Iamgold Reports Solid Third Quarter and Continues to Execute ON Its Transformational Strategy
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS SOLID THIRD QUARTER AND CONTINUES TO
EXECUTE ON ITS TRANSFORMATIONAL STRATEGY
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Refer to the Management Discussion and Analysis (MD&A) and Unaudited Consolidated
Interim Financial Statements for the three and nine months ended September 30, 2017 for more information.
Toronto, Ontario, November 7, 2017 - IAMGOLD Corporation (“IAMGOLD” or the “Company”) reported
its consolidated financial and operating results for the third quarter ended September 30, 2017.
Commenting on the third quarter, IAMGOLD’s President and CEO, Steve Letwin, said, "We delivered solid
results with gross profit increasing for the third consecutive quarter. The lowering of the top end of our
2017 all-in sustaining cost guidance by $40 an ounce narrowed the range to $1,000 to $1,040 an ounce,
reflecting continued progress in reducing costs. Based on operating performance for the first nine months
and our expectations for the final quarter, we are on track to meet our production and cost guidance for the
year.
"At the same time, our strategic transformation continues. The larger than expected resource estimate for
Saramacca, together with its higher grades and significant expansion potential, added to the substantial
resource increase at Rosebel. We continue to work at consolidating other concessions with in an emerging
gold district anchored by Rosebel. Westwood continues to ramp up. Heap leaching and satellite prospects
could add years to Essakane's mine life, and Côté Gold is expected to be a long -life, low-cost mine
heading towards development."
Third Quarter 2017 Highlights
Operating Performance
• Attributable gold production of 217,000 oz, up 3% from Q3/16.
• Cost of sales1 of $795/oz sold, up 4% from Q3/16.
• All-in sustaining costs2 of $969/oz sold, down 7% from Q3/16.
• Total cash costs2 of $771/oz produced, up 8% from Q3/16.
• Gold margin2 of $513/oz, down 16% from Q3/16.
• Maintaining 2017 production guidance of 845,000 to 885,000 ounces.
• Lowered top end of 2017 all-in sustaining cost guidance by $40 an ounce, narrowing the range to
$1,000 - $1,040/oz.
• Lowered 2017 capital spending guidance by $25 million to $225 million ±5%.
Financials
• Gross profit of $40.9 million, down $11.3 million from Q3/16, up 14% from Q2/17.
• Net earnings attributable to equity holders of $30.8 million ($0.07 per share ), up from $17.0 million
($0.04 per share) in Q3/16.
• Adjusted net earnings2 attributable to equity holders of $33.7 million ($0.07 per share 2), up from
$21.8 million ($0.05 per share) in Q3/16 and up from $4.3 million ($0.01 per share) in Q2/17.
• Net cash from operating activities of $77.0 million, down from $125.8 million in Q3/16.
• Net cash from operating activities before changes in working capital 2 of $73.5 million, down from
$111.3 million in Q3/16.
• Cash, cash equivalents, short-term investments in money market instruments, and restricted cash
were $835.7 million as at September 30, 2017, up $72.6 million from December 31, 2016.
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Developments
• On September 5, 2017, filed the NI 43-101 Technical Report for the previously reported reserve and
resource update for the Rosebel mine (see news release July 26, 2017), which included an 80%
increase in attributable reserves to 3.5 million ounces from the end of 2016.
• On September 5, 2017, reported an initial resource estimate for the Saramacca deposit near the
Rosebel mine, comprising 14.4 million tonnes of indicated resources averaging 2.2 g/t Au for 1.0
million ounces and 13.6 million tonnes of inferred resources averaging 1.18 g/t Au for 0.5 million
ounces. Approximately 60% of the resources are contained in softer rock, with the deposit
remaining open along strike in both directions and at depth. Filed the supporting NI -43-101
Technical Report on October 17, 2017.
• On August 14, 2017, acquired a 19.98% interest in TomaGold Corporation for C$2.5 million.
IAMGOLD and TomaGold have a 50:50 joint venture interest in the Monster Lake exploration
project in Quebec.
