GOLD DEVELOPMENT: IamGold raises $250 million for Essakane gold project

BURKINA FASO — Toronto's IamGold Corp. has completed a $345-million equity financing and earmarked $250 million of the net proceeds for construction and development of the Essakane gold project. IamGold took over work at the project following its acquisition of Orezone Resources in February 2009.

Orezone updated the Essakane definitive feasibility study in May 2008. It increased recoverable reserves to 3.0 million oz of gold at a grade of 1.67 g/t Au, boosted the capacity of the CIL plant to 7.5 million t/y and lengthened the life of the project to 9.4 years. The estimated capital costs were also increased, to US$420 million from US$247 million.

Full production averaging 315,000 oz per year is planned for late 2010.

News releases are archived at www.Orezone.com and a map of the project location is posted at www.IamGold.com.