Wellington West: IAMGOLD Corp.'s Westwood Results Encouraging

IAMGOLD Corp. (IAG) released positive results Wednesday from its Westwood project at the Doyon mine in Quebec, confirming the existence of three mineralized zones.

Wellington West analyst Catherine Gignac told clients in a note that the results were encouraging for the company, who has four drills currently delineating the property in attempt to extend the life of the Doyon Mine.

The company also has encouraging advanced stage projects in South America and Africa that are being advanced for potential positive production impact within 2 to 3 years, Ms. Gignac added.

During that time frame, IAMGOLD is forecasting production to increase 50%.

In the near term, the company is targeting 1-million ounces of gold production in 2007, which appears achievable, Ms. Gignac said, adding operating cost control is the company's biggest challenge at the moment.

She maintained her "buy" rating on the stock and left unchanged her C$12.50 per share price target, which represents upside of roughly 58%.