Iamgold Corporation · TSX:IMG
Iamgold — Corporate Update (January 2010)
87 slides from Iamgold's corporate update, Jan 27, 2010
Slide 1: Essakane Gold Mine Analyst Tour
January 27, 2010 Essakane Gold Mine Analyst Tour January 2010
Slide 2: Cautionary Statement
2 Cautionary Statement This presentation contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements re
Slide 3: Senior Managers
SENIOR MANAGERS 3 Denis Miville-Deschênes – SVP Project Development; Brian Chandler – SVP African Operations; Charles Taschereau -VP & GM, Essakane; Langis St-Pierre – Operations Manager, Essakane;
Slide 4: Agenda
AGENDA 4 Wednesday 27th Overview of the project; Construction Status Presentation; Construction site visit; Dinner and Burkinabe Music Band; Thursday 28th Geology and Mining Presentation; Visit of mining area, tailings pond, water reservoir, etc; Visit of Essakane village;
Slide 5: Overview
5 OVERVIEW • History • Location • Human Resources • Health, Safety & Sustainability
Slide 6: IAMGOLD's Strategic Presence in West Africa
IAMGOLD’s Strategic Presence in West Africa 6 West Africa Office Operating Mine Development Project Exploration Project BOTO MERREX KALANA IAMGOLD is a leading West Africa producer 20-year history in West Africa 495,000 oz of gold production from Africa in 2008
Slide 7: Essakane History
Essakane BURKINA FASO 7 History 1985 Discovery of Essakane by “orpailleurs” (artisanal miners) 1992 BUMIGEB constructed heap leach plant 1993 CEMOB / BHP Minerals exploration 1996 CIMC secured title 2000 Bankruptcy of CEMOB 2001 Exploration by Ranger Minerals 2002 Orezone Inc. / Gold Fields joint ve
Slide 8: Essakane Location
8 Essakane BURKINA FASO Location • North Eastern Burkina Faso (Western • Mine is located 330 km NE of the Africa); Capital Ouagadougou; in Sahel • Country is a stable democracy with Zone; strong support from the World Bank; • Similar geology to Mali and Ghana; official language is French; mining • F
Slide 9: Essakane Project Overview
9 Essakane BURKINA FASO Overview PROJECT OVERVIEW • Ownership: IAMGOLD 90%, Government of Burkina Faso 10% • Essakane is the main mining and largest foreign investment project in Burkina Faso • Reserves of 4.3 million oz at grading of 1.4 g Au/t • Indicated Resources of 4.7 million oz at grading of
Slide 10: Regional Geology
Essakane BURKINA FASO 10 Regional Geology The Essakane Main Zone (EMZ) project occurs in folded sedimentary Birimian rocks (wackes, arenites, argillites and minor tuffs) which are intruded locally by intermediate and mafic sills EMZ is characterized by quartz veining system in folded arenite and
Slide 11: Reserves & Resources Update – December 31, 2009
11 Essakane BURKINA FASO Reserves & Resources Update – December 31, 2009 Essakane Tonnage Grade Au December 31, 2009 (000) (g/t) (000 oz) Probable Reserves 92,911 1.4 4,301 Indicated Resources 110,491 1.3 4,740 Inferred Resources 44,103 1.5 2,077 Reserves & Resources Update – June 15, 2009 Essakane
Slide 12: Essakane Prospects
12 Essakane BURKINA FASO Essakane Prospects 5 new Exploration Prospects: • Alkoma 2 • Gomo 2 • Lao Gountouré 2 • Gossey 2 • Dembam 2 1 renewed for 3 year period (21/11/2012) • Korizena Total Area = 1282.2 Km 2
Slide 13: Essakane Exploration Drill Results
Essakane BURKINA FASO Takabangou Historic RC and TKC0975: 6m @ 5.12g/t Au Diamond Drilling TKC0965: 5m @ 3.54g/t Au Tin Taradat 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 BKAC0124:
Slide 14: Mining Permit
14 Essakane BURKINA FASO Mining Permit mE mE mE mE mE mE 195000 mE mE mE mE mE 190000 mE mE mE mE 185000 mE mE 180000 mE 195000 195000 195000 190000 195000 195000 190000 190000 185000 190000 190000 185000 185000 185000 185000 180000 180000 1595000 1595000 1595000 1595000 mN 1595000 1595000 mN mN mN
Slide 15: Essakane Site
Essakane Site $e g # ge & 2 ara = _ ot y = S oO mee 15
Slide 16: Impact of Essakane on IAMGOLD and Burkina Faso
