This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IAMGOLD Signs Its First Option Agreement To Explore Properties Surrounding Its Rosebel Mine In Suriname


TORONTO, March 6, 2014 /PRNewswire/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") announced today that it has finalized a five-year option agreement with Sarafina N.V. (the "Agreement") under which IAMGOLD's subsidiary, Rosebel Gold Mine ("RGM") may earn a 100% interest in Sarafina's 10,000 hectare mining concession, located 25 kilometres from the Rosebel Gold Mine in Suriname.

The Company may exercise its right to purchase the property at any time for a cash purchase price of US$1 million. To maintain this purchase option, RGM is required to make scheduled option payments totaling US$575,000 over five years. IAMGOLD may elect to terminate the Agreement at any time. Should the project proceed to production, Sarafina N.V. shall be paid a NSR royalty of 1.6% for any gold produced from this property.

IAMGOLD's President and CEO, Steve Letwin, said, "Rosebel has been a great mine for IAMGOLD.   In its first 10 years, Rosebel produced more gold than defined in its original mineral reserve.   Its future reserves are becoming more challenging and expensive to process due to an increasing proportion of hard rock.   The Sarafina property has the potential to yield new discoveries of higher grade, softer rock that could be mined with a lower stripping ratio than our current operations.   The new Agreement opens the opportunity to reinvent Rosebel, lengthen its reserve life, lower its unit operating costs and improve its contribution to the Government of Suriname, the local community and our investors."

The property lies within the Unincorporated Joint Venture ("UJV") area that was negotiated with the Government of Suriname in 2013, with the UJV owned 70% by RGM and 30% by the Government. In the UJV, RGM is eligible to benefit from the low power rate of $0.11/kWh for any material processed originating from the Sarafina property.   IAMGOLD intends to make exploration of this property a priority, with the aim of discovering additional softer ore to feed to the Rosebel mill in the coming years.

The Sarafina property lies within a northwest trending belt of sheared mafic volcanics immediately along strike of the previously discovered Saramacca gold deposit.  The project has been the site of previous exploration and ongoing small scale mining and is believed to have exploration potential for the discovery of gold mineralization. IAMGOLD will complete a compilation of all historic exploration data to identify priority targets for follow up and will have its exploration team active on the site immediately.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs