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IAMGOLD Corporation ("IAMGOLD" or "the Company")
(TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) today
announced its 2010 year-end mineral reserve and resource statement.
Highlights include:
-- Total attributable proven and probable gold reserves increased from a year ago by 1.9 million ounces (net of depletion), or 13%, to 16.4 million ounces. Primarily due to a: -- 1.1 million ounce, or 22%, increase at Rosebel Gold Mine. -- 0.8 million ounce, or 58%, increase at Sadiola Gold Mine. -- Total attributable measured and indicated resources (inclusive of reserves) now stand at 21.4 million ounces and inferred resources now stand at 8.0 million ounces, representing a net gain of 1.6 million ounces and a net decrease of 0.9 million ounces, respectively. -- Total proven and probable mineral reserves of niobium increased by 34% to 243.8 million kilograms of contained Nb2O5.
"The best return we can
generate for our shareholders is to invest in our long-life, low-cost,
world-class assets that include the Rosebel
and Essakane mines, as well as the Westwood
development project that is expected to start production in early
2013," said Steve Letwin, President and
CEO of IAMGOLD. "The first step is to ensure that the geological
potential to grow is robust, and once again in 2010 we have grown our
reserve and resource estimates substantially. The 34% growth in our
niobium reserves reinforces our strategy to unlock the value of this
long-life asset. This potential for growth combined with our prospects
for surfacing value from the Company's undervalued assets, make a
compelling growth opportunity."
At the Rosebel Gold Mine in Suriname,
attributable measured and indicated mineral resources (inclusive of
mineral reserves and depletion replacement) increased by 0.7 million
ounces to 7.5 million attributable ounces compared to a year ago.
Attributable proven and probable mineral reserves at Rosebel increased by 1.1 million ounces net of
depletion. This reserve increase was driven by the successful infill
and exploration drilling programs on the Pay Caro, Mayo and Rosebel deposits, and to a lesser degree by the
gold price increase (representing 0.2 million ounces). None of the
increase in resources or reserves yet includes any contribution from
the new Charmagne discovery, which is still
undergoing exploration and modeling work for incorporation into
reserves and resources later this year.
Since 2004, more than 6.3 million ounces have been added to the mineral
reserve at Rosebel at a cost of less than $10
an ounce. An aggressive 95,000 metre drill
program for 2011 is designed to pursue additional priority targets
along the favourable geological horizons in
the vicinity of the known deposits, remaining focused on converting
resources to reserves while defining new resources. The Company will
also explore other exploration-stage targets on the mine lease
concession and the surrounding exploration concessions.
The Essakane mine in Burkina Faso achieved a
0.1 million ounce increase, both in attributable
mineral reserves and indicated resources (inclusive of reserves) which
now stand at 4.0 million ounces and 4.4 million ounces, respectively.
The main goal of the 40,647 metres drilled in
2010 was to focus on the lateral extensions as well as the eastern
plunge of the Essakane Main Zone
("EMZ") deposit. During the first half of 2010, drilling
activities were concentrated on the southern portion of the deposit.
The assay results from the majority of the holes were generally
slightly lower than estimated in the resource block model. The northern
on-strike extension of the EMZ was drilled later during the year and
several significant intersections were encountered. That sector has
shown the best, most consistent results so far and the highest
potential for future increases to reserves and resources within the
EMZ. This is the priority target for the 2011 near-mine drilling
program. As previously reported, an aggressive regional exploration
program is also planned for 2011 at Essakane.
The resource estimate on the Westwood Project in the Canadian province
of Quebec was updated in October 2010. The global resources increased
by 0.2 million ounces, or 6%, compared to the June 2009 estimate. More
than 98,650 metres have been drilled since
the previous estimate, and the conversion from inferred to indicated
resources was successful in the areas drilled using the current
underground infrastructures. The lenses that were drilled with tighter
drill spacing show very good grade continuity and lateral extensions.
The indicated resources increased from 98,000 ounces in June 2009 to
269,000 ounces in October 2010. Most of the mineral resources at
Westwood remain classified as inferred and are now estimated at 3.5
million ounces; however, the level of confidence in the resources and
the mineralization continuity is increasing year after year. Ongoing
drilling programs, planned for 82,000 metres
in 2011, are aimed at finding additional inferred resources and
continued upgrading of existing inferred mineral resources to measured
and indicated categories.
