IAMGOLD provides mineral resource update for Côté Gold and reports strongest quarter for production in 2012 with confirmed

IAMGOLD provides mineral resource update for Côté Gold and reports strongest 
quarter for production in 2012 with confirmed production guidance for 2013 
All amounts are expressed in US dollars, unless otherwise indicated. 
TSX: IMG NYSE: IAG 
TORONTO, Jan. 22, 2013 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the 
"Company") today announced a mineral resource update for its Côté Gold 
project in northern Ontario along with the Company's production results for 
2012 and guidance for 2013. 


    --  The vast majority of the Côté Gold mineral resources are now
        classified as Indicated.  The updated resource estimate
        represents a 114% increase in Indicated Resources from the
        previous estimate.
    --  Strong fourth quarter 2012 gold production of 214,000
        attributable ounces brings total year attributable gold
        production to 830,000 ounces;
    --  An expectation that average total cash costs (including
        royalties)  per ounce for 2012 will be around ± 3% of the upper
        end of the previously provided guidance range of $670 to $695
        an ounce;
    --  2013 gold production is expected to range between 875,000 and
        950,000 attributable ounces, with total cash costs (including
        royalties) between $850 and $925 an ounce;
    --  Gold production forecast to grow approximately 80% over the
        next five years to 1.4-1.6 million ounces by 2017;
    --  Niobium production of 4.7 million kilograms for 2012;
    --  Niobium production for 2013 is expected to range between 4.7
        and 5.1 million kilograms at a margin of between $15 and $17 a
        kilogram;
    --  The conflict in Mali has not disrupted production at the
        Company`s joint venture operations, but exploration activity
        has been reduced as a precaution.

IAMGOLD's President and CEO, Steve Letwin said, "The resource update for 
Côté Gold demonstrates significantly higher confidence in both the 
geological and gold grade continuity of the deposit and reaffirms our decision 
to acquire this project.

"Our gold production in the fourth quarter was the strongest this year", 
continued Mr. Letwin, "enabling us to finish 2012 near the lower end of our 
guidance. While performance at our IAMGOLD operated mines has been solid, the 
underperformance at Sadiola has led us to re-assess our strategy with respect 
to our joint venture operations. Over the next five years, the combination of 
growth initiatives at our existing mines, the ramp-up to full production at 
Westwood and the expected start-up of Côté Gold in 2017 should drive 
production up 80% to 1.4-1.6 million ounces."

CÔTÉ GOLD MINERAL RESOURCE UPDATE

The mineral resource estimate for Côté Gold was prepared in accordance with 
National Instrument 43-101 and incorporates assay results from an additional 
85 drill holes (47,325 metres) since the October 4, 2012 estimate. The new 
Côté Gold resource estimate consists of an Indicated Resource of 269 million 
tonnes averaging 0.88 grams of gold per tonne for 7.61 million ounces and an 
Inferred Resource of 44 million tonnes averaging 0.74 grams of gold per tonne 
for 1.04 million ounces. The updated resource estimate, based on a cut-off 
grade of 0.30 grams of gold per tonne, represents a 114% increase in Indicated 
Resources from the previous estimate, also based on a cut-off grade of 0.30 
grams of gold per tonne. The updated Côté Gold resource estimate benefited 
from the infill drilling that substantially upgraded the quality of the 
estimate through conversion of Inferred Resources to Indicated Resources.

A positive attribute of the Côté Gold deposit is its accessibility for 
open-pit mining. The deposit locally outcrops at surface and, based on the 
extensive drilling program to date, the depth of the barren overburden 
averages 5.8 metres.

The mineral resource estimate was carried out by Roscoe Postle Associates Inc. 
("RPA") and reported in accordance with National Instrument 43-101 
requirements and CIM Estimation Best Practice Guidelines. The resource 
estimate was prepared by RPA Associate Principal Geologist Jamie Lavigne, 
P.Geo. with geostatistical input and verification provided by Mohan 
Srivastava, P.Geo., a consultant with IAMGOLD.

The table below presents the mineral resource at the 0.30 grams of gold per 
tonne cut-off as well as at several additional cut-off grades for comparison 
purposes.

