Name and Location
Sadiola Deeps sulphide project, Mali.

Project Description
A prefeasibility study on Sadiola has demonstrated the attractive economics of the project.
The current Sadiola life-of-mine plan estimates production of 350 000 oz of gold for 2009, declining over time going forward until end of mine life in 2015.

The prefeasibility study proposes an increase in production at Sadiola to between 400 000 oz/y and 500 000 oz/y (on a 100% basis, running from 2013 through 2018), with an end of mine life in 2019, increasing the total gold production at Sadiola by about 2,2-million ounces beyond the current mine plan.

The prefeasibility study calls for mining to continue on an openpit basis, incorporating larger mining equipment and is based on the construction of a new crushing, grinding and carbon-in-leach plant for treatment of the deep sulphide ores and existing hard ore stockpiles, while the existing mill continues to treat soft oxide ores in parallel, or treat additional sulphide ore once oxide ore is exhausted.

The total nominal treatment capacity of the proposed operation will be 8,5-million tons a year on the combined feeds, compared with 4,5-million tons a year nominal capacity, with the current plant treating primarily softer oxide ores.

Value
The prefeasibility study estimates an initial investment of $400-million for the treatment plant, mining fleet, waste prestripping and various infrastructure elements.

The Société d'Exploitation des Mines d'Or De Sadiola (Semos) has approved $9-million for the feasibility study to further refine the Sadiola Deeps project, as well as consider possible optimisations.

Duration
Not stated.

Client
Semos, which comprises Iamgold (38%), AngloGold Ashanti (38%), the government of Mail (18%) and the International Finance Corporation (IFC) (6%).

Key Contracts and Suppliers
None stated.

Latest Developments
The Semos board has given the go-ahead for the feasibility study on the project.

Further, Iamgold has announced that it has reached a tentative agreement with the IFC for the purchase of the IFC's 6% interest in Semos. Under the terms of the existing Semos shareholders agreement, the remaining partners, AngloGold Ashanti and the Mali government, have 45 days to elect whether they will participate in the purchase on a pro rata basis. Iamgold expects that the transaction will be completed before the end of 2009.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Iamgold, tel +1 416 360 4710 or email info@iamgold.com.
AngloGold Ashanti, tel + 27 11 637 6000.