Iamgold Provides Côté GOLD Third Quarter Progress Report and Announces Updated Technical Report Reconfirming Robust, Tier 1, Long-Life Project
NEWS RELEASE
TSX: IMG NYSE: IAG
IAMGOLD PROVIDES CÔTÉ GOLD THIRD QUARTER PROGRESS REPORT AND
ANNOUNCES UPDATED TECHNICAL REPORT RECONFIRMING
ROBUST, TIER 1, LONG-LIFE PROJECT
All amounts are in US dollars at a USDCAD exchange rate of 1.30, unless otherwise indicated
THIRD QUARTER PROJECT UPDATE HIGHLIGHTS:
Project completion at 36% and remains on track for H2 2023 commercial production
Detailed engineering 85% complete
Fish relocation program for 2021 completed
Permanent camp installation 95% complete
Processing plant building steel pre-assembly started and installation initiated in mid-October
Majority of mine heavy mobile equipment orders placed
UPDATED TECHNICAL REPORT HIGHLIGHTS (100% PROJECT BASIS):
After-tax NPV5% of $1,597 million, 19% IRR and payback period of 3.7 years at US$1,600/oz
gold price (from July 1, 2021)
Annual average production of 489,000 ounces (316,600 ounces attributable) for years 1 to 5
following commercial production and 367,000 ounces (237,600 ounces attributable) life-of-
mine
Mine life of 18 years
Life-of-mine average all-in-sustaining costs of $802/oz
Tier 1 asset in Canada, one of the world’s leading mining jurisdictions
District scale potential with demonstrated exploration upside
Toronto, Ontario, October 18, 2021 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) announces
an update on third quarter 2021 activities at the Côté Gold construction project ("Côté Gold" or the “Project”)
in Northern Ontario, a 70:30 joint venture between IAMGOLD, as the operator, and Sumitomo Metal Mining
Co., Ltd. (“SMM”). In addition, the Company is reporting results to be incorporated in a new technical report
titled “Technical Report on the Côté Gold Project, Ontario, Canada” (the “2021 Technical Report”) prepared
by SLR Consulting (Canada) Ltd. (“SLR ”) in accordance with National Instrument 43 -101 – Standards of
Disclosure for Mineral Projects (“NI 43-101”), which reconfirms Côté Gold as a robust, long life project.
Gordon Stothart, President and CEO of the Company , stated: “The current reported results, to be
incorporated in the 2021 Technical Report, confirm Côté Gold as a long-life, low-cost, tier 1 asset that, over
the first full five years of production, is expected to deliver an average of 316,600 ounces of gold to IAMGOLD
annually. The development of Côté Gold and its addition to our portfolio as our flagship mine is key to helping
transform the Company into a low er cost producer with a diverse asset ba se in established mining
jurisdictions.”
“Commissioning and commercial production is now less than two years away as we realized continued
momentum in our construction activities during the third quarter. The Gosselin initial mineral resources
estimate of 3.35 million ounces of gold in indicated resources and an additional 1.71 million ounces of gold
in inferred resources announced today further demonstrates the district scale potential of Côté Gold and the
opportunity to further enhance the Project’s value through continued exploration. Our goal is to establish
Côté Gold as a model for Canadian mining and we couldn’t achieve this without the support of our local
communities, First Nations stakeholders, SMM, our Project partner, our employees and all those working on
the Project.”
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Third Quarter Project Update
Project Activities
As of September 30, 2021, detailed eng ineering reached approximately 85% and overall the Project was
approximately 36% complete. The following provides an update on Project activities for the third quarter of
2021:
Health and safety continue to be a key focus. The Project s urpassed 2.9 million hours and 1,100 days
with no lost time injuries since October 2018. Our monitoring programs identified a small number of
COVID-19 case s in the quarter resulting in certain additional constraints on site circulation and the
continued enhancement of our protocols. To date, the Company has not experienced a material impact
on the construction schedule due to COVID-19 at site.
Earthworks activities continue with several work fronts providing material to progress haul roads
construction, water realignment channels work and construction of dams. Clam Lake Dam #1 is
complete and work on Clam Lake Dam #2, New Lake South Dam and New Lake North Dam is ongoing.
The 2021 fish relocation program, including from Côté Lake and Mollie River, within the footprint of the
open pit and critical for mine sequencing, is complete. Preparations for winter have started. Tailings
management facility water management infrastructure including coffer dams and pumping stations are
currently being installed. Starter dams foundation excavation is planned to start in the fourth quarter of
2021.
