Iamgold (IMG-T, IAG-N) has bought an additional 3% of the Sadiola gold mine in Mali from the World Bank’s International Finance Corp., bringing its total interest in the mine to 41% — or representing about 144,000 oz. of gold production in 2009.
The gold mine in the remote southwestern corner of Mali has produced more than 6 million ounces of gold since Iamgold set the project in motion in 1996.
The current mine plan outlines a mine life to 2013 using existing oxide reserves and stockpiles.
But according to a recent pre-feasibility study, Sadiola can produce between 400,000 and 500,000 oz. of gold per year on a 100% basis from 2013 until the end of 2018 with the addition of the Sadiola Deep sulphide project.
AngloGold Ashanti (AU-N) and the Republic of Mali are the other shareholders in the mine.
The open-pit mine is near Mali’s border with Senegal, about 70 km south of the town of Kayes, and about 510 km northwest of the Mali capital of Bamako.
As of Dec. 31, 2008, proven and probable reserves stood at 5.38 million tonnes grading 2.4 grams gold per tonne for 419,000 oz. contained gold.
Measured and indicated resources tallied 34.2 million tonnes grading 2.1 grams gold for 2.35 million oz. gold, while inferred resources totaled 10.8 million tonnes grading 2.3 grams gold for 786,000 oz. contained gold.
Sadiola was identified as a prospective exploration area for gold largely based upon evidence of widespread artisanal gold workings and small-scale mining by locals.
Written records of mining at Sadiola reportedly date back 250 years and the extent of the old workings suggest that mining could have taken place more than 1,000 years ago, according to the company’s website.
At presstime the gold producer was trading at $16.68 per share.
Over the last year, it has traded between $6.35 per share and $21.95 per share.
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