IAMGOLD Reports New Drill Results and is on Schedule to Drill Over 500,000 Metres in 2011
TORONTO, ONTARIO -- (Marketwire) -- 09/19/11 -- All amounts are expressed in US dollars, unless otherwise indicated.
IAMGOLD Corporation ('IAMGOLD' or the 'Company') (TSX: IMG)(NYSE: IAG) today announced an update of its greenfields and near-mine exploration projects.
HIGHLIGHTS
-- Significant drill intersections at Essakane mine on Korizena-Gossey
trend
-- New drill results on exploration targets near Rosebel mine
-- Encouraging results from greenfields projects in Suriname, Quebec and
Brazil
-- Two advanced exploration programs in Mali continue to deliver
encouraging results
THE 2011 EXPLORATION PLAN
IAMGOLD is on track with its $97 million exploration program to drill more than 500,000 metres in 2011. This includes more than 18 grassroots projects in Senegal, Mali, Suriname, Colombia, Peru, Brazil and the Canadian province of Quebec, and the continued search for advanced exploration opportunities or acquisitions. Of the total exploration budget, 45% has been allocated to greenfields exploration for more than 120,000 metres of drilling. The Company's greenfields team of 70 professionals is committed to the exploration and discovery of significant gold deposits in eight countries in West Africa and the Americas.
Steve Letwin, President and CEO said, 'Exploration has been a mainstay of growth for IAMGOLD since the inception of the Company more than 20 years ago. Grassroots exploration offers high-value transformational growth potential. There's no question that investing in this avenue of growth, in combination with the steady incremental resource and reserve expansions generated by near-mine exploration, is an important keystone of our organic growth strategy.'
NEAR-MINE REGIONAL EXPLORATION
Essakane Mine, Burkina Faso
Mine Permit Area
Through August 2011, approximately 18,600 metres of reverse circulation and diamond drilling had been completed on exploration targets within the 100 square kilometre mine permit, independent of the more than 72,000 metre resource expansion program carried out within and immediately adjacent to the Essakane Main Zone resource. Additionally, more than 4,500 metres of aircore drilling has been completed year-to-date over large expanses of the mine permit. These areas are covered with a thin veneer of windblown sands which mask underlying bedrock and limit the effectiveness of surface geochemical surveys. The highest priority anomaly, located south of the Falangountou resource, was the subject of a 26-hole (more than 6,000 metres) drill campaign that ended in August 2011. All assays are pending.
Northern Extension
Earlier in 2011, the Company reported the completion of a combined reverse circulation and diamond drill program on the northern extension of the Essakane Main Zone resource. The Essakane mine stratigraphy and structural architecture was traced for more than 1.4 kilometres at increasing depths to the northwest in a shallow, plunging anticlinal structure. All technical data will be incorporated into the Essakane resource model for the year-end revised resource estimates. As well, Essakane is refining its parameters for resource estimation to reflect the cost and operational experience gained after a full year of production.
Gossey-Korizena Area
Exploration work expanded into the exploration concessions surrounding Essakane in the second quarter of 2011. The focus has been on known and newly identified gold anomalous trends within 15-kilometres of the Essakane operation.
The Gossey-Korizena trend is an intermittently exposed 10-kilometre long gold anomalous zone defined by artisanal workings, historic surface sampling and scout drilling. More than 16,500 metres of aircore drilling has been completed, confirming the continuity of the target anomaly beneath large tracts of transported sand cover.
To date, the Company has completed more than 11,000 metres of reverse circulation and diamond drilling using wide spaced off-sets to historical drill intercepts. Highlights of new drill intercepts are shown below:
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Uncut Grade
Drilling Type Hole # From (m) To (m) Length (m) (g/t Au)
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Core Drilling GDD0005 17.5 59.0 41.5 1.44
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Core Drilling GDD0008 217 223.0 6.0 3.35
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including 217 218.5 1.5 18.54
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Core Drilling GDD0010 24.5 42.5 18.0 1.41
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including 29.5 30.5 1.0 7.12
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Core Drilling GDD0011 149.0 227.5 78.5 1.21
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including 188.0 189.5 1.5 15.01
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Core Drilling KDD0002 70.0 82.0 12.0 2.81
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89.5 95.5 6.0 1.43
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103.0 110.5 7.5 0.61
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154.0 173.5 19.5 0.98
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Core Drilling KDD0003 109.0 127.5 18.5 1.32
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132.0 139.5 7.5 2.05
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Reverse CirculationKRC0529 63.0 71.0 8.0 3.14
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including 64.0 65.0 1.0 12.33
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The Gossey-Korizena prospect shows excellent promise; however, oxide potential is limited by the shallow oxide weathering profile encountered to date.
