GOLD: IamGold cuts 2015 outlook after third Westwood rockburst

QUEBEC – Toronto-based IamGold reported a third rockburst at its Westwood gold mine, and the occurrence has the company cutting its 2015 guidance at the mine in half. Expectations are now that 60,000 to 75,000 oz of gold will be recovered at Westwood this year.

The reduced output from the affected mine will have a 5% impact on IamGold's total production for 2015. The company has revised its target to 860,000 oz, down from 820,000 oz.

The Westwood mine is on the property of the former Doyon gold mine 40 km east of Rouyn-Noranda. The poor ground is causing problems at a depth of about 900 metres on parts of level 104. The first rockburst occurred in January and temporarily trapped four miners. A second incident in May affected nine workers. The latest rockburst, on May 26, trapped nine miners for 18 hours. In each case, all miners were safely evacuated.

The company says it has not yet had time to assess the long term effect of the instability on production.

Read all of IamGold's recent news releases at IamGold.com.