Toronto, Ontario, December 12, 2019 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) provides the following updated production guidance for its underground Westwood Gold Mine (“Westwood”), located in Quebec, Canada.
The guidance incorporates modified mining methods, operational practices and revised productivity assumptions, based on recent operating experience at the mine. The following figures are to be further refined and confirmed as the Company continues its ongoing engineering studies.
Based on the preliminary sequencing, the Company anticipates a three to four year ramp-up period to allow development to achieve the targeted steady state production levels. The ramp-up period is anticipated to be similar to that experienced over the past eight quarters at the mine, wherein:
? Production is expected to range from 100,000 to 125,000 ounces per annum,
? All-in Sustaining Costs are expected to range from US$1,125 to US$1,225 per ounce sold,
? Additional capital expenditures are expected during ramp-up for access development,
? Development rates from 9km to 13km per annum are anticipated, roughly 10% to 60% greater than current levels, but comparable to prior ramp-up rates.
Following a ramp-up period, the steady state production guidance for Westwood, based on the operating performance of the past few years, contemplates:
? A targeted production range of 130,000 to 145,000 ounces per annum,
? All-in Sustaining Costs targeted to range between US$1,000 to US$1,100 per ounce sold during steady state,
? Expected mine life beyond 2030, with potential to extend,
? Mining method is longhole open stoping (“LHOS”) and, depending upon the area, either underhand LHOS or bottom-up LHOS.
Gordon Stothart, President and COO, commented, “With a goal of creating a safe and profitable underground mine, our team of in-house and external experts are developing an achievable, revised mining and development plan for Westwood. The guidance is based on Westwood’s operating reality, with potential for lower dilution and continued positive reconciliation to plan. While the first few years of ramp-up are modest, we are working to fill our mill with lower grade surface material from satellite prospects and with custom feed.”
Additional opportunities currently under evaluation, with a legitimate opportunity to materially improve production and economics include:
? Utilizing excess mill capacity for supplementary feed opportunities (either owned or tolled),
? Improved stope cycle and development productivities,
? Conversion of inferred resources and addition of new resources,
? Incorporating knowledge gained and improving performance on recovery in higher seismic risk areas.
IAMGOLD continues to work with experts in seismically active, narrow vein underground mines, including Beck Engineering, A2GC, Entech, Mining Plus, RockEng, in order to develop the updated mining and development plan for Westwood. The Company plans to complete an updated Life of Mine Plan and Technical Report for Westwood in accordance with National Instrument 43-101 (“NI 43-101”) in Q2-2020.
The updated Mineral Reserve and Resource statement will be published in Q2-2020, along with the updated NI 43-101 Life of Mine Plan and Technical Report for Westwood mentioned above.
In accordance with International Financial Reporting Standards (“IFRS”), IAMGOLD is required to test the carrying value of Westwood for impairment due to the revision in production guidance. The outcome of the impairment testing is unknown at this time.
The information in this news release was reviewed and approved by Daniel Vallieres, ing., Senior Director, Technical Services for IAMGOLD. Mr. Vallieres is a Qualified Person as defined by National Instrument 43-101.
All information included in this news release, including any information as to the Company's future financial or operating performance, and other statements that express management's expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking etc. etc..
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities. IAMGOLD is in a strong financial position with extensive management and operational expertise.