IAMGOLD Corporation
TSX : IMG
NYSE : IAG
ASX : IGD
BOTSWANA : IAMGOLD

IAMGOLD Corporation

October 06, 2005 07:00 ET

IAMGOLD Announces Updated Reserves at the Tarkwa-Damang Mine Complex, Ghana




TSX Trading Symbol: IMG
AMEX Trading Symbol: I AG
Fully Diluted: 151.7MM


TORONTO, ONTARIO--(Oct. 6, 2005) - IAMGOLD Corporation ("IAMGOLD" or "the Company")
(TSX: IMG, AMEX: IAG) is pleased to announce updated gold reserves and
resources at the Tarkwa-Damang gold mine complex in Ghana in which the Company
has an 18.9% ownership interest. Gold Fields Limited and the Government of
Ghana hold a 71.1% interest and a 10% interest, respectively in both the
Tarkwa and Damang mines.

Joe Conway, President and CEO of IAMGOLD commented on the gold reserves
and resources, stating: "During the 12 month period to June 2005, assuming a
US$375 per ounce gold price, a total of 488,000 of proved and probable gold
reserves were added at the Damang mine, of which 92,000 ounces were added to
IAMGOLD's account. Damang has demonstrated its potential to extend the mine
life through exploration and optimization. Tarkwa's proved and probable
reserves decreased by 1.3 million ounces, a 9% decrease in the IAMGOLD
account. The modest decline in the Tarkwa reserve portion is due to the
increasing costs of consumables as well as mine depletion. If reserves at
Tarkwa were calculated at US$413, the reserves would actually have increased
by 9%. However, even at a US$375 gold price, the impact on the mine life at
Tarkwa is minimal."

Discussion on Reserves

The increase in proved and probable reserves from June 30, 2004 to
June 30, 2005, at Damang, totaled 488,000 ounces of which 92,000 ounces are
attributable to IAMGOLD, an increase of 56%. At Tarkwa, proved and probable
reserves decreased by 1.3 million ounces during this same period, of which
250,000 ounces were from IAMGOLD's account, a 9% decline. Table 1 illustrates
proved and probable reserves for both Tarkwa and Damang at June 30, 2004 at a
US$350 per ounce gold price and at June 30, 2005 at a US$375 per ounce gold
price.



Table 1

Proved and Probable Reserves - Tarkwa and Damang Mines

-------- June 2005(1) -------- -------- June 2004(2) --------

Contained Gold Contained Gold
IMG IMG
Tonnes Grade 100% share Tonnes Grade 100% share
------ ----- ---- ----- ------ ----- ---- -----
(mill- (000's (000's (mill- (000's (000's
ions) (g/t) oz) oz) ions) (g/t) oz) oz)
Tarkwa(3)
Proved(4) 189.7 1.3 8,026 1,517 203.9 1.3 8,678 1,640
Probable 134.3 1.2 5,380 1,017 147.7 1.3 6,052 1,144
----- --- ----- ----- ----- --- ----- -----
Total 324.0 1.3 13,406 2,534 351.6 1.3 14,730 2,784

Damang(5)
Proved(6) 12.1 1.7 680 129 11.7 1.3 483 91
(7)
Probable 11.4 1.8 670 127 8.5 1.4 379 72
---- --- --- --- --- --- --- --
Total 23.5 1.8 1,350 256 20.2 1.3 862 163

