TORONTO - Iamgold Corp. (TSX: IMG.TO) said Monday its proven and probable reserves at the end of 2008 were 9.6 million ounces, an increase of 20 per cent or 1.6 million ounces from a year earlier.

Including depletion of 1.1 million ounces attributed to 2008 gold production, reserves increased by 2.7 million ounces.

The Toronto-headquartered international miner said the main contributors to the increase are the Rosebel mine in Suriname and the Quimsaococha project in Ecuador. Once the acquisition of Orezone Resources Inc. closes this week, an additional 3.4 million ounces using a US$700 per ounce gold price will be added to Iamgold's reserves from the Essakane project in Burkina Faso.

Niobium proven and probable reserves as of Dec. 31 increased by 36 per cent to 137,800 tonnes.

Measured and indicated gold resources were 22.8 million ounces compared to 22.7 million ounces a year earlier.

"For 2009, we have planned aggressive drill programs for Rosebel, Westwood, Niobec and Sadiola which we expect will continue to build our reserve profile," said Iamgold president and CEO Joseph Conway.

"The completion of our transaction with Orezone, scheduled for Feb. 25, increases our reserves by more than 30 per cent related to the Essakane project in Burkina Faso, bringing our reserves to 12.7 million ounces. All of these positive developments will continue to deliver value for our shareholders."

Iamgold is a mid-sized gold producer, with annual production of close to one million ounces from eight mines in North America, South America and Africa.

Its shares were down 39 cents to $10.31 in Monday morning trading on the Toronto Stock Exchange.