TORONTO (miningweekly.com) – Canadian gold-miner Iamgold has increased its guidance for gold production in 2009 to between 910 000 oz and 920 000 oz, compared with a January forecast of 880 000 oz.

The company said the improved outlook was mainly thanks to productivity increases at the Rosebel mine, in Suriname, and an extension to the life of the Doyon mine, in Quebec, into the third quarter.

These gains were partly offset by lower grades at the Mupane operation, in Botswana.

Iamgold also expects cash costs to be better than forecast, at an average of between $460/oz and $470/oz this year, assuming a $900/oz gold price and fuel costs of $44/bl.

"We have had an excellent start to 2009 with outstanding productivity improvements at several mines and an extension of the Doyon mine life,” CEO Joseph Conway said on Thursday.

Iamgold also said it expects capital expenditures for the year to amount to $448-million, of which about $153-million had been spent by the end of last month.

The company has mines in Africa, South America and Canada, and is planning new operations in Ecuador, Tanzania, Peru, and Canada.

The miner will also start production next year at the Essakane gold project, in Burkina Faso, which it bought in February by acquiring Canadian junior Orezone Resources.

Earlier this week, Iamgold announced that it has increased the probable reserves at Essakane by 8% or 245 000 oz, to 3,37-million ounces, and expects the mine to start production in August 2010.

Elsewhere in Africa, besides its wholly-owned Mupane operation, Iamgold has interests in the Sadiola and Yatela mines, in Mali, which it owns with AngloGold Ashanti, owns a stake in Gold Fields' Tarkwa mine, in Ghana, and is exploring at its own Boto project in Senegal.

The firm has also recently approved a project to expand the mill and add a paste backfill plant at its Niobec niobium mine, in Quebec.

"We will continue to pursue opportunities to optimise our operations and development projects for the remainder of 2009,” Conway added.

However, the firm has lowered the production guidance for Niobec this year, to between 4 200 t and 4 400 t, citing slightly lower grades and recoveries owing to higher silica content in the ore.

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