IAMGOLD has teamed up with Japan’s Sumitomo Metal Mining to develop the Côté Gold project 130 kilometres southwest of Timmins.
Sumitomo has agreed to pay $195 million for a 30 per cent interest in the in the project. The property boasts proven and probably reserves of 196 million tonnes grading 0.94 grams per tonne for 5.93 million ounces of gold.
IAMGOLD purchased the property from Trelawney Mining and Exploration in 2012 for $585 million.
A prefeasibility study estimates development costs of $1.1 billion for the open pit operation, and annual production of 320,000 ounces over a 17-year mine life.
The company received environmental assessment approval in January and plans to begin construction in 2019 with production beginning in 2021.
