GOLD DEVELOPMENT: IamGold’s Essakane project ahead of schedule

BURKINA FASO — IamGold Corporation of Toronto says development is ahead of schedule at its Essakane gold project, with initial production now expected in August 2010. Moreover, the company also increased probable reserves by 8% to 3.37 million oz since acquiring the property in February this year.

Total contained ounces in reserves and resources of the Main zone now stand at 8.51 million oz. IamGold released the following details on a 100% basis: 68.09 million tonnes at 1.54 g/t Au in the probable reserves category; indicated resources of 80.23 million tonnes at 1.50 g/t Au; and inferred resources of 21.41 million tonnes at 1.86 g/t Au. Nine kilometres east of the Main zone, the company is also testing the Falagountou deposit.

IamGold estimates gold production to be 315,000 oz over a minimum nine-year mine life. Average cash operating costs will be US$358/oz using a US$600/oz gold price and a US$85/bbl oil price.

Learn more about the company's numerous gold mines and one niobium producer at www.IamGold.com.