The government of Senegal approved the mining permit application for Iamgold Corporation’s (TSX: IMG) Boto gold project for an initial period of 20 years.
In a media statement, Iamgold said that the permit was issued mainly under the provisions of Senegal’s 2003 mining code.
The Canadian miner is now focusing on engineering and critical path activities to be able to rapidly launch the project in case of either a decision to proceed to full construction or further de-risk the project prior to construction approval
“The receipt of the mining permit positions the project for a development decision and eventual production,” the release reads.
Boto is one of the company’s most advanced growth projects and it is expected to produce an average of 160,000 ounces of gold per year during the first six years of operations, averaging 130,000 ounces of gold per year at all-in sustaining costs of $842 per ounce sold over a mine life of approximately 11 years.
“With expected initial capital expenditures of $271 million, the project represents an after-tax net present value (6% discount) of $219 million using a gold price assumption of $1,350 per ounce,” the brief states.
Located in the Boto-Karita-Diakha gold district, Boto hosts indicated mineral resources or 40,600 tonnes grading 1.56 g/t Au and inferred resources of 8,200 tonnes grading 1.78 g/t Au.