Notes:
------
(1) Based on a gold price of US$375 per ounce and estimated in accordance
with the SAMREC Code and reconciled to, and conform to, the JORC
Code. No material differences arise in the estimate if the CIM
classification system is used.
(2) Based on a gold price of US$350 per ounce and estimated in accordance
with the SAMREC Code and reconciled to, and conform to, the JORC
Code. No material differences arise in the estimate if the CIM
classification system is used.
(3) Based on a 0.37g/t cut-off for heap leach material and a 0.61 g/t
cut-off for mill feed material in 2005. Based on a 0.35 g/t cut-off
for heap leach material and a 0.62 g/t cut-off for mill feed material
in 2004.
(4) Includes 5.2 million tonnes of low-grade stockpile in 2005 and 4.1
million tonnes for 2004.
(5) Based on a 1.02 g/t cut-off for fresh material and a 0.57 g/t cut-off
for oxide material in 2005. Based on a 1.1 g/t cut-off for fresh
material and a 0.4 g/t cut-off for oxide material in 2004.
(6) Includes 9.6 million tonnes low grade stockpile in 2005 and
7.6 million tones in 2004.
(7) The Damang Reserve contains 0.6Moz from the Damang Pit Cutback
("DPCB"). The DPCB shell was designed using a gold price of $420/oz.
however only profitable material at US$375/oz inside this shell has
been reported.


At current gold prices, there is potential to further expand reserves,
mine life and annual production at both Tarkwa and Damang. If reserves at
Tarkwa were calculated at a US$413 per ounce gold price versus US$375 per
ounce, a 10% increase, the total reserve figure would increase by 2.6 million
ounces of gold (488,376 ounces of gold to IAMGOLD's account) a 23% increase
over current 2005 levels. Reserves at Damang, would also increase with a
US$413 gold price, by 322,000 ounces, a 24% increase over current 2005 levels.



Table 2

Proved and Probable Reserves Sensitivity - Tarkwa and Damang Mines

TARKWA GOLD MINE DAMANG GOLD MINE

Gold Price Contained Gold Contained Gold
IMG IMG
Tonnes Grade 100% share Tonnes Grade 100% share
------ ----- ---- ----- ------ ----- ---- -----
(Mill- (Mill-
ions) (g/t) (000's oz) ions) (g/t) (000's oz)

US$ 338/oz 277 1.30 11,538 2,181 18 1.83 1,078 204

US$ 356/oz 305 1.29 12,643 2,390 21 1.81 1,203 227

US$ 375/oz 324 1.29 13,406 2,534 23 1.78 1,350 254

US$ 394/oz 353 1.28 14,557 2,751 27 1.78 1,528 289

US$ 413/oz 387 1.28 15,990 3,022 31 1.70 1,672 316


Discussion on Resources

At Tarkwa, measured and indicated resources (which include reserves) to
IAMGOLD's account declined by 194,000 ounces from June 30, 2004 to June 30,
2005. At the Damang mine, measured and indicated resources (which include
reserves) to IAMGOLD's account increased by about 77,000 ounces or 27%.
Resources were determined on the basis of a US$450 per ounce gold price in the
2004 and 2005 periods. Table 3 illustrates measured, indicated and inferred
resources for the Tarkwa and Damang gold mines as of June 30, 2005 compared to
June 30, 2004.



Table 3

Measured, Indicated and Inferred Resources - Tarkwa and Damang Mines(1)

--------- June 2005 ---------- --------- June 2004 ---------

Contained Gold Contained Gold
IMG IMG
Tonnes Grade 100% share Tonnes Grade 100% share
------ ----- ---- ----- ------ ----- ---- -----
(mill- (000's (000's (mill- (000's (000's
ions) (g/t) oz) oz) ions) (g/t) oz) oz)
Tarkwa(2)
Measured 195.6 1.5 9,090 1,718 204.8 1.5 9,728 1,839
(3)
Indicated 189.6 1.3 7,820 1,478 187.3 1.4 8,207 1,551
----- --- ----- ----- ----- --- ----- -----
Total
M & I 385.2 1.4 16,910 3,196 392.1 1.4 17,935 3,390
Inferred 24.2 3.4 2,630 497 19.5 3.5 2,225 421
Damang(4)
Measured 16.1 1.7 860 163 15.5 1.4 709 134
(3)
Indicated 18.7 1.8 1,070 202 15.8 1.6 817 154
---- --- ----- --- ---- --- --- ---
Total
M & I 34.8 1.7 1,930 365 31.3 1.5 1,526 288
Inferred 2.2 2.1 150 28 3.8 2.5 303 57

