The result of an IAMGOLD discovery in the early 1990s, the Sadiola Gold Mine in western Mali began full production in 1997.  AngloGold Ashanti is the operator, with a 38% interest; the other partners in the operation in addition to IAMGOLD (38%) are the Republic of Mali (18%) and International Finance Corporation (6%), a member of the World Bank Group.

Sadiola consists of an open pit mining operation conducted by a contractor and a carbon-in-pulp processing plant capable of treating approximately 5.3 million tonnes of soft saprolitic ore per year.  A new gravity separation circuit is expected to increase gold recovery by 3% starting in 2007.

Sadiola Pit

A 2005 pre-feasibility study that investigated mining deep sulphide mineralization present below Sadiola's main open pit showed marginal economics using the current mill configuration and mining and energy costs, based on a $451 per ounce gold price.  Optimization of the base case scenario is being carried out before proceeding to a feasibility study.  The work includes metallurgical testing in South Africa of a 2.5 tonne sample as well as studies of alternative power generation and the use of owner rather than contract mining in order to lower operating costs.  Drilling is also being carried out to upgrade resources.

Production in 2006 amounted to 499,000 ounces of gold (IAMGOLD share 189,600 ounces) at a cash cost of $273 per ounce.  Output was 13% higher than in 2005 and 4% higher than the 2006 forecast, while cash costs increased only marginally over the 2005 average of $270 per ounce. 

In 2008, Sadiola's attributable production was 172,000 ounces of gold at a cash cost of $389 per ounce.

In 2009, Sadiola is forecasted to produce 132,000 attributable ounces.