Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (June 2009)
54 slides from Iamgold's investor day presentation, Jun 22, 2009
Slide 1: Operations | Development | Exploration
June 22, 2009 Operations | Development | Exploration Gordon Stothart Chief Operating Officer Denis Miville-Deschenes S.V.P. Project Development Michael Donnelly S.V.P Exploration
Slide 2: Introductions
Introductions Operations Development Projects Exploration
Slide 3: Operations: Focus Discipline Results
3 Operations FOCUS DISCIPLINE RESULTS Three Focus Areas: West Africa, Guiana Shield and Quebec 1 2 Doyon Division 3 4 Rosebel Mupane Niobec 7 Gold Mines SURINAME CANADA BOTSWANA CANADA Niobec Niobium Mine 2009E 365 koz 2009E 102 koz 2009E 63 koz 2009E 4.2-4.4 kt Nb 5 6 Sadiola Yatela MALI MALI 2
Slide 4: IMG Operations Team
4 IMG Operations Team COO SVP African SVP Project SVP Americas SVP Ops. Dir. Global SVP HSS Operations Development Ops. (vacant) Strategy Purchasing Sadiola Essakane Rosebel Team Team Geol. / Reserves Health/Safety Mining Community Rel. Yatela Quimsacocha Doyon Div. Metallurgy Environment Energy Ris
Slide 5: Operations Goals
5 Operations Goals Zero Harm Decentralized accountability for planning and results with site management teams Enhance career opportunities for employees Planning approach based on aggressive achievable targets, followed up with strong continuous improvement and breakthrough efforts. Techni
Slide 6: Zero Harm
6 Zero Harm Zero Harm is IAMGOLD’s vision for maintaining the highest standards in human health, minimizing our impact on the environment and working co-operatively with our host communities. Zero Harm is supported by our Health, Safety and Sustainability Frameworks Zero Harm means: • No fatalitie
Slide 7: Human Resources
7 Human Resources Creating a solid platform for growth Labour Relations expected to remain stable • Annual negotiation at Mupane • Hourly rates setting only, at Rosebel end ‘09. • Other contracts not due until 2011 or beyond “Talent Shortage” of 2007-08 will reappear with economic turnaround and
Slide 8: Development Projects: Filling the Pipeline
8 Development Projects FILLING THE PIPELINE Three Focus Areas: West Africa, Guiana Shield and Quebec 1 Essakane 22 Westwood 4 Advanced Stage BURKINA FASO CANADA Development Projects Late 2010, Est. 315,000 oz Early 2013, Est. 200,000 oz 3 Quimsacocha ECUADOR 2 Est. 202,000 oz 4 1 Camp Caiman FRENC
Slide 9: Exploration
9 Exploration Canada 247 FULL TIME / LONG TERM CONTRACT STAFF 60 GEOLOGISTS IN 11 OFFICES IN 10 COUNTRIES Westwood Senegal Ecuador Tanzania Peru GUIANA SHIELD Suriname Brazil French Guiana Guyana
Slide 10: Exploration Strategic Drivers
10 Exploration Strategic Drivers Greenfields Programs • “Discovery Focus” of all activities • Regional focus • 1.5 M oz gold threshold • Gold-dominant targets Exploration Acquisitions & Joint Ventures Opportunity Fund set aside, with emphasis on…. • Established resource • Large prospective land
Slide 11: Exploration Budget 2009
11 Exploration Budget 2009 2009 ($US M) 2008 ($US M) Greenfields $33.8 $29.8 Near-Mine $20.4 $20.4 Total Exploration $54.2 $50.2 Greenfields 2009 Budget includes $4.6 M Opportunity Fund 2009 emphasis on: • Acquisition of Advanced Exploration Projects • Resource development and conversion at Rose
Slide 12: Africa
12 AFRICA Operations Development Projects Exploration
Slide 13: Sadiola Mali
13 Sadiola MALI West African Joint Venture OPERATIONS 2008 production 172,000 ounces 2008 Cash Costs $389 per ounce PROJECT Deep sulphide study to be completed in 2009 New exploration program 2009 OUTLOOK 38% IMG Ownership JV: Anglogold Ashanti 2009 is a transition year for Sadiola Locatio
Slide 14: Sadiola Deeps Project
14 Sadiola MALI Sadiola Deeps Project 3+ Moz hard rock resource below the Sadiola main pit Has been studied a number of times by AngloGold Ashanti project staff IAMGOLD engineers are now leading a new study with a number of innovations on cost and construction schedule, designed to “re-think”
Slide 15: Sadiola Strategic Priorities
15 Sadiola MALI IAMGOLD Strategic Priorities Reduce existing mining costs Achieve a positive production decision on the Sulphide Deeps project (with favourable cash costs) Complete the exploration program as designed to identify new potential resources Improve management of coarse rock to re
