Iamgold ponders fate of exploration projects

Recent exploration has prompted Iamgold (IAM-T) to walk away from the FSC project, in South Africa, and consider a similar action at the Moeda and Retazos projects in Brazil and Ecuador, respectively.

At FSC, Iamgold had been searching for a possible extension of the Witwatersrand basin. However, seismic data and age-dating of drill core now suggest such an extension is unlikely.

AfriOre (AFO-V), which dealt Iamgold the option for FSC, is reviewing the data in relation to areas of the property that were not covered by the agreement. It believes such areas may yet host mineralized Witwatersrand rocks.

Mixed results from Moeda have triggered discussions for a possible joint venture or outright sale. Like FSC, Iamgold has been searching for Witwatersrand-type deposits.

A recent hole drilled in the MBR zone intersected the basal contact at 949.5 metres below surface. It returned 2.2 grams gold per tonne over 1 metre of the conglomerate unit.

Recent drilling at Retazos suggests the project is unlikely to repeat historic mining figures. Old mine data show that the Zaruma-Portovelo vein system yielded more than a million ounces from several payshoots.

Recent drilling intersected three new veins carrying low grades (0.2-1.9 grams) but similar characteristics and base-metal content to those mined at Zaramu-Portovelo. Their combination with veins left over at Zaramu-Portovelo has reportedly caught the attention of an unnamed intermediate gold producer, and discussions are ongoing.

Meanwhile, at the Bambadji gold project, in Senegal, 10 drill holes have returned lower grades than those encountered in earlier holes. All targeted the Boto 5 prospect.

Gold values varied from 1.2 to 7.5 grams gold over 1-7 metres. The best result from earlier drilling was 17.7 grams over 21.5 metres. The hole was drilled beneath a trench that averaged 33.2 grams over 17 metres.

Mineralization is hosted by highly altered, sulphide-rich rocks.

Iamgold believes the results indicate the presence of a large mineralized system at Boto 5. Accordingly, it is carrying out additional multi-element analyses and is reinterpreting the geophysical data.

Iamgold also notes that several companies are investigating Bambadji for its potential to host large, iron-oxide copper-gold deposits.

Las Mellizas

Rio Tinto (RTP-N) has exercised its right to assume operatorship at the Las Mellizas gold project in Argentina. The major can earn a 55% stake in the project by spending US$3 million over three years.

Recent trenching and drilling by Iamgold confirmed the high-grade potential of an epithermal vein prospect. Three trenches dug 50 metres apart returned 10.6 grams over 1.6 metres, 21.2 grams over 3.3 metres and 42.3 grams over 1 metre. A subsequent reverse-circulation (RC) hole, MZ-36, averaged 940 grams over 0.6 metre of a 2.5-metre section that averaged 189 grams (which started at 140 metres down-hole and represents true width).

Iamgold has traced the vein system on surface for 8 km. Starting in August, Rio will begin mapping, trenching and sampling the entire strike length.

Drilling may follow.

Also in Argentina, Iamgold recently sank 12 RC holes in a large, structurally controlled epithermal system outlined at the La Esperanza property. The system measures 8 km long and 4 km wide.

Holes 2 and 8 returned the narrowest intervals of 2 metres, which grades 4.5 grams (which was the higest grade obtained) and 1.3 grams, respectively. The longest mineralized section was 21 metres and averaged 1.5 grams.

Mineralization is near-surface.

The first of seven RC holes planned for the Tocantins project, in Brazil, is under way. The holes are targeting an area north of the one being mined, where historic workings suggest the possibility of an open-pit deposit.

Mapping has followed historic and current workings along 6 km of shearing. Locals are focusing on a portion where two veins carry high but variable grades over widths of 1-2 metres. There, the enclosing shear zone is 30-50 metres wide and extends to depths of 120 metres below surface.

Iamgold can earn a half-interest in Tocantins from AngloGold (AU-N).