TORONTO, ONTARIO (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) is
pleased to provide an update of its operational performance for
2007 and provide guidance for 2008 production, costs, exploration
and development.
HIGHLIGHTS
- 2007 production increased to 965,000 ounces gold - in-line
with guidance
- 2008 production forecast - 920,000 ounces - slight (5%)
decline from 2007
- 2008 cost guidance- $455 to $470 per ounce
- $87.3 million approved for exploration and development project
spending in 2008
- Prefeasibility study at Quimsacocha expected in April
- Exploration begins at Camp Caiman
- Buckreef scoping study to be completed by mid year
Production
2007 production totaled 965,000 ounces which is in-line with the
2007 yearly guidance provided. Rosebel, the company's largest
operation, showed great improvements in the fourth quarter,
increasing production by close to 10% over the previous quarter.
The biggest declines in year over year gold production were shown
in joint venture partner production. In 2007, the Sadiola, Yatela,
Tarkwa and Damang operations produced almost 20% less than in 2006.
These declines can largely be attributed to grade and recovery
declines, heavy rainfall, and expected changes in production.
In 2008, the Company expects to produce 920,000 ounces of gold
at Gold Institute cash costs of approximately $455 - $470/oz. The
approximate 8% increase in costs from 2007 guidance can largely be
attributed to higher oil prices, royalty costs associated with
higher gold prices and the strengthening of the Canadian dollar.
Assumptions used in the 2008 forecasts include $700/oz. gold, $90/
barrel oil and a Canadian / US dollar exchange rate of $1.05 / $1
USD. For every $100 increase in the price of an ounce of gold, the
Company's cash costs will increase by about $10/oz attributable to
royalty costs and management fees.
Exploration & Development Update
The Company's approved 2008 Exploration and Development budgets
total $87.3 million for projects located in nine countries of South
America and Africa. Of that, over $30 million will be expensed
exploration, $20 million in capitalized exploration and $37 million
in capital development projects.
Important allocations include $13 million for the Westwood
project, a 3.3 million ounce inferred resource located two
kilometers from the Doyon mine in northwest Quebec. Current plans
are to accelerate the project schedule and advance major components
of the pre-feasibility in 2008. The work program includes the
completion of the exploration drift, further development and
validation of the existing resources, as well as exploration beyond
the current resource areas. The prefeasibility study is expected to
be submitted for internal review by the end of 2008.
A prefeasibility study is in progress on the Company's
wholly-owned Quimsacocha project in Ecuador and is expected to be
completed by April. Drilling for metallurgical test work was
completed early in January 2008. Additional in-fill drilling and
further exploration drilling will be completed this year. Total
spending for 2008 is estimated to be over $11 million. Work on the
Feasibility study will begin in 2008.
Development spending at Camp Caiman, French Guiana, the
Company's most advanced development project will be largely
determined by the pending receipt of permits from the French
Government. Development and construction costs are not included in
the global $87.3 million approved budget, and the feasibility
parameters are being updated to ensure accuracy given the current
cost pressures. An approved $2 million exploration program is in
progress that includes 5,700 metres of diamond drilling on priority
targets to the west of the current resource, as well as further
identification and refinement of additional targets.
The $8 million exploration program at Buckreef, Tanzania will be
staged to initially focus on the follow-up of encouraging regional
exploration results received in 2007, and identification of new
resources. The established resource base is currently just under
two million ounces. In conjunction with the exploration program,
work continues on the Environmental Impact Assessment, a study
required for the next stage of development. A comprehensive Scoping
Study is in progress and is expected to be complete by
mid-year.
Forward Looking Statement
This press release contains certain "forward-looking
statements". All statements, other than statements of historical
fact, included herein, including, without limitation, statements
regarding potential mineralization and reserves, exploration
results and future plans and objectives of IAMGOLD or statements as
to our future financial or operating performance and other
statements that express management's expectations or estimates of
future performance, constitute forward-looking statements. The
words "expect", "plan", "will", "intend", "estimate" and similar
expressions identify forward-looking statements. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. The Company cautions
the reader that such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual financial results, performance or achievements of IAMGOLD to
be materially different from the Company's estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are
not guarantees of future performance. These risks, uncertainties
and other factors include, but are not limited to: changes in the
worldwide price of gold and currencies; changes in U.S. dollar
interest rates or gold lease rates; risks arising from holding
derivative instruments; ability to successfully complete announced
transactions and integrate acquired assets; legislative, political
or economic developments in the jurisdictions in which the Company
carries on business; operating or technical difficulties in
connection with mining or development activities; employee
relations; availability and increasing costs associated with mining
inputs and labor; the speculative nature of exploration and
development, including the risks of diminishing quantities or
grades of reserves; adverse changes in our credit rating, contests
over title to properties, particularly title to undeveloped
properties; and the risks involved in the exploration, development
and mining business. These factors are discussed in greater detail
in the Company's most recent Form 40-F/Annual Information Form on
file with the US Securities and Exchange Commission and Canadian
provincial securities regulatory authorities.
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 form 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
2006 Form 40-F is available to shareholders, free of charge, upon
written request addresses to the Investor Relations Department.
Please note:
This entire press release may be accessed via fax, e-mail,
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.sedar.com or at www.sec.gov.
Si vous desirez obtenir la version francaise de ce communique,
veuillez consulter le http://www.iamgold.com/fr/accueil.html.
Contacts: IAMGOLD Corporation Lisa Doddridge Director, Investor
Relations (416) 360-4710 or Toll-Free: 1-888-IMG-9999 Renmark
Financial Communications Inc. John Boidman (514) 939-3989 (514)
939-3717 (FAX) Email: jboidman@renmarkfinancial.com Renmark
Financial Communications Inc. Henri Perron (514) 939-3989 (514)
939-3717 (FAX) Email: hperron@renmarkfinancial.com Website:
www.renmarkfinancial.com
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