IAMGOLD Corp. (IAG) to Acquire Saramacca Property
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IAMGOLD Corporation (NYSE: IAG) today reports that the Company has signed an agreement with the Government of Suriname to acquire an interest in the Saramacca property with the intent of defining a 43-101 compliant mineral resource within the next 24 months. The Saramacca property, also known as Anomaly M, is located in the Republic of Suriname approximately 30 kilometres southwest of the Rosebel mill and immediately southeast of the Sarafina property optioned to IAMGOLD.
"This agreement is a landmark achievement for the Company. I believe the addition of this property to Rosebel's mineral inventory will go a long way to supporting our future mining operations in Suriname," said Steve Letwin, IAMGOLD President and CEO. "Adding resources that extend the life of the existing infrastructure at our mines is one of the most cost effective ways to achieve growth. Further, given the significance of Rosebel's mining in Suriname, this project should provide important support to the economy of the country."
The terms of the acquisition include an initial payment of $200,000, which would enable immediate access to the property for Rosebel's exploration team as well as access to data from previous exploration activity at Saramacca to conduct a due diligence review of the property. Provided Rosebel is satisfied with the results of the due diligence, it will pay $10 million as well as 3.125 million IAMGOLD common shares to be held in escrow, which would be released to the Government of Suriname in three approximately equal tranches in 12-month intervals following the ratification of the agreement by Rosebel. Adjustments to the purchase price will be calculated depending on the success of the drill program carried out by the Rosebel team over the first 24 months, but will be capped at $10 million.
The Saramacca property has been explored since the 1990's principally by Golden Star and later as a joint venture between Golden Star and Newmont. Much of that work focused on the discovery and delineation of Anomaly M, which was the subject of successive auger and diamond drilling programs with over 50 diamond drill holes and over 200 auger holes completed in the anomaly area. Evaluation of this work suggests an exploration target potential of between 8 and 40 million tonnes grading between 1.0 and 1.8 g/t Au for potentially 0.5 to 1.4 million contained ounces of gold. The potential quantity and grade are conceptual in nature and insufficient exploration work has been completed to define a mineral resource. The property will require significant future exploration to advance to a resource stage and there can be no certainty that the exploration target will result in a mineral resource being defined. The target ranges are consistent with deposits currently being mined at IAMGOLD's adjacent Rosebel operation.
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