 ________________________________________________________________
|             CÔté GOLD PROJECT - MINERAL RESOURCE ESTIMATE      |
|                           December 31, 2012                    |
|________________________________________________________________|
|Classification|Cut‐off |Tonnes  |Grade |  Contained Au    |
|              | Grade g/t Au |Millions|g/t Au|Millions of ounces|
|______________|______________|________|______|__________________|
|              |       0.25   |   278  | 0.86 |          7.68    |
|              |______________|________|______|__________________|
|              |       0.30   |   269  | 0.88 |          7.61    |
|   INDICATED  |______________|________|______|__________________|
|              |       0.40   |   244  | 0.93 |          7.32    |
|              |______________|________|______|__________________|
|              |       0.50   |   210  | 1.01 |          6.83    |
|______________|______________|________|______|__________________|
|              |              |        |      |                  |
|______________|______________|________|______|__________________|
|              |       0.25   |    47  | 0.71 |          1.07    |
|              |______________|________|______|__________________|
|              |       0.30   |    44  | 0.74 |          1.04    |
|    INFERRED  |______________|________|______|__________________|
|              |       0.40   |    36  | 0.83 |          0.95    |
|              |______________|________|______|__________________|
|              |       0.50   |    30  | 0.90 |          0.88    |
|______________|______________|________|______|__________________|

Notes:

  1. CIM Definitions were followed for classification of Mineral


 Resources.
  2. Mineral Resources are estimated at a cut-off grade of 0.30 g/t 
 Au.
  3. Mineral Resources are estimated using a gold price of US$1,600 
 per ounce and metallurgical recovery of 93.5%.
  4. High grade assays are capped at 15 g/t Au and 20 g/t Au 
 depending on sub-domain.
  5. Bulk density of 2.71 t/m(3 )was used for tonalite and breccia 
 and 2.79 t/m(3 )was used for diorite.
  6. The Mineral Resource Estimate is constrained within a Whittle 
 Pit shell using assumed costs and the above noted gold 
 recovery and gold price
  7. Mineral Resources are not Mineral Reserves and do not yet have 
 demonstrated economic viability, but are deemed to have a 
 reasonable prospect of economic extraction.
  8. Numbers may not add due to rounding.
  9. Mineral Resources are reported on a 100% basis; IAMGOLD has a 


     92.5% average attributable ownership of this project.

The effective date of this resource estimate is December 31, 2012 and includes 
all validated drill results available as at December 31, 2012.This estimate is 
based on assay results from a total of 293 diamond drill holes (158,047 
metres). Since the completion of the October 4, 2012 estimate, which was based 
on 208 diamond drill holes (110,722 metres), a further 85 diamond drill holes 
(47,325 metres) were available and validated as at December 31, 2012. 
Mineralized wireframes were interpreted and used to constrain grade 
interpolation by ordinary kriging.

2012 GOLD PRODUCTION

Attributable gold production for the fourth quarter 2012 was 214,000 ounces, 
bringing production for the full year 2012 to 830,000 ounces. Full year 
production was slightly below the lower end of the guidance range of 840,000 
to 910,000 ounces primarily due to the Company's underperforming joint venture 
operations. The Company expects that average total cash costs (including 
royalties) per ounce will be around ± 3% of the upper end of the previously 
provided guidance range of $670 to $695 an ounce.

 _____________________________________________________
|         Attributable Gold Production (000s ozs.)    |
|_____________________________________________________|
|                |Q1 2012|Q2 2012|Q3 2012|Q4 2012|2012|
|________________|_______|_______|_______|_______|____|
|IAMGOLD Operator|       |       |       |       |    |
|________________|_______|_______|_______|_______|____|
|Essakane (90%)  |     80|     81|     77|     77| 315|
|________________|_______|_______|_______|_______|____|
|Rosebel (95%)   |     93|     94|     95|    100| 382|
|________________|_______|_______|_______|_______|____|
|Doyon (100%)    |      2|      2|      -|      -|   4|
|________________|_______|_______|_______|_______|____|
|                |    175|    177|    172|    177| 701|
|________________|_______|_______|_______|_______|____|
|Joint Ventures  |       |       |       |       |    |
|________________|_______|_______|_______|_______|____|
|Sadiola (41%)   |     25|     22|     26|     27| 100|
|________________|_______|_______|_______|_______|____|
|Yatela (40%)    |      7|      5|      7|     10|  29|
|________________|_______|_______|_______|_______|____|
|                |     32|     27|     33|     37| 129|
|________________|_______|_______|_______|_______|____|
|Total           |    207|    204|    205|    214| 830|
|________________|_______|_______|_______|_______|____|

2012 NIOBIUM PRODUCTION

In 2012, IAMGOLD produced 4.7 million kilograms of niobium at an average 
margin of $15 per kilogram, which was within the guidance range of 4.6-5.1 
million kilograms at an average margin of between $15 and $17 a kilogram.

PRODUCTION AND CASH COST GUIDANCE

Gold Production and Cash Costs

The Company confirms its previously announced gold production guidance of 
875,000 to 950,000 attributable ounces for 2013. As in the past, production is 
expected to vary from quarter to quarter as a result of such factors as the 
rainy season in Suriname in the second quarter and the ramp-up in production 
at Westwood throughout 2013.

