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New drilling by Iamgold (TSX: IMG)(NYSE: IAG) has extended gold mineralization at its Nelligan complex in Quebec, strengthening a development project that could provide another source of Canadian growth for the Toronto-based producer.
Drill hole NE-26-272 cut 77 metres grading 2.23 grams gold per tonne from 692 metres downhole at Nelligan’s zone 36, Iamgold said Tuesday in a statement. At nearby Monster Lake, hole ML-26-318 returned 7.3 metres at 49.6 grams gold from 32 metres depth.
Iamgold is targeting an updated resource estimate for Nelligan within weeks and an exploration update for the complex in the first half of 2027, followed by a preliminary economic assessment. The company is studying a shared plant for the surrounding deposits, and the complex is its largest exploration spending priority this year.
“Overall, we view the results positively, with the Nelligan intervals and extension at depth at Monster Lake supporting potential resource growth and conversion,” National Bank Financial mining analyst Mohamed Sidibé said in a note.
Central plant
Iamgold envisages a central processing plant supplied by several nearby deposits, combining Nelligan’s large, lower-grade resource with potential higher-grade underground feed from Monster Lake. The properties sit in an established mining region near Chibougamau, about 700 km northwest of Montreal, offering the company a concentrated development opportunity in Quebec.
Nelligan, Monster Lake and Philibert are located within a 15 km radius, “supporting Iamgold’s conceptual vision of a district-scale operation,” TD Securities mining analyst Steve Green said Tuesday in a note.
Iamgold has expanded Nelligan’s 2026 drilling plan to 30,000 metres from 18,000 metres, mostly to improve resource confidence.
Iamgold has budgeted about $24 million (C$33.6 million), or almost half its planned 2026 exploration spending, for the Nelligan complex. The property could eventually complement Côté Gold in Ontario and Westwood in Quebec, alongside Essakane in Burkina Faso. Those operating mines support the company’s 2026 attributable production guidance of 720,000 to 820,000 ounces.
Nelligan “represents Iamgold’s next major organic growth lever beyond Côté-Gosselin,” RBC Capital Markets mining analyst Harrison Reynolds said in a note.
Regional strategy
Nelligan hosts 122 million indicated tonnes grading 0.95 gram gold for contained metal of 3.7 million oz. gold, plus 151 million inferred tonnes at 0.96 gram gold for about 4.6 million ounces. Those year-end 2025 resources give the project substantial scale, although the lower-confidence inferred material requires more drilling before it can support conversion to reserves.
At Philibert, the third deposit covered by Tuesday’s update, drill hole PB-26-581 in the Arctic Fox depth extension intersected 29.3 metres grading 3.39 grams gold from 468.1 metres depth. Drilling also extended Monster Lake’s Megane zone to 600 metres vertical depth.
Iamgold’s regional strategy has taken shape through successive acquisitions. The company secured full ownership of Nelligan by completing its purchase of partner Vanstar in February 2024. It then acquired Northern Superior and Orbec in December 2025, bringing Philibert, Chevrier and additional exploration ground into the portfolio.
Consolidating those properties allows the company to assess development across the district rather than treating each deposit separately.
Iamgold shares rose 1.3% to C$23.22 on Tuesday morning in Toronto, valuing the company at about C$13 billion. The stock has traded between C$13.30 and C$34.09 in the past year.