Mining activities on site are proceeding well, with pre-stripping work (open pit drilling, blasting and
crushing activities) in the pit continuing throughout the quarter. M ining activities have already reached
elevation 382, originally targeted to be achieved by year end. The first ore blast was taken in October
2021. Heavy mobile equipment orders for owner mining were placed with Toromont (CAT equipment)
and Epiroc. Negotiation s on autonomous technology agreements with CAT, Toromont and Epiroc are
well advanced.
Processing p lant civil works progressed with the continued placement of pre -cast and cast -in-place
concrete. Most of the structural steel for the processing plant building is on site . Pre-assembly has
started and first steel installation for the plant building shell commenced in mid-October. The freshwater
line and overhead 13.8kV powerline are operational. Hydro One electrical upgrade work continued with
certain infrastructure now switched to grid power . The primar y crusher feeder frames, chutes and
associated supports are now en route to site.
Other Project-related activities continue. Permanent camp commissioning is at 95% and over 800
workers were being accommodated at site at the end of September. The wastewater treatment plant is
now fully operational. Equipment delivery is ongoing and inventory on site is slowly increasing. We
continue to closely monitor global logistics risks and, at this time, are not expecting material impacts on
the Project schedule, although challenges in the global supply chain continue to persist.
Permitting and sustainability work is ongoing with the Company being well advanced on securing the
Environmental Compliance Authorization for operations, the key remaining permit. Follow ups have been
ongoing on the implementation of the IBAs signed with Mattagami, Flying Post and Metis communities.
Health, safety and environment al programs and their respective emergency response plans are in
development.
Operational readiness advanced in multiple areas with a continued focus on organizational design and
hiring strategy, technology selection, standardization of mine, mill and site maintenance processes and
systems, identification of spare parts requirements for critical equipment and procurement strategies for
key consumables, and training plans for autonomous haul trucks. Contractors have been selected for
the onsite assay lab, explosives supply and blasting services as well as for the mobile fleet tire supply
and tire maintenance services.
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Project Expenditures
The Company has expended $71.6 million (at an average recorded USDCAD exchange rate of 1.25) in the
third quarter of 2021 and $264.6 million (at an average recorded USDCAD exchange rate of 1.26) since July
1, 2020, including capital expenditures summarized in the table below and non -capital project costs.
Q3 2021 Q2 2021 YTD 2021 Since July 1, 2020
Capital expenditures1 ($ millions) $ 67.3 $ 84.7 $ 200.4 $ 252.8
1. Capital expenditures prior to July 1, 2020 are not included in the Company’s portion of reported total project costs. The Company
expended $4.3 million and $11.3 million in non-capital costs in the third quarter and first nine months of 2021, respectively. Capital
expenditures include certain offsets including realized derivative gains of $ 4.3 million in the third quarter and $ 11.4 million in the
first nine months of 2021.
The Company's share of estimated remaining total costs to completion from October 1, 2021 onwards is
$860 to $910 million and is estimated to be expended based on the following updated schedule : fourth
quarter of 2021 – approximately $ 150 million; 2022 – approximately $ 590 to $ 620 million; and 2023 –
approximately $120 to $140 million. These amounts are estimated at a USDCAD exchange rate of 1.30 and
take into consideration working capital adjustments. Accordingly, actual reported results may vary.
Schedule and Upcoming Milestones
Construction of the Project commenced in the third quarter of 2020 and major earthworks commenced in
the first quarter of 2021. The Project remains on track for commercial production in th e second half of 2023
with the following remaining key milestones:
• Process building enclosed: Q1 2022
• Start of owner mining: Q3 2022
• Tailings Management Facility Phase 1: Q4 2022
• Permanent power available: Q4 2022
• Commissioning completed: Q3 2023
• Commercial production: H2 2023
No material delays due to COVID -19 pandemic have been experienced to date, and th e schedule going
forward does not account for any potential delays or disruptions caused directly or indirectly by the COVID -
19 pandemic, including potential impacts on timing of activities, productivity or workforce numbers, supply
chain and logistics.
Upcoming key activities include the continuation of earthworks , first ore excavation, concrete works ,
progressing with installation of the processing plant building, initiation of mine facilities construction,
completion of the remaining works for the camp , including the installation of potable water treatment and
demobilization of temporary camp infrastructure, and switching the camp to grid power.
2021 Technical Report
In connection with the announcement on October 18, 2021 of an initial mineral resource estimate for the
Gosselin deposit, located immediately to the northeast of the Côté Gold deposit (the “Gosselin News
Release”), the Company intends to file the 2021 Technical Report, including a description of the Gosselin
deposit mineral resource s estimate, within 45 days of the date of this news release. When filed with
applicable securities regulatory authorities, the 2021 Technical Report will replace the 2018 Technical Report
as the current NI 43-101 technical report on the Project.
