Iamgold says Ecuador halt may delay mine study
Mon Apr 21, 3:21 PM
ca.news.finance.yahoo.com
TORONTO (Reuters) - The feasibility study for Iamgold Corp's Quimsacocha gold deposit in Ecuador may be delayed after the government froze all mining exploration for up to six months, the Canadian company said on Monday.
"If they do halt for six full months, it may have an impact on our ability to complete the feasibility," Iamgold spokeswoman Lisa Doddridge told Reuters.
Doddridge said it was "unknown" whether Quimsacocha's scheduled 2012 start date would change as a result of the freeze, which Ecuador declared on Friday in a move intended boost its share of mining revenue.
Quimsacocha, in the south of the Andean country, contains an estimated 3.3 million ounces of gold.
Iamgold expects to submit its prefeasibility study in July, Doddridge said. However, the feasibility study needs more on-site work, and that has been halted until the government draws up new mining laws.
"I don't think it sends a very good message to the mining industry. It certainly caught us all off guard," Doddridge said, adding the freeze won't "kill" the company's lone project in Ecuador.
Iamgold's shares were off 40 Canadian cents, or 5.6 percent, at C$6.73 on the Toronto Stock Exchange. On Friday, they fell 3.4 percent.
($1=$1.01 Canadian)
(Reporting by Jonathan Spicer; editing by Rob Wilson) |
