Nov. 2, 2009 (Marketwire Canada) -- TORONTO, ONTARIO--(Marketwire - Nov. 2, 2009) -
(All amounts expressed in U.S. dollars unless otherwise noted)
IAMGOLD Corporation ("IAMGOLD" or "the Company")(TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) is pleased to announce the Societe D'Exploitation Des Mines D'Or De Sadiola ("SEMOS"), owner of the Sadiola Gold Mine in Mali, West Africa, board approval to proceed with the $9 million Sadiola Deep Sulphide Feasibility Study.
In addition, IAMGOLD announced they have reached a tentative agreement with the International Finance Corporation ("IFC") for the purchase of the IFC 6% interest in SEMOS on the terms described below. Under the terms of the existing SEMOS shareholders agreement, the remaining partners, AngloGold Ashanti Limited ("AGA") and the Republic of Mali have the opportunity to elect whether they will take up their proportionate share of the IFC interest on the agreed terms and conditions. IAMGOLD anticipates that the transaction will be completed before the end of the year.
Joseph Conway, President and Chief Executive Officer said, "We are extremely pleased that the SEMOS board, upon review of the IAMGOLD Pre-feasibility Study, has approved we proceed to a Feasibility Study on the Sadiola Deeps project. Combining this approval with the announcement that the IFC has tentatively accepted our offer to purchase their share in the Sadiola Gold Mine creates a new focus for us in Sadiola, an attractive, long term asset. We look forward to continuing to optimize this and our other operations in the region in order to maximize shareholder value."
SADIOLA DEEPS
In early 2009 IAMGOLD took the lead in re-engineering and updating the Sadiola Deeps Pre-feasibility Study and have recently presented the results to the SEMOS board. The Pre-feasibility Study demonstrates attractive economics and the SEMOS board has approved spending $9 million on a Feasibility Study to further refine the Sadiola Deeps project as well as consider possible optimizations.
The current Sadiola life of mine plan estimates production of 350,000 ounces of gold for 2009, declining over time going forward until end of mine life in 2015. The Pre-feasibility Study projects an increase in production at Sadiola to between 400,000 and 500,000 ounces per year (on a 100% basis running from 2013 through 2018) with an end of mine life in 2019, increasing the total gold production at Sadiola by approximately 2.2 million ounces beyond the current mine plan.
The Pre-feasibility Study calls for mining to continue on an open pit basis and incorporate larger mining equipment. The Study is based on construction of a new crushing, grinding and carbon-in-leach (CIL) plant for treatment of the deep sulphide ores and existing hard ore stockpiles while the existing mill would continue to treat soft oxide ores in parallel, or treat additional sulphide ore once oxide ore is exhausted.