16 Essakane BURKINA FASO Impact of Essakane on IAMGOLD and Burkina Faso Represents more than 30% of current IAMGOLD’s reserves Essakane Mine will represent over 35% of current IAMGOLD gold production – Next IAMGOLD Flagship operation Estimated Cash cost is lower than company average; mainly du
Slide 17: Government Relations
17 Essakane BURKINA FASO Government relations Excellent government relations have been built at Essakane through the years and are being reinforced; Government is cooperative and wants the project to go ahead as quickly as possible Ground breaking ceremony took place in March 2009, in the presen
Slide 18: Local Residents
18 Essakane BURKINA FASO Local Residents Population of 15,000 people in an area of 50km2 Eight small traditional hamlets and one “orpaillage” village Blend of population • Nomadic peuhl, semi-nomadic bellas, Songhaïs farmers, various populations from Burkina and other countries (Mossis, Malian
Slide 19: Health, Safety & Sustainability
19 Essakane BURKINA FASO Health, Safety & Sustainability International standards and best practices used for all parts of construction; including environmental protection and health and safety Excellent health & safety performance for 2009 of 0.14; 4 LTI during the year, in construction with 3,0
Slide 20: Arid Climate
Arid Climate 20 500 mm precipitation per year in 4 months 67 rainy days per year 2.5 m evaporation per year
Slide 21: Human Resources
21 Essakane BURKINA FASO Human Resources Currently over 3,000 workers at Essakane, including approximately 180 expatriate workers As official language in Burkina Faso and at work is French, most expats are from Canada and France; facilitating teamwork and training with Burkinabe workers Over 4
Slide 22: Accelerated Production
22 Essakane BURKINA FASO Accelerated Production Increase throughput during early years Stockpile lower grade saprolite during pre-production Allowing access to higher grade increasing gold production Effectively transferring costs from operating stage to pre-production stage Improves cash
Slide 23: Mill Schedule
Mill Schedule 23 Based on June 2009 mining and processing plan Mill Feed Mill feed composition: – 24% Saprolite, 21% Transition, 55% Rock Average LOM mill recovery of 94% Average LOM Grade: 1.54 g/t Gold production of 3.2M ounces Estimated Accelerated Schedule* September 2009 Tonnage Grade R
Slide 24: Conventional CIL Gold Recovery Plant
24 Essakane BURKINA FASO Conventional CIL gold recovery plant Capacity 9Mtpa with oxides and transition ore, 5.4Mtpa with fresh ore Average Gold Recovery 94.8% (varies with ore type and grade) (reduced by 1-2% at high throughput); Coarse gold requiring less crushing/grinding; 80% passing 125
Slide 25: Essakane Plant Flowsheet
Essakane surkinaraso ° uty ELECTROWINNING reste a # [AMGOLD 25
Slide 26: Crusher, Mills and CIL Equipment
26 Essakane BURKINA FASO 50 x 65 Gyratory Crusher 7MW SAG Mill 30’ diameter x 14’ long; 7MW Ball Mill 20’ diameter x 33.5’ long; Gravity circuit 2 x 48” Falcon concentrator; 1 x Leach Tank and 7 x CIL Tanks 4,000m3 each; AARL Elution circuit
Slide 27: Plant Operating Parameters
27 Essakane BURKINA FASO Mechanical availability 95% Feed rate 1050tph with oxides and 650tph with fresh ore – peak capacity of 1050tph Crusher feed size 90% passing 800mm Leach time 20h with oxides and 36h with fresh ore Leach feed size 80% passing 125 microns
Slide 28: Memorandum of Understanding
Memorandum of Understanding 28 Community consultations, including extensive discussions on resettlement packages (Aug – Dec 2007), culminating in signature of a Resettlement Memorandum of Agreement between the project-affected communities and Essakane S.A. in December 2007. The agreement defines:
Slide 29: Resettlement
Resettlement 29 First Phase: Ticknawell, Oudalan, Bounia, Seno, Margenta • Total of 249 houses in 5 small villages with latrines, mosques, • Resettlement done early in 2009 Second Phase: Essakane Village • Construction started in February 2009 • Houses: 1666 • Latrines: 391 • Commercial building
Slide 30: Resettlement Village
Essakane BURKINA FASO 30 Resettlement Village
Slide 31: Thank You! Questions?