SUMMARY OF FINANCIAL AND OPERATING RESULTS
Three months ended
September 30,
Nine months ended
September 30,
Financial Results ($ millions, except where noted) 2017 2016 2017 2016
Revenues $ 268.8 $ 282.4 $ 803.8 $ 734.6
Cost of sales $ 227.9 $ 230.2 $ 692.0 $ 651.5
Gross profit $ 40.9 $ 52.2 $ 111.8 $ 83.1
Net earnings attributable to equity holders of IAMGOLD $ 30.8 $ 17.0 $ 519.3 $ 57.9
Net earnings attributable to equity holders ($/share) $ 0.07 $ 0.04 $ 1.12 $ 0.14
Adjusted net earnings (loss) attributable to equity holders of
IAMGOLD1 $ 33.7
$ 21.8
$ 43.1
$ (1.3 )
Adjusted net earnings (loss) attributable to equity holders ($/share)1 $ 0.07 $ 0.05 $ 0.09 $ —
Net cash from operating activities $ 77.0 $ 125.8 $ 230.1 $ 247.3
Net cash from operating activities before changes in working capital1 $ 73.5 $ 111.3 $ 225.8 $ 224.9
Key Operating Statistics
Gold sales – attributable (000s oz) 210 212 641 590
Gold production – attributable (000s oz) 217 210 654 598
Average realized gold price1 ($/oz) $ 1,284 $ 1,326 $ 1,255 $ 1,263
Cost of sales2 ($/oz) $ 795 $ 764 $ 777 $ 797
Total cash costs1 ($/oz) $ 771 $ 714 $ 757 $ 738
All-in sustaining costs1 ($/oz) $ 969 $ 1,046 $ 978 $ 1,080
Gold margin1 ($/oz) $ 513 $ 612 $ 498 $ 525
1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A.
2 Cost of sales, excluding depreciation, as disclosed in note 30 of the Company's consolidated interim financial statements is on an attributable ounce sold
basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel) and doesn't include Joint Ventures which are accounted for on an
equity basis.
THIRD QUARTER 2017 HIGHLIGHTS
Financial Performance
• Revenues for the third quarter 2017 were $268.8 million, down $13.6 million from the same prior year
period, primarily due to lower sales at Essakane ($32.9 million) as the prior year period benefited from
the sale of 12,000 ounces from carbon fines built up in inventory, and a lower realized gold price at all
sites ($8.8 million), partially offset by higher sales at Westwood ($20.4 million) and Rosebel ($7.6
million).
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• Cost of sales for the third quarter 2017 was $227.9 million, down $2.3 million from the same prior year
period. The decrease was primarily due to lower depreciation ($7.0 million) and lower royalty expense
($2.4 million), partially offset by higher operating costs ($7.1 million). Operating costs were higher
primarily as a result of lower capitalized stripping at Essakane and Rosebel, combined with higher
realized fuel prices and increased production at Westwood.
• Depreciation expense for the third quarter 2017 was $62.3 million, down $7.0 million from the same
prior year period, primarily due to the increase in reserves at Rosebel and lower production at
Essakane, partially offset by higher amortization of capitalized stripping at Essakane.
• Income tax expense for the third quarter 2017 was $5.1 million, down $9.3 million from the same prior
year period. Income tax expense for the third quarter 2017 comprised current income tax expense of
$11.1 million (2016 - expense of $7.6 million) and deferred income tax recovery of $6.0 million (2016 -
expense of $6.8 million). The decrease in income tax expense was primarily due to changes to
deferred income tax assets and liabilities, fluctuations in foreign exchange, and differences in the level
of taxable income in IAMGOLD's operating jurisdictions from one period to the next.
• Net earnings attributable to equity holders for the third quarter 2017 were $30.8 million ($0.07 per
share), up $13.8 million ($0.03 per share) from the same prior year period. The increase was mainly
due to lower finance costs ($4.2 million), gain on derivatives and warrants ($2.9 million), higher interest
income ($1.7 million), gain on foreign exchange ($2.0 million), lower write -down of accounts receivable
($1.5 million), higher share of net earnings from investments in associates ($1.1 million), and lower
income tax expense ($9.3 million), partially offset by lower earnings from operations ($6.9 million).
• Adjusted net earnings attributable to equity holders 2 for the third quarter 2017 were $33.7 million
($0.07 per share2), up $11.9 million ($0.02 per share2) from $21.8 million ($0.05 per share2) in the
same prior year period.
