Canadian mining company IAMGOLD Corporation (TSE: IMG) (NYSE: IAG) is optimistic that its newly established Côté mine could signal the emergence of a new mining district, as exploration results suggest a potential link between the Côté and Gosselin zones.
Announced on Tuesday as part of an operational update for its Côté Gold Mine, the company detailed future expectations for a new Canadian-based gold project located in northeastern Ontario.
The processing plant at Côté has demonstrated its ability to operate at or above design capacity since the installation of the coarse ore dome. This includes the high-pressure grinding rolls (HPGR) and the wet side of the plant.
Meanwhile, the company has been actively exploring the Gosselin zone, adjacent to the main Côté deposit. It’s implemented a drilling program focused on testing the continuity and expansion potential of mineralized zones.
Success in this exploration could significantly extend the mine’s life and boost production capacity. Mining operations have also advanced. The ore stockpile is growing and targeting 5 million tonnes by the end of 2024, setting the stage for sustained production phases.
Gold production reached 68,000 ounces on a 100 per cent basis, with 41,000 ounces attributable.
The processing plant ramp-up remains on track to close the year operating at 90 per cent of its design throughput rate of 36,000 tonnes per day. During Q3, 2024, mining operations totalled 10.4 million tonnes. It also included an improved strip ratio of 2.3:1 and 3.2 million tonnes of ore mined.
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Processing plant averaged 30,000 tonnes per day
Additionally, the mill processed 1.6 million tonnes of ore in the third quarter, doubling the rate from the previous quarter. A record daily throughput of 40,900 tonnes per day, 14 per cent above nameplate, was achieved after the scheduled September shutdown, where key optimizations improved the processing plant’s availability and performance.
“We believe that Côté is just the start of what will be a mining district. The exploration results today from Gosselin continue to demonstrate the potential for the Côté and Gosselin zones to connect, in addition to highlighting that the overall size and scope of these zones have yet to be defined – as both Côté and Gosselin remain open at depth in all directions,” said Renaud Adams, president and CEO of IAMGOLD.
The Côté Gold project, a joint venture between IAMGOLD and Sumitomo Metal Mining Co., Ltd., plays a crucial role in IAMGOLD’s portfolio and is expected to significantly boost the company’s production profile once fully operational. This mine expands IAMGOLD’s presence in Canada and reinforces its strategy to focus on high-potential projects in geopolitically stable regions.
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