Slide 16: Yatela Mali
16 Yatela MALI West African Joint Venture OPERATIONS 2008 production 66,000 ounces 2008 Cash Costs $514 per ounce Changed contract miner in mid-08 lowering mining cost by 40% IMG Ownership 40% 2009 OUTLOOK JV: Anglogold Ashanti Location Mali Yatela mine is scheduled to stop open pit operatio
Slide 17: Yatela Strategic Priorities
17 Yatela MALI IAMGOLD Strategic Priorities Conclude end of life planning Accelerate the current exploration plan at Yatela to see if there is any opportunity to extend life Investigate the opportunity for further resources below the pit, using the IMG Operations Strategy group as the current
Slide 18: Tarkwa & Damang Ghana
18 Tarkwa & Damang GHANA TARKWA DAMANG West African Joint Venture IMG Ownership 18.9% 18.9% JV: Goldfields Ltd. JV: Goldfields Ltd. Location Ghana Ghana M&I Resources (oz)* 2,462,000 407,000 Inferred Resources (oz) (as at Dec. 31, 2008) 456,000 252,000 *M&I resources are inclusive of reserves Gold P
Slide 19: Tarkwa & Damang Strategic Priorities
19 Tarkwa & Damang GHANA IAMGOLD Strategic Priorities Tarkwa has recently completed the CIL expansion project • Ramp up has been progressing steadily Test on High Pressure Grinding Rolls (HPGR) for heap leaching to be run starting later ‘09 • Would be an alternative crushing option for heap leac
Slide 20: Mupane Botswana
20 Mupane BOTSWANA 2008 Change to owner mining reduced costs OPERATIONS • 2008 production up 17% to a record 101,000 ounces • Transition from contractor mining to owner mining reduced cash costs by 33% to $367/oz • Q1 2009 production short of plan, suffering problems with recovery, plant reliabili
Slide 21: Mupane Strategic Priorities
21 Mupane BOTSWANA Strategic Priorities Challenge the safety message to avoid becoming complacent Focus on plant reliability and gold recovery to improve full year production forecast Evaluate the potential to extend Mupane’s life by 2 to 3 years using a new economic model based on owner minin
Slide 22: Essakane Burkina Faso: Ahead of Schedule, On Budget
Essakane BURKINA FASO Ahead of Schedule, On Budget
Slide 23: Essakane: Ahead of schedule & on budget
23 Essakane BURKINA FASO Ahead of schedule & on budget PROJECT OVERVIEW • Reserves of 3.0 million oz at grading of 1.5 g Au/t • Indicated Resources of 3.5 million oz at grading of 1.5 g Au/t • Inferred Resources of 1.1 million oz at 1.9 g Au/t • Estimated average annual gold production of 315,000
Slide 24: Essakane: Impact on IAMGOLD
24 Essakane BURKINA FASO Impact on IAMGOLD When in production, Essakane Mine will represent over 35% of current IAMGOLD gold production Currently constitutes more than 25% of proven and probable reserves Estimated cash costs is lower than company average Adds production in 2010 (August onwar
Slide 25: Essakane Capital Budget
25 Essakane BURKINA FASO Capital Budget (in US $millions) Spent to Project Date Total Infrastructure 66.2 Processing Facilities 123.6 Plant & Equipment 101.2 Construction Indirect 54.1 General Services 34.4 Pre-Production 16.8 Corporate ESA 0.3 Contingency 25.4 Total 176.7 422.1
Slide 26: Reserves & Resources Update – June 15, 2009
26 Essakane BURKINA FASO Reserves & Resources Update – June 15, 2009 Essakane (EMZ) Tonnage Grade Au June 15, 2009 (000) (g/t) (000 oz) Probable Reserves 61,281 1.5 3,029 Indicated Resources 72,203 1.5 3,478 Inferred Resources 19,269 1.9 1,153 Reserves & Resources – December 31, 2008 Essakane (EMZ)
Slide 27: Reserves & Resources Comparison
27 Essakane BURKINA FASO Reserves & Resources – Comparison between June 15, 2009 and December 31, 2008 Essakane (EMZ) Variation Tonnage Grade Au Dec. 31, 2008 to June 15, 2009 (000) (g/t) (000 oz) Probable Reserves +9,968 -0.2 +245 Indicated Resources +1,825 -0.1 -129 Inferred Resources +5,310 +0.2
Slide 28: Mineral Reserves by Type
28 Essakane BURKINA FASO Mineral Reserves by Type Essakane (EMZ) Cut-off Tonnage Grade Au June 15, 2009 (g/t) (000) (g/t) (000 oz) Saprolite 0.40 14,246 1.3 581 Transition 0.51 14,416 1.4 643 Fresh Rock 0.62 32,620 1.7 1,805 Total 61,281 1.5 3,029 Waste tonnage = 144,536 ktonnes Strip ratio = 2.