Thank You! Questions?
Slide 32: Projet Minier Essakane
1 Essakane EssakaneBURKINA BURKINAFASO FASO Projet Minier ESSAKANE January 2010
Slide 33: Senior Managers
SENIOR MANAGERS 2 Louis Gignac – Project Executive; Rejean Gourde – Assistant Project Executive; Robert Menard – Construction Executive; Guy Chamard – General Project Manager; Guylain Lessard – Project Manager;
Slide 34: Construction
3 CONSTRUCTION • Capital Budget • Construction Update • Project Risks & Opportunities
Slide 35: Update Construction
4 Update Construction Construction activities started on site in July 2008 Initial planning: - Process plant: Minproc responsible. Major contractors to be used - Owner responsible for: - Mining activities - Construction outside of mill area - Power Plant Activities prior to construction releas
Slide 36: Construction Update (2)
5 Construction update (2) Construction release given in February 2009 (IMG) - Mobilisation of construction and management personnel to take over from Minproc - Procurement & Logistics group reinforced Minproc mandate changed from EPCM to EP early in 2009 for the Mill area Owner is overall Proj
Slide 37: Essakane Site
Essakane Site #1AMGOLD
Slide 38: Mill Site
Mill Site Jes ye 3 bales wy RA ee ng a 34 “WX STOCKPILE 2 35000m? #1AMGOLD
Slide 39: Process Flow Diagram
PRON A CYCLONE APR FEEDER | us STOCKPILE . 5 SAG MILL BALL MLL APRON ‘ | GRAVITY h } J FEEDERS — [=| =] i 4 ENSE TRASH — alt all fal “ahi relent id | wo ! THICKENING i PRE-LEACH TAILS THICKENING # IAMGOLD
Slide 40: Processing Facilities ($134.8)
BUDGETED ITEMS (1) 9 PROCESSING FACILITIES ($134.8) Crushing Grinding & Gravity Pre-leach Thickening CIL Electrowinning Reagents Services Water Services Thickened Tailings Plant Tailings Storage
Slide 41: Plant & Equipment ($102.3)
BUDGETED ITEMS (2) 10 PLANT & EQUIPEMENT ($102.3) Mine equipment Light vehicles Support equipment Power plant Furniture Operating systems Overhead power lines
Slide 42: Infrastructure ($59.1)
BUDGETED ITEMS (3) 11 INFRASTRUCTURE ($59.1) Mine village, kitchen & recreation hall Villages relocation HFO & LFO Storage and distribution Offices Work shops Roads Process water: off channel reservoir, bulk water storage etc…
Slide 43: Construction Indirects ($55.0)
BUDGETED ITEMS (4) 12 CONSTRUCTION INDIRECTS ($55.0) Temporary construction facility Construction equipment Construction fuel & lubes Temporary power plant Construction management Engineering & external consultants Project management Freight
Slide 44: General Services ($34.1)
BUDGETED ITEMS (5) 13 GENERAL SERVICES ($34.1) Administration Burkina Camp costs Procurement & Logistics Custom & duties Insurance Services: Human Resources, Health & Safety, Environement, Security
Slide 45: Pre-Production ($30.0)
BUDGETED ITEMS (6) 14 PRE-PRODUCTION ($30.0) Mine department . Mine . Maintenance . Engineering . Geology Process plant and Power plant commissioning Total of 20.7 M tonnes mined . 5.4 M tonnes ore . 15.3 M tonnes waste: 75% used for tailings dam construction, ROM pad, road construction, etc..
