Iamgold Reports Initial Mineral Resource Estimate of 3.2 Million Inferred Ounces FOR the Nelligan GOLD Project, Quebec
NEWS RELEASE TSX: IMG NYSE: IAG
IAMGOLD REPORTS INITIAL MINERAL RESOURCE ESTIMATE OF
3.2 MILLION INFERRED OUNCES FOR THE NELLIGAN GOLD PROJECT, QUEBEC
Toronto, Ontario, October 22, 2019 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) today
announced the initial Mineral Resource estimate on its Nelligan Joint Venture Project (“Nelligan”)
(IAMGOLD: 51%, Vanstar Mining Resources Inc. (“Vanstar”): 49%), located 60 kilometres southwest of
Chibougamau, Quebec, Canada. The estimate was completed in accordance with the Canadian Institute
of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards incorporated by reference in National
Instrument 43-101 (“NI 43-101”).
The initial Mineral Resource estimate, on a 100% basis, shows a pit-constrained Inferred Resource
totalling 96,990,000 tonnes averaging 1.02 grams of gold per tonne for 3,193,900 ounces of
contained gold. The estimate includes four mineralized zones where geological and grade continuities
have been demonstrated by IAMGOLD and Vanstar exploration drilling programs. The most significant
contribution (in terms of ounces) is provided by the recently discovered Renard Zone which has been
intersected in drilling for over 1 kilometre along strike with a true thickness exceeding 100 metres. The
deposit is characterized by homogeneous low-grade gold mineralization associated with fine pyrite
mineralization hosted in an altered sequence of dominantly metasedimentary rocks. Mineralization
remains open at depth and along strike to the west. The potential for adding additional resources is
considered favourable and will be the focus of future exploration programs.
Craig MacDougall, Senior Vice President, Exploration for IAMGOLD, stated, "Th e completion of this
initial resource estimate reported for Nelligan is an important milestone which solidifies this new
grassroots discovery by the IAMGOLD exploration team. The discovery of the Renard Zone builds on
the initial discoveries made by Vanstar which originally highlighted the exploration potential of this area
and motivated our participation in the project. I would like to point out that we have advanced this
project from the initial grassroots discovery of the Renard Zone to the declaration of a sizable mineral
resource in just three years. I congratulate our exploration team on their efforts which have led to this
outstanding discovery. I would like to thank our partner Vanstar for giving IAMGOLD the opportunity to
become its exploration partner on the Nelligan project."
The initial Mineral Resources estimate was prepared by Alain Carrier, P.Geo. and Vincent Nadeau-
Benoit, P.Geo., both of InnovExplo, using all available and validated data, including recent results from
the 2019 drilling program and incorporates results from 176 recent and historic drill holes (totaling over
56,500 metres), variably spaced from 40 to 100 metres apart. Leapfrog was used for geological and
litho-structural 3D modelling while GEMS was used to support the interpretation of the mineralized
zones which comprises four primary zones (Liam, Dan, Zone 36, and Renard) subdivided into 11 sub-
domains for estimation purposes. The estimate was prepared using a block model approach (10 metre
blocks) and Ordinary Kriging (OK) interpolation constrained by 3D wireframes. The Nelligan Mineral
Resource estimate was prepared considering a pit-constrained scenario at a long-term gold price of
US$1,500/ounce, pit slopes of 45° (rock) and of 30° (overburden) during Whittle optimization. At a 0.5
g/t Au cut-off grade, strip ratio of 3.5 (in rock) and of 4.0 (when including overburden) were obtained for
the Whittle resource pit shell. All resource blocks were classified in the Inferred resource category. Only
mineralization contained within the preliminary pit shell has been included in the resource estimate.
To support the mineral resource estimate, a preliminary metallurgical testing program was c ompleted at
SGS, Quebec on selected composites with a focus on the largest zone (Renard). The results suggest
that gold recoveries averaging approximately 92% can be expected from a process flow sheet involving
an initial sulphide flotation, following by regrinding of the sulphide concentrate sent to a cyanidation /
carbon-in-leach (“CIL”) circuit, and including cyanide leaching of the flotation tails. Further testing is
required to confirm recoveries, test the range of mineralization and optimize a process flow sheet.
