TORONTO (miningweekly.com) – Canada's Iamgold Corporation plans to spend $54,2-million on exploration this year, and continues to “search aggressively” for advanced exploration joint-venture (JV) or acquisition opportunities, the firm said on Monday.

Iamgold produces gold in Botswana, Mali, Ghana, Canada and Suriname, and is focusing its exploration efforts in West Africa, the Guiana Shield, Quebec, Brazil and the northern Andean regions of South America.

The firm also recently bought the Essakane project, in Burkina Faso, which it plans to start up next year.

Of the $54,2-million budget, $34-million has been earmarked for greenfield exploration initiatives, Iamgold said.

The firm also reported that it has taken steps to terminate JV agreements on the Buckreef project, in Tanzania.

The firm suspended exploration at Buckreef earlier this year and recorded a $117,4-million write-down of the value of the asset in the fourth quarter of 2008.

CEO Joseph Conway indicated in May that the company was in talks with potential buyers for the asset.

But, “transactions contemplated for the sale of the Buckreef project did not meet the company's valuation criteria”, and so it will relinquish the associated properties, Iamgold said on Monday.

The firm will close its Tanzanian exploration offices in the fourth quarter of this year, and will record an impairment charge related to the carrying value of the exploration properties in Tanzania of $9,3-million in its second-quarter financial results.

Once the Buckreef asset is surrendered, Iamgold's total gold resources will be reduced by 212 000 oz of measured resources, indicated resources of 573 000 oz and 727 000 oz in the inferred category.

The company is also in “advanced stages” of talks to sell its interest in the Kitongo project, also in Tanzania, which would cut its inferred resources by another 291 000 oz..

Iamgold is scheduled to report second-quarter results on August 6.

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