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All amounts are expressed in US dollars, unless otherwise indicated.
IAMGOLD Corporation ("IAMGOLD" or the "Company")
(TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) today announced the following:
-- Greenfields exploration expenditures for 2011 are budgeted at $43.5 million; -- Nearly 118,000 metres of drilling are planned for 2011 on greenfields sites, a record for the Company; -- A focused and balanced exploration portfolio of 18 projects in West Africa and the Americas that includes aggressive exploration programs at two advanced greenfields projects in Mali; -- 32 drill ready exploration targets outlined; -- Joint venture of the Company's Eagle Mountain gold project in Guyana; -- Reactivation of three projects in the Abitibi region of Quebec; and -- Significant new oxide drill targets identified within the Essakane Mine Permit.
OUTLOOK 2011 - GREENFIELDS EXPLORATION
Following positive exploration results in 2010, IAMGOLD announced a
record $43.5 million greenfields spend for
2011, which provides the Company the opportunity to aggressively
advance new and existing growth opportunities. Expensed and capitalized
greenfields expenditures in 2010 are
estimated at $37.6 million. Nearly 118,000 metres
of drilling are planned across all sites in 2011, with an additional
46,425 metres of aircore
drilling budgeted for Essakane. The planned
drilling comprises a significant proportion of the overall budget and
an important allocation of expenditures in resource development. It
further reflects the Company's strategic commitment to organic growth
"through the drill bit."
Steve Letwin, President and CEO of IAMGOLD,
said, "We have a very robust greenfields
program with a plethora of good projects. Led by our SVP Exploration,
Mike Donnelly, our exploration team has created significant growth
potential for the Company. We hold, or control through third-party
agreements, a majority interest in more than 20,000 square kilometres of mineral lands in our exploration
portfolio in nine countries of West Africa and the Americas. These
lands are located in proven districts or geologic terranes
with demonstrated gold potential, and provide an important strategic
exploration advantage in the face of increased competitive pressures as
the bull market for gold enters its eleventh straight year."
NEAR-MINE REGIONAL EXPLORATION PROVIDES ENCOURAGING RESULTS
The Company holds extensive exploration land packages surrounding the
Company's Rosebel and Essakane
mines, and 25% of the budget for greenfields
expensed and capitalized exploration is allocated to exploration in
these districts.
Essakane Mine, Burkina Faso
In Burkina Faso, the Essakane mine is an
important source of potential resource growth. Notable goals achieved
in 2010 include the identification of significant new drill targets
within the mine permit, and the potential expansion of Essakane's resources and reserves.
Three previously unknown drill targets were identified within eight kilometres of the Essakane
mill and mine infrastructure beneath thin sand sheets. The sands cover
significant portions of the Essakane land
package, and are evaluated with systematic aircore
drilling. The highest priority target is located south of the Falangountou deposit where assay values of as much
as 5.5 g/t Au were reported from shallow aircore
drill results. These targets, as well as other targets identified
during the 2010 exploration program provide excellent potential for
discovery of new oxide resources.
Extensive drilling along the projected northwest trend of the Essakane Main Zone intersected significant gold
mineralization at potentially economic depths for more than one kilometre past the established resource. This work
will continue in 2011 with the objective to expand the northern limits
of the current Essakane Main Zone resource
beyond the Gouroul river.
Rosebel Mine, Suriname
In Suriname, 16 kilometres north of the Rosebel mine, extensive exploration was carried out
in 2010 on the Company's Charmagne gold
discovery, including 10,387 metres of core
drilling in 76 holes. Geology and resource modelling
is nearing completion and metallurgical testwork
is in progress. A preliminary scoping study, or concept study, is
scheduled for completion in the first quarter of 2011 and is expected
to provide the basis for a constrained in-pit inferred resource.
AGGRESSIVE PROGRAMS ON ADVANCED EXPLORATION PROJECTS
Kalana Project, Mali
The Company has made significant progress in constructing a detailed
and predictive geologic model on the Kalana
project in Mali, a Joint Venture with Avnel
Gold Mining Ltd. ("Avnel").
Significant gold mineralization has been intersected beyond the limits
of the high grade underground operation and on the Kalanako
satellite zone located only three kilometres
east of Kalana. Systematic drill testing will
proceed in 2011 as part of an approved 34,500 metre
combined diamond and reverse circulation drill program designed to
develop a resource estimate that incorporates the known high grade
veins with the potential bulk mineable material in the surrounding
mineralized envelopes. Satellite zones, such as Kalanako,
offer significant upside potential and will be an important part of the
2011 exploration program.
The previously reported remedial drill sample re-assay program
initiated in October in response to sample preparation irregularities,
is about 50% complete and is now expected to be finished in February.
