$1.3B gold project to go ahead
Gold miner IAMGOLD announced on July 21 that is it going forward with construction of its $1.3-billion Côté Gold Project.
The project is located approximately 130 kilometres southwest of Timmins and 200 kilometres northwest of Sudbury. It is considered to be a world-class gold deposit, with estimated reserves of more than 7 million ounces and further exploration potential.
Construction of the facility is expected to begin in the third quarter of this year, with activity ramping up into the fourth quarter. The mine is expected to enter commercial production in the second half of 2023. Construction is expected to create more than 1,000 jobs, while the facility itself is expected to create 450 jobs during operations, and more than $10 billion in GDP over its lifespan.
“Today's construction decision for the project positions the company well for the future by reducing overall operating costs (per ounce of gold), increasing total production capacity, increasing the number of operating mines and creating greater balance in our geographic diversity,” said IAMGOLD president and CEO Gordon Stothart.
At a price per ounce for gold of more than $1,700, the net present value of the mine is more than $2 billion. The facility is expected to produce an average of 367,000 ounces of gold per year over its 18-year anticipated life.
To date, 60 percent of the project site engineering is complete, and IAMGOLD has obtained bids and pricing on all major equipment. The anticipated construction schedule is 32 months, with earthwork and mining contractors to start work in the second quarter of 2021, enclosing of the process building in the first quarter of 2022, and completion of the tailing management facility in the fourth quarter of 2022.
“While we focus on building Côté, we will continue to apply our de-risking approach to the Boto Gold Project in Senegal, commencing with meaningful investment in local infrastructure,” said Stothart. “We are very excited about building our growth pipeline and the future of the company."