Iamgold Corp Plans to Have Saramacca Online in 2019
- By Alberto Abaterusso
Iamgold Corp. (IAG) started drilling activities at Saramacca in Suriname, completing another 97 drilling holes for a total of 24,282 meters.
The Saramacca project is located only 25 kilometers away from the Rosebel gold producing mine. The drillings are part of the Phase II 2017 drilling program, which is aimed at continuing the delineation of a mineral deposit nearby the primary pit shell.
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This is according to the news release published by Iamgold Corporation on its website.
Iamgold reported the most important results from the remaining 60 holes for a total of 14,360 meters drilled. These are highlighted as follows:
"Infill Drill Holes:
SMDD17-231: 46.0 metres grading 11.73 g/t Au
SMDD17-249: 29.5 metres grading 2.52 g/t Au
SMDD17-267: 28.5 metres grading 2.47 g/t Au
Expansion Drill Holes:
SMDD17-218: 15.0 metres grading 22.90 g/t Au
SMDD17-227: 32.5 metres grading 2.28 g/t Au
SMDD17-248: 31.5 metres grading 3.70 g/t Au
SMDD17-255: 10.5 metres grading 22.48 g/t Au and: 10.5 metres grading 2.99 g/t Au"
Source: Iamgold Corp's News Release
Through the infill drillings Iamgold got a further confirmation on the presence of high mineralization among the expansion drill holes. Just look at how much precious metal is concentrated in one ton of mineral hosted in an ample ore body ranging from a 28.5 meters interval to 46 meters. The grading range is 2.47 grams of gold per ton of ore to 11.73 grams per ton.
Also, results from drillings to expand the main and secondary mineralized zones underneath the resource pit shell are very promising with peaks of gold concentration (22.9 grams per ton and 22.48 grams per ton) on a wide subspace of 15 and 10.5 meters.
As a result of the good news, Iamgold Corp should appreciate on the stock market over the following days of trading.
Iamgold Corp. (IAG) is currently trading at $5.26 per share. As of today, the stock is not expensive since it trading at book value per share at only 0.88 times versus an industry median of 2.05 times and an EV-to-Ebitda (ttm) ratio at 2.26 times that is much higher than the industry average of 10.26 times.
In addition, there is still 38% room for the current share price to hit the 52-week high of $7.25 per share. The stock is currently trading below the 200, 100 and 50-SMA lines.
The average target price is $7.75 per share. The recommendation rating is 2.2 out of 5.
(Disclosure:I have no positions in any stock mentioned in this article.)
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 3 Warning Signs with IAG. Click here to check it out.
The intrinsic value of IAG