At the joint venture Sadiola Gold Mine in
Mali, attributable measured and indicated mineral resources increased
by 34% from 2.6 million ounces to 3.5 million ounces. The majority of
the increase is ascribed to the conversion from inferred to indicated resources on the Sadiola
Sulphide deposit. The attributable
proven and probable mineral reserve increased by 58% from 1.5 million
ounces to 2.3 million ounces and is mainly due to the Sadiola Sulphide deposit
(+0.7 Moz) and also by the contribution (+0.2
Moz) of the satellite deposits FE3, FE4 and Tambali. The potential to add more resources and
reserves to the Sadiola Sulphide
deposit as well as to the other satellite deposits remains excellent
and will be pursued in 2011.
Mineral reserves and mineral resources for IAMGOLD's gold mines for the
2010 year-end statement were estimated using a $975 per ounce gold
price (unless otherwise indicated on the tables below) for mineral
reserves and a $1,100 per ounce price for mineral resources. For open
pit operations, resources are constrained within an economic pit shell. For the 2009 year end mineral reserve
and mineral resource statement, an $850 per ounce gold price for
mineral reserves and a $1,000 per ounce price for mineral resources
were used.
As of December 31, 2010, niobium proven and probable mineral reserves
at the Niobec Mine in the Canadian province
of Quebec have increased significantly by 34% to 243.8 million
kilograms of contained Nb2O5. This increase is a result of infill
drilling and underground development that permitted the conversion of
inferred to indicated and measured mineral resources in blocks 4, 5 and
6. The Company also increased inferred mineral resources by 97.2
million kilograms of contained Nb2O5 to now stand at 316.3 million
kilograms of contained Nb2O5, as a result of drilling on the lateral
extension of the lenses in blocks 4, 5 and 6 and also by the use of a
lower cutoff grade for inferred resources. For 2010, reserves have been
calculated at a cutoff of 2.31 kg Nb2O5 per tonne
and inferred resources have been calculated at a cutoff of 1.94 kg
Nb2O5 per tonne. The Niobec
deposit has demonstrated very good tonnage and grade continuity since
the opening of the mine in 1976. The deposit remains open at depth and
the confidence is high that additional drilling will increase the
resource base.
Technical Information and Qualified Person/Quality Control Notes
The mineral resource estimates contained in this news release have been
prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101"), JORC and/or
SAMREC. The "Qualified Person" responsible for the supervision
of the preparation and review of all resource estimates for IAMGOLD
Corporation is Rejean Sirois,
Eng., Manager, Mining Geology. Rejean is considered a "Qualified Person"
for the purposes of National Instrument 43-101 with respect to the
mineralization being reported on. The technical information has been
included herein with the consent and prior review of the above noted
Qualified Person. The Qualified person has verified the data disclosed,
and data underlying the information or opinions contained herein.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (the
"SEC") permits mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms in
this press release, such as "mineral resources" , that the
SEC guidelines strictly prohibit us from including in our filings with
the SEC. U.S. investors are urged to consider closely the disclosure in
the IAMGOLD Annual Report on Form 40-F. A copy of the 2008 Form 40-F is
available to shareholders, free of charge, upon written request
addressed to the Investor Relations Department.
Forward Looking Statement
This news release contains forward-looking statements. All statements,
other than of historical fact, that address activities, events or
developments 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) 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 "project" 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 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.