• Net cash from operating activities for the third quarter 2017 was $77.0 million, down $48.8 million from
the same prior year period. The decrease was mainly due to lower earnings after non -cash
adjustments ($18.7 million), a change in the movement of non-cash working capital items ($11.0
million), lower dividends from joint ventures ($9.2 million), and an increase in income taxes paid ($9.1
million).
• Net cash from operating activities before changes in working capital2 for the third quarter 2017 was
$73.5 million, down $37.8 million from the same prior year period.
Financial Position
• The Company's financial position has strengthened with cash, cash equivalents, short -term
investments in money market instruments, and restricted cash of $835.3 million at September 30,
2017, up $72.6 million from December 31, 2016. The increase was primarily due to net proceeds from
the issuance of the 7.00% senior secured notes on March 16, 2017 ($393.6 million), which extended
the term of our debt by five years to 2025. Further, the Company received net proceeds from the sale
of a 30% interest in the Côté Gold Project, to form a joint venture with Sumitomo Metal Mining Co.,
Ltd. ($96.5 million). The Company had cash generated from operating activities ($259.0 million) due to
a continued focus on improvements in cost management. The Company also benefited from proceeds
from the issuance of flow-through shares ($15.1 million). The increase was partially offset by the early
redemption of the 6.75% senior unsecured notes ($505.6 million), spending on Property, plant and
equipment and Exploration and evaluation assets ($138.5 million), income taxes paid ($28.9 million)
and interest paid ($16.5 million).
Production and Costs
• Attributable gold production, inclusive of joint venture operations, was 217,000 ounces for the third
quarter 2017, up 7,000 ounces from the same prior year period. The increase was due to the
continued ramp-up at Westwood (17,000 ounces) and higher grades and throughput at Rosebel (3,000
ounces), partially offset by lower grades at both Essakane (11,000 ounces) and Sadiola (2,000
ounces).
• Attributable gold sales, inclusive of joint venture operations, were 210,000 ounces for the third quarter
2017, down 2,000 ounces from the same prior year period, primarily due to lower sales at Essakane
(21,000 ounces) as the prior year benefited from the sale of 12,000 ounces from carbon fines built up
in inventory, and lower sales at the Joint Ventures (2,000 ounces), partially offset by higher sales at
Westwood (15,000 ounces) and Rosebel (6,000 ounces).
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• Cost of sales1 per ounce for the third quarter 2017 was $795, up 4% from the same prior year period
due to lower capitalized stripping at Essakane and Rosebel combined with higher realized fuel prices.
• Total cash costs2 per ounce produced for the third quarter 2017 were $771, up 8% from the same prior
year period primarily due to lower capitalized stripping at Essakane and Rosebel. The normalization of
Westwood's costs was discontinued in the second quarter 2017 (Q3/16 - $30 per ounce produced) and
realized derivative gains from hedging programs were $7 per ounce produced (Q3/16 - gain of $1 per
ounce).
• All-in sustaining costs2 per ounce sold were $969 for the third quarter 2017, down 7% from the same
prior year period as a result of lower sustaining capital expenditures. The normalization of Westwood's
costs was discontinued in the second quarter 2017 (Q3/16 - $30 per ounce sold) and realized
derivative gains from hedging programs were $10 per ounce sold (Q3/16 - gain of $1 per ounce).
Commitment to Zero Harm Continues
• The DART rate3, representing the frequency of all types of serious injuries across IAMGOLD for the third
quarter 2017 was 0.48, below our target of 0.56.
