IAMGOLD & AVNEL GOLD ANNOUNCE OPTION AGREEMENT ON THE KALANA GOLD PROJECT
Exhibit
99.1
![GRAPHIC](https://www.sec.gov/Archives/edgar/data/1203464/000119907309000664/logo.jpg)
No.
28/09
IAMGOLD
& AVNEL GOLD ANNOUNCE OPTION AGREEMENT ON THE
KALANA
GOLD PROJECT
Toronto, Ontario, August 11, 2009 – IAMGOLD Corporation
(“IAMGOLD”) and Avnel Gold
Mining Limited (“Avnel”) have entered into an
option agreement (the “Option Agreement”) whereby IAMGOLD has the option to
acquire up to an initial 51% interest in Avnel’s 80% interest in Société
d’Exploitation de Mines d’Or de Kalana (the “Kalana project”) in Mali, West
Africa. All amounts shown are in US dollars unless otherwise
indicated.
The
Kalana project is located in southwest Mali and consists of the Kalana Gold
Mine, an operating underground gold mine and an exploration property covering
387.4 km2 with a
30 year mining exploitation permit (the “Permit Area”). The Kalana
project is owned by Avnel (80%) and the Malian Government (20%). The
property has a developed mine site consisting of a small underground mine
operation exploiting narrow, high-grade, quartz veins. The agreement
announced today provides the opportunity to explore the potential for a sizeable
bulk mining operation at Kalana, drawing on IAMGOLD’s expertise and experience
with similar operations in West Africa.
Xxxxxxx
Xxxxxxxx, Senior Vice President of Exploration at IAMGOLD stated, “Xxxxxx
represents an outstanding opportunity for IAMGOLD to explore a strong gold
mineralized system with the view of realizing the large-scale, bulk mineable
potential. Opportunities of this nature are few and far between and
Kalana is a natural fit with IAMGOLD’s long-term strategic objectives to develop
a strong pipeline of projects in our focus areas of West Africa, Quebec, and the
Guiana Shield.”
The
Option Agreement provides IAMGOLD the opportunity to earn an initial 51%
interest in Xxxxx’s share of the Kalana project by spending US$11,000,000 on
exploration activities over a three year period and by delivering a NI 43-101
resource calculation of at least 2 million ounces of gold as well as proceeding
with a Feasibility Study. IAMGOLD has the option to increase its
interest from 51% to 65 or 70% upon delivering a Feasibility Study that supports
the development of a gold mine. In connection with entering into the
Option Agreement, IAMGOLD will pay Avnel $1 million in cash and Avnel will issue
IAMGOLD warrants to acquire up to 2 million common shares of Avnel at an
exercise price of C$0.45 per share.
Xxxxxx
Xxxxxx, CEO of Avnel issued a statement that "This agreement represents a
significant milestone in the development of Kalana and fulfills our goal to
advance the project into a large scale bulk mining operation, as well as further
exploring the large geologically prospective Permit Area. We believe
that working together, XXXXXXX and Xxxxx have the capability to fully explore
the upside potential at Kalana. This partnership leverages Avnel’s
considerable investment in the project to date and will benefit both of our
shareholders through IAMGOLD’s extensive West African expertise.”
There has
been a long history of gold exploration and mining on the Kalana project that
focused on rich, narrow, shallow-dipping quartz veins that occur within a
broader mineralized system. This broader system, and other satellite zones on
the property, have not been evaluated in systematic detail and will be the focus
of IAMGOLD’s exploration program. IAMGOLD is planning to carry out an
initial $2.5 million drill program in the first year of the agreement that
includes at least 6,500 metres of drilling. This initial program will
be designed to test the extent and nature of gold mineralization in the halo of
high grade veins that are currently being exploited at the Kalana Gold Mine, as
well as other mineralized structures in the mine area.
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ABOUT
AVNEL
Avnel is
a gold mining producing company operating the Kalana Gold Mine and is engaged in
the exploration of the Kalana Exploitation Permit and Fougadian exploration
permit.
Avnel's
principal asset is an 80% interest in Société d'Exploitation des Mines d'Or de
Kalana (“SOMIKA”). SOMIKA is the holder of a 30 year exploitation permit at the
operating Kalana Gold Mine in south west Mali. Avnel also holds the
Fougadian exploration permit covering an area of 150 sq. km. which lies to the
south of the main Kalana exploitation permit.
ABOUT
IAMGOLD
IAMGOLD
is a leading mid-tier gold mining company producing approximately one million
ounces from 7 mines on 3 continents. They are focused on growth and
have a pipeline of development and exploration projects. IAMGOLD is
uniquely positioned, with a strong financial base, together with the management
and operations expertise to execute on their aggressive growth
objectives. IAMGOLD’s regions of focus include West Africa, the
Guiana Shield of South America and Quebec, Canada. IAMGOLD continues
to assess accretive acquisition opportunities with a strategic
fit. IAMGOLD is listed on the Toronto Stock Exchange (“IMG”), the New
York Stock Exchange (“IAG”) and the Botswana Stock Exchange.
Forward
Looking Statement
This
press release 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 regarding the estimation of mineral
resources, exploration results, potential mineralization, potential mineral
resources and mineral reserves) are forward-looking statements. Forward-looking
statements are generally identifiable by use of the words “may”, “will”,
“should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”,
“plan” or “project” or the negative of these words or other variations on these
words or comparable terminology. Forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond the Company’s
ability to control or predict, that may cause the actual results of the Company
to differ materially from those discussed in the forward-looking
statements. Factors that could cause actual results or events to
differ materially from current expectations include, among other things, without
limitation, failure to establish estimated mineral resources, the possibility
that future exploration results will not be consistent with the Company's
expectations, changes in world gold markets and other risks disclosed in
IAMGOLD’s most recent Form 40-F/Annual Information Form on file with the US
Securities and Exchange Commission and Canadian provincial securities regulatory
authorities. Any forward-looking statement speaks only as of the date on which
it is made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement.
For further information
please contact:
IAMGOLD
Corporation:
Xxxxxxx
Xxxxxxxx
Senior
Vice President, Exploration
Tel:
(000) 000-0000
Toll-free:
1 888 IMG-9999
|
Xxxxxx
Xxxxx
Director,
Investor Relations
Tel:
(000) 000-0000
Toll-free:
1 888 IMG-9999
|
Please
note:
This
entire press release may be accessed via fax, e-mail, XXXXXXX's website at xxx.xxxxxxx.xxx and
through Marketwire’s website at xxx.xxxxxxxxxx.xxx. All
material information on IAMGOLD can be found at xxx.xxxxx.xxx or at
xxx.xxx.xxx.
Si
vous désirez obtenir la version française de ce communiqué, veuillez consulter
le xxxx://xxx.xxxxxxx.xxx/xx/xxxxxxx.xxxx.
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