ANGLOGOLD AND IAMGOLD ANNOUNCE INITIAL YATELA RESOURCE ESTIMATE OF 1.9 MILLION OUNCES OF GOLD TSE TRADING SYMBOL: IMG NYSE TRADING SYMBOL:AU 52 WEEK TRADING RANGE: CDN$2.20-$5.70 JSE TRADING SYMBOL:ANGGOLD TOTAL SHARES OUTSTANDING: 73,284,658 52 WEEK TRADING RANGE: FULLY DILUTED: 78,404,991 US$35.48-$59.62 (JSE) (1 SHARE - 2 ADRS) TOTAL SHARES OUTSTANDING/ FULLY DILUTED: 97,853,199 MARKHAM, ON, Feb. 17 /CNW-AsiaNet/ - ANGLOGOLD (AU:NYSE, ANGGOLD:JSE) and IAMGOLD (IMG:TSE) are pleased to announce an initial resource estimate for the Yatela deposit, which is owned by the 50:50 AngloGold/IAMGOLD joint-venture known as SADEX. The Yatela deposit is located 25 kilometres north of the Sadiola Gold Mine in Mali, West Africa (Figure 1). This estimate has been prepared by the Mineral Resource Management Department of AngloGold. The estimate is based on 455 boreholes totalling 21,381 samples (Figure 2). Of the 455 holes, 254 are diamond drill (DD) holes drilled by SADEX during the current feasibility study at a grid density of 50m x 50m over the main zone of the deposit, which comprises the drill indicated portion of the resource reflected in the table below. The balance consists of 201 reverse circulation and DD holes drilled prior to the start of the feasibility study by both SADEX and Eltin Ltd. of Australia. The drill results continue to confirm that the orebody will be predominantly free-digging. The initial Yatela estimate of 1.92 million ounces of gold, which is contained in 20.5 million tonnes of soft oxide ore grading 2.9 g/t Au at a cut-off grade of 1.0 g/t Au, represents the resource that is effectively contained within the preliminary open-pit mining shell that has been applied to the deposit. The Yatela resource was estimated to be 940,000 ounces of gold at the start of the feasibility study in February 1998. Initial Yatela Resource Estimate -------------------------------- (1.0 g/t Au Cut-Off)Ore Resource Tonnes Grade Contained AuType Category (millions) (gt/Au) (oz's millions)Soft Oxide Drill Indicated 17.9 3.1 1.78 (L58150 to L59500)Soft Oxide Drill Inferred 2.6 1.6 0.14 (N of L59500) --- --- ---- Total 20.5 2.9 1.92 The ongoing feasibility study will see the initial resource categories at Yatela upgraded to the status of measured resources and probable and proven reserves. The resource estimates will continue to be revised as the open-pit mine plan is enhanced and optimized, as any infill drilling is conducted (geological and geostatistical studies are underway to determine the value of such drilling) and as the relevant engineering and metallurgical testwork proceeds. Four main options are being assessed at different production rates: road transport of the Yatela ore to Sadiola for treatment in either the existing 5.2 million tonnes per annum (mtpa) plant (base case option''), or in an expanded Sadiola plant, as well as treatment on site in either a CIP/CIL plant or a heap leach operation. Preliminary analysis of the different exploitation scales studied suggests that the optimal rate might be in the 2 to 2.5 mtpa range for all the non-base case options. The metallurgical testwork continues to indicate that recoveries of 95% should be achievable either at Sadiola or in a CIP/CIL plant established on site at Yatela. Initial heap leach testwork is being conducted by Kappes Cassiday at its facilities in Nevada on a two tonne core bulk sample. The Alamoutala deposit, located 13 kilometres north of Sadiola (Figure 1) and representing a drill inferred resource of some 160,000 ounces of gold contained in 2.0 million tonnes of soft oxide ores grading 2.5 g/t at a 1.0 g/t cut-off, will also be incorporated into any operation established to exploit the Yatela Deposit. The combined Yatela and Alamoutala resource amounts to 2.08 million ounces. The feasibility study being conducted by AngloGold remains on schedule for completion in mid-1999.Please Note: Figures 1 and 2 attached with this press release can only be accessed via fax, e-mail, AngloGold's website at www.anglogold.com, IAMGOLD's website at www.iamgold.com or Canada Newswire's website at www.newswire.ca For further information: James Duncan, AngloGold, South Africa; Charles Carter, AngloGold, North America; Phone: 011 27 11 637 6147, e-mail: investors(at)corp.anglogold.com; Phone: 1 303 834-9255; Todd Bruce, President & COO; Joanne Jobin, Director, Investor Relations, IAMGOLD Corporation, Canada; Phone: (905) 477-4420, email: info(at)iamgold.com