14th Nov 2005 07:00
Randgold Resources Ld14 November 2005 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD PRESIDENT OF MALI OPENS NEW GOLD MINE Loulo, Mali, 12 November 2005 (LSE:RRS)(Nasdaq:GOLD) - Malian president AmadouToumani Toure today officially opened Randgold Resources' new gold mine at Louloin western Mali. The mine shipped its first commercial consignment of gold on 8 November. Theconsignment of 8 710 fine ounces of gold, valued at some US$4 million, signalsthe successful completion of the mine's build-up to commercial production, aprocess which started when it poured its first gold on 28 September. The mineplans to ship bullion on a weekly basis from now on. Developed at a cost of some US$113 million, it has been designed to produce anaverage of more than 200 000 ounces per year from open-pit operations. Acomplementary underground operation, which will substantially extend the size,value and life of the project, is currently being developed. Loulo is the second major gold mine Randgold Resources has discovered anddeveloped in Mali. The first, Morila, has produced more than 3 million ouncessince it went into production in October 2000. Speaking at the opening, Randgold Resources chief executive Dr Mark Bristow saidthe company believed that true value in the mining industry was created bydiscovery and development rather than through the reshuffling of assets. "It is this belief that makes us take early-stage risks, as we did at Morila andagain at Loulo. We were able to do that because we had confidence in thegovernment, the people and the resources of Mali. Our faith in the country hasbeen fully justified by the results," he said. "Of course, value is never created without effort, and in getting to the stagewhere we are today we had to overcome some formidable challenges. Morila, forexample, was technically a relatively easy mine to build, but we had to find thefunding for it at a time when the market was in a slump and capital providershad little appetite for gold. Loulo, on the other hand, is coming intoproduction in a buoyant market, but in every other respect has been a verychallenging development. It's a project we've always believed in, but to get itto this point has required not just belief but also a great deal of hard workunder difficult circumstances." Philippe Lietard chairman of Randgold Resources said western Mali had thepotential to become a significant new gold region, and the infrastructure whichhad been put in place at Loulo was such that it could serve as the developmenthub not only for this region but also for the nearby goldfields of easternSenegal. Loulo is owned by Societe des Mines de Loulo SA (Somilo) in which RandgoldResources has an 80% interest with the balance being held by the state of Mali. RANDGOLD RESOURCES ENQUIRIES: Chief Executive Financial Director Investor & Media RelationsDr Mark Bristow Roger Williams Kathy du Plessis+44 779 775 2288 +44 791 709 8939 +27 11 728 4701+223 675 0122 +223 675 0109 Cell: +27 83 266 5847 Email: [email protected] Website : 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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