IAMGOLD advances pre-feasibility at Quimsacocha

IAMGOLD Corporation announces drill results from its wholly owned Quimsacocha project in southwest Ecuador. These results are part of the US$5.7 million exploration and development program carried out throughout 2007, and comprise part of the work required for the completion of pre-feasibility study expected in June 2008.

Results continue to highlight the strong gold, silver and copper values contained within the known resource, and include an intercept of 51 metres averaging 14.6 grams per tonne (g/t) gold, 52.6 g/t silver and 1.12% copper. The drill campaign on the Quimsacocha deposit was designed as a dual purpose program to provide representative samples for detailed metallurgical studies, and provide in-fill drilling on the main resource area. Twenty-four diamond drill holes totaling 4,310 metres were completed, including two holes completed for geo-hydrological base line studies.

Quimsacocha is continuing to show that it is a world class deposit with potential to grow, commented Joseph Conway, President and CEO, IAMGOLD. In 2008, we will work toward establishing a Mineral Development Agreement with the Government of Ecuador, completion of the pre-feasibility study and begin work required for the feasibility study. In addition, we plan to delineate and expand the resource base and continue to work with the local governments and communities to ensure the success of the project, he said.

In addition to drilling on the main Quimsacocha resource, exploration drilling was carried out on the Rio Falso Sur and Loma Tasqui satellite targets located south and southwest of the Quimsacocha deposit respectively. A 100 line-kilometre Induced Polarization (I.P.) - Resistivity survey provided the basis of this most recent exploration drill program, and six holes representing close to 2,000 metres were drilled at Rio Falso Sur and ten holes totaling over 2,500 metres were drilled at Loma Tasqui. Drill results returned low, but clearly anomalous gold and base metal values, and demonstrated that the mineralizing hydrothermal system is broader and more pervasive than recognized previously.

In 2008, the Company has approved a budget of over $11 million at Quimsacocha to complete the pre-feasibility study, continue with exploration of the Company’s land package, and advance work on the feasibility study. Permitting is currently on-going for a planned 25,000 metres follow-up in-fill and exploration drilling campaign scheduled to start shortly. With the delivery of the pre-feasibility and feasibility studies expected by mid 2009, Quimsacocha has the potential to be in commercial production in 2012.