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Freegold drills strong wide intercepts in Alaska
Freegold Ventures (TSX: FVL) has reported further drilling success from its Golden Summit project in Alaska where it’s defining a starter pit in the lead up to a prefeasibility study.
Drill hole GS2523 cut 277.1 metres grading 1.24 grams from 349.6 metres downhole including 45.4 metres at 3.63 grams gold per tonne from 581.3 metres deep, the company said on Wednesday.
“One of the southernmost holes drilled in the Dolphin zone demonstrates the continuity and robust nature of the system, clearly indicating the potential to expand further and increase the overall grade at Golden Summit, and it remains open to the south and southwest,” the company said in a release. “Furthermore, it is one of the broadest gold mineralized intervals within the intrusive seen to date.”
Freegold reported four assays in the latest batch of 49 in this year’s nearly 32,000-metre infill and expansion program to upgrade and expand existing resources within the Dolphin-Cleary zone. The Golden Summit project has become one of North America’s largest undeveloped gold resources with 432 million indicated tonnes grading 1.24 grams for 17.2 million oz. gold and 358 million inferred tonnes at 1.04 grams for 11.9 million contained oz. as of July.
Freegold shares rose 4.6% to C$1.14 in Toronto Wednesday morning, valuing the company at C$578 million ($410 million).
Starter pit
Golden Summit is about 30 km northeast of Fairbanks and 6 km north of Kinross Gold’s (TSX: K; NYSE: KGC) Fort Knox mine. Freegold plans is to drill into mid-December then resume in February for an updated resource ahead of a prefeasibility study. Crews are also working to outline a starter pit and conduct cultural resource assessments, paleontology, groundwater analysis and studies on mammals and habitats, the company said.
Other drill holes reported Wednesday include GS2509, which cut 44.7 metres grading 1.16 grams from 242.3 metres deep; GS2511, which returned 18.3 metres at 3.3 grams from 346.7 metes downhole; and GS2514, which cut 33.6 metres at 1.44 grams from 202.4 metres underground.
“Ongoing drilling has continued to delineate zones of higher-grade mineralization and to convert previously considered waste areas into potentially economically viable mineralized zones,” said the company, led by President and CEO Kristina Walcott. “Continued westward expansion has resulted in the discovery of new higher-grade zones, increasing both indicated gold resources and grades.”
The 2025 drill campaign follows last year’s 25,000-metre program that fed into the expanded resource estimate. A 2016 preliminary economic assessment outlined a 24-year mine life producing 2.36 million ounces at average annual output of 96,000 oz., with initial capital costs estimated at C$88 million and a post-tax net present value at a 5% discount rate of C$188 million.
Iamgold hits record gold output, powers up Canadian growth
Canadian miner Iamgold (TSX: IMG)(NYSE: IAG) has reported strong third-quarter results, driven by record production at its flagship Côté gold mine in Ontario and continued debt reduction efforts.
The company’s three operations — Côté, Westwood and Essakane — produced 190,000 attributable ounces of gold during the quarter, bringing year-to-date output to 524,000 ounces. Iamgold said it remains on track to meet its full-year guidance of 735,000 to 820,000 ounces.
Côté delivered a record 106,000 ounces, while Westwood in Quebec added 23,000 ounces. The Essakane mine in Burkina Faso contributed 92,000 ounces. Quarterly revenue reached $706.7 million from sales of 203,000 ounces at an average realized gold price of $3,492 per ounce. Year-to-date revenue totalled $1.76 billion. All-in sustaining costs averaged $1,956 per ounce, placing the company at the upper end of its cost guidance.
Chief executive Renaud Adamssaid the third quarter marked “a pivotal moment” for the company, citing operational discipline and financial strength.
“Our trailing 12-month earnings before interest, tax, depreciation now exceeds $1-billion, and we have repaid about $270-million of our second lien notes, further strengthening our balance sheet and financial flexibility,” Adams said.
Net earnings for the quarter were $139.4 million, or $0.24 per share, while adjusted net earnings reached $170.9 million, or $0.30 per share. Free cash flow hit a record $292.3 million, including $135.6 million from Côté alone. Iamgold ended the quarter with $707 million in liquidity and net debt of $813 million, down $202 million from the previous quarter.
With its balance sheet strengthening, the board approved a share buyback program for up to 10% of outstanding shares, funded from operating cash flow after debt repayments.
BMO analyst Matthew Murphy noted that while Iamgold IMG beat on production, it missed on cash costs. “Earnings before interest, taxes, depreciation and amortization were in-line while free cash flow was a slight miss,” he wrote.
“Unit costs were high at both Côté and Westwood and full year unit costs are headed to the top end of guidance,” he wrote. Murphy noted that Côté costs are expected to fall into 2026, but that execution “remains key”.
Canadian growth
During the quarter, Iamgold also advanced plans to grow its Canadian footprint through the proposed acquisitions of Northern Superior Resources and Mines d’Or Orbec, valued at a combined $280 million in cash and shares.
The deals would consolidate the Chibougamau region in Quebec into the Nelligan Mining Complex — a 134,000-hectare land package holding 3.75 million ounces of measured and indicated resources and 8.65 million ounces inferred.
Adams said Iamgold would continue to focus on cost control and disciplined capital deployment while advancing expansion plans at Côté. “We are (…) positioning Iamgold as a modern, Canada-focused gold producer with a robust growth pipeline,” he said.
The company’s next phase will hinge on ramping up Côté, integrating new Quebec assets, and reducing debt. The strategy is expected to build long-term shareholder value.
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