26th Oct 2016 16:17
LONDON (Alliance News) - Gold miner Randgold Resources Ltd on Wednesday said it was on track to beat its production guidance at its Loulo-Gounkoto complex for the full year, as it stressed the importance of a "mutually beneficial partnership with the government".
Speaking at a media briefing on Wednesday, Randgold Chief Executive Mark Bristow said the group should beat its production guidance of 670,000 ounces of gold for the year. The feasibility study on the development of a superpit at Gounkoto is due for completion by the end of the year and current indications are that it will extend Loulo-Gounkoto's life and enhance its profitability, Bristow said.
On the back of its past investment and ongoing efforts at the site, the aim of maintaining annual production at more than 600 000 ounces for the next 10 years now looks achievable, the chief executive added.
At Loulo, Randgold's brownfields exploration team is currently looking at new targets at both Gara and Yalea. The team has already delivered 500,000 ounces of additional resources at Gara and is currently generating drill targets for more near-mine high grade resources at Yalea, the chief executive said.
Meanwhile, Randgold's Morila operation has progressed to full tailing retreatment as it moves towards closure, which is scheduled for 2019. However, opportunities to extend the life of the mine are still being investigated, Bristow said.
"Randgold remains committed to the long term expansion in Mali of our own presence as well as the country's mining industry in general. This we will only be able to achieve in a constructive and mutually beneficial partnership with government," Bristow added.
"In this regard, it's worth noting that an independent survey recently concluded that while Mali had a high gold mining potential, it was lagging behind its African competitors in terms of its ability to attract investment. Negative factors cited in this regard were its mining code and administration, its tax regime and its infrastructure," the chief executive added.
Shares in Randgold closed down 0.9% at 7,134.57 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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