Iamgold to drill six properties

Though best known for its 38% stake in the Sadiola Hill mine in Mali, Iamgold (IMG-T) is making a name for itself on the exploration scene. In addition to mine-site exploration, the globe-trotting company has drill programs under way or about to start on six properties in Senegal, South Africa, Ecuador, Brazil and Argentina.

Among the more intriguing projects is a joint venture with AfriOre (AFO-V) in South Africa. The partners are searching for Witwatersrand-type mineralization, the mainstay of South Africa’s venerable gold mining industry. An average-sized mine in this mining camp near Johannesburg typically produces 20-25 million oz. gold over its life.

The partners’ first hole, drilled earlier this year to a depth of more than 2,000 metres, intersected a succession of Proterozoic rock. While the hole did not point to an extension to the Witwatersrand Basin, the geological information, combined with interpretation of recent seismic data, led to the identification of a second target within the greater project area.

The joint venture was renegotiated to allow for further exploration of this priority target; it will be tested by a 2,500-metre hole that is expected to be completed early next year.

Once this program is completed, Iamgold will have vested its 50% interest in the revised target area. If more exploration is warranted, subsequent costs will be borne equally by the partners. AfriOre will retain a 100% interest in the remaining project areas.

Farther north, in eastern Senegal, Iamgold has completed a trenching and drilling program on the wholly owned Bambadji group of properties. The most impressive results were reported from the Boto 5 project, where one hole returned 21.5 metres averaging 17.7 grams gold per tonne. The intersection occurred about 50 metres below a trenched zone that returned an average of 35 grams gold over 17 metres.

Subsequent work was interrupted by the rainy season, though drilling is expected to resume this December, after rivers have receded. Geochemical targets have also been identified along a major, north-south structural corridor.

In the Zaruma-Portovelo mining district in southern Ecuador, Iamgold is exploring its wholly owned Retazos project, where drilling is under way. The region is known for its multi-vein systems, which are reported to have produced some 4.5 million oz. gold and 19 million oz. silver (as well as base metals.)

Iamgold spent 18 months assembling a land package and now holds more than 10 km of the mineralized corridor, as well as portions of the surrounding areas.

This year’s work program will include 8,000 metres of surface and underground drilling, of which 3,525 metres have been completed to date.

Results (true widths) from the Sesmo vein include: 4.4 metres of 0.2 gram gold, 18 grams silver and 0.4% copper; and 3.2 metres of 0.5 gram gold, 117 grams silver, 1.6% copper, 0.7% zinc and 0.5% lead. A hole testing the Muluncay vein returned 6.7 metres of 47 grams silver, 1.6% copper, 2.3% zinc and 0.3% lead.

Although the gold values were lower than expected, the drill program is continuing to seek out better targets. The remaining holes are aimed at outlining extensions to the vein systems along strike and downdip from old workings and, in the underground phase, at testing extensions of payshoots defined on the basis of old mining records.

Iamgold is also active in Brazil’s Quadrilatero Ferrifero mining district, where it is exploring a large land package assembled over the past 18 months.

A second phase of drilling is about to begin on the wholly owned Moeda project, which is believed to be geologically similar to South Africa’s Witwatersrand Basin. The goal is to find a shallow, laterally extensive underground deposit comparable in size to Witwatersrand deposits.

The first phase of drilling fell short, with the best intersection being 12.7 grams gold over 1 metre. However, re-logging of old core and the existence of old workings north of the previous drill sites provided evidence of a better target — a gold-bearing conglomerate unit with a strike length of about 10 km. A 7,000-metre drill program will test areas where other companies had intersected gold mineralization.

Iamgold is also searching for epithermal gold deposits on two groups of properties in Argentina: Mesa in Santa Cruz, and Los Menucos in Rio Negro province. Drill programs are scheduled to begin shortly on both.

The Mesa project includes the Laz Mellizas target, being explored by London-based Rio Tinto (RTP-N) under a joint-venture agreement. The major can earn a 55% interest in this target by spending US$3 million on exploration over three years. Drilling at Los Menucos could begin early next year, particularly if negotiations with a potential joint-venture partner bear fruit.

Meanwhile, exploration will continue at Iamgold’s main asset, Sadiola Hill in Mali. A US$1-million, 16-hole program will test for higher-grade sulphide mineralization. At the same time, drilling to delineate additional oxide resources will continue near the present Sadiola pit and on selected satellite deposits. This work is expected to move resources into the reserve category by year-end.

The Sadiola Hill gold mine is operated by partner Anglogold (AU-N), which also holds a 38% stake. The remaining interests are held by the government of Mali and a unit of the World Bank.