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Iamgold to apply for mining concession at ‘promising’ project in Senegal

IAMGOLD’s carries out exploration mainly in West Africa and select countries in the Americas. (Image courtesy of IAMGOLD.)

Canada’s IAMGOLD Corp. (TSX IMG), (NYSE: IAG) plans to apply for a mining concession before year-end after releasing a robust feasibility study for its near-2 million ounce Boto gold exploration project in Senegal.

President and CEO Steve Letwin said while a final investment decision on the $254-million project was yet to be made, Boto represented a “high-value” one, which would add to the company’s growth profile.

The feasibility study, jointly completed by IAMGOLD and Lycopodium Minerals Canada, outlines a “robust” project, which will produce 140,000 ounces of gold a year on average, for nearly 13 years, at a life-of-mine cash cost of $714 per ounce and all-in sustaining costs of $753 per ounce.

The report also calculated an after-tax internal rate of return of 23 percent, with a payback period of 3.4 years. The net present value, at a 6 percent discount rate, is $261-million, using a gold price of $1,250 per ounce.

The Toronto-based miner will use the positive feasibility study to support its application for a mining concession in the fourth quarter of this year, with approval expected in the first half of 2019.

Iamgold to apply for mining concession at ‘promising’ project in Senegal

Boto Gold Project. (Source:IAMGOLD.)