The Study is preliminary in natureand includes inferred mineral resources that are considered toospeculative geologically to have the economic considerations applied tothem that would enable them to be categorized as mineral reserves, andthere is no certainty that the preliminary assessment will be realized.IAMGOLD acquired the Westwood Project in late 2006 as part of theacquisition of Cambior Inc. Westwood is a "shear zone hosted" golddeposit located within the well established Doyon-Bousquet-LaRonde miningcamp which hosts total production and reserves of approximately 145million tonnes at 5.49 g Au/t or roughly 25.5 million ounces of gold.Westwood is well located, two kilometres east of IAMGOLD's Doyon Mine andfive kilometres west of Agnico-Eagle's Bousquet/La Ronde Complex.Upgrading ResourcesMineralization has been identified at Westwood from a 60 metre depth toas deep as 2,200 metres, within three sub-parallel zones that extendalong a strike length in excess of 1.8 kilometres. The conversion to measured and indicated resources needs tobe sufficiently advanced to start commercial production in 2013, butrequires a significant amount of infill drilling.In 2008, a total of 68,000 metres of drilling were completed at Westwood,of which 22,000 metres tested within the known resources and theremaining 46,000 metres were exploration holes both from surface and fromthe underground exploration drift (at a depth of 900 metres).In 2009, a further 73,500 metres are planned of which 41,200 metres willcontribute to upgrading existing inferred resources while the remaining32,300 metres will systematically test the highest priority explorationtarget areas.Upside Exploration PotentialThe Westwood deposit remains open both at depth and along strike on thethree main zones that have been identified to date. Very significantintersections at a depth 800 metres below previously identifiedmineralization were reported in December 2007 and follow-up drilling isunderway. Along strike, several key areas are being tested that couldsignificantly add resources. Given the spatial extent of themineralization identified to date and its location within highlyfavourable geology, there is excellent potential to expand the extent ofthe known Westwood resources both along strike and at depth. However,it is important to note that the Study includes mine planning, capitaland operating cost estimation, rock mechanics, metallurgical work andoverall economic studies that are quite advanced, especially given thatIAMGOLD operates two similar mines within five kilometres of Westwood.Capital Expenditure EstimatePre-production capital expenditures are estimated at $329 million.
Thesecosts include preparation of all development studies, permitting,completion of the feasibility study, construction and start-up of themine The estimated accuracy is /- 25. The capital expendituresinclude: (US $ millions)Exploration $19.9Mine Development$87.2Shaft $45.7Surface Facilities$52.6U/G construction $7.0Mobile Equipment$22.1Inventory$3.5Studies and Support Activities (initial period) $71.6Indirect $8.0Subtotal $317.6Contingency $11.6Total$329.2The schedule of pre-production expenditures is shown below withcommercial production expected in 2013.-YearCapital Expenditures (millions)-2009 $86-2010 $86-2011 $73-2012 $84-Operating CostsTotal operating costs are estimated at $298 per ounce or $70.21 per tonnemilled over the life of mine. This includes: 1) mining costs at $49.97per tonne, including paste backfill costs; 2) processing costs at $15.30per tonne including transportation from Westwood to the Doyon millfacilities, tailings operations and power; and 3) General andadministration costs estimated at $4.95 per tonne. With the purchase ofthe Doyon royalty from Barrick in 2008, no third party royalties remainto be paid against Westwood production.MiningThe preliminary mine plan recommends a longitudinal long hole miningmethod, on 15-metre sublevels. This is a bulk mining method which willrequire backfill for stability. The mine plan incorporates two ramps, oneon either side of the Bousquet fault.
The Warrenmac ramp, on the westside of the Bousquet Fault was initiated in October 2008 and advanced 340metres by year end 2008.The production schedule per year is outlined below:-Year Tonnes Average GradeGold ProductionCash Cost Milled (g/t Au) (oz)$/oz-2013 to 2025 (avg)800,000 8.1200,000290-2026730,000 5.3112,000388-2027800,000 4.3 97,000384-Total11,930,000(i)7.6(i) 2,809,000298-(i) tonnage and grade reflect an estimated 95 mine recovery, 24 minedilution and 96 plant recoveryThe near surface Warrenmac zone at Westwood contains, in addition togold mineralization, sufficient zinc with elevated copper and silver toallow for economic extraction at higher metal prices. Over the life ofmine, based on the current resources, it is expected that base metalresources will contribute approximately 20,000 tonnes of zinc and 1,000tonnes of copper as by-products and this has been built into the economicmodel. IAMGOLD indicated in a press release dated June 12, 2008 that itmight commence early production on the near surface zinc-rich Warrenmaczone, however based on the current low metal prices it is economicallysuperior to await higher metal prices.Mineral ProcessingThe Westwood ore will be processed at the nearby Doyon mill. Mining atthe Doyon and Mouska Mines will be completed by mid-2010, prior tocommencement of production from Westwood. The Doyon mill is well suitedas preliminary metallurgical testwork shows Westwood ore to have similarcharacteristics to the Doyon mine. Recoveries at Doyon have averaged 95over the mine life, which has included the processing of lower gradematerial. A 96 recovery rate has been used for the Westwood Study.The Doyon Mill is a conventional cyanidation circuit with a combinedcarbon-in-leach and carbon-in-pulp (CIL-CIP) circuit including a gravitycircuit for free gold recovery.
A bulk sample from Westwood is currentlybeing taken and will be pilot tested in the Doyon mill circuit thissummer to confirm the process parameters. At some point during the 15-year minelife, it is anticipated that base metal prices will allow for theeconomic extraction of these zinc-enriched gold zones. At such time,additional flotation capacities will be added to the mill for therecovery of the zinc.AssumptionsThe Study assumes a $700 per ounce gold price and current market priceswere applied for all input materials. dollar exchange rate of 1.25 wasapplied.Project EconomicsThe Preliminary Assessment Study shows an estimated Internal Rate ofReturn (IRR) of 13.2, before taxes, using a $700 per ounce gold price.The table below outlines the sensitivity of project economics to variousgold price scenarios:-Gold Price IRR() NPV at 0 discount(pre-tax)(millions)-$ 560 (-20) 6.3$274-$ 700 (Base)13.2$665-$ 840 (20)18.7$1,056-This Preliminary Assessment Study shows that the Westwood depositprovides strong potential returns in the current economic environment.ABOUT IAMGOLDIAMGOLD is a leading mid-tier gold mining company producing almost onemillion ounces from 7 mines on 3 continents. IAMGOLD is focused on growthwith a target to reach 1.8 million ounces gold production by 2012.IAMGOLD is uniquely positioned, with a strong financial base, togetherwith the management and operations expertise to execute on our aggressivegrowth objectives. IAMGOLD is focused in West Africa, the Guiana Shieldof South America and in Quebec with a pipeline of development andexploration projects.