Yatela props up Iamgold

Thanks to newfound production from the Yatela mine in western Mali, Iamgold (IMG-T) set a production record in 2001.

The company, which owns 40% of Yatela and 38% of its bigger sister, Sadiola, produced 256,077 oz. gold last year. The remaining share of production is divided among AngloGold (AU-N), which operates both mines, the Malian government and International Finance Corp.

In all, Sadiola poured 536,047 oz. of the yellow metal at a total cash cost of US$143 per oz. The mine exceeded expectations in terms of head grades, milling volumes and recovery rates.

Yatela, which began commercial production in July, produced 130,948 oz. at a cost of US$158 per oz. Iamgold’s share amounted to 52,379 oz.

In 2002, the mines are expected to pour 816,326 oz. at a total cash cost of US$163 per oz. Sadiola will contribute just over twice as much as Yatela and has sold forward 85,000 oz. at US$271 per oz.

On the exploration front, the partners have budgeted US$4.6 million for Sadiola and US$1.5 million for Yatela. Crews are focusing on possible mineralized extensions from each of the pits and showings in the surrounding area.

At Sadiola, drilling has highlighted a major northeasterly striking fault that slices through the deposit. North of the fault, grades ran up to 16.9 grams per tonne over as much as 9 metres. Mineralization in the central and southern sections is lower in grade but much wider in extent, suggesting a deeply rooted sulphide system on the south side of the fault.

Exploration at Yatela is focused on areas northeast and southwest of the pit. The small Alamtoutala satellite deposit is also targeted for follow-up work.

At year-end, Sadiola’s reserves were estimated at 36 million tonnes grading 3.3 grams gold per tonne. The reserve sits in a resource of 50.1 million tonnes averaging 2.4 grams.

Sadiola’s reserves are being recalculated using an 80% recovery rate, or 5% less than was used in the year-end calculation. The change reflects updated results from ongoing metallurgical tests.

Yatela’s reserves stood at 12.3 million tonnes grading 3.6 grams gold; its resources, at 17 million tonnes grading 3 grams.

Reserves at both mines are based on a gold price of US$300 per oz., whereas resources are based on US$350 per oz.

Meanwhile, Iamgold continues to explore its various projects in Senegal, Ecuador, Brazil and Argentina. All are considered prospective for gold, and some are being funded by other companies as part of their earn-in requirements.