Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s IAMGOLD (TSX IMG), (NYSE: IAG) highlighted on Wednesday “positive” assay results from a drilling program on the Rouyn gold project in Quebec, about 45 km. southwest of its Westwood mine.
The Toronto-based miner’s update included work on the Astoria area and the Lac Gamble Zone on the project, optioned from Yorbeau Resources (TSX:YRB) in 2018.
With the Rouyn project IAMGOLD seeks satellite resources to supplement production at its Westwood gold operation..
IAMGOLD said that material extracted at Lac Gamble Zone graded as much as 27.8 grams of gold per tonne (g/t) over 9.8 meters and 10.4 g/t over 9.8 meters. Between this and the Astoria area, several other drill holes showed gold in a range of 4.6 g/t to 7.9 g/t.
“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, exploration said in the statement.
Last month, the company posted a net loss from continuing operations of C$373.3 million on revenues of $1.1 billion. This, as it recorded a $395-million impairment charge related to its Westwood mine, which was affected by increased seismic activity in the fourth quarter.
The operation was temporarily halted to comply with the Quebec and Ontario provincial directives intended to help reduce the transmission of coronavirus.
IAMGOLD made headlines last year after China Gold International Resources said the miner would “fit well” with its acquisition strategy.
Following the highly publicized multi-billion mergers of Barrick – Randgold and Newmont – Goldcorp, rising gold prices have spurred an anticipated wave of consolidation in the sector.
The deals, which initially favoured Canada and Australia, have now spread out to include assets in Latin America and Europe.
