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Iamgold reported drilling that extended gold mineralization at its Nelligan complex in Quebec, including a 77-metre intercept at Nelligan and high-grade results at nearby Monster Lake and Philibert. The company plans to update Nelligan’s resource estimate within weeks and is studying whether several nearby deposits could feed a shared processing plant.
Iamgold reported new drilling that extends gold mineralization at its Nelligan complex in Quebec, including a 77-metre interval grading 2.23 grams of gold per tonne at Nelligan. The results add to the company’s case for further resource growth across nearby deposits, while an updated Nelligan resource estimate is expected within weeks and a shared processing plant remains under study.
Hole NE-26-272 intersected 77 metres grading 2.23 grams of gold per tonne from 692 metres downhole in Nelligan’s Zone 36, Iamgold said in a Tuesday statement. At nearby Monster Lake, hole ML-26-318 returned 7.3 metres grading 49.6 grams per tonne from 32 metres depth. The company also reported that drilling extended Monster Lake’s Megane zone to 600 metres vertical depth.
At Philibert, another deposit in the complex, hole PB-26-581 intersected 29.3 metres grading 3.39 grams per tonne from 468.1 metres depth in the Arctic Fox depth extension. These are individual drill intercepts, not estimates of average grades across an entire deposit or proof of economic mineability. Iamgold has said it expects to release an updated Nelligan resource estimate within weeks, with a broader exploration update planned for the first half of 2027, followed by a preliminary economic assessment.
Iamgold has increased its 2026 Nelligan drilling plan to 30,000 metres from 18,000 metres, mostly to improve confidence in the resource. The company has budgeted about $24 million, or C$33.6 million, for exploration at the complex, nearly half of its planned exploration spending for 2026. It describes the complex as its largest exploration spending priority this year.
The results matter because Iamgold is evaluating Nelligan not as a stand-alone deposit but as part of a district-scale development concept. Nelligan, Monster Lake and Philibert sit within a 15-kilometre radius, according to the source report. Iamgold is studying a central plant that could process material from several deposits, potentially combining Nelligan’s larger, lower-grade resource with higher-grade underground feed from Monster Lake.
If that concept proves technically and economically viable, combining nearby deposits could shape how the company evaluates infrastructure and development across the area. But the new drill results do not establish that a plant will be built, or that the deposits can support a profitable operation. Those questions depend on further resource work and economic studies. For Iamgold, Nelligan is one possible future growth source alongside its producing mines; the company’s 2026 attributable production guidance is 720,000 to 820,000 ounces.
Analysts cited in the report viewed the results as supportive of resource potential. National Bank Financial analyst Mohamed Sidibé said the Nelligan intervals and Monster Lake depth extension support “potential resource growth and conversion.” That is an analyst assessment, not a company-confirmed reserve or development decision.
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Nelligan’s Resource and Regional Footprint
Nelligan’s year-end 2025 resource was reported as 122 million indicated tonnes grading 0.95 gram per tonne, containing 3.7 million ounces of gold, and 151 million inferred tonnes grading 0.96 gram per tonne, containing about 4.6 million ounces. Inferred resources have lower geological confidence than indicated resources and require additional work before they can support conversion to reserves. Resource estimates are not reserves and do not by themselves establish that extraction would be economic.
The deposits are in an established mining region near Chibougamau, about 700 kilometres northwest of Montreal. Iamgold obtained full ownership of Nelligan by completing its purchase of partner Vanstar in February 2024. In December 2025, it acquired Northern Superior and Orbec, adding Philibert, Chevrier and other exploration ground to its regional portfolio. Those acquisitions allow the company to assess development across multiple properties, though no integrated mine plan has been established in the material provided.
Iamgold’s current producing assets include Côté Gold in Ontario, Westwood in Quebec and Essakane in Burkina Faso. RBC Capital Markets analyst Harrison Reynolds described Nelligan as a potential “next major organic growth lever beyond Côté-Gosselin.” That characterization reflects an analyst’s view of the project’s strategic role, not a confirmed construction schedule or production forecast.
Resource Growth Is Not Mine Approval
The reported intercepts do not show how much additional gold, if any, will be added to Nelligan’s resource. That depends on interpretation of the drilling and the company’s forthcoming estimate. The source material also does not provide full details for each hole, such as all assay intervals and the drilling context needed to assess how representative the results are.
It is also unclear whether a shared plant would be technically and economically feasible, what its capacity or cost might be, or when it could be built. No feasibility study, construction decision, mine schedule or production target for the complex is provided. Inferred resources still require further drilling and cannot be treated as reserves. Gold prices, permitting, financing, operating costs and other project factors could affect any future development decision.
Resource Estimate and Study Milestones
The next stated milestone is an updated Nelligan resource estimate expected within weeks. Iamgold also plans an exploration update for the complex in the first half of 2027, followed by a preliminary economic assessment. The company’s expanded 2026 drilling program is intended mainly to improve resource confidence, and further results could inform both resource classification and the evaluation of the deposits as a group.
Those releases should clarify whether drilling changes the estimated scale of Nelligan and how the company plans to assess the shared-plant concept. Until then, the latest results support continued exploration but do not confirm a mine development decision.
Key Questions
What did Iamgold report at Nelligan?
Iamgold said hole NE-26-272 intersected 77 metres grading 2.23 grams of gold per tonne from 692 metres downhole in Zone 36.
What were the Monster Lake and Philibert results?
At Monster Lake, hole ML-26-318 returned 7.3 metres grading 49.6 grams per tonne from 32 metres depth. At Philibert, hole PB-26-581 intersected 29.3 metres grading 3.39 grams per tonne from 468.1 metres depth.
When will Iamgold update Nelligan’s resource?
The company is targeting an updated resource estimate within weeks. The source report does not give a specific publication date.
No. The results are exploration drill intercepts. Iamgold is studying a shared plant, but the material provided does not report a construction decision, completed economic study or mine approval.
Source: northernminer.com