Additional details of historic and recent drill intercepts within the Gossey-Korizena trend are shown in Table 1 of the Appendix accessible via the link below:
http://media3.marketwire.com/docs/appendix-table1.pdf
Rosebel Mine, Suriname
At the Charmagne project, located 15 kilometres north of Rosebel, the 82,000-metre near-mine diamond drill program is focused on established resource areas, including resource evaluation of the Overman deposit (formerly referred to as Charmagne).
Systematic exploration on concessions adjacent to the Rosebel Mining permit is currently focused on the Koemboe and Kraboe Doin prospects, located 10 and 16 kilometres south of the Rosebel infrastructure respectively.
Koemboe
At Koemboe, more than 3,100 metres of diamond drilling in 20 holes was completed in July 2011 to follow up east-west trending mineralized quartz veins encountered in trenching and an earlier diamond drilling campaign. Drilling extended the known strike of veining and mineralization to 400 metres and to a depth of 120 metres. Significant intersections include:
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Hole # From (m) To (m) Length (m) Grade (g/t Au)
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KO-11-17 140.6 145.5 4.9 3.82
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including 140.6 142.5 2.9 9.37
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KO11-18 36.0 48.0 12.0 1.15
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129.0 132.5 3.5 8.59
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including 130.5 131.3 0.8 28.89
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KO11-24 121.5 129.0 7.5 1.49
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144.0 151.5 7.5 0.94
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The zone is open to the west and further drilling is required to fully assess continuity and resource potential.
Additional details of historic and recent drill intercepts within the Koemboe zone are shown in Table 2 of the Appendix accessible via the link below:
http://media3.marketwire.com/docs/appendix-table2.pdf
Kraboe Doin
At Kraboe Doin, a follow-up drilling program of 2,300 metres commenced in early September 2011 on the first of two priority targets within an eight-kilometre long gold anomaly defined by shallow auger geochemistry.
GREENFIELDS PROGRAMS
Suriname
At Tapanahony, 120 kilometres southeast of the Rosebel mine, the Company holds an 87.5% interest in a 558 square kilometre concession block that is underlain by a relatively unexplored Proterozoic volcano-sedimentary greenstone belt. Approximately 3,600 metres of diamond drilling is planned to start in October. Drilling will test a robust 1.4 kilometre long surficial geochemistry anomaly further supported by deep auger sampling in saprolite. Drilling is expected to extend into the first quarter of 2012.
Peru
In southern Peru, further diamond drilling on the Candelaria project has defined a tabular gold mineralization zone with gold grades approaching commercial values. Data compilation and modeling is underway to assess options for advancing the project. At the Conchucos project in the central Ancash Department, reconnaissance exploration programs have been completed identifying a number of encouraging mineralization occurrences at surface. The highest priority targets will be drilled following preparatory commitments, including consultation with local community stakeholders.
Brazil
In Brazil, diamond drilling programs are underway at the Pitangui (Minas Gerais) and Vila Estrela (Para) early-stage projects. The Pitangui drilling campaign will test two significant geochemical and geophysical anomalies generated over prospective units of Archean greenstone stratigraphy. The 2011 program in southern Para aims to evaluate the resource potential of the mineralization system revealed by scout diamond drilling completed in late 2010, and to expand regional exploration coverage to locate similar occurrences.
Quebec
Following the success of an earlier drill program, a second exploration core drilling campaign commenced in September on the Company's wholly-owned Bousquet-Odyno property. The project, located only eight kilometres from the Westwood development project in the Abitibi region of Quebec, was reactivated in 2010 as part of the Company's renewed emphasis on exploration in Quebec. The new 5,000-metre program aims to build upon positive drill results.
ADVANCED EXPLORATION PROJECTS
Kalana Project, Mali
IAMGOLD is the operator of an exploration joint venture with Avnel Gold Mining Limited ('Avnel') under the previously reported terms of an option agreement entered into in August 2009. The Company's 2011 program is focused principally on the Kalana mine area and the near-by Kalanako target.
The 2011 program aims to systematically test the bulk mineable potential of gold mineralization zones that envelop the high grade shallow-dipping veins exploited in the Kalana mine. Drilling is being carried out on a nominal grid pattern of 100 by 50 metres. This work is on-going and has further refined the structural architecture of the Kalana mine to provide a detailed and predictive geologic model. More than 60,000 metres has been drilled by the Company since 2009, with over 31,000 metres completed this year.
