IAMGOLD is putting its $1-billion Gogama-area Cote Gold project on hold.
The company announced on Jan. 28 it would defer construction of the proposed open-pit gold mine until market conditions improve.
"We are focused on creating superior shareholder value by allocating our capital to our best near- and long-term opportunities in a manner that is consistent with shareholder expectations, and with our goal of maintaining a strong balance sheet," president-CEO Steve Letwin said in a Jan. 28 news release.
"We have substantially derisked the Cote Gold Project, from both a technical and financial perspective, and believe in its potential to positively transform the company. However, we have decided to wait for improved, and sustainable, market conditions in order to proceed with construction."
IAMGOLD released a feasibility study for the project last November.
Located about 20 kilometres southwest of Gogama, and about halfway between Sudbury and Timmins, the project has close to 10 million ounces in the measured and indicated resources categories.
The open-pit mine plan calls for an initial capital cost of $1.15 billion. Annual average gold production is pegged at 367,000 ounces...