Table 1: Consolidated Mineral Reserves and Resources As at December 31, 2010 ---------------------------------------------------------------------------- Attributable Contained Ounces of Gold (000) ---------------------------------------------------------------------------- Total Proven & Probable Reserves 16,431 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total Measured & Indicated Resources (includes Reserves) 21,419 ---------------------------------------------------------------------------- Total Inferred Resources 8,032 ---------------------------------------------------------------------------- Table 2: Mineral Reserves and Resources of Gold Operations ---------------------------------------------------------------------------- MINERAL RESERVES AND RESOURCES (1) (2) (3) (4) ---------------------------------------------------------------------------- December 31,2010 ------------------------------------------ Attributable Ounces Contained Tonnes Grade Contained Ounces GOLD OPERATIONS (000) (g/t) (000) (000) ---------------------------------------------------------------------------- Rosebel (5), Suriname (95%) Proven Reserves 101,070 1.1 3,493 3,318 Probable Reserves 79,972 1.1 2,709 2,574 Subtotal 181,042 1.1 6,202 5,892 Measured Resources 151,110 1.0 4,865 4,622 Indicated Resources 93,114 1.0 3,062 2,909 Inferred Resources 18,487 1.1 641 609 ---------------------------------------------------------------------------- Essakane (6), Burkina Faso (90%) Probable Reserves 107,465 1.3 4,461 4,015 Subtotal 107,465 1.3 4,461 4,015 Measured Resources - - - - Indicated Resources 122,067 1.2 4,834 4,351 Inferred Resources 41,200 1.3 1,670 1,503 ---------------------------------------------------------------------------- Mupane (7), Botswana (85-100%) Proven Reserves 1,283 1.6 64 64 Probable Reserves 1,172 1.9 72 66 Subtotal 2,455 1.7 136 130 Measured Resources 1,795 2.0 118 118 Indicated Resources 1,683 2.4 127 120 Inferred Resources 926 2.6 78 77 ---------------------------------------------------------------------------- Sadiola (8), Mali (41%) Proven Reserves 5,683 3.0 540 221 Probable Reserves 86,022 1.8 5,065 2,076 Subtotal 91,705 1.9 5,605 2,297 Measured Resources 23,420 1.4 1,051 431 Indicated Resources 130,088 1.8 7,438 3,050 Inferred Resources 44,558 1.7 2,419 991 ---------------------------------------------------------------------------- Yatela (8), Mali (40%) Proven Reserves 702 0.8 18 7 Probable Reserves 3,089 1.8 177 71 Subtotal 3,791 1.6 195 78 Measured Resources 2,233 0.9 64 26 Indicated Resources 3,806 2.1 258 103 Inferred Resources 2,048 1.9 123 49 ---------------------------------------------------------------------------- Doyon Division (9),Quebec (100%) Proven Reserves 66 14.7 31 31 Probable Reserves 109 11.9 42 42 Subtotal 175 13.0 73 73 Measured Resources 391 6.0 75 75 Indicated Resources 1,217 5.0 197 197 Inferred Resources 2,960 5.6 529 529 ---------------------------------------------------------------------------- Westwood(10), Quebec (100%) Indicated Resources 719 11.6 269 269 Inferred Resources 9,700 11.1 3,467 3,467 ---------------------------------------------------------------------------- Quimsacocha (11), Ecuador (100%) Probable Reserves 8,098 6.5 1,682 1,682 Indicated Resources 9,935 6.6 2,107 2,107 Inferred Resources 299 6.3 61 61 ---------------------------------------------------------------------------- TOTAL (excl. Tarkwa & Damang) Proven & Probable Reserves 394,731 1.4 18,354 14,167 Meas. & Indicated Resources 541,578 1.4 24,465 18,378 Inferred Resources 120,178 2.3 8,988 7,286 ---------------------------------------------------------------------------- (1) Measured and indicated resources are inclusive of proven and probable reserves. (2) In underground operations, mineral resources contain similar dilution and mining recovery as mineral reserves. (3) In mining operations, measured and indicated resources that are not mineral reserves are considered uneconomic at the price used for reserve estimations but are deemed to have a reasonable prospect of economic extraction. (4) Although "measured resources", "indicated resources" and "inferred resources" are categories of mineralization that are recognized and required to be disclosed under Canadian regulations, the SEC does not recognize them. Disclosure of contained ounces is permitted under Canadian regulations; however, the SEC generally permits resources to be reported only as in place tonnage and grade. See "Cautionary Note to U.S. Investors Regarding Mineral Reporting Standards". (5) Rosebel mineral reserves have been estimated as of December 31, 2010 using a $975/oz gold price and mineral resources have been estimated as of December 31, 2010 using a $1,100/oz gold price and have been estimated in accordance with NI 43-101. (6) Essakane mineral reserves have been estimated as of December 31, 2010 using a $975/oz gold price and mineral resources have been estimated as of December 31, 2010 using a $1,100/oz gold price and have been estimated in accordance with NI 43-101. Mineral reserves at the Falagountou deposit have been estimated as of December 31, 2009 using a $850/oz gold price and mineral resources have been estimated as of December 31, 2009 using a $1,000/oz gold price and have been