Information relating to property description and location, land tenure, existing infrastructure, history, geology
and mineralization, mining method, mineral processing, infrastructure, market studies, environmental,
permitting and social considerations remains materially similar to information provided in respect of these
elements in the technical report titled “Côté Gold Project, Ontario, NI 43-101 Technical Report on Feasibility
Study” effective November 1, 2018 (the “2018 Technical Report”) adjusted as applicable to reflect the current
status of the Project . In addition, c urrent information in respect of exploration status, mineral resources,
mineral reserves, mine plan, capital and operating costs estimates and economic analysis is to be presented
in the 2021 Technical Report.
Optimization of the mine plan since the 2018 Technical Report includes the re -design of mine phases to
target higher grade ore in years 1 to 3, a reduction to two stockpile grade bins ( versus three previously)
simplifying ore stockpile management with no m aterial impact on project economics and utilizing the
autonomous haulage system to directly deliver a large portion of bulk rock to the tailings management facility
without rehandling to optimize sustaining capital over the life-of-mine.
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The Project operating metrics remain similar as previously announced in the Company’s July 21, 2020 press
release. Cash costs and all-in-sustaining costs per ounce of gold sold are estimated to increase primarily
due to the impact of recent inflation including on operating consumables. The table below summarizes
estimated Project metrics on a 100% basis (exclusive of Project expenditures up to July 1, 2021, where
applicable):
Metric (on a 100% basis) Units July 2020
Update 1
2021 Technical
Report 2
Gold price assumption $/ounce $1,350 $1,600
USDCAD assumption $USD $CAD 1.30 1.30
Mining: open pit mine capacity – Mtpa 70 70
Process: crush, grind, gravity, leach, CIP mill capacity – Mtpa 13.1 13.1
Mill daily throughput tonnes per day 36,000 36,000
Years 1 to 5 average gold production 2 ounces 493,000 489,000
LOM average annual gold production ounces 367,000 367,000
LOM recovered gold million ounces 6.61 6.60
LOM average recovery rate % 91.8 91.8
Mine life years 18 18
Average grade g/t gold 0.96 0.96
Average LOM strip ratio waste:ore 2.7:1 2.7:1
Total costs (w/out leases) $ million $1,419 $1,791
Total costs (w/ leases) $ million $1,304 $1,666
Remaining costs from Jul 1/21 (w/out leases) $ million n/a $1,505
Remaining costs from Jul 1/21 (w/ leases) $ million n/a $1,380
LOM average cash costs $/ounce sold $600 $659
LOM average AISC 3 $/ounce sold $771 $802
Sustaining capital 4 $ million $1,071 $866
Expansion capital 4 $ million – $223
NPV5% after tax $ million $1,121 $1,597
IRR after tax % 15.3 19.0
Payback period years 3.7 3.7
Notes:
1. The metrics are based on the Extended Case cited in the 2018 Technical Report, which is subject to receipt of certain additional
permitting to raise the height of the rock area and tailings management facility . The Extended Case mine plan, supported by
exploitation of the total Mineral Reserves estimate, includes 233 million tonnes compared to the Base Case of 203 million tonnes
over the life -of-mine and adds two additional years to the Base Case mine life with out expanding the footprint of the Project.
Please see “Cautionary Statement Regarding Forward-Looking Information” below.
2. The metrics provided under the “2021 Technical Report” column are based on the Extended Case cited in the 2018 Technical
Report, updated as discussed above. Years 1 to 5 average annual production commence on commercial production.
3. The 2021 Technical Report reflects higher cash costs and all-in sustaining costs (“AISC”), primarily due to an overall increase in
estimated operating costs due to inflation, increased workforce costs, maintenance equipment costs and royalties (included in
AISC) which vary with the gold price.
4. Sustaining and expansion capital variances between the 2018 Technical Report and the 2021 Technical Report primarily represent
the reclassification of capitalized waste stripping from sustaining capital to expansion capital in accordance with World Gold
Council guidelines and equipment leases relating to initial mining fleet.
The Company’s 70% share of updated remaining Project costs from July 1, 2021, net of leases , remain
unchanged as reported on July 22, 2021 at between $930 and $980 million.