Notes:
------

(1) Measured and indicated resources include proved and probable
reserves. Mineral resources are at a gold price of US$450 per ounce
and have been estimated in accordance with the SAMREC Code and have
been reconciled to, and conform to, the JORC Code. No material
differences arise in the estimate of mineral resources if the CIM
classification system is used.
(2) Based on a 0.31 g/t cut-off grade for heap leach material, a 0.51 g/t
cut-off grade for mill feed material and a 2.4 to 3.3 g/t cut-off
grade for underground material in 2005. Based on a 0.31 g/t cut-off
grade for heap leach material, a 0.54 g/t cut-off grade for mill feed
material and a 2.7 to 3.7 g/t cut-off grade for underground material
in 2005.
(3) Measured resources include low-grade surface stockpiles.
(4) Based on a 0.85 g/t cut-off grade for fresh material and a 0.55 g/t
cut-off grade for oxide material in 2005. Based on a 1.1 g/t cut-off
grade for fresh material and a 0.4 g/t cut-off grade for oxide
material in 2004.


Qualified Person/Quality Control Notes

The Competent Person responsible for the generation of the mineral
resource and reserve statements is Gary Chapman, Manager Mine Planning and
Resource Management, Tarkwa and Damang mines. Mr. Chapman has a B.Sc. (Hons)
Geology from the University of Natal, is a professional natural scientist of
the South Council for Natural Scientific Professions (SACNASP) and has worked
as a geologist for 28 years. As a result of his education, affiliation with a
professional association and past relevant work experience, Mr. Chapman
fulfills the requirements to be a "Qualified Person" for the purposes of NI
43-101. Mr. Chapman authored a report, A Technical Report of the Tarkwa Gold
Mine, Ghana, May 2003 wherein numerous quality control procedures regarding
the calculation of reserves and resources at Tarkwa and Damang were described.
A copy of this report was filed by IAMGOLD on May 23, 2003 and is available on
the SEDAR web site at: www.sedar.com.

Cautionary Statements

Safe Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of historical fact
contained herein, the information presented constitutes "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements, including but not limited to those
with respect to the price of gold, silver and copper, the timing and amount of
estimated future production, costs of production, reserve determination and
reserve conversion rates involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievement
of IAMGOLD to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, among others, risks related to the integration of
acquisitions, risks related to international operations, risks related to
joint venture operations, the actual results of current exploration
activities, actual results of current reclamation activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, future prices of gold, silver and copper, as well as those factors
discussed in the section entitled "Risk Factors" in the Form 40-F for each
company as on file with the Securities and Exchange Commission in Washington,
D.C. Although IAMGOLD has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors that
cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-
looking statements.

Investors are advised that National Policy 43-101 of the Canadian
Securities Administrators requires that each category of mineral reserves and
mineral resources be reported separately. Investors and securities holders
should refer to the respective annual information forms of IAMGOLD each for
the year ended December 31, 2003 available at www.sedar.com, for this detailed
information, which is subject to the qualifications and notes set forth
therein. United States investors are advised that while the terms "measured",
"indicated" and "inferred" resources are recognized and required by Canadian
regulations, the SEC does not recognize them. Inferred mineral resources have
a great amount of uncertainty as to their existence and great uncertainty as
to their economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral resources may
not form the basis of feasibility or other economic studies. Investors are
cautioned not to assume that all or any part of mineral deposits in these
categories will ever be converted into reserves. Investors are also cautioned
not to assume that all or any part of an inferred mineral resource exists or
is economically or legally mineable.

Please note:
------------

This entire press release may be accessed via fax, e-mail, IAMGOLD's website at www.iamgold.com and through CCNMatthews' website at www.ccnmmathews.com. All material information on IAMGOLD can be found at
www.sedar.com or at www.sec.gov. If you wish to be placed on IAMGOLD's e-mail press release list
please contact us at info@iamgold.com.

Contact Information

  • Joe Conway
    President and CEO
    Tel: (416) 360-4710

    or

    Lisa Doddridge
    Manager, Investor Relations,
    Fax: (416) 360-4750
    Toll-free: 1-888-IMG-9999