The Mineral Resources estimate is summarized in the following table and the effective date of this
resource estimate is October 2, 2019. A supporting NI 43-101 Technical Report will be filed on SEDAR at
www.sedar.com within 45 days of this release.
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MINERAL RESOURCE STATEMENT – NELLIGAN PROJECT (100% Basis)
Effective October 2, 2019
Classification Tonnage Grade (g/t Au) Contained Ounces
(Au)
Inferred 96,990,000 1.02 3,193,900
Notes:
1. CIM definitions were followed for classification of Mineral Resources.
2. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
3. Mineral Resources are estimated using a gold price of US$1,500 per ounce.
4. Mineral Resources are constrained by a Whittle optimized pit shell using a 0.5 g/t Au cut-off grade and are
considered to have reasonable prospects for eventual economic extraction.
5. High grade capped assay values vary from 15 g/t Au to 30 g/t Au based on domain; and 2.5 g/t Au in
intervals of poor core recovery.
6. Bulk density values were determined by measurements on core and range from 2.73 g/cm3 for rock to 2.00
g/cm3 for overburden.
7. All figures have been rounded to reflect the relative accuracy of the estimate.
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 INFERRED RESOURCES
Cut-off (g/t)
Inferred Resources
Tonnage (t) Grade (g/t Au) Ounces (Au)
>1.75 9,431,000 2.35 713,900
>1.50 13,971,000 2.11 949,900
>1.00 34,844,000 1.57 1,758,000
>0.75 60,023,000 1.27 2,455,800
>0.60 81,498,000 1.11 2,921,000
>0.50 96,990,000 1.02 3,193,900
>0.40 118,674,000 0.92 3,505,200
>0.35 134,551,000 0.85 3,696,300
>0.30 152,765,000 0.79 3,886,600
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NELLIGAN RESOURCE MODEL
About the Nelligan Project
The Nelligan project is underlain by a portion of the Caopatina segment belonging to the North Volcanic
Zone of the Abitibi Belt of the Superior Province. The property is centered on the E -W Druillette syncline
with sediments of the Caopatina Formation bounded to the north and to the south by volcanic rocks of the
Obatogamau Formation. The North and South portions of the property are occupied by granodioritic to
tonalitic intrusions. The project is transected by numerous regional and local structures and de formation
zones which can be important in the localization of gold mineralization.
Gold showings of the area can be grouped according to their style of mineralization: 1) quartz-sulphide
vein type mineralization and 2) associated with zones of disseminated pyrite mineralization in
hydrothermally altered units. On the local scale, the Nelligan project contains several known gold
showings, including the Liam and Dan Zones discovered by drilling in 2013 and 2014, and the historical
Lake Eu showing. Subsequent exploration undertaken by IAMGOLD discovered significant alteration and
associated gold mineralization over wide intervals in metasedimentary units intersected in drilling to the
north of the known gold showings. Mineralization has now been intersected in drilling over a strike length
of more than 1 kilometre, and to a depth of over 350 vertical metres (referred to as the Renard Zone and
Zone 36). The mineralized zones and showings fall within a structural corridor with a potential strike length
of several kilometres possibly associated with the Guercheville Deformation Corridor located 5 kilometres
north of the property.
The Nelligan Project is held under an earn-in option to joint venture agreement with Vanstar. The
Company holds an undivided 51% interest in the property, and holds an option to earn a further 24%
undivided interest in exchange for cash payments totaling C$2,750,000 to Vanstar and the delivery of an
NI 43-101 compliant Resource Estimate and Technical Report before March 2022. Once vested to an
undivided 75% interest, IAMGOLD will have 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, after 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.
With completion of the initial Mineral Resource estimate described above, the project hosts current Mineral
Inferred Resources of 97.0 million tonnes averaging 1.02 grams of gold per tonne for 3.19 mill ion ounces
of contained gold.
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Next Steps
In the coming months additional metallurgical tests will be completed to provide additional information on
the metallurgical recoveries from the various zones of mineralization comprising the Mineral Resources of
the Nelligan gold deposit and to help optimize the process flow sheet parameters.
Planning for future drilling programs is ongoing and will involve a number of objectives including: additional
infill drilling to improve resource classification and convert Inferred Resources to an Indicated Resource
category; evaluate potential resource extensions in the deeper parts of the deposit; and evaluate resource
expansions along strike.
