3rd Aug 2005 16:41
Randgold Resources Ld03 August 2005 RANDGOLD RESOURCES LIMITED Incorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD LOULO PHASE ONE ON BRINK OF PRODUCTIONDEVELOPMENT OF UNDERGROUND MINE GETS GO-AHEAD London, 3 August 2005 - London and Nasdaq listed gold miner Randgold Resourcessaid today the commissioning of the first phase of its new Loulo mine in Maliwas nearing completion with first gold production likely later this month. At the same time the company announced that it had decided to proceed with thedevelopment of an underground leg to the mine - originally conceived as anopen-cast operation - following the completion of an SRK development study whichdemonstrated a robust project with the potential to add significantly to Loulo'slife and value. "The results of the development study are in line with our most optimisticexpectations, confirming that the down-dip extensions of the Yalea and Loulo 0orebodies, currently being mined as open-pits, are eminently exploitable," saidchief executive Dr Mark Bristow. "We're currently focusing on optimising the open-cast to underground interfaceand mining schedules. At this stage, we're looking at starting theshaft-sinking next year, with full production being achieved by 2009. Combined,and on the assumption that it is a stand alone project, the two undergroundmines can produce approximately 1.8 million ounces of gold (recovered) over a10-year period, with the potential for more to come as we continue drilling outthe orebodies. Consequently, a programme that integrates feed from the openpits and underground, will lead to longer life and more optimal productionprofiles." Meanwhile commissioning of the opencast mine, the plant and the associated worksis making steady progress. Completion has been delayed by a few weeks, mainlyby logistical issues, but Bristow noted that it was still some five months aheadof the original target date of January 2006. Mining started in December 2004and a significant ore stockpile of 220 000 tonnes at a very comforting grade of4.5g/t, has already been built up. Bristow said the slight commissioning delayshould not affect the mine's planned production of 100 000 ounces to the end of2005. Randgold Resources has also reported its results for the quarter and half-yearto June. Profit from mining was US$16.3 million for the quarter (Q2 2004:US$3.6 million) and US$35 million for the half-year (2004: US$11.4 million). During the quarter the company's joint-venture Morila mine in Mali continued toreturn to full production levels. Plant throughput rose by almost 100 000tonnes, a 12% improvement on the previous quarter, and gold production of 165359 ounces was in line with forecasts. Bristow said Randgold Resources wasworking closely with the operator to achieve consistent and sustainableproduction and contain costs. Elsewhere in west Africa, Randgold Resources has completed a review of theprefeasibility study of its Tongon project in Cote d'Ivoire, in anticipation ofa return to normality in that country after the elections scheduled for Octoberthis year. The updated resource at Tongon now totals 3.2 million ounces. Apreliminary assessment based on a mineable resource of 1.5 million ouncesestimated only for the project's southern zone indicates that Tongon meets thecompany's hurdle rates for further investment. A product-ion decision will bemade after a final feasibility study, which will be completed within two yearsof the re-start of exploration activities. On the exploration front the company has maintained its competitive edge in theface of increased activity from junior miners through a strong drive to find newounces in its target countries, in line with its commitment to organic growth.Following a very successful field season, focus is now on processing, planningand preparing for the next one. "Our strategy in the past field season has been to identify new targets andopportunities, and consequently the main emphasis has been on our generativefunction. Among other things, this has produced a new west African GIS studywhich has resulted in the acquisition of seven new permits in three countriesand the submission of an additional 15 applications in five countries. Intotal, Randgold Resources now holds a total land package of more than 11 500square kilometres containing 141 targets in six African countries," Bristowsaid. RANDGOLD RESOURCES ENQUIRIES: Chief Executive - Dr Mark Bristow +44 779 775 2288Financial Director - Roger Williams +44 791 709 8939Investor & Media Relations - Kathy du Plessis +27 11 728 4701,Cell: +27 (0) 83 266 5847, Email: [email protected]: www.randgoldresources.com DISCLAIMER: Statements made in this document with respect to Randgold Resources'current plans, estimates, strategies and beliefs and other statements that arenot historical facts are forward-looking statements about the future performanceof Randgold Resources. These statements are based on management's assumptionsand beliefs in light of the information currently available to it. RandgoldResources cautions you that a number of important risks and uncertainties couldcause actual results to differ materially from those discussed in theforward-looking statements, and therefore you should not place undue reliance onthem. The potential risks and uncertainties include, among others, risksassociated with: fluctuations in the market price of gold, gold production atMorila, the development of Loulo and estimates of resources, reserves and minelife. For a discussion on such risk factors refer to the annual report on Form20-F for the year ended 31 December 2004 which was filed with the United Statessecurities and exchange commission (The 'SEC') on 29 June 2005. RandgoldResources sees no obligation to update information in this release. Cautionarynote to US investors; the SEC permits companies, in their filings with the SEC,to disclose only proven and probable ore reserves. We use certain terms in thisrelease, such as "resources", that the SEC does not recognise and strictlyprohibits us from including in our filings with the SEC. Investors arecautioned not to assume that all or any parts of our resources will ever beconverted into reserves which qualify as 'proven and probable reserves' for thepurposes of the SEC's industry guide number 7. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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