurately estimate Mineral Resources or Mineral
Reserves, unexpected increases in capital expenditures, operating expenditures and exploration expenditures, changes in
development or mining plans due to changes in logistical, technical or other factors, the possibility that future exploration results
will not be consistent with the Company's expectations, changes in world gold market s and other risks disclosed in IAMGOLD's
most recent Form 40 -F/ Annual Information Form on file with the United States Securities and Exchange Commission at
https://www.sec.gov/edgar.shtml and Canadian securities regulatory authorities at www.sedar.com, wh ich are incorporated
herein. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any forward-looking statement. The Company disclaims
any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events
or otherwise except as required by applicable law.
All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le www.iamgold.com/French/accueil/default.aspx.