TSX-listed IAMGOLD this week announced that the Senegalese government has approved the mining permit application for its Boto gold project.
Senegal – The permit is for an initial period of 20 years, principally under the provisions of Senegal's 2003 mining code. The receipt of the mining permit positions the project for a development decision and eventual production.
Boto is one of IAMGOLD's most advanced growth projects. Based on the results of various development and operating optimisations undertaken since the completion of the feasibility study, Boto is expected to produce an average of 160 000 ounces of gold per year during the first six years of operations, averaging 130 000 ounces of gold per year at all-in sustaining costs of $842 per ounce sold over a mine life of approximately 11 years.
With expected initial capital expenditures of $271 million, Boto represents an after-tax Net Present Value (6% discount) of $219 million using a gold price assumption of $1 350 per ounce.
[subhead] Boto’s has huge potential
Gord Stothart, President and COO of IAMGOLD, said, "The Boto gold project generates impressive returns and margins, and we are very pleased to now be in receipt of the exploitation permit. We thank the government of Senegal for its ongoing support of this project.
Situated in the highly prospective Boto-Karita-Diakha gold district, Boto is well positioned to benefit from further discoveries. Work is already underway to obtain approvals for the next steps, supporting either a decision to proceed to full construction or further de-risk prior to construction approval."