Côté is poised to become one of Canada’s largest gold mines with an expected annual output of 493Koz and total cash costs of US$600/oz in the first five years of operation. Construction of the US$1.3 billion mine commenced in the fall of 2020 and is expected to ramp up to commercial production in the second half of 2023. Côté currently boasts a 7.2Moz reserve, a measured and indicated resource of 10.2Moz and an inferred resource of 3.8Moz making it one of the largest gold resources in Canada.
The royalty covers a portion of the northern and north-eastern part of the Côté pit and all of the Gosselin-Young-Shannon gold project. Gosselin is located ~1.5km to the northeast of the Côté deposit which IAMGOLD estimates to host an exploration target of 3-5Moz of gold. Gosselin was discovered in 2019 and is part of the Côté joint venture between IAMGOLD & Sumitomo. The Gosselin zones exhibit similar geology and metallurgical characteristics, indicating potential for similar gold recoveries to the Côté gold deposit. IAMGOLD expects to complete a 13,000 – 16,000 metre diamond drill program including 12,000 – 14,000 metres of delineation drilling in the Côté district to support the maiden resource estimate for the Gosselin project that IAMGOLD expects to be announced in the second half of 2021. According to IAMGOLD, Gosselin & Young-Shannon have the potential to support production levels of ~500koz per year at the Côté operation beyond the first 5 years where production at Côté is expected to drop towards the 367Koz per year average.
Notable intercepts from the recent Gosselin exploration program include 1.28 g/t gold over 412 metres, 0.98 g/t gold over 342.5 metres and 0.94 g/t gold over 264.5 metres. The Gosselin deposit remains open at depth to the northwest and along strike to the east and southwest.
Interest: 1.35% NSR Royalty
Location: Gogama, Ontario
Project Status: Construction
Counterparty: IAMGOLD (NYSE: IAG)(TSX: IMG) & Sumitomo Metal Mining (TYO: 5713)