The results released Thursday are from seven drill holes covering 1,826 metres and are part of a 2021 program. Highlights include 3.2 metres of 16.1 g/t gold in drill hole GA-21-782, including 1.2 metres of grade 40.6 g/t gold.
Under a December, 2018, agreement Iamgold has the option to acquire the project by making cash payments of $4 million and spending $9 million on exploration over a four-year period.
By the end of the expenditure period, Iamgold is required to complete a NI 43-101-compliant resource estimate, after which Iamgold can purchase a 100% interest in the project, subject to a 2% net smelter return production royalty by paying Yorbeau the lesser of $15 per resource ounce or $30 million.
On Thursday, Yorbeau shares were unchanged at $0.045, and now trade in a 52-week range of $0.07 and $0.04. Iamgold eased 5.0% or 15 cents to $2.91, on volume of 1.64 million.
The Rouyn Gold property is located 4.0 kilometres south of Rouyn-Noranda, a city with a long mining history.
The property covers a 12-kilometre stretch of the Cadillac-Larder Break and contains four known gold deposits along the 6.0-kilometre Augmitto-Astoria corridor which is situated on the western portion of the property. Two of the four deposits, Astoria and Augmitto, benefit from established underground infrastructure and have been subject of technical reports that include resource estimates.
The Lac Gamble zone is located between the Augmitto and Astoria deposits. The exploration target potential at Lac Gamble is interpreted to be between 400,000 and 600,000 ounces of gold at a grade between 7.0 and 8.5 g/t gold.
“Our drilling program at Lac Gamble earlier this year specifically targeted some selected areas for possible extensions, as well as to complete some geotechnical drill holes to assess rock quality in the context of a potential underground scenario,’’ said Craig MacDougall, Executive Vice-President, Growth, at Iamgold.
“The results continue to strengthen our understanding of the deposit geology and geotechnical rock quality appears in line with our expectations from the initial assessment,’’ he said.
Iamgold is testing for potential extensions down plunge along the western boundary of the zone. All drill holes successfully intersected the targeted sheared Cadillac-Piche corridor, which hosts the mineralized Lac Gamble zone. Hole GA-21-782 shows that the zone could extend further in its western extensions at depth.
Meanwhile, a 9,000-metre drill program is in progress to evaluate the resource potential of other selected targets, including the Cinderella and Augmitto areas west of the Lac Gamble zone, and if timing permits, to the east of the Astoria zone.
Assays results will be integrated with the existing geological, geochemical and structural information to support the development and refinement of preliminary deposit models on the property to support a future potential maiden resource estimate.