Iamgold sees potential to extend Nelligan footprint

A haul truck dumps its load in the Niobec niobium mine in Quebec. Credit: IamgoldA haul truck dumps its load in the Niobec niobium mine in Quebec. Credit: Iamgold

Drill results from Iamgold’s (TSX: IMG) 75%-owned Nelligan joint-venture project suggest potential for a western extension of the existing resource and confirm the data in the existing resource model.

In a news release, the company has reported assays for six diamond drill holes. Highlight intercepts include 27 metres of 2.86 grams gold per tonne starting at 338 metres, and 25 metres of 1.87 grams gold per tonne starting at 311 metres from the Renard zone, as well as 11 metres of 10.5 grams gold from 260 metres at the Renard West zone.

“The drilling program continued to intersect the expected alteration and associated mineralization within the resource area, and importantly has demonstrated that the alteration system remains open along strike to the west outside of the current modelled resource for potentially another 500 metres,” Craig MacDougall, the company’s senior vice-president of exploration, said in a press release.

MacDougall added that these results are from drilling completed before the mandated Quebec government suspension due to the Covid-19 pandemic; additional work is required to further follow up on these most recent results.

The company suspended its diamond drill program at Nelligan on March 23. Approximately 8,000 metres were planned for this year to infill the inferred resource and evaluate its potential depth and strike extensions. Iamgold completed 4,995 metres before the suspension and is currently designing a summer drill campaign. Assays for an additional three holes are pending. More metallurgical tests are also planned to evaluate the recoveries from different zones of the deposit and to refine flow sheet specifications.

In October 2019, Iamgold reported (on a 100% basis) an initial inferred mineral resource for Nelligan of 97 million tonnes grading 1.02 grams gold, containing a total of 3.2 million oz. gold. Mineralization within the resource has been traced over 1 km of strike and down to a vertical depth of over 350 metres.

The site, 60 km southwest of Chibougamau, is under an earn-in option to joint-venture agreement with Vanstar Mining Resources (TSXV: VSR; US-OTC: VMNGF). Iamgold may earn an additional 5% in this project, for a total interest of 80%, by completing a feasibility study.

— This article first appeared in the Canadian Mining Journal. The Northern Miner and the Canadian Mining Journal are part of Glacier Resource Innovation Group.


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