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IAMGOLD reaffirms long-term production for Westwood and discusses Cote in Q2 report to shareholders

Aug 6, 2020

Three million ounces - IAMGOLD Corporation has filed a National Instrument 43-101 Technical Report on a Feasibility Study for its 100%-owned underground Westwood Gold Mine in Quebec, with an effective date of April 30, 2020. The results of the FS are in-line with expectations and the company re-affirms long-term production guidance originally disclosed in December 2019.

"IAMGOLD delivered solid operating results in the quarter, generating $72.4 million in operating cash flow and producing 155,000 ounces of gold. These results were achieved despite the temporary suspension of mining activities at Westwood and Rosebel, with both operations back online as of April 15 and July 24, respectively, and the anticipated continued impact of the global COVID-19 crisis," commented Gordon Stothart, President and CEO of IAMGOLD. "During the quarter, we have taken significant, proactive steps at each of our operations to establish protocols enabling us to deliver on our long-term strategy, while prioritizing the health and safety or our workforce and host communities. I would like to commend our employees for their extraordinary dedication, perseverance, and professionalism during these unprecedented times."

Mr. Stothart stated, "On July 21, together with our JV partner, Sumitomo Metal Mining Co., we announced the decision to proceed with the construction of the Côté Gold Project, located in northern Ontario. Côté is a world-class deposit and is transformational to IAMGOLD's future, reducing overall operating costs, increasing total production, increasing the number of mines and bringing greater geographic diversity to our portfolio. Our strong financial position, with over $860 million in cash and short-term investments, coupled with operating cash flows from our existing mines, enable us to take this important step toward executing on our best-in-class growth pipeline."

The Company is also providing an updated Mineral Reserve and Mineral Resource estimate that reflects modified mining methods and operational assumptions, derived from ongoing operating experience at Westwood.

Over the past year, the Company had undertaken a comprehensive review of the technical and economic viability of Westwood that included preferred mining methods, mineral processing, and operational practices, with the overall objective of improving economic returns and establishing an achievable pathway to a safe and profitable long-life underground mine. 

"The long-term Production Guidance establishes an achievable operational base case foundation, built upon conservative assumptions, and positions the asset for long-term safe and profitable exploitation," commented Gordon Stothart, IAMGOLD President and CEO. "We have adopted a cautious and empirical based approach that reflects current operational reality, with significant opportunities to improve on the base case. Additionally, given significant mill capacity availability, we are actively pursuing a 'hub-and-spoke' strategy at Westwood that could bring regional exploration value forward from assets like the recently acquired Fayolle Property and the optioned Rouyn Gold Project, and enhance the overall value of Westwood with incremental production growth from supplementary feed."

As is typical for underground operations, and supported by reasonable assumptions in-line with historical operating experience, the Company continues to work on converting its significant underground mineral resources to mineral reserves over time. The revised production profile established by the Production Guidance in December 2019 underpinned the Westwood impairment charge referenced in the full-year 2019 results release (see news release dated February 19, 2020).

The Study was completed by IAMGOLD, with inputs from technical studies completed by other consultants. The Technical Report can be found on the Company's website at www.iamgold.com or under the Company's profile at www.sedar.com and www.sec.gov/edgar.shtml.


Total attributable Measured and Indicated Resources (inclusive of Reserves) increased by 6% to 1.557 million ounces grading 10.2 g/t Au. Total attributable Inferred Resources increased by 4% to 1.771 million ounces grading 8.6 g/t. Gold price assumptions were maintained at $1,200 per ounce gold price for estimating underground resources, and $1,500 per ounce for estimating the Grand Duc open pit resources.

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