Slide 46: Capital Budget
15 Essakane BURKINA FASO Capital Budget Est. (in US $millions) Spent to Project Date* Total Processing Facilities $134.8 Plant & Equipment $102.3 Infrastructure $59.1 Construction Indirects $55.0 General Services $34.1 Pre-Production $30.0 Corporate ESA $0.3 Contingency $27.5 Total ~$345 $443.1 *As
Slide 47: Project Status
Project Status 16 STATUS DECEMBER 2009 Items % Ordered % Delivered % Completed Civil 100 100 90 Equipment 100 85 30 Structural Steel 100 100 85 Piping 100 75 25 Electrical 100 95 25 Instrumentation 95 60 10
Slide 48: Construction Statistics: Main Activities
CONSTRUCTION STATISTICS 17 MAIN ACTIVITIES Civil: - 35,000 m³ concrete Electrical: - cable trays: 13.6 km - cables: 153 km Piping: - HDPE: 40 km - steel: 35 km Structural steel: - 2215 tonnes Platework: - 1700 tonnes
Slide 49: Construction Update (3)
18 Construction update (3) Consultants: - Minproc: mill area - Wartsila: power plant - Golder: QA/QC civil work mill area & tailings storage, water balance, TTP Power Plant commissioning early March - Assistance from Wartsila (3 eng.) - Operating personnel to be in place Commissioning in certa
Slide 50: Construction Schedule
@ IAMGOLD ESSAKANE SA Construction Schedule CONSTRUCTION SCHEDULE 19 TESSAKANE Village Relocation "EWS Pumging Station “"Talings Storage Facity “Stacking Tunnel & Conveyors Mi “Gravity Tower / Concerirator ~Pre-Leach Thickenor ae - “Screening /Tais Pumping = WET Commissioning MONTH Nov Dec Jen Feb m
Slide 51: Construction Employees
Construction Employees 20 DECEMBER 2009 Full Time Casual Employees Workers Total Expat Nationals Nationals Essakane SA 56 912 93 1,061 Essakane Village 600 600 Contractors - Canada & EU 26 27 53 - S & W Africa 37 75 112 TOTAL 119 1,014 693 1,826
Slide 52: Project Risks
Project Risks 21 RISKS Resettlement Water Supply Human Resources/Training Supply Chain
Slide 53: Resettlement
Resettlement 22 First Phase: Ticknawell, Oudalan, Bounia, Seno, Margenta -Total of 249 houses in 5 small villages with latrines, mosques, etc.. - Resettlement done early in 2009 Second Phase: Essakane Village - Construction started in February 2009 - Houses: 1666 - Latrines: 391 - Commerci
Slide 54: Water Balance Schematic
Water Balance Schematic 23 Pit dewatering Domestic wells Goroum wells Dust control Surface Process water drainage Off-channel Tailings pond reservoir Supply Year 1: 1.0Mm3 – Wells 3.8Mm3 – Gorouol River 4.8Mm3
Slide 55: Water Supply
Water Supply 24 Off-Channel Reservoir: (The Goroul River flows in the OCR during the rainy season; 600,000 m³ capacity) ( Total of 3.8 M m³ collected per year) Bulk Water Storage: (Divided in two, total capacity of 3.4 M m³) Process Plant Tailings Reclaim Sump: (To collect tailings and rain water: 7
Slide 56: Essakane Site
Essakane Site 25 #1AMGOLD
Slide 57: Essakane Mine Geology and Production
January 24th, 2010 Essakane Mine Geology and Production 2010 outlook Patrick Godin Mine Manager Claude Poulin Geology Superintendent Francis Clouston Manager, Project Evaluations
