IAMGOLD Corporation: Buckreef, Tanzania Resource Update
Revised Resource Estimate Reflects Minzwel-Busolwa Discovery
July 24, 2008: 09:07 AM EST
IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) is pleased to announce an increase in the mineral resources at the Company's Buckreef Project, located in the Lake Victoria Goldfields of northern Tanzania. Buckreef is an advanced exploration gold project containing 1 million ounces of gold in 16 million tonnes of measured and indicated resources at an average grade of 2.0 grams per tonne gold (g/t Au). An additional 86,000 ounces of gold have been added to the inferred resource category at an average grade of 2.8 g/t Au (Table 1). The gains reflect the Company's recent drill campaigns within the Minzwel-Busolwa Trend and bring the inferred resource category to more than 900,000 ounces of contained gold.
"Exploration drilling continues to discover more ounces and we are pleased to see an increase of almost 90,000 ounces in the resource base," stated Joseph Conway, President & CEO. "We are updating the Scoping Study to determine the impact of the Minzwel-Busolwa discovery. Our objective remains to advance the project to the Pre-Feasibility Stage."
Detailed drilling on a close spaced drill pattern on the Minzwel-Busolwa discovery shows a strongly mineralized system with a strike length of more than 500 metres. The deposit has been tested with 5,141 metres of RC drilling in 78 holes, and 176 metres of diamond drilling in two holes. The structural trend hosting the deposit has been traced for about 10 kilometres and will be the subject of additional exploration drilling in the fourth quarter following the Equatorial Africa rainy season.
Table 1: Buckreef Project Mineral Resources (July 2008)
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MEASURED INDICATED INFERRED
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Con- Con- Con-
Cut-off Gold tained Gold tained Gold tained
grade Tonnes Grade (000 Tonnes Grade (000 Tonnes Grade (000
DEPOSITS (g/t) (000) (g/t) oz) (000) (g/t) oz) (000) (g/t) oz)
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Buckreef 1.0 3,066 2.7 265 1,076 2.4 83 5,793 2.7 507
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Buziba 1.0 - 6,565 1.7 361 2,140 1.6 110
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Busolwa 1.0 - 5,246 1.7 290 1,810 1.6 93
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Tembo &
Bingwa 1.0 - - 1,129 3.4 123
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Minzwel 1.0 - - 955 2.8 86
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TOTAL 3,066 2.7 265 12,887 1.8 734 11,827 2.4 919
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The Company currently has one Aircore drill on site, testing regional targets as part of a comprehensive program to evaluate the Buckreef land package. Seven priority targets had been identified at the start of the 2008 program, and five have been tested, to date, with mixed results. IAMGOLD has approved a budget of US$9.9 million for the 2008 program, and additional RC drilling is planned in October, following the rainy season. Results of a revised Scoping Study are expected in August.
ABOUT IAMGOLD
IAMGOLD is the top mid-tier gold producer, with annual production of close to 1 million ounces from eight different gold operations located in North America, South America and Africa. IAMGOLD also owns non-gold assets that provide significant cash flow and development projects that provide a strong platform for continued growth. IAMGOLD has delivered seven consecutive years of annual dividends to its shareholders and the Company's Gold Money Policy demonstrates IAMGOLD's commitment and confidence in the gold market.
Technical Information and Qualified Person/Quality Control Notes
The mineral resource estimates contained in this news have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral projects ("NI 43-101"). The technical information in this news release, including the information that relates to geology, drilling, mineralization, and mineral resource estimates at the Buckreef Project is based on information prepared under the supervision of, or has been reviewed by, Mr. Francis Clouston, P. Eng., Manager - Project Evaluations Technical Services Group, and employed by IAMGOLD Corporation. The foregoing person is a "Qualified Person" for the purposes of NI 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 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 2007 Form 40-F is available to shareholders, free of charge, upon written request addressed to the Investor Relations Department.