IAMGOLD, Ashanti launch US$38M program

Reverse-circulation drilling has intersected mineralization on three of 10 West African concessions owned by partners IAMGOLD (IMG-T) and Ashanti Goldfields (AGC-T).

The results represent the first phase of a US$38-million, 4-year program co-managed by the two companies, which are exploring the properties in a 50-50 joint venture.

At the Mandiana concession in Guinea, IAMGOLD intersected gold over a strike length of 600 metres and widths of 10-95 metres. The mineralization — primarily pyrite and arsenopyrite — is oxidized to a depth of 50 metres and appears to be associated with a granodiorite intrusive.

Of the 38 holes that have been assayed, 12 returned significant results (more than the cutoff grade of 1 gram gold per tonne). The best intersections include: 95 metres grading 2.4 grams per tonne in hole 14; 86 metres grading 2.64 grams in hole 32; and 10 metres grading 3.67 grams in hole 25. Results from 11 more holes are pending.

Dennis Jones, IAMGOLD’s manager of exploration, says the results, especially the widths of some of the intersections, are encouraging. But he adds that IAMGOLD has uncovered several other anomalies on the 3,500-sq.-km concession that will be investigated before the partners embark on an expensive follow-up program at Koulekoun.

The company is still awaiting results from a 30-hole program on the promising N’zima propspect nearby. Previous samples from termite mounds on the prospect returned grades of up to 5 grams per tonne.

At the Saoura prospect in Niger, the partners outlined mineralization over a strike length of 350 metres within a single geochemical anomaly. The zone remains open along strike to the northwest and may extend at least 500 metres to the southeast, where a single drill hole collared on a separate geochemical anomaly intersected some mineralization.

The Saoura program was delayed when a plane carrying 5,000 samples from the property crashed. Jones says assays will be available shortly.

This year, the partners will spend US$10 million to investigate gold anomalies in 10 West African concessions covering a total of 10,000 sq. km.

Exploration will resume in late October or November when the rainy season ends. Jones says the partners will probably begin using less-expensive percussion drilling to investigate the potential of several target areas.

Meanwhile, IAMGOLD and partner Anglo American Corp. have completed 85% of the US$303-million construction program at the Sadiola open-pit mine complex in Mali. The mine is expected to produce its first gold later this year and reach full production of 4 million tonnes per year in May 1997.