Slide 58: Content
Content •Geological Setting •Reserve & Resource •Mine production •Grade control •Resource Development and Regional Exploration targets •Mine Plan •Mill Feed
Slide 59: Essakane Orebody
Essakane Orebody LEGEND 1 Mafic Intrusive Arenite BB Argillite Faults Fold Axis Veining — = Disseminated Arsenopyrite #)1AMGOLD
Slide 60: #iIAMGOLD
#iIAMGOLD
Slide 61: Gold Coarseness
Gold coarseness ERC1078D (89-90) 2mm ERC 1052 (33-34) 2mm
Slide 62: Essakane Orebody
Essakane Orebody
Slide 63: Reserves & Resources Update – December 31, 2009
7 Essakane BURKINA FASO Reserves & Resources Update – December 31, 2009 Essakane Tonnage Grade Au December 31, 2009 (000) (g/t) (000 oz) Probable Reserves 92,911 1.4 4,301 Indicated Resources 110,491 1.3 4,740 Inferred Resources 44,103 1.5 2,077 Reserves & Resources Update – June 15, 2009 Essakane (
Slide 64: Mine Ore Production
Mine Ore production Ore extracted (as of Dec 31st ’09) Catégories Tonnage Teneur oz Au HT (haute teneur) 119,000 1.32 5,030 BT (basse teneur) 308,000 0.86 8,480 Total 427,000 0.98 13,510 From Resource Model 335,000 1.00 10,730 Difference 92,000 2,780 In-Pit defined ore (Jan 15th 2010) Catégories Ton
Slide 65: Grade Control & Truck Dispatch Links
Grade control & truck dispatch links Automatic tonnage and grade tracking and check against design
Slide 66: First Ore Mining
First Ore Mining
Slide 67: Mine Plan
Mine Plan* OREZONE ( 43 - 101) IAMGOLD - BASE IAMGOLD - PLUS Total Tonnage (2) Ore Tonnage Total Tonnage Ore Tonnage Total Tonnage Ore Tonnage (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) PRE-PRODUCTION 8.0 2.0 10.0 2.7 22.0 4.4 2010 (1) 32.0 8.5 16.0 3.9 16.0 5.1 2011 32.0 5.4 32.0 7.7 32.0 8.7 2012 32.0 6.7 30.0
Slide 68: Observations
Observations 1) INCREASED PRE-PRODUCTION TONNAGE RESULTS IN : Stockpiling lower grade saprolite and feeding mill directly with better grade saprolite after start-up. Accelerating access to transition and hard rock ore at a higher grade for earlier feed to mill 2) INCREASED MILL THROUGHPUT RESULT
Slide 69: Working Together Toward Startup
Working together toward startup
Slide 70: Mine Resource Development 2010 Budget
Mine Resource Development 2010 Budget 14 Essakane Project Vehicles & Salaries Drilling Assays TOTAL Equipment DD & RC Drilling 1 185 400 271 800 6 014 300 678 500 8 150 000 Metres of drilling DD RC Total # Rig 2 for 12 months 1 for 4 months EMZ South 5 700 2 500 8 200 EMZ Main 22 000 9 000 31 000 Es
Slide 71: 2010 Mine Resource Development Targets (EMZ)
2010 Mine Resource Development Targets (EMZ) North (7,800m DD / 3,000m RC) Main (22,000m DD / 9,000m RC) South (5,700m DD/ 2,500m RC)
Slide 72: Mine Resource Dev. Targets (Falagountou)
Mine Resource Dev. Targets (Falagountou) 7 km
Slide 73: Deep Exploration Drilling
Deep Exploration Drilling EDD0281 EDD0283 30m @ 11.6g/t Au from 165.5m EDD0280 EDD0279 EDD0282
Slide 74: Condemnation Drilling