Regional exploration will also continue to define and test other priority exploration targets on the property.
Technical Information and Quality Control Notes
The mineral resource estimate, including verification of the data disclosed, has been completed by
InnovExplo Inc. (“InnovExplo”) and reported in accordance with NI 43-101 Standards of Disclosure for
Mineral Projects and CIM Estimation Best Practice Guidelines.
The technical contents of this release has been reviewed and approved by Alain Carrier, P.Geo.,
copresident founder for InnovExplo, who is an Independent Qualified Person under NI 43-101. The
information in this news release was reviewed and approved by Marie-France Bugnon, P. Geo., General
Manager Exploration for IAMGOLD. Mrs. Bugnon is a Qualified Person as defined by Nat ional Instrument
43-101.
The sampling of, and assay data from, the drill core is monitored through the implementation of a quality
assurance - quality control (QA-QC) program. 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 half a metre to one and a half
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. 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 standard fire assay with a 50 gram charge with an Atomic Absorption (AA) fin ish. 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.
Forward Looking Statement
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
(including, without limitation, statements regarding expected, estimated or planned gold production, cash costs, margin
expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-
looking statements. Forward-looking statements are generally identifiable by use of the words “will”, “should”,
“continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “to earn”, “to have’, “plan” or “project” or the 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 of the Company 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, failure to meet expected, estimated or planned gold production, cash costs,
margin expansion, capital expenditures and exploration expenditures and failure to establish estimated mineral
resources, the possibility that future exploration results will not be consistent with the Company's expectations,
changes in world gold markets 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 and Canadian provincial securities
regulatory authorities. 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.
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Cautionary Note to Investors Concerning Estimates of Inferred Resources
This news release also uses the term "inferred resources". We advise investors that while this term is
recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred resources"
have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not
form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to
assume that part or all of an inferred Resource exists, or is economically or legally mineable.
Cautionary Note to U.S. Investors
The SEC limits disclosure for U.S. reporting purposes to mineral deposits that a company can
economically and legally extract or produce. IAMGOLD uses certain terms in this news release, such as
"measured," "indicated," or "inferred," which may not be consistent with the resource definitions
established by the SEC. U.S. investors are urged to consider closely the disclosure in the IAMGOLD
Annual Reports on Forms 40-F. You can review and obtain copies of these filings from the SEC's website
at http://www.sec.gov/edgar.shtml or by contacting the Investor Relations department.
The Canadian Securities Administrators' NI 43-101 requires mining companies to disclose reserves and
resources using the subcategories of "proven" reserves, "probable" reserves, "measured" resources,
"indicated" resources and "inferred" resources. Mineral resources that are not mineral reserves do not
demonstrate economic viability.
A Mineral Resource is a concentration or occurrence of natural, solid, inorganic material, o r natural, solid
fossilized organic material including base and precious metals in or on the Earth's crust in such form and
quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The
location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and knowledge. A Measured Mineral Resource
is that part of a Mineral Resource for which quantity, grade or quality, densities , shape and physical
characteristics are so well established that they can be estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters, to support production planning and
evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable
exploration, sampling and testing information gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity. An Indicated Mineral Resource is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level
of confidence sufficient to allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for
geological and grade continuity to be reasonably assumed. An inferred Mineral Resource is that part of a
Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.
The estimate is based on limited information and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. Mineral resources which are not
Mineral Reserves do not have demonstrated economic viability.
About IAMGOLD
IAMGOLD ( www.iamgold.com) is a mid -tier mining company with four operating gold mines on three
continents. A solid base of strategic assets in North and South America and West Africa is complemented
by development and exploratio n projects and continued assessment of accretive acquisition opportunities.
IAMGOLD is in a strong financial position with extensive management and operational expertise.
page 6 of 6
For further information please contact:
Indi Gopinathan, Investor Relations Lead, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883
Martin Dumont, Senior Analyst Investor Relations, IAMGOLD Corporation
Tel: (416) 933-5783 Mobile: (647) 967-9942
Toll-free: 1-888-464-9999 [email protected]
Please note:
This entire news release may be accessed via fax, e -mail, IAMGOLD's website at www.iamgold.com and through Newsfile’s website
at www.newsfilecorp.com. 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/Home/default.aspx.