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IAMGOLD Corporation IAG has completed the sale of its 100% stake in the Karita Gold Project and related exploration assets in Guinea. This transaction fulfills a part of an agreement inked with Managem two years ago, under which IAG had committed to sell interests in its exploration and development projects in Senegal, Guinea and Mali.
Per the deal, IAMGOLD would receive cash payments totaling $282 million.
Progress on the IAMGOLD & Managem Deal So Far
IAMGOLD had announced the deal with Managem on Dec. 20, 2022. It entailed the sale of IAMGOLD’s 90% interest in the Boto Gold Project in Senegal and 100% interest in each of the Diakha-Siribaya Gold Project in Mali, Karita Gold Project and associated exploration properties in Guinea. It also included the early-stage exploration properties of Boto West, Senala West and Daorala as well as the vested interest in the Senala Option Earn-in Joint Venture (also in Senegal).
In April 2024, IAG divested its interests in Senegal for aggregate gross cash proceeds of $197.6 million. This included its 90% interest in the Boto Gold Project and 100% exploration interests within the country.
With the sale of the Karita Gold Project duly completed, the sale of the Diakha-Siribaya Gold Project and associated exploration assets in Mali will mark the conclusion of the deal.
IAG’s Recent Update on the Westwood Mine
IAMGOLD recently provided a Mineral Resource and Mineral Reserve (MRMR) estimate and updated life of mine (LOM) plan for its Westwood Complex located in Quebec, Canada. The life of the mine has been updated from 2025 to 2032, projecting overall average gold production at 925,000 ounces over the life of the mine, which was lower than market expectations. However, IAG expects average gold production at an accelerated pace in the first three years, averaging 146,000 ounces.
The MRMR statement shows underground mineral reserves at Westwood at 2.6 million tons (Mt), averaging 11.45 grams per ton of gold containing 955,400 ounces. This is lower than the previous estimate of 3.36 MT, averaging 10.62 grams per ton of gold containing 1,149,000 ounces. While total tonnage and contained gold have fallen 23% and 17%, respectively, the grade has slightly improved.
Per the company, the updated reserves highlighted its redesigned approach to mining focusing on safety and efficiency, following the seismic activity in 2020.
IAMGOLD Increases Stake in Côté Gold Mine to 70%
IAMGOLD recently exercised the right to repurchase the 9.7% interest of the Côté Gold Mine from Sumitomo Metal Mining Co. Ltd. This takes IAG’s interest in the promising mine to 70%. The total gold production from Côté Gold (at 100%) is expected to be in the range of 220,000-290,000 ounces as improvements to mill availability are made during the ramp-up of operations.
In the first six years of operation, Côté Gold’s expected gold output will likely be 495,000 ounces.