ECUADOR – The Government of Ecuador has recognized that Toronto-based IAMGOLD CORP. has met all of its legal, social and environmental obligations thus far at the company’s Quimsacocha gold project in the southern part of the country. Full government support is expected as the project goes forward, says IAMGOLD.
As part of the agreement and as a show of environmental commitment, IAMGOLD has agreed to relinquish a portion of its concession to ensure the safety of the water supply to the surrounding areas. This land package is approximately 3,000 ha, 23% of the property area and contains no resources, no mineralization nor exploration targets. Ceding this property will have no impact on the development of the Quimsacocha project.
This development project contains an indicated resource of 32.6 million tonnes with 3.2 g/t Au, or 3.35 million oz of contained gold. There are currently two drill rigs on site drilling at Loma Tasqui, southwest of the known resource. IAMGOLD expects that 8,000 metres will be drilled on Loma Tasqui and Rio Falso Sur as part of the $2.7-million second half 2007 exploration program. Work also continues on the prefeasibility study, which will be completed in the first quarter of 2008.
A map of the affected area is available in the press release dated Nov. 15, 2007, and posted at www.IamGold.com.