Slide 29: Main Parameters Comparison
29 Essakane BURKINA FASO Main parameters – Comparison between June 15, 2009 and December 31, 2008 Parameters December 2008 June 2009 (NI 43-101) IAMGOLD Drill Hole Database (m) 160,869 169,043 Assays 134,887 138,855 Composites 3m 5m Geological Hard Boundaries Idem Idem Weathering Boundaries Idem Ide
Slide 30: Sensitivity Whittle Shell
30 Essakane BURKINA FASO Sensitivity Whittle Shell (Indicated only) – June 2008 Gold Price Ore Ore Grade Gold Contained Strip US/oz M tonnes g Au/t M oz Ratio 300 13.578 2.37 1.035 2.69 350 22.749 2.28 1.670 2.99 400 30.379 2.12 2.071 2.80 450 36.629 1.98 2.335 2.55 500 42.799 1.88 2.586 2.45 550 50
Slide 31: Cross-section 52025N
31 Essakane BURKINA FASO Cross-section 52025N W June 09 Pit Design – $700/oz E Surface 9 8 200 00 n2 DD i Whittle Shell Using ed nn Indicated + Inferred Pla $700/oz Main Argillite Section 52025N Main Argillite Indicated Inferred Whittle Shell Pit Design 2.2 g Au/t over 39.5 m 2. 5 km Main Arenite Fo
Slide 32: Falagountou – Cross Section
32 Essakane BURKINA FASO Falagountou – Cross Section Located 9 km to the east of EMZ Discovered in 1995 (magnetometric & radiometry survey) Stockwork of Quartz carbonate and sulphide at contact of intrusive and sediments Active artisan mining
Slide 33: Construction Status
33 Essakane BURKINA FASO Construction Status Dam and off-river water storage completed. Tailings and water reservoirs are ongoing Mill concrete foundations ongoing Permanent camp site and offices almost completed 5 traditional villages built and population relocated; town of Essakane is bein
Slide 34: Strategy
34 Essakane BURKINA FASO Strategy Owner built by IAMGOLD Development Team experienced with construction projects, particularly Rosebel and Omaï Mining Team performed most earth moving work All services departments are already in place Excellent government relations Essakane is the main m
Slide 35: Labour
35 Essakane BURKINA FASO Labour Over 2,700 workers • Hiring of expats and specialists almost completed Official language is French, most expats are from Canada and France Close to 50% of the National workforce is from the project area Training ongoing in all positions. All mining equipment i
Slide 36: Health, Safety & Sustainability
36 Essakane BURKINA FASO Health, Safety & Sustainability International standards and best practices used for all parts of construction Only one lost-time accident occurred since the beginning of construction in 2008 ISO 14001 certification was recently renewed for exploration activities, camp
Slide 37: Project Pipeline
37 Essakane BURKINA FASO Project Pipeline 2009 2010 Detailed Process Engineering Construction Essakane Village Resettlement of Essakane Population Earthwork and Infrastructure Pit Pre-Stripping Mining Operations Power Plant Construction Processing Plant Cons truction Commissioning Commercial Product
Slide 38: Community – successful village relocation
38 Essakane BURKINA FASO Community – successful village relocation Residential building – Essakane Site Replacement building View of new town in construction
Slide 39: Overall Future Plant Site
39 Essakane BURKINA FASO Overall Future Fuel Reservoirs and Power Plant Overall Future Plant Site (May 2009)
Slide 40: Dam & Spillway
40 Essakane BURKINA FASO Dam & Spillway Dam & Spillway
Slide 41: SAG Foundation and Construction
41 Essakane BURKINA FASO SAG Foundation and Construction Office (Future Mill Office) Project Site – Crusher Foundations