estimated in accordance with NI 43-101. (7) The Corporation indirectly owns a 100% interest in all deposits at the Mupane Mine, other than the Golden Eagle deposit, in which it indirectly owns an 85% interest. Mineral reserves have been estimated as of December 31, 2010 using a $1,200/oz gold price and mineral resources have been estimated as of December 31, 2010 using also a $1,200/oz gold price due to the expected short mine life of the asset and high gold price environment. Resources and reserves estimates have been estimated in accordance with NI 43-101. (8) Mineral reserves at Sadiola have been estimated as of December 31, 2010 using a US $900/oz gold and mineral resources have been estimated as of December 31, 2010 using a US $1,100/oz gold and have been estimated in accordance with JORC code. Mineral reserves at Yatela have been estimated as of December 31, 2010 using a US $1,000/oz gold and mineral resources have been estimated as of December 31, 2010 using a US $1,180/oz gold and have been estimated in accordance with JORC code. (9) The Doyon Division includes mineral reserves from the Mouska Gold Mine and resources from both the Doyon and Mouska Gold Mines. Mineral reserves at Mouska have been estimated as of December 31, 2010 using a $1,200/oz gold price and mineral resources have been estimated as of December 31, 2010 using also a $1,200/oz gold price due to the expected short mine life of the asset and high gold price environment. Resources and reserves estimates have been estimated in accordance with NI 43- 101. (10) Westwood mineral resources have been estimated as of October 2010 using a 6.0 grams per tonne gold cutoff over a minimum width of 2 metres and have been estimated in accordance with NI 43-101. (11) Quimsacocha mineral resources have been estimated as at July 2008 using a 3.0 grams per tonne gold cutoff and mineral reserves have been estimated using a US $750/oz gold and have been estimated in accordance with NI 43-101. Table 3: Mineral Reserves and Resources for Tarkwa and Damang ---------------------------------------------------------------------------- MINERAL RESERVES AND RESOURCES(1) (2) (3) (4) ---------------------------------------------------------------------------- Attributable Ounces of Contained Gold Ounces of Tonnes Grade Contained Gold GOLD OPERATIONS (000) (g/t) (000) (000) ---------------------------------------------------------------------------- Tarkwa, Ghana (18.9%) Proven Reserves 136,900 1.3 5,692 1,076 Probable Reserves 107,300 1.2 4,165 787 Subtotal 244,200 1.3 9,857 1,863 Measured Resources 128,500 1.5 6,040 1,142 Indicated Resources 173,400 1.2 6,705 1,267 Inferred Resources 26,000 3.1 2,569 486 ---------------------------------------------------------------------------- Damang, Ghana (18.9%) Proven Reserves 2,843 1.6 146 28 Probable Reserves 39,016 1.6 1,977 373 Subtotal 41,859 1.6 2,123 401 Measured Resources 4,941 1.5 243 46 Indicated Resources 58,955 1.6 3,100 586 Inferred Resources 12,651 3.4 1,378 260 ---------------------------------------------------------------------------- TOTAL (Tarkwa & Damang) Proven & Probable Reserves 286,059 1.3 11,980 2,264 Measured & Indicated Resources 365,796 1.4 16,088 3,041 Inferred Resources 38,651 3.2 3,947 746 ---------------------------------------------------------------------------- (1) Measured and indicated resources are inclusive of proven and probable reserves. (2) In mining operations, measured and indicated resources that are not mineral reserves are considered uneconomic at the price used for reserves estimations. (3) Mineral reserves have been estimated as of June 30, 2010 using a US $925/oz gold and mineral resources have been estimated as of June 30, 2010 using a US $1,000/oz gold. (4) Mineral resources have been estimated in accordance with SAMREC code. Table 4: Mineral Reserves and Resources of Non-Gold Operation ---------------------------------------------------------------------------- MINERAL RESERVES AND RESOURCE (1) (2) (3) (4) ---------------------------------------------------------------------------- December 31, 2010 ---------------------------------------------------------------------------- Grade Contained Nb2O5 Tonnes Nb2O5 (million NON-GOLD OPERATION (000) (%) kilograms) ---------------------------------------------------------------------------- Niobec, Quebec (100%) Proven Reserves 16,571 0.54 90.0 Probable Reserves 29,145 0.53 153.8 Subtotal 45,716 0.53 243.8 Measured Resources 16,571 0.54 90.0 Indicated Resources 29,145 0.53 153.8 Inferred Resources 59,672 0.53 316.3 ---------------------------------------------------------------------------- (1) Measured and indicated resources are inclusive of proven and probable reserves. (2) In mining operations, measured and indicated resources that are not mineral reserves are considered uneconomic at the price used for reserves estimations. (3) Mineral reserves and measured and indicated resources have been estimated as at December 31, 2010 using a cutoff of 2.31 kg Nb2O5 per tonne and inferred mineral resources have been estimated using a cutoff of 1.94 kg Nb2O5 per tonne. (4) Mineral reserves and mineral resources have been estimated in accordance with NI 43-101.
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