The Company is confident that the re-assay program will support the
exploration potential as interpreted by IAMGOLD's Exploration team.
In December 2010, the Company entered into an Option to Joint Venture
Agreement with Avnel to acquire an initial
51% interest in a 147 square kilometre
concession package immediately south of the Kalana
Mine Permit that had been previously explored by Avnel.
The combined permit area consolidates more than 534 square kilometres of prospective exploration lands within
the prolific Proterozoic Birimian
gold terrane that is host to all principal
gold mines in West Africa. A detailed airborne magnetic survey acquired
by the Company revealed regional structural controls on gold
mineralization extending from Kalana southwards
through the 20-kilometre long land package.
Siribaya Project, Mali
The Siribaya advanced exploration gold
project in Mali is held under an Option to Joint Venture with Merrex Gold Inc. ("Merrex").
IAMGOLD can earn a 50% interest in the project by incurring C$10.5
million in exploration expenses, and at the end of 2010 the Company had
expended C$6.8 million toward this earn-in requirement. Drilling to
date on the Siribaya trend has focused on
four kilometres of an eight- to nine-kilometre long gold mineralized structural corridor
defined by geochemistry and geophysics. Significant intercepts have
been recorded within the mineralized corridor and on trend with the
established resource areas described by Merrex.
A minimum C$3.0 million budget for 2011 will include 17,000 metres of reverse circulation drilling. The program
is designed to systematically test the mineralized corridor on
wide-spaced 500-metre sections for more than three kilometres
beyond the limits of the existing drill coverage.
A sub-parallel mineralized zone, Bambadinka,
is a priority satellite target located two kilometres
west of the Siribaya trend, and has been
delineated for four kilometres in a
north-south direction using mechanized auger drilling. Bambadinka, as well as other promising satellite
targets, will be tested as part of the 2011 program.
GREENFIELDS PROGRAMS
In 2011, the Company plans to test more than 12 grassroots projects in
Peru, Brazil and the Canadian province of Quebec, is carrying out
reconnaissance evaluation of promising areas in Colombia and is
searching for advanced exploration opportunities or acquisitions. An
exploration office was re-opened in Val d'Or in 2010 as part of a plan
to reactivate three projects in the Abitibi region of Quebec.
UNLOCKING VALUE IN THE EXPLORATION PORTFOLIO
The Company actively manages the exploration portfolio and seeks to
unlock value from those assets or resources that do not meet the
organization's size or strategic thresholds.
In September 2010, Strongholds Metals Inc. ("Stronghold")
entered into a definitive Earn-In and Joint Venture Agreement with
IAMGOLD on the Company's Eagle Mountain gold project in Guyana.
Stronghold has the option to acquire 100% of the property under certain
circumstances and completion milestones, including minimum exploration
expenditures of $3.5 million and issuance of a Mining Permit, in
consideration of $11 million and the issuance of 6 million Stronghold
shares.
Forward Looking Statement
This news release contains forward-looking statements. All statements,
other than of historical fact, that address activities, events,
developments or results that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements regarding the estimation of mineral resources,
exploration results, potential mineralization, potential mineral
resources and mineral reserves and expected production or guidance) are
forward-looking statements. Forward-looking statements are generally
identifiable by use of the words "may", "will",
"should", "continue", "expect",
"anticipate", "estimate", "believe",
"intend", "plan" or "guidance" or the
negative of these words or other variations on these words or
comparable terminology. Forward-looking statements are subject to a number
of risks and uncertainties, many of which are beyond the Company's
ability to control or predict, that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results or
events to differ materially from current expectations include, among
other things, without limitation, failure to operate at nameplate
capacity failure to establish estimated mineral resources, the
possibility that future exploration results will not be consistent with
the Company's expectations, changes in world gold markets and other
risks disclosed in IAMGOLD's most recent Form 40-F/Annual Information
Form on file with the United States Securities and Exchange Commission
and Canadian provincial securities regulatory authorities. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement.
About IAMGOLD
IAMGOLD (www.iamgold.com) is
a leading mid-tier gold mining company producing approximately one
million ounces annually from 8 gold mines on 3 continents. IAMGOLD is
uniquely positioned with a strong financial position and extensive
management and operational expertise. To grow from this strong base,
IAMGOLD has a pipeline of development and exploration projects and
continues to assess accretive acquisition opportunities. IAMGOLD's
growth plans are strategically focused in West Africa, select countries
in South America and in the Canadian provinces of Ontario and Quebec,
where it also operates a niobium mine.
Please note:
This entire news release may be accessed via IAMGOLD's website at www.iamgold.com and
through Marketwire's website at www.marketwire.com.
All material information on IAMGOLD can be found at www.iamgold.com.
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