Toronto, Canada — MININGREVIEW.COM — 08 July 2008 – IAMGOLD Corporation – a Canadian-based top mid-tier gold producer, with annual production of close to 1 million oz from eight different gold operations in Africa, North America and South America – is to extend the life of its Mupani mine in Botswana.
In a news release issued here, the company reported an increase in mineral reserves as a direct result of IAMGOLD’s successful effort to convert the operation to owner mining. It said the impact of the conversion to owner mining was expected to be 30 to 70 000 oz of additional production, which would result in a four to six-month extension of the mine life.
“Our update confirms that after producing 37 000 oz in the first six months of 2008, mineral reserves increased by 27 000 oz for an overall gain of 64 000 oz which – at a cash cost of under $450/oz – will extend the operational life to Q2 of 2012,” the release said. Mineral reserves were calculated using a gold price of $US600/oz for December 31, 2007 and $US650/oz for June 30, 2008.
“The increase in reserves is a direct result of IAMGOLD’s aggressive cost and production initiatives,” said company president and CEO Joseph Conway. “Our lower operating costs due to the switch to owner mining at Mupane will allow for profitable mining of satellite pits that had previously been excluded from the original mine plan. We will continue to evaluate our mining costs to determine if there are further opportunities to develop additional resources that could extend the mine life beyond 2012,” he added.