(Ecofin Agency) - Yesterday June 5, Iamgold reported positive results following a pre-feasibility study (PFS) for its Essakane heap leach project in Burkina Faso. The results showed an increase by 39% in the mine’s probable reserves from 1.3 million oz to 4.7 million oz.

Meanwhile, indicated resources also increased by 19% to 5.1 million oz, while inferred resources increased by 54% to 0.6 million oz. Therefore, during the mine’s 8.5-year lifetime, an average of 480,000 oz of gold will be produced annually (+16% compared to previous estimate). 

"I applaud the Essakane team," said Steve Letwin, President and CEO of IAMGOLD. "Not only have they introduced a new processing method (ed: heap leaching) that allows for economic incremental production, their success at the drill bit has delivered a resource increase far greater than what we expected,” CEO Steve Letwin said.

Let’s note that the project’s initial capital spending is estimated at $155-million. A feasibility study will then be conducted to optimize the PFS results.

Louis-Nino Kansoun