ATTRIBUTABLE GOLD PRODUCTION AND COSTS
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash Costs3
($ per ounce
produced)
All-in Sustaining
Costs3
($ per ounce sold)
Three months ended
September 30, 2017 2016 2017 2016 2017 2016 2017 2016
Owner-operator
Essakane (90%) 93 104 $ 810 $ 669 $ 779 $ 624 $ 944 $ 815
Rosebel (95%) 75 72 765 769 718 728 898 1,183
Westwood (100%)2 33 16 819 1,322 814 888 907 1,391
Owner-operator4 201 192 $ 795 $ 764 762 685 967 1,035
Joint Ventures 16 18 883 1,015 985 1,180
Total operations 217 210 $ 771 $ 714 $ 969 $ 1,046
Cost of sales1 ($/oz) $ 795 $ 764
Cash costs, excluding royalties $ 718 $ 649
Royalties 53 65
Total cash costs3 $ 771 $ 714
All-in sustaining costs3 $ 969 $ 1,046
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash Costs3
($ per ounce
produced)
All-in Sustaining
Costs3
($ per ounce sold)
Nine months ended
September 30, 2017 2016 2017 2016 2017 2016 2017 2016
Owner-operator
Essakane (90%) 287 281 $ 783 $ 712 $ 746 $ 662 $ 946 $ 987
Rosebel (95%) 223 213 751 791 722 753 902 1,062
Westwood (100%)2 96 47 819 1,322 792 900 954 1,146
Owner-operator4 606 541 $ 777 $ 797 744 719 978 1,089
Joint Ventures 48 57 919 921 987 988
Total operations 654 598 $ 757 $ 738 $ 978 $ 1,080
Cost of sales1 ($/oz) $ 777 $ 797
Cash costs, excluding royalties $ 705 $ 681
Royalties 52 57
Total cash costs3 $ 757 $ 738
All-in sustaining costs3 $ 978 $ 1,080
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1 Cost of sales, excluding depreciation, as disclosed in note 30 of the Company's consolidated interim financial statements is on an attributable ounce sold basis (excluding the non-
controlling interests of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures which are accounted for on an equity basis.
2 Cost of sales per ounce for Westwood does not include the impact of normalization of costs for the three and nine months ended September 30, 2017 of $nil and $8 per ounce (three
and nine months ended September 30, 2016 - $385 and $338), respectively.
3 This is a non-GAAP measure. Refer to the non -GAAP performance measures section of the MD&A. Consists of Essakane, Rosebel, Westwood and the Joint Ventures on an
attributable basis.
4 Owner-operator cost of sales and all-in sustaining costs includes corporate general and administrative costs. Refer to all-in sustaining costs reconciliation on page 28.
OPERATIONS ANALYSIS BY MINE SITE
(Refer to the Q3 2017 MD&A for further details.)
Essakane Mine - Burkina Faso (IAMGOLD interest - 90%)
Attributable gold production was 93,000 ounces for the third quarter 2017, 11% lower than the same prior
year period. This was due to lower grades, partially offset by higher recoveries and mill throughp ut.
Throughput increased 8% despite 90% hard rock content (Q3/16 - 77%) as a result of the new SAG mill
liner design, which increased mill capacity, speed, and circuit availability. With annualized throughput of
approximately 14 million tonnes, the mill is performing significantly above nameplate capacity of 10.8
million tonnes per annum, providing upside to the current life of mine plan. To further increase reserves
and resources and extend the life of the mine, a heap leach pre-feasibility study is underway and expected
to be completed by the second quarter 2018. A heap leach plant could provide a low-cost method for
processing marginal and low grade mineralization as well as some existing stockpiles, which, together with
the carbon-in-leach plant, would increase total annual production.
Due to mine sequencing, grades were lower in the third quarter 2017 compared to the prior year period.
Mining activity continued to increase as a result of initiatives that are improving equipment availability and
productivity, including the addition of two production drills and a new loader in the previous quarter. Mill
recoveries are improving as mining continues in non-graphitic zones. Optimization of the grinding circuit
and analysis of the ore characterization continues as part of the geometallurgical study. The purpose of the
study, which is on track to be completed by the end of 2017, is to better identify the pockets of graphitic
material in the ore zones. In addition, engineering work on the oxygen plant commenced du ring the third
quarter 2017. The oxygen plant is expected to increase recoveries through improved leach kinetics and to
improve the efficiency of the circuit by reducing the consumption of reagents once commissioned at the
end of 2018. The construction of the solar plant, which commenced in the second quarter 2017, is now
expected to be completed by the first quarter of 2018.
Cost of sales of $810 per ounce and total cash costs of $779 per ounce produced for the third quarter
2017 were 21% and 25% higher than the same prior year period, respectively. The increases were
primarily the result of lower capitalized stripping costs due to mine sequencing, higher realized fuel prices,
higher processing costs with the increased throughput of a higher proportion of h ard rock, and the lower
volume of sales and production, respectively. The decline in sales volume was partly due to the previous
year benefiting from the sale of 12,000 ounces from carbon fines built up in inventory. The carbon fines
treatment plant allowing for the on-site processing of gold contained in carbon fines was commissioned in
the third quarter 2016.
