Yesterday (5th of February 2010) Mark Blake (Pigs Might Fly, Mojo Magazine) messaged the Reverend with the following cryptic message:

We've received a very interesting letter about the elusive Iggy.
Wanted you to be the first to know!
More news to follow.

Of course the Church immediately contacted the journalist and this is what the Church is allowed to disclose today:

An old acquaintance of Iggy's emailed (Mojo magazine) and shared some info.
She is alive and well and living in southern England.
She has chosen to remain anonymous all these years.

More information will probably be published in the next issue(s) of Mojo and, of course, the Holy Church of Iggy the Inuit.

(Many thanks to Mark Blake who we are eternally thankful for breaking the news to the Church.)