Drilling is anticipated to continue into 2012 with the principal objective of developing a resource estimate for the Kalana mine area and the Kalanako prospect by the third quarter of 2012. The Company is required to deliver a minimum 2 million ounce NI 43-101 compliant mineral resource as a precondition to vesting in the property. Samples for preliminary metallurgical testing have been submitted to the SGS Mineral Services Lakefield laboratory in the Canadian province of Ontario. Because of the high nugget effect characterizing Kalana gold mineralization, additional technical studies will also be conducted to provide confidence for a future resource estimate.
Regional exploration activities, including extensive termite mound geochemical sampling, ground and aerial geophysical surveys and detailed documentation of historic artisanal gold mining sites, have highlighted numerous priority targets on the southern sector of the 387.4 square kilometre Kalana exploration permit. Planned target definition work will continue in the fourth quarter of 2011 in preparation for drilling in 2012.
Siribaya Project, Mali
The Siribaya gold project in Mali is held under a previously described option to joint venture with Merrex Gold Inc. ('Merrex'). Drilling in 2011 has focused on the Siribaya trend, a structural corridor that extends for approximately eight kilometres within the Siribaya project concession block. The Siribaya resources occur on the western and eastern flanks of the structural corridor, and the 2011 program was designed to better determine the extent of known gold mineralization systems and develop additional target areas.
The planned 30,000 metre reverse circulation drilling program is being carried out on 400 to 500 metre spaced fences, followed by in-fill lines to off-set significant results. Although exploration activity was suspended in July 2011 with the on-set of seasonal rains, more than 21,500 metres of reverse circulation drilling and 6,500 metres of diamond drilling have been completed.
Reverse circulation drill coverage of known mineralized trends has been extended one kilometre north and almost three kilometres south of the Zone 1B resource area (Western Trend), and up to three kilometres north of the small Zone 1A resource (Eastern Trend). A 10,000 metre diamond drill program was initiated in April 2011 to extend the Siribaya Zone 1B resource to the north and south, and off-set significant gold mineralized intercepts elsewhere within the Siribaya structural corridor. Significant drill results have been recently encountered starting about one kilometre north of the Siribaya Zone 1A resource, and extending northward for one kilometre over three fences of holes. Peak assays are highlighted by:
-- hole TYC11-095 that returned 1.58 g/t Au over 31 metres from 43.0 metres
to 74 metres, and
-- hole TYC11-098 that returned 1.87 g/t Au over 13 metres from 50 metres
to 63 meters.
The program is experiencing delays in assay turn-around time at commercial laboratories due to the surge in exploration activity in Mali.
Further details of recent drill results, including holes highlighted above, can be found in press releases provided by Merrex, and dated September 8, 2011 and September 13, 2011.
Bambadinka
Two kilometres west of the Siribaya structural corridor, anomalous termite mound geochemistry in conjunction with mechanized auger drilling to depths of up to 20 metres has extended the Bambadinka trend for at least eight kilometres in a north-south direction. Nine reverse circulation drill holes in two fences were completed over short segments of the zone in Q2 2011, but assays are pending. The Bambadinka trend will be a priority exploration target for future testing, as will a number of new gold anomalous trends revealed by regional termite mound sampling programs elsewhere on the Siribaya concessions.
Technical Information and Qualified Person/Quality Control Notes
The drilling results 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 this information is Michael Donnelly, P. Geo., Senior Vice President Exploration. Michael is considered a 'Qualified Person' for the purposes of National Instrument 43-101 with respect to the technical information 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.
The 'Qualified Person' responsible for the supervision of the preparation and review of the information concerning the Essakane Mine, Burkina Faso section of this press release is Benjamin Allou, Senior Geologist with IAMGOLD. Benjamin is considered a 'Qualified Person' for the purposes of National Instrument 43-101 with respect to the technical information being reported on. The 'Qualified Person' responsible for the supervision of the preparation and review of the information concerning the Rosebel Mine, Suriname section of this press release is Caroline Laplante, Senior Geologist with IAMGOLD. Caroline is considered a 'Qualified Person' for the purposes of National Instrument 43-101 with respect to the technical information being reported on.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. IAMGOLD uses certain terms in this presentation, such as 'measured,' 'indicated,' or 'inferred,' which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in the IAMGOLD Annual Reports on Forms 40-F. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml or by contacting 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 five gold mines (including current joint ventures) on three 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 regions of Canada. IAMGOLD also operates Niobec, a niobium mine in the Canadian province of Quebec.
Please note:
Si vous desirez obtenir la version francaise de ce communique, veuillez consulter le http://www.iamgold.com/French/Home/default.aspx.
Contacts:
IAMGOLD Corporation
Bob Tait
VP Investor Relations
(416) 360-4743 or Mobile: (647) 403-5520
IAMGOLD Corporation
Laura Young
Director, Investor Relations
(416) 933-4952 or Toll-free: 1 888 464-9999
info@iamgold.com