With the Westwood processing facility on track to begin gold production by the 
end of March, and development studies and permitting at Côté Gold expected 
to be completed in 2014 followed by a construction start the following year, 
the Company confirms its five-year production guidance with gold production 
expected to grow by approximately 80% to 1.4 to 1.6 million ounces by 2017.

At the Company's joint venture operations in Mali, which underperformed in 
2012, the recent escalation of conflict in the country has not disrupted 
production nor has there been any interruption in supply chains. Although it 
is business as usual at the Sadiola and Yatela mines operated by the Company's 
joint venture partner and which are approximately 1,300 kilometres by road 
from the regions of conflict, the Company is reducing its exploration activity 
in the region at this time as a precautionary measure.

Total cash costs, including royalties, for 2013 are expected to increase to a 
range of between $850 and $925 an ounce. Approximately one third of the 
increase in cash costs per ounce is attributed to inflation while another 
third reflects the impact of lower ore grades on production costs. The balance 
of the expected year-over-year increase is due to both the transition to 
harder ore at the Company's mature mines and the higher unit costs at Westwood 
attributed to lower production in its first year of operation. The growing 
proportion of harder ore drives up stripping ratios and labour costs and 
exerts a greater demand on crushing and grinding capacity, which in turn 
increases energy consumption and the use of reagents.

Continued Mr. Letwin, "The lower grades of ore, combined with the energy- and 
labour-intensive nature of low-gradedeposits, present a cost challenge in 
our industry. Whether existing projects or future developments, we have to 
explore more innovative ways of curbing cost escalation, and that applies to 
operating costs and capital expenditures. Sustaining operational excellence is 
key, so the one thing we're changing is the way we benchmark our performance. 
This has to be an ongoing process and not a quarterly event. In the ensuing 
months we plan to adopt a more broad-based measure of operating efficiency, 
and to refine those same cost elements, such as sustaining capital and general 
and administrative costs, for inclusion in the calculation of expected rates 
of return on our projects."

Guidance for 2013 is based on the following economic assumptions:
    --  Average gold price per ounce of $1,700;
    --  Average crude oil price per barrel of $95;
    --  U.S. dollar value of the Euro of 1.25;
    --  Canadian dollar value of the U.S. dollar of $1.00; and
    --  Effective tax rate of 38%.

Niobium Production

The Company expects to produce between 4.7 and 5.1 million kilograms of 
niobium in 2013 at a margin of between $15 and $17 a kilogram. The operations 
at Niobec remain strong.

2013 CAPITAL EXPENDITURE FORECAST

The Company previously announced that it was reducing its 2013 capital 
expenditure forecast due mainly to the delayed approval of the Sadiola 
sulphide project and the deferral of capital spending for the Niobec 
expansion. The timing of capital spending related to the Niobec expansion 
project will be aligned with the advancement of permitting and the outcomes 
derived from the completion of the feasibility study in the third quarter of 
2013.

The Company is providing 2013 capital expenditure forecasts by operation upon 
completing a review of the key variables, including economic assumptions, 
incorporated in the life of mine plans and feasibility studies. As such, the 
Company`s 2013 capital spending forecasts for Westwood and Essakane are $100 
million and $300 million, respectively. The forecast for Rosebel will be 
provided upon completion of the feasibility study, expected by the end of the 
first quarter 2013, and the Sadiola sulphide project is undergoing a strategy 
review. The Company is forecasting $80 million for capital spending at Niobec 
in 2013 for mine development, sustaining capital and the expansion feasibility 
study ($20 million).

2013 EXPLORATION PLAN

The Company's planned exploration spend for 2013 is $142 million, with 
approximately 54% earmarked for greenfield exploration, including ongoing 
exploration and feasibility work at the Côté Gold project. The modest 
reduction in the 2013 forecast from that of the previous year is due to 
reduced exploration activities in West Africa. The Company plans to carry out 
significant resource development programs at its Rosebel, Essakane and Niobec 
mines as well as at the Westwood development project, scheduled to begin 
production at the end of the first quarter 2013.

UPCOMING NEWS RELEASES

IAMGOLD will report its fourth quarter and year-end financial and operating 
results on February 20, 2013. The release of the Company's 2012 Mineral 
Reserves and Resources Statement is expected to be completed in February.

