Iamgold pours first gold at Côté project in Ontario

The Côté gold mine in northern Ontario, Canada’s newest and expected to be one of its largest, has poured its first doré bar as it advances towards commercial production scheduled for this year’s third quarter. 

The mine, located 125 km southwest of Timmins, is owned 60% and operated by Iamgold (TSX: IMG; NYSE: IAG), and 40% owned by Sumitomo Metals Mining of Japan. Côté joins Iamgold’s Essakane in Burkina Faso and Westwood in Quebec as the Toronto-based company’s third gold producer. 

BMO Capital Markets said first gold was on schedule, though at the very end of a targeted window in the year’s first quarter.

“This milestone is an accomplishment worth celebrating,” mining analyst Jackie Przybylowski said in a note on Sunday. “However, commissioning activities will continue through 2024. We maintain our expectation that full run rate will be achieved in the fourth quarter of this year.”

Performing as planned

Iamgold is targeting end-of-year throughput at 90% and production of 220,000 oz. to 290,000 oz on a 100% basis if commissioning goes as planned. So far, the crushing, high-pressure grinding rolls and processing circuits are performing as expected, including power consumption.

“I am delighted to announce that Côté gold achieved the milestone of first gold pour, less than 90 days since the start of the pre-commissioning activities,” Renaud Adams, president and CEO of Iamgold, said in a release on Sunday.

“This achievement represents the culmination of over 15 million hours of work over four years of construction – an incredible effort for the team on the ground as the project cost to first gold remains in line with the updated budget estimate while maintaining a near impeccable safety record.”

Sustainable gold

Gold would only be poured in a sustainable manner, Adams said during a Côté site visit in October, BMO noted. 

“We would interpret today’s announcement to mean that the operation not only achieved sustainable first gold, but that it has done so sustainably,” Przybylowski said. 

Côté will be one of Canada’s largest gold producers with an 18-year mine life. During the first six years of operation, Côté’s gold output will be 495,000 oz., and over the life of the mine, it will average 365,000 oz. per year. The mine has proven and probable reserves of 234.6 million tonnes grading 1.01 grams gold per tonne and containing 7.6 million oz. of gold. 

It’s the first gold mining project in North America designed and built for a fully automated haulage fleet.

“This is just the beginning for Côté,” Adams said. “We believe the project is the start of what will ultimately turn into a new mining district that will be a mining hub for decades to come.”