Construction of Côté Gold 92% complete, company announces

IAMGOLD reported strong progress this week in its Côté Gold project, with 92 per cent of construction completed and the overall project 90.6 per cent complete.

Located about an hour south of Timmins, construction began in 2020 and was expected to take three years and cost the company around $900 million.

However, rising costs and other challenges pushed back the opening to early 2024. IAMGOLD's share of the remaining costs to complete the project soared from $750 million to an estimated $1.3 billion.

Since raising the funds it needed, however, the construction budget and schedule has gone smoothly, with the project approximately 80 per cent complete as of the end of March 2023.

The lifespan of the mine is expected to be 16-18 years and produce 495,000 ounces of gold a year in its first six years.

Average production over the full 18 years is estimated at 365,000 ounces a year.

“IAMGOLD … is pleased to announce an update for the Côté Gold project highlighting the construction progress in the third quarter, alongside additional assay results from its continuing diamond drilling program at the Gosselin zone discovery located immediately adjacent to the Côté Gold deposit,” the company said on its website.

“Production (is) expected to commence in early 2024.”

The company said significant progress has been made in the dry and wet areas of the process facility, as bulk construction activities are winding down, ushering in the finishing and completion stages.

“Electrification of the site is ongoing following connection to the provincial hydro grid,” IAMGOLD said.

“Autonomous mining haul trucks have continued to ramp up, with 10 CAT 793F currently operating autonomously and a total of 14 commissioned.”

Hiring of key positions for operations has progressed well, IAMGOLD said, with 400 roles filled to date.

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"It is an exciting time for IAMGOLD as we near the finish line of construction at Côté and start a new chapter at IAMGOLD,” Renaud Adams, president and CEO of IAMGOLD, said in a news release.

“This is a project that is critical for the repositioning of this company, as when Côté Gold comes online, the company will have a significantly higher production base and lower cost profile, providing a strong foundation of cashflow and growth opportunities in Canada.”