Benzinga - by Stjepan Kalinic, Benzinga Staff Writer.
An intermediate gold producer, Iamgold Corporation (NYSE:IAG), has successfully poured the first doré bar at its Côté project located in northern Ontario. This milestone brings the company closer to commercial production at this highly prospective site in a year when gold keeps setting one record high after another.
"I am delighted to announce that Côté Gold achieved the milestone of the first gold pour, less than 90 days since the start of the pre-commissioning activities," said Renaud Adams, president and CEO, clarifying that the project cost remains in line with the updated budget estimate.
"With Côté Gold online, Iamgold now has three operating mines, joining Essakane in Burkina Faso and Westwood in Quebec, Canada," he said.
The Côté mine, situated 125 km southwest of Timmins, is a joint venture between Iamgold and Sumitomo Metals Mining (OTCPK: SMMYY), with Iamgold owning and operating 70% of the project. Commissioning activities at the Côté site are progressing smoothly, and key processes such as crushing, high-pressure grinding rolls, and processing circuits are meeting expectations.
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Thus, the management projects the mine could become one of Canada’s largest gold producers, with an estimated mine life of 18 years. Initial projections indicate gold output of 495,000 ounces over the first six years and averaging 365,000 ounces annually over the mine’s lifespan, with this year's guidance set between 220,000 and 290,000 ounces.
Notably, the Côté project boasts proven and probable reserves of 234.6 million tons grading 1.01 grams of gold per ton, containing 7.6 million ounces of gold. With additional measured, indicated, and inferred resources, the project holds significant potential for further exploration and development.
Beyond its production capacity, Côté stands out as a pioneering venture, being the first gold mining project in North America designed and built for a fully automated haulage fleet. This innovative approach fosters operational efficiency and safety.
Adams believes this project's success is "a considerable step forward in the evolution of modern mining and the start of what will ultimately turn into a new mining district that will be a mining hub for decades to come."
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