All-in sustaining costs per ounce sold for the third quarter 2017 of $944 were 16% higher than the same
prior year period, primarily due to higher cost of sales and lower sales volume, partially offset by lower
sustaining capital expenditures.
The positive impact on cash costs per ounce produced and all-in sustaining costs per ounce sold from
realized derivative gains from hedging programs was $10 per ounce and $12 per ounce, respectively, in
the third quarter 2017 (Q3/16 - $3 per ounce produced and $2 per ounce sold).
Rosebel Mine - Suriname (IAMGOLD interest - 95%)
Attributable gold production for the third quarter 2017 was 75,000 ounces, up 4% from the same prior year
period. Although the percentage of hard rock in the mill feed increased to 44% from 37% in the prior year,
mill throughput increased by 5% due to major mill improvements completed in the latter half of 2016,
including the installation of a secondary crusher and power flex drive combined with a new liner design.
Cost of sales of $765 per ounce and total cash costs of $647 per ounce produced for the third quarter
2017 were both 1% lower than the same prior year period. The improvement was primarily due to the
inclusion of supplemental labour costs in the third quarter 2016 relating to the modified Labour Agreement
($43 per ounce sold and $40 per ounce produced), partially offset by lower capitalized stripping and higher
fuel prices.
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All-in sustaining costs of $898 per ounce sold for the third quarter 2017 were 24% lower than the same
prior year period primarily due to lower sustaining capital expenditures.
Initial Resource Estimate for Saramacca
On September 5, 2017, an initial resource estimate was announced for the Saramacca deposit located 25
kilometres from the Rosebel mill (see news release dated September 5, 2017). The supporting NI 43-101
Technical Report was filed on October 17, 2017. The resource estimate comprises 14.4 million tonnes of
indicated resources averaging 2.2 g/t Au for 1.0 million ounces and 13.6 million tonnes of inferred
resources averaging 1.18 g/t Au for 518,000 ounces. The average grade of Saramacca's estimated
indicated resource is 120% higher than the average grade of Rosebel's reserves and resources.
Approximately 60% of the resources are contained in shallow, softer laterite and saprolite mineralization.
By the first half of 2018, we expect to have a preliminary reserve estimate and to have completed
permitting work. An Environmental and Social Impact Study and preliminary engineering work on mine
design and infrastructure are underway. Metallurgical testing will refine the recovery assumptions, test the
crushing and grinding characteristics of the mineralization, and investigate the metallurgical variability
across the deposit. Using the new block model as a basis, new mine designs and integrated scheduling
with the main Rosebel resources will commence soon. Rosebel is working to advance the deposit towards
production in 2019. Given the higher grade and abundance of soft saprolitic ore, we expect Saramacca to
have a significant positive impact on Rosebel's cost profile once integrated into the mine plan.
With the deposit remaining open along strike in both directions and at depth, there is significant potential to
expand the deposit. A follow-up drill program commenced in the third quarter for the purpose of increasing
the confidence in the current resources and converting inferred resources to indicated, targeting
expansions of the existing resource along known mineralized trends and at depth, and evaluating
exploration targets for the presence of additional mineralized zones. Approximately 20,000 metres of
diamond and reverse circulation drilling is expected to be completed by the end of this year.
Rosebel Reserve and Resource Update
On July 26, 2017, an updated reserve and resource estimate was reported for Rosebel ( see news release
dated July 26, 2017). From December 31, 2016 to June 30, 2017, Rosebel's estimated attributable proven
and probable gold reserves increased by 80% to 3.5 million ounces, attributable measured and indicated
gold resources (inclusive of reserves) increased by 55% to 8.9 million ounces and attrib utable inferred
resources increased by 322% to 2.5 million ounces. There were no changes in the gold price assumptions
of $1,200 per ounce for reserves and $1,500 per ounce for resources. The increases were mainly due to
mine design optimization, cost reductions, and near-pit exploration. The supporting NI 43-101 Technical
Report was filed on September 5, 2017.
Westwood Mine - Canada (IAMGOLD interest - 100%)
Production of 33,000 ounces of gold in the third quarter 2017 was 106% higher than the same prior year
period, primarily due to the continued ramp-up resulting in increased tonnes mined and higher throughput.
