Iamgold reports positive drill results at Monster Lake, Nelligan

Core samples from the Nelligan gold project in Quebec, co-owned by Iamgold and Vanstar. Credit: Vanstar Mining Resources.

Iamgold (TSX: IMG; NYSE: IAG) has reported the results of six drill holes completed at its 75%-owned Monster Lake joint venture project, 50 km southwest of Chibougamau, Quebec. The holes were drilled to the northeast and along strike of the Monster Lake structural corridor, which hosts an existing resource at the 325-Megane zone, and tested three additional shear zones within the 4-km long prospective corridor at the site.

Drill highlights included 4 metres of 16.9 grams per tonne gold as well as 4 metres of 1.89 grams per tonne gold from the Annie shear zone; 3 metres of 5.63 grams per tonne gold from the Big Mama shear zone; and 12 metres of 2.09 grams per tonne gold from the Main Shear area.

“The drilling program continues to intersect the targeted shear zones with further positive results from the Annie area,” Craig MacDougall, the company’s senior vice-president of exploration, said in a news release. “Our increasing understanding of the complex structural context has highlighted several discrete parallel shear zones hosting mineralization adjacent to the main known structural corridor. These results highlight the potential for the discovery of additional mineralized shoots along the Monster Lake structural corridor.”

The results will now be incorporated into structural and deposit models for the site ahead of additional drilling. Geological and geochemical surveys as well as regional structural studies are also underway.

In March 2018, Iamgold reported an initial underground mineral resource estimate for the 325-Megane zone at Monster Lake, with 1.1 million inferred tonnes, grading 12.14 grams per tonne gold, containing 433,300 oz. gold. The resources are based on a 3.5 grams per tonne gold cutoff.

The Monster Lake project is under a joint venture with TomaGold (TSX-V: LOT), who has a 25% stake in the project. If a production decision or commercial production declaration is made by the JV, TomaGold would also be entitled to a $1-million payment.

On Aug. 11, Iamgold also reported the results of three holes drilled at its 75% owned Nelligan gold project in the province, 60 km southwest of Chibougamau.

Drill highlights from the property include 39 metres of 2.14 grams per tonne gold and 35 metres of 1.85 grams per tonne gold from the Renard zone; 5 metres of 2.81 grams per tonne gold from the Renard West zone; and 16 metres of 2.65 grams per tonne gold from the Liam zone.

The results confirm the continuity of the existing mineralization and suggest that the gold zones and their associated alteration areas remain open along strike, to the west of the existing resource, the company said.

In October of last year, Iamgold reported an initial inferred mineral resource for Nelligan of 97 million tonnes grading 1.02 grams per tonne gold, containing a total of 3.2 million oz. gold.

The site is under an earn-in option to joint venture agreement with Vanstar Resources (TSX-V: 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 our sister publication, Canadian Mining Journal


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