IAMGOLD Corp (NYSE:IAG) Consolidating A Growing New Gold District

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IAMGOLD Corp (NYSE:IAG) has signed a deal with the Government of Suriname, under which it has been given the exploration rights to the Brokolonko asset. This property is located around 30 kilometers from the Rosebel mill in Suriname and northwest of the earlier bought Saramacca property as well as the Sarafina property optioned to company. Unlike Sarafina and Saramacca, the company has not bought Brokolonko from a third party. Instead the rights to exploration were secured directly from the Government of Suriname.

The buzz

Steve Letwin, the CEO and President of IMGOLD, expressed that obtaining the exploration rights to Brokolonko reinforces another step in their plan to consolidate probable land packages within the closeness of the Rosebel Mine. It was just in September 2017 that they reported a preliminary resource projection for Saramacca a year after its deal, and are now working towards a preliminary production start in next year.

Brokolonko, which they consider is based on the same mineralization drift as Saramacca, could yield another stream of higher grade, softer rock. It would further increase the life of Rosebel and also enhance its cost profile. Having access to several concessions around Rosebel exhibits a prospect to extend life of the Rosebel mine, and is enabling them to consolidate a growing new gold district secured by Rosebel that is mutually helpful to IAMGOLD as well as the Republic of Suriname.

It should be noted that the Brokolonko property marks as the third property that company has obtained within the “UJV” area as mentioned in the deal with the Government of Suriname reported on April 15, 2013. This UJV area marks as a circular area, discounting the Rosebel concession, which goes 45 kilometers from the Rosebel mill and constitutes around 6,200 square kilometers. Under the deal the Government of Suriname possesses the option of buying a 30% participating stake in any of the properties coming under the scope of the UJV deal, with IAMGOLD keeping the other 70%.

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