Although head grade for the quarter of 6.68 g/t Au was higher than the prior year period, it was lower than
the grade mined during the quarter. This was due to processing marginal ore stockpiles to exploit available
mill capacity as the mine continues to ramp up. Head grade excluding marginal ore was 7.40 g/t Au for the
third quarter 2017 compared with 7.16 g/t Au for the third quarter 2016.
During the quarter, underground development continued to open up access to new mining areas with
lateral and vertical development of approximately 3,400 and 500 metres, respectively, averaging 42 metres
per day. Westwood is expected to achieve 18 kilometres of development during 2017, including lateral and
vertical development of 15.7 and 2.3 kilometres, respectively, with a focus on ramp breakthroughs and
infrastructure development in future development blocks at lower levels.
Cost of sales of $819 per ounce and total cash costs of $814 per ounce produced for the third quarter
2017 were 38% and 8% lower, respectively, than the same prior year period. The improvement was
primarily due to the higher volume of sales and production, respectively, with the continued ramp-up.
All-in sustaining costs of $907 per ounce sold for the third quarter 2017 were 35% lower than the same
prior year period, primarily due to higher sales volume and lower sustaining capital expenditures.
Westwood had been normalizing costs attributed to inventory in accordance with International Financial
Reporting Standards since the seismic event in May 2015. Normalization of these costs ended at the onset
of the second quarter 2017 when Westwood reached normal production levels (September 30, 2016 - $6.3
7
million). In the same prior year period, total cash costs and all-in sustaining costs were reduced by $383
per ounce produced and $385 per ounce sold, respectively.
Sadiola Mine - Mali (IAMGOLD interest - 41%)
Attributable gold production of 15,000 ounces for the third quarter 2017 was 12% lower than the same
prior year period due to lower grades, partially offset by increased throughput.
Total cash costs of $876 per ounce produced and all-in sustaining costs of $970 per ounce sold decreased
by 12% and 8%, respectively, as a result of greater draw downs of marginal ore stockpiles compared to the
prior year period.
Discussions with the Government of Mali continue regarding the Sadiola Sulphide Project. Despite the
benefits the Project would generate locally and to the Government of Mali, there has been no resolution
around the terms critical to moving the Project forward. Although we remain committed to the Project, we
continue to advance a number of other growth opportunities across the Company.
DEVELOPMENT PROJECT
(Refer to the Q3 2017 MD&A for further details.)
Côté Gold Joint Venture Project, Canada
The Côté Gold Project in northern Ontario is a 70:30 joint venture between the operator IAMGOLD and
Sumitomo Metal Mining Co. Ltd. The project hosts estimated mineral reserves as at May 26, 2017 on a
100% project basis comprising probable reserves totaling 196.1 m illion tonnes grading 0.94 g/t Au for 5.9
million ounces. Also on a 100% project basis, indicated resources (inclusive of reserves) are estimated at
281.2 million tonnes grading 0.89 g/t Au for 8.0 million ounces and inferred resources of 76.5 million
tonnes grading 0.50 g/t Au for 1.2 million ounces (see news release dated June 5, 2017).
Based on the recommendations from a pre-feasibility study completed in the second quarter (see news
release dated June 5, 2017), the joint venture partners working with Wood Group (formerly Amec Foster
Wheeler) have initiated a feasibility study which is now expected to be completed in the first half of 2019.
During the quarter, a delineation drilling program commenced with the objective to upgrade near surface
inferred resources to an indicated category as well as to evaluate grade variation in the starter pit.
Approximately 2,000 metres of diamond drilling were completed during the quarter.
Subject to an acceptable feasibility study, a favourable development environment and a positive
construction decision by the Côté Gold Joint Venture, commercial production is expected to begin in the
first half of 2021.
Regional exploration activities continue within the 516-square-kilometre property surrounding the Côté
Gold deposit to develop and assess exploration targets that could further maximize our flexibility with
respect to any future development decisions.
EXPLORATION
(Refer to the Q3 2017 MD&A for further details.)
In the third quarter 2017, we spent $14.6 million on exploration and project studies, of which $6.6 million
was expensed and $8.0 million capitalized. This compared to $10.6 million in the same prior year period.