Qualified Persons
The Côté Gold mineral resource estimate for the Côté Gold Project has been 
carried out by Jamie Lavigne, P.Geo., Associate Principal Geologist with RPA, 
an independent qualified person under NI 43-101, including the verification of 
the data disclosed, and the review and approval of the contents of this 
release. Marie-France Bugnon, P.Geo., General Manager, Exploration, Canada, 
for IAMGOLD, a Qualified Person under NI 43-101, has supervised the collection 
of scientific or technical information for the property. Craig MacDougall, 
P.Geo., Senior Vice President, Exploration, for IAMGOLD, a Qualified Person 
under NI 43-101, has also reviewed and approved the contents relating to the 
scientific and technical disclosure of this release.

Cautionary Note to U.S. Investors 
The United States Securities and Exchange Commission limits disclosure for 
U.S. reporting purposes to mineral deposits that a company can economically 
and legally extract or produce. IAMGOLD uses certain terms in this 
presentation, such as "measured," "indicated," or "inferred," which may not be 
consistent with the reserve definitions established by the SEC. U.S. 
investors are urged to consider closely the disclosure in the IAMGOLD Annual 
Reports on Forms 40-F. You can review and obtain copies of these filings 
from the SEC's website at http://www.sec.gov/edgar.shtml or by contacting the 
Investor Relations department.

Forward Looking Statement
This news 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 expected, estimated or 
planned gold and niobium production, cash costs, margin expansion, capital 
expenditures and exploration expenditures and 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", "outlook", "guidance", "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: changes in the global prices for gold, niobium, 
copper, silver or certain other commodities (such as diesel, aluminum and 
electricity); changes in U.S. dollar and other currency exchange rates, 
interest rates or gold lease rates; risks arising from holding derivative 
instruments; the level of liquidity and capital resources; access to capital 
markets, financing and interest rates; mining tax regimes; ability to 
successfully integrate acquired assets; legislative, political or economic 
developments in the jurisdictions in which the Company carries on business; 
operating or technical difficulties in connection with mining or development 
activities; laws and regulations governing the protection of the environment; 
employee relations; availability and increasing costs associated with mining 
inputs and labour; the speculative nature of exploration and development, 
including the risks of diminishing quantities or grades of reserves; adverse 
changes in the Company's credit rating; contests over title to properties, 
particularly title to undeveloped properties; and the risks involved in the 
exploration, development and mining business. With respect to development 
projects, IAMGOLD's ability to sustain or increase its present levels of gold 
production is dependent in part on the success of its projects. Risks and 
unknowns inherent in all projects include the inaccuracy of estimated reserves 
and resources, metallurgical recoveries, capital and operating costs of such 
projects, and the future prices for the relevant minerals. Development 
projects have no operating history upon which to base estimates of future cash 
flows. The capital expenditures and time required to develop new mines or 
other projects are considerable, and changes in costs or construction 
schedules can affect project economics. Actual costs and economic returns 
may differ materially from IAMGOLD's estimates or IAMGOLD could fail to obtain 
the governmental approvals necessary for the operation of a project; in either 
case, the project may not proceed, either on its original timing or at all.

About IAMGOLD

IAMGOLD (www.iamgold.com) is a leading mid-tier gold producer with five 
operating gold mines (including current joint ventures) on three continents. 
In the Canadian province of Québec, the Company also operates Niobec Inc., 
one of the world's top three producers of niobium, and owns a rare earth 
element resource close to its niobium mine. IAMGOLD is well positioned for 
growth with a strong financial position and extensive management and 
operational expertise. To grow from this strong base, IAMGOLD has a pipeline 
of development and exploration projects and continues to assess accretive 
acquisition opportunities. IAMGOLD's growth plans are strategically focused 
in certain regions in Canada, select countries in South America and Africa.

Please note:

This entire news release may be accessed via fax, e-mail, IAMGOLD's website at 
www.iamgold.com and through CNW Group's website at www.newswire.ca. All 
material information on IAMGOLD can be found at www.sedar.com or at 
www.sec.gov.

Si vous désirez obtenir la version française de ce communiqué, veuillez 
consulter le http://www.iamgold.com/French/Home/default.aspx.



Bob Tait,VP, Investor Relations, IAMGOLD Corporation Tel: (416) 360-4743 
Mobile: (647) 403-5520

Laura Young, Director, Investor Relations, IAMGOLD Corporation Tel: (416) 
933-4952 Mobile: (416) 670-3815

Toll-free: 1-888-464-9999info@iamgold.com

SOURCE: IAMGOLD Corporation

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2013/22/c7856.html

CO: IAMGOLD Corporation
ST: Ontario
NI: PCS FIELD 

-0- Jan/22/2013 22:40 GMT


 
Press spacebar to pause and continue. Press esc to stop.