Condemnation Drilling 4m @ 1.27g/t (included 1m @ 3.32g/t Au) from 44m ERC1776 3m @ 3.88g/t (included 1m @ 8.43g/t Au) from 64m ERC1777 ERC1779 ERC1778 ERC1780 ERC1785D EDD0277 EDD0274 EDD0275 ERC1781 EDD0276 ERC1782 EDD0278 EDD0273 EDD0272 EDD0271 ERC1783 EDD0270 ERC1775 ERC1784 ERC1774 ERC1773 ERC
Slide 75: Searching for Downdip Extensions
Searching for downdip extensions Typical proposed hole (350m)
Slide 76: Regional Exploration Targets
Regional Exploration Targets* Takabangou Historic RC and TKC0975: 6m @ 5.12g/t Au Diamond Drilling TKC0965: 5m @ 3.54g/t Au Tin Taradat 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 BK
Slide 77: Essakane Plant
1 Essakane Essakane BURKINABURKINA FASO FASO Essakane Plant
Slide 78: Milling
2 MILLING • Process Plant • Recovery • Costs • Continuous Improvement
Slide 79: Mill Schedule
Mill Schedule 3 Mill Feed Mill feed composition: – 24% Saprolite, 21% Transition, 55% Rock Average LOM mill recovery of 94% Average LOM Grade: 1.54 g/t Gold production of 3.2M ounces Estimated Accelerated Schedule* September 2009 Tonnage Grade Recov. Gold Prod. Year (Mt) (g/t Au) % (k ozs) 2
Slide 80: Conventional CIL Gold Recovery Plant
4 Essakane BURKINA FASO Conventional CIL gold recovery plant Capacity 9Mtpa with oxides and transition ore, 5.4Mtpa with fresh ore Average Gold Recovery 94.8% (varies with ore type and grade) (reduced by 1-2% at high throughput); Coarse gold requiring less crushing/grinding; 80% passing 125-
Slide 81: Essakane Plant Flowsheet
Essakane surkinaraso ° uty ELECTROWINNING reac aan # IAMGOLD
Slide 82: Crusher, Mills and CIL Equipment
6 Essakane BURKINA FASO 50 x 65 Gyratory Crusher 7MW SAG Mill 30’ diameter x 14’ long; 7MW Ball Mill 20’ diameter x 33.5’ long; Gravity circuit 2 x 48” Falcon concentrator; 1 x Leach Tank and 7 x CIL Tanks 4,000m3 each; AARL Elution circuit
Slide 83: Plant Operating Parameters
7 Essakane BURKINA FASO Mechanical availability 95% Feed rate 1050tph with oxides and 650tph with fresh ore – peak capacity of 1050tph Crusher feed size 90% passing 800mm Leach time 20h with oxides and 36h with fresh ore Leach feed size 80% passing 125 microns
Slide 84: Mill Organization Chart
8 Essakane BURKINA FASO Mill Manager (1E) Mill Mill Production Metallurgical Power Plant Maintenance Superintendant Superintendant Superintendant Superintendant (1E) (1E) (1E) (1E) Electrical and Mill Operation Mechanical Power Plant Chief Mill Chief Instrument General Chief Assayer General Chief Pl
Slide 85: Operating Cost Breakdown (startup)
9 Essakane BURKINA FASO Operating Cost Breakdown* (startup) Labour 31.2% Power 11.5% Fuel 10.3% Maintenance Mobile 10.4% Maintenance Mill 6.1% Reagents 16.4% Other 14.1% * As at January 15, 2010
Slide 86: Mining Costs
10 Essakane BURKINA FASO Mining Costs* Ore Waste Oxides Transition Hard Oxides Transition Hard Mining Costs $/T Mined 1.38 1.84 2.03 1.21 1.61 1.75 Excludes incremental bench cost * As at January 15, 2010
Slide 87: Processing and G&A Costs
11 Essakane BURKINA FASO Processing and G&A Costs* Ore Oxides Transition Hard Processing and G&A Costs $/T Processed 8.65 11.14 13.49 Power consumption with Oxides 16kwh/T * As at January 15, 2010