The following summarizes the status of our most advanced projects:
Wholly-Owned Projects
Boto - Senegal
Effective December 31, 2016, the Boto Gold project hosts an indicated resource of 27.7 million tonnes
averaging 1.8 g/t Au for 1.56 million ounces of gold and an inferred resource of 2.9 million tonnes
averaging 1.3 g/t Au for 125,000 ounces (see news release dated February 22, 2017).
During the third quarter 2017, approximately 1,150 metres of diamond drilling were completed to evaluate
potential near-pit extensions of the Malikoundi deposit, explore for additional mineral resources along
known mineralized trends associated with the Boto 5 and 6 zones, and provide additional geo -technical
information in the area of the Malikoundi pit to support ongoing technical studies.
8
In addition, an 1,800-kilogram sample prepared from core composites was sent to SGS Laboratories in
Canada for further metallurgical test work. Various technical studies to advance the economic evaluation of
the Project continued during the quarter.
Pitangui - Brazil
Effective December 31, 2016, reported mineral resources at the São Sebastião deposit comprise an
inferred resource of 4.3 million tonnes grading 5.0 g/t Au for 679,000 ounces of gold (see news release
dated February 22, 2017).
In late 2016, we received the permits necessary to complete drilling of the interpreted up -plunge extension
of the São Sebastião deposit within a densely vegetated area. As such, the focus of the 2017 exploration
drilling program is to evaluate the up-plunge extension area for additional resources. Just over 3,100
metres of diamond drilling were completed during the third quarter 2017. Drilling is ongoing and the results
will be used to update the mineral resources in 2017. Various technical and environmental studies are
ongoing to advance the economic evaluation of the Project.
Siribaya - Mali
Effective December 31, 2016, total resources estimated for the Siribaya Project include indicated
resources of 2.1 million tonnes grading 1.9 g/t Au for 129,000 ounces of gold, and inferred resources of
19.8 million tonnes grading 1.7 g/t Au for 1.1 million ounces (see news release dated February 22, 2017).
During the third quarter 2017, core logging and sampling activities were completed for remaining drill holes
completed in the second quarter ahead of the seasonal rains. Approximately 19,500 metres of diamond
and reverse circulation drilling has been completed year to date. The drilling program is designed to
confirm the geometry of the known mineralized zones at the Diakha deposit, and to extend the gold
mineralization north and south along strike where previous exploration has returned encouraging results.
The drilling results will be incorporated into the deposit model and used to update the mineral resources.
Joint Venture Projects
Following are the highlights for our joint venture exploration projects. The agreements are typically
structured in a way that gives us the option of increasing our ownership interest over time, with the
decision dependent upon the exploration results as time progresses.
Monster Lake - Canada (Option Agreement with TomaGold Corporation)
During the third quarter, final assay results from the 25-drill hole, 10,700-metre winter drilling campaign
were received. Highlights include: 67.42 g/t Au over 3.5 metres, 80.28 g/t Au over 5.0 metres and 39.48 g/t
Au over 1.6 metres (see news release dated July 6, 2017). As follow up, just over 1,800 metres of diamond
drilling were completed during the third quarter, largely targeting the Lower zone which is a developing
mineralized zone parallel to the Megane zone. Assay results from this program were received and reported
(see news release dated November 1, 2017). The results will be used to guide future drilling and will be
incorporated into a deposit model to support the completion of an initial mineral resource estimate in 2017,
if results merit.
On August 14, 2017, IAMGOLD subscribed for 27.7 million common shares of TomaGold from treasury
representing 19.98% of the outstanding common shares of TomaGold. The common shares were
purchased at a price of C$0.09 per common share, for an aggregate purchase price of C$2.5 million. Prior
to the acquisition, IAMGOLD did not hold any common shares of TomaGold.
Nelligan - Canada (Option Agreement with Vanstar Mining Resources Inc.)
During the third quarter 2017, final assay results were received from the remaining drill holes of an
approximately 7,700-metre diamond drill program completed in the first half of the year. The program was
designed to follow up on encouraging results from the 2016 program, further explore a newly discovered
mineralized zone north of the Liam zone, and test other IP (Induced Polarization) geophysical anomalies
on the property. Highlights include: 11.3 metres grading 2.78 g/t Au; 34.3 metres grading 2.01 g/t Au,
including 4.4 metres grading 7.66 g/t Au; and 11.6 metres grading 2.38 g/t Au (see Vanstar news release
dated September 5, 2017).