Iamgold updates Côté gold construction, costs

Iamgold and Sumitomo’s Cote joint venture gold project in northern Ontario. Image from Iamgold.

Iamgold (TSX: IMG; NYSE: IAG) recently updated construction progress and costs at its Côté gold project near Gogama, Ontario. The project is 65% owned and operated by Iamgold, with  Sumitomo Metal Mining holding the remainder.

The Côté project is on schedule and was 27% complete at the end of June. Contractors are widening the road to the site and removing overburden. The concrete batch plant at the mine site is operational, and the foundations for the ball mill circuit have been poured. Half of the planned rooms at the permanent camp are completed.

Iamgold said in a new release that total cost of the project has risen this year and its 70% of the costs will be C$1.1 billion or C$1.2 billion, compared to C$875 million or C$925 million last year’s estimate. The company has already spent C$193 million on the project. Commercial production is expected in the second half of 2023.

The Côté mine has a projected mine life of 18 years, during which time a total of 6.6 million oz. of gold will be recovered. There is a proven and probable reserve of 233 million tonnes grading 1 g/t gold, containing 7.3 million oz. (100%).

(This article first appeared in the Canadian Mining Journal)