IAMGOLD reports additional high grade intersections on the Saramacca Project in Suriname
Wednesday, May 17, 2017
IAMGOLD Corporation provided an update from its 2017 infill drilling program at the Saramacca project, located 25 kilometres southwest of its Rosebel Gold Mine ("RGM") in Suriname.  The current phase of the 2017 infill delineation drilling program is now complete with 113 diamond drill holes totaling approximately 19,600 metres.  Assay results have been received from 78 drill holes totaling 14,166 metres, including 49 drill holes totaling 8,158 metres reported herein (see previous news release dated March 29th, 2017). Assay results from the remaining drill holes are expected in June and will be reported once they are validated and compiled.

The assay intersections including capped composites and estimated true widths are provided in Table 1 and include the following highlights:

  • SMDD17-138: 43.5 metres grading 12.26 g/t Au
  • SMDD17-110: 76.6 metres grading 7.74 g/t Au
  • SMDD17-130: 46.5 metres grading 3.07 g/t Au
  • SMDD17-133: 45.4 metres grading 2.38 g/t Au
  • SMDD17-097: 45.0 metres grading 2.70 g/t Au
  • SMDD17-125: 31.0 metres grading 3.81 g/t Au

"The results to date support our belief that Saramacca has the potential to be a transformational asset for the Company," said President and CEO of IAMGOLD Steve Letwin. "This exemplifies our strategy of seeking short-cycle capacity, which can add tremendous value for our shareholders at minimal incremental cost, since the deposit is only 25 kilometres away from our current infrastructure."

Craig MacDougall, Senior Vice President, Exploration for IAMGOLD, stated: "I want to congratulate the exploration team for completing this important program in such a timely manner and without a reported safety incident.  The additional assay results continue to impress and highlight numerous intersections with high grades of gold over wide intervals, both enhancing our confidence in and understanding of the mineralized zones.   As previously stated, all results will be incorporated into an initial resource estimation expected for completion in Q3 2017."

2017 Exploration Program                              

Drilling to date has confirmed the presence of multiple mineralized structures within an approximately 2-kilometre long and 600-metre wide corridor. Mineralization occurs in the near surface oxidized weathering profile to depths ranging from 50 to 100 metres, as well as deeper in the primary sulphide zones and remains open along strike and at depth.  In the deposit area, three mineralization styles are recognized from the drilling completed to date: breccia hosted mineralization characterized by jigsaw, crackle and matrix supported breccias; shear hosted mineralization characterized by well-developed pyritic disseminations and stringers; and irregular pyrite-quartz-carbonate veins which locally carry high gold grades.

The 2017 50 x 50 metre infill drilling program has been completed and further drilling activities will await the completion of the seasonal rains which have commenced. Results to date and those still pending will be incorporated into a deposit model to support an initial National Instrument 43-101 resource estimate expected for completion by the third quarter 2017.  Additional exploration potential exists at depth and along strike and will be tested in future drilling programs.

Preliminary engineering and permitting studies have commenced to support and develop future exploitation scenarios.

About the Saramacca Project

The Saramacca project is strategically located approximately 25 kilometres southwest of the Rosebel Gold Mine milling facility. Mineralization is hosted in the Paramaka Formation within the lower part of the Marowijne Greenstone Belt, which is dominated by metamorphosed dacite, rhyolite, basalt and andesite lithologies in the project area.  These are traversed by the regional, northwest trending Saramacca shear zone, an important deformation zone for the localization of gold mineralization.

The Saramacca property has been explored since the 1990's principally by Golden Star Resources Ltd. ("Golden Star") and later as a joint venture between Golden Star and Newmont Mining Corporation. Much of that work focused on the discovery and delineation of Anomaly M, which was the subject of successive auger and diamond drilling programs with over 50 diamond drill holes and over 200 auger holes completed in the anomaly area. Evaluation of this work suggests an exploration target potential of between 8 and 40 million tonnes grading between 1.0 and 1.8 g/t Au for potentially 0.5 to 1.4 million contained ounces of gold. The potential quantity and grade are conceptual in nature and insufficient exploration work has been completed to date to define a mineral resource. The property will require significant future exploration to advance to a resource stage and there can be no certainty that the exploration target will result in a mineral resource being defined.

On August 30, 2016, the Company signed a letter of intent with the Government of Suriname to acquire rights to the Saramacca property, with the intent of defining a National Instrument 43-101 mineral resource within 24 months. The terms of the letter included an initial payment of $0.2 million, which enabled immediate access to the property for Rosebel's exploration team to conduct due diligence, as well as access to the data from previous exploration activity at the Saramacca property. On September 30, 2016, having been satisfied with the results of the due diligence, the Company ratified the letter of intent to acquire the Saramacca property and subsequently paid $10 million in cash and agreed to issue 3.125 million IAMGOLD common shares to the Government of Suriname in three approximately equal annual instalments on each successive anniversary of the date the right of exploration was transferred to Rosebel (December 14, 2016). In addition, the agreement provides for a potential upward adjustment to the purchase price based on the contained gold ounces identified by Rosebel in National Instrument 43-101 measured and indicated resource categories, within a certain Whittle shell within the first 24 months, to a maximum of $10 million.

The Saramacca project falls within the "UJV" area as defined in an Agreement with the Government of Suriname announced on April 15, 2013.  The Agreement establishes a joint venture growth vehicle under which Rosebel would hold a 70% participating interest and the Government will acquire a 30% participating interest on a fully-paid basis.

For more information, please visit: http://www.iamgold.com/

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