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Mineral Resources
The mineral resources estimates for the Côté Gold project include the Côté Gold deposit, which remains the
same as previously reported by the Company and the Gosselin Deposit mineral resources estimate as
reported on October 18, 2021 and are summarized as follows:
MINERAL RESOURCES ESTIMATE (100% Basis) – CÔTÉ DISTRICT
(Côté Gold Deposit At December 31, 2020; Gosselin Deposit At October 4, 2021)
Classification
Tonnes
(millions)
Grade
(g/t Au)
Contained
Ounces (000)
IMG Attributable
Contained
Ounces (000)
Côté Gold Deposit
Measured 152.1 0.97 4.72 3.06
Indicated 213.4 0.80 5.48 3.55
Measured & Indicated 365.5 0.87 10.20 6.61
Inferred 189.6 0.63 3.82 2.47
Gosselin Deposit
Measured – – – –
Indicated 124.5 0.84 3.35 2.17
Measured & Indicated 124.5 0.84 3.35 2.17
Inferred 72.9 0.73 1.71 1.11
Côté District – Total
Measured & Indicated 490.0 0.86 13.55 8.78
Inferred 262.5 0.66 5.53 3.58
Notes:
1. 2014 CIM Definition Standards were followed for the definition of Mineral Resources.
2. Mineral Resources are inclusive of Mineral Reserves.
3. Mineral Resources are estimated at a cut-off grade of 0.3 g/t Au.
4. Mineral Resources are reported within optimized constraining pit shells at a design gold price of $1,500/oz Au and a USDCAD
exchange rate of 1:1.30 for the Côté Gold deposit and 1:1.20 for the Gosselin deposit.
5. Mineral Resources are constrained by a Whittle optimi zed pit shell using economic parameters consistent with those used for
mineral resources estimate in the Côté Gold Project, Ontario, NI 43-101 Technical Report on Feasibility Study” effective November
1, 2018 prepared in accordance with NI 43-101.
6. Bulk density values range from 2.69 t/m3 to 2.85 t/m3.
7. Attributable calculated as 64.75% IAMGOLD, 27.75% Sumitomo, and 7.5% other interest.
8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
9. All figures have been rounded to reflect the relative accuracy of the estimates.
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Mineral Reserves
The mineral reserves estimate for the Côté Gold deposit used as the basis for the 2021 Technical Report is
summarized below:
MINERAL RESERVES ESTIMATE – CÔTÉ GOLD PROJECT
At October 1, 2021
Classification
Tonnes
(millions)
Grade
(g/t Au)
Contained
Ounces
(000)
IMG Attributable
Contained
Ounces (000)
Proven 130.5 1.02 4.26 2.76
Probable 102.5 0.89 2.93 1.90
Proven & Probable 233.0 0.96 7.19 4.66
Notes:
1. 2014 CIM Definition Standards were followed for the definition of Mineral Reserves.
2. Mineral Reserves were estimated assuming open pit mining methods.
3. Mineral Reserves were estimated using the following assumptions: gold price of $1,200/oz; fixed process gold recovery of 91.8%;
treatment and refining costs, including transport and selling costs of $1.75/oz Au; variable royalty percentages by zone: 0.0-1.5%;
overall pit slope angles varying by sector with a range of 45.8° to 56.4°. Mineral Reserves are constrained by the 233 million tonne
tailings management facility capacity.
4. Mineral Reserves are estimated at a cut-off grade of 0.35 g/t Au.
5. Attributable calculated as 64.75% IAMGOLD, 27.75% Sumitomo, and 7.5% other interest.
6. Numbers presented in this table may not add up to the totals provided due to rounding.
District Potential – Gosselin Initial Resource Estimate
The Company has reported an initial mineral resource estimate for the Gosselin deposit (on a 100% basis
using a US$1,500 per ounce gold price) of 124.5 million tonnes of indicated resources averaging 0.84 grams
of gold per tonne for 3.35 million ounces of gold and 72.9 million tonnes of inferred resources averaging 0.73
grams of gold per tonne for 1.71 million ounces of gold . This represents a 33% increase in total contained
gold in measured and indicated resource categories and a 45% increase in total cont ained gold in the
inferred resources category for the Côté Project. The Gosselin deposit has only been drilled to approximately
half of the depth of the Côté Gold deposit and remains open at depth and along strike. This demonstrates
the long-term district scale potential and the exploration upside of the Project. Please refer to the news
release dated October 18, 2021 for further details.
Côté Gold Site Tour
IAMGOLD will be hosting an analyst and investor site visit to the Côté Gold construction project on October
19, 2021. The site visit presentation materials will be available on IAMGOLD’s website at www.iamgold.com.
To access a virtual 360-degree tour of the site, please visit: https://vrify.com/decks/10587.
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Pictures from Côté Gold – October 2021
Plant Site Foundations – Overview
Primary Crusher Foundations
Earthworks – Loading and Hauling
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Concrete Batch Plant
Building Structure Laydown