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IAMGOLD closed up after releasing additional positive drill results from 2019 winter diamond drilling at its Rouyn gold project.
IAMGOLD (TSX:IMG,NYSE:IAG) is feeling positive after the release of additional results from 2019 winter diamond drilling at its Rouyn gold project in Quebec.
On Wednesday (June 12), the miner announced new assay results from an additional 21 diamond drill holes totaling 6,181 meters. It previously reported results for 10 holes covering 2,257 meters.
“The 2019 delineation drilling program continues to deliver positive results from the Lac Gamble zone,” said Craig MacDougall, senior vice president of exploration at IAMGOLD.
He explained that the company optioned Rouyn from Yorbeau Resources with the intention of targeting the Cadillac Break and quickly delineating mineral resources. Future work could include evaluating mineral resources in the area as satellite deposits for IAMGOLD’s Westwood operation.
Tuesday’s release reveals results including 10.9 meters grading 6.6 grams per tonne (g/t) gold, 29.7 meters grading 9 g/t gold, 12.8 meters grading 3.7 g/t gold and 3.3 meters grading 9 g/t gold.
With the new results in hand, the company will now focus on compiling them with existing and newly acquired geological, geochemical and structural information to support the development and refinement of a deposit model.
Once support for the deposit model has been put into place, IAMGOLD will begin working towards a mineral resource estimation for the Lac Gamble zone.
“Once the remaining assay results are in hand, the exploration team will work to develop a preliminary deposit model to support a future initial resource estimate,” added MacDougall.
Additionally, there are more drilling plans on the horizon with the aim of testing selected targets in the area of the Astoria deposit, located several kilometers to the east. The program is expected to commence before the summer comes to a close.
Drill results are not the only reason that IAMGOLD has been making news recently. In mid-May, rumors began to swirl that the miner was exploring its options for selling all or part of the company. The talk came as more and more consolidation took place within the gold space.
Bloomberg, which released the story, said people familiar with the matter had revealed that IAMGOLD was allegedly working with advisors and had even spoken to various potential buyers.
When the Investing News Network spoke with the company at Mines and Money New York at the beginning of May, CEO Stephen J.J. Letwin said, “I think there’s investor fatigue, and the bottom line is there’s probably too many of us relative to the fact that the capital pool is shrinking.”
In response to the Bloomberg report, IAMGOLD issued a statement saying the company does not comment on speculation and rumors. There has been no talk on the subject since.
As of 3:30 p.m. EDT on Wednesday, IAMGOLD was up 1.1 percent, trading at C$3.68.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
