Iamgold completes maiden resource for Boto

The geological setting of Iamgold’s (TSX: IMG; NYSE: IAG) Boto gold project in eastern Senegal along the West African nation’s border with Mali is underlain by Birimian-aged meta-sedimentary, volcanic and intrusive rocks that the gold producer says are similar to Mali’s Sadiola and Loulo gold districts.

A new resource estimate for its 100%-owned project incorporates five separate deposits, including one discovered last year called Malikoundi. Seval of the deposits, including Malikoundi, remain open along strike and at depth and the company plans to continue drilling the project and expanding the resource  after the rainy season ends in October.

Currently indicated resources stand at 22 million tonnes averaging 1.62 grams gold per tonne for 1.14 million ounces of contained gold with inferred resources adding 1.9 million tonnes averaging 1.35 grams gold for 81,000 ounces of contained gold. The resource was based on a cut-off grade of 0.60 gram gold per tonne and on 56,832 metres of drilling with assay results from 423 diamond and reverse circulation drill holes. 

Canaccord Genuity expects Iamgold will evaluate the project’s metallurgy and start a scoping study next year and has a 12-month target price on the stock of $9.00 per share. At presstime Iamgold was trading at $5.50 per share within a 52-week range of $4.00-16.45.  

“Although the project has been in the Iamgold fold for a lengthy period of time,” Canaccord writes in its morning summary, “the Malikoundi deposit has breathed new life into the project, which now could figure into the company’s potential growth plans (although it remains an exploration asset).”