2nd Feb 2015 07:20
LONDON (Alliance News) - Randgold Resources Ltd Monday said it is looking at developing a third underground mine at its Loulo-Gounkoto gold mining complex in Mali, a move that would bolster rising production from the site.
Randgold Chief Executive Mark Bristow, who is leading a group of international investors on Randgold's annual tour of its West and Central African operations, said a feasibility study on an underground mine at Gounkoto had been completed and its findings would be made known when the company publishes its 2014 results later this month.
"Regardless of the potential Gounkoto underground mine, subject to the gold price remaining at current levels, the complex is forecast to up its profitability from its existing mining activities through increased production and reduced unit costs on the back of higher grades, improved recoveries and the benefits of its ongoing capital projects," Bristow said.
As things stand, Loulo-Gounkoto has reserves in excess of 8 million ounces of gold.
"We believe the Senegal-Mali shear zone, which hosts Loulo-Gounkoto, is one of the most prolific gold regions in Africa, with the capacity to rival Ghana's Obuasi, and we are continuing our hunt for more multi-million ounce gold deposits there. We're also expanding our presence in the area through joint ventures with junior miners who have promising early-stage projects," Bristow said.
By Steve McGrath; [email protected]; @stevemcgrath1
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