Iamgold (TSX IMG; NYSE: IAG) reported high-grade assay results from a drilling program on the Rouyn gold project in Quebec, 4 km south of Rouyn-Noranda and 45 km southwest of its Westwood mine.
The assay results came from the Astoria area and the Lac Gamble Zone on the project, optioned from Yorbeau Resources (TSX: YRB) in 2018.
Iamgold said that material extracted from the Lac Gamble zone graded 27.8 grams gold per tonne over 9.8 meters, including 4.4 metres of 58.4 grams gold in drill hole GA-20-750, and 10.4 grams gold per tonne over 9.8 meters, including 3 metres of 22.8 grams gold in drill hole GA-19-709W2.
Results from the Astoria area included 5 metres of 4.6 grams gold, including 1 metre of 14.4 grams gold in drill hole AS-19-732, and 2.2 metres of 7.9 grams gold, including 1.2 metres of 12.3 grams gold in drill hole AS-19-738.
"The Rouyn gold project provides Iamgold with an opportunity to delineate satellite resources with the objective of supplementing production at our Westwood operation and utilizing our existing infrastructure and excess mill capacity," Craig MacDougall, senior vice president for exploration, said in a press release.
Earlier this month, the Toronto-based miner reported a net loss from continuing operations in the first quarter of US$34.4 million, or 7 ? per share, compared with a net loss of US$40.7 million or 9 ? per share in the first quarter of 2019.
Attributable gold production in the three months ended March 31 totalled 170,000 ounces, down 3,000 oz. from the same quarter a year ago. Total cash costs came in at US$993 per oz., up 12% year-on-year, while all-in sustaining costs were US$1,230 per oz., also a 12% increase.
The company ended the first quarter with cash and equivalents of US$829.8 million.
At presstime in Toronto, Iamgold was trading at $5.02 per share within a 52-week trading range of $2.00 and $556.
The company has about 471 million common shares outstanding an a market cap of $2.4 billion.