Slide 42: 2009 Goals
42 Essakane BURKINA FASO 2009 Goals Completion of detailed engineering and order all remaining equipment Completion of Resettlement Essakane Village (over 2,000 buildings); Move of populations planned for early 2010. Already five smaller village were completed and resettled in early 2009 Compl
Slide 43: Exploration - Africa
43 EXPLORATION - Africa WEST AFRICA Emphasis on West Africa Sadiola Corporate office established Yatela in Dakar Essakane Dakar Active programs in: - Burkina Faso Tarkwa Damang - Senegal - Mali Mupane
Slide 44: Burkina Faso - Essakane
BURKINA FASO - Essakane 44 …the start of a multi-year program Exploration Targets Exploration Concessions 1147.8 km2 • $2.3 M Regional Exploration Budget proposed • 10,000 m RAB drilling in sand covered areas Mining Concession 100.2 km2 Arsenic Geochemistry 10 km
Slide 45: Burkina Faso - Essakane
BURKINA FASO - Essakane 45 Takabangou TKC0975: 6m @ 5.12g/t Au Historic RC and Tin Taradat TKC0965: 5m @ 3.54g/t Au Diamond Drilling TTC1699: 2m @ 1.35g/t Au Tin Zoubaratan Gossey TZC1629: 4m @ 0.86g/t Au GRC0980: 12m @ 1.01g/t Au GRC0982: 31m @ 1.10g/t Au GRC0985: 17m @ 3.94g/t Au Bom Kodjele Koriz
Slide 46: Burkina Faso - Essakane
BURKINA FASO - Essakane 46 Eolian sands 10 km
Slide 47: Mali - Senegal
47 MALI - Senegal Regional Synergies West Africa office in Dakar Sadiola (38%) – Yatela (40%) Siribaya JV: Joint Venture earn-in with Merrex Gold Oromin Investment (17%) Bambadji Regional reconnaissance Boto Boto Project, Senegal Siribaya …”a world class gold province”
Slide 48: Mali - Sadiola
195000 200000 205000 210000 215000 220000 225000 MALI - Sadiola Yatela 48 1560000 1560000 18-month US$14.9 M exploration program in progress (IMG $6.1 M) KW18 81,600 meters drilling planned Alamoutala Complete oxide exploration by Q4- 1550000 1550000 2009 Mesozoic Dolerite dyke Upper Proterozo
Slide 49: Mali - Sadiola
MALI - Sadiola 49 Yatela Over 30 Targets identified KW18 Alamoutala 2009 Targets Oxide - Priority 1 Oxide - Priority 2 & 3 Sulphide - Priority 1 Sulphide - Priority 2 & 3 Geophysic Surveys Sadiola Aeromag Survey FE3 pit1 Ground Gravity FE3 pit2 FE4 FE3 pit3 Geochemistry Surveys Sub Laterite Project
Slide 50: Mali – Siribaya JV
50 MALI – Siribaya JV JV with Merrex Gold Inc. Five concessions totaling 700 km2 Contiguous with IMG’s Boto property in Senegal Underlain by Birimian greenstone terrane Prior work focused on the Siribaya Structure MALI
Slide 51: Mali - Siribaya
51 MALI - Siribaya Area 55 Resource NI 43-101 Resource Estimate for Area 55 only over short strike length Indicated Resource: 2.1 Mt @ 1.81g/t Au (123 Koz) Inferred Resource: 5.7 Mt @ 1.74g/t Au (319 Koz) Open at depth and along strike to the south
Slide 52: Mali - Siribaya
52 MALI - Siribaya IAMGOLD – Merrex Gold Joint Venture Agreement: – Cdn$ 1.5 million investment in Merrex Gold – IAMGOLD to earn 50% over 4 years – Cdn$ 3.0 million in exploration expenditures in first year 2009 Exploration Program – Commenced Q1: • Termite mound geochemistry & regolith mapping
Slide 53: Senegal - Boto
53 SENEGAL - Boto 100% IAMGOLD project in prolific Kenieba window of Senegal – Mali 10,000 metre combined DDH and RC program in progress. > 6 kilometre long gold geochemical anomaly 2009 budget +$3.3 million “Go – No Go” decision in Q4 2009
Slide 54: Senegal - Boto
54 SENEGAL - Boto Drill Hole Location Map