Iamgold to apply for mining concession at 'promising' project in Senegal

Canada's IAMGOLD Corp. (TSX IMG), (NYSE: IAG) plans to apply for a mining concession before year-end after releasing a robust feasibility study for its near-2 million ounce Boto gold exploration project in Senegal.

President and CEO Steve Letwin said while a final investment decision on the $254-million project was yet to be made, Boto represented a "high-value" one, which would add to the company's growth profile.

The feasibility study, jointly completed by IAMGOLD and Lycopodium Minerals Canada, outlines a "robust" project, which will produce 140,000 ounces of gold a year on average, for nearly 13 years, at a life-of-mine cash cost of $714 per ounce and all-in sustaining costs of $753 per ounce.

The report also calculated an after-tax internal rate of return of 23 percent, with a payback period of 3.4 years. The net present value, at a 6 percent discount rate, is $261-million, using a gold price of $1,250 per ounce.

The Toronto-based miner will use the positive feasibility study to support its application for a mining concession in the fourth quarter of this year, with approval expected in the first half of 2019.

Boto Gold Project. (Source:IAMGOLD.)