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Friday, 25th July 2008 (3566 views)

IAMGOLD has announced that it has bought the participation royalty on the Doyon/Westwood property situated in the Abitibi area of northern Quebec.

The acquisition from Barrick Gold removes the royalty obligation on the Doyon mine, which is 24.75 per cent of the gold price above $375/oz (£188/oz).

Current gold prices mean this will create a reduction in cash costs at Doyon of $140/oz.

Where the Doyon division is concerned, the estimated reduction in cash costs for the rest of the year at current gold prices is $80/oz.

As the participation royalty also encompassed the Westwood development project two km from the Doyon, future production from that mine will also be obligation-free.

Joseph Conway, president and chief executive officer at IAMGOLD, said the move was "consistent with our strategy to significantly reduce our cash costs and we continue to aggressively explore other opportunities to increase operational efficiencies throughout the organisation."

Earlier this week, it was reported Explorator Resources had found a grading of 0.11 g/t of gold across 62 metres in the La Vidua zone at the Chilean El Espino-Venus project.

 

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