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IAMGOLD (TSX:IMG) reports final assay from Nelligan joint venture

Mining
11 August 2020 12:28 (EDT)
IAMGOLD - Executive Vice President & CFO, Carol Banducci

Source: The Financial Post

IAMGOLD (IMG) has reported the final assay results from a diamond drill program at its Nelligan joint venture project in Quebec.

Located 60 kilometres southwest of Chibougamau, the Nelligan Project is held under an earn-in option agreement between IAMGOLD and Vanstar Mining Resources, in which the two companies own 75 per cent and 25 per cent, respectively.

The results released today concern three drill holes totalling 1,278 metres that were completed as part of a winter 2020 exploration program. One holes failed to reach the anticipated target zone due to mechanical failures, but the others returned significant results.

At the Renard Zone, drill hole NE-20-157 returned 39.1 metres at 2.14 grams per tonne of gold, which included 4.5 metres at 4.58 grams per tonne of gold. The same hole also returned a separate intersection of 34.5 metres at 1.85 grams per tonne of gold.

On the other side of the exploration area, at the Renard West Zone, drill hole NE-20-158 returned 5.1 metres at 2.81 grams per tonne of gold and 8.5 metres at 1.91 grams per tonne of gold.

Finally, drill hole NE-20-157 at the Liam Zone returned 16.4 metres at 2.65 grams per tonne of gold, which included 1.5 metres at 20.1 grams per tonne of gold.

Craig MacDougall, Senior Vice President of Exploration at IAMGOLD, said the results complement earlier ones that were released prior to the suspension of activities in response to the COVID-19 pandemic.

“These additional results continue to confirm continuity of mineralisation from infill holes in the resource area as well as demonstrate that the mineralisation and associated alteration system remains open along strike to the west outside of the current modeled resource.

“This extension area requires additional drilling to assess the resource potential which is an important objective of the remaining and future drilling programs,” he added.

The overall exploration program had been designed to drill a total of 8,000 metres, 4,995 of which were completed before the suspension. Drilling has now resumed in order to complete the rest of the program, with further assay results to be released once they have all been received, validated and compiled.

IAMGOLD (IMG) is down 6.42 per cent and is trading at C$5.54 per share at 11:02am EDT.

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