17th Oct 2006 13:30
Randgold Resources Ld17 October 2006 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD DEVELOPMENT OF NEW UNDERGROUND MINE FORMALLY UNDERWAY Bamako, Mali, 17 October 2006 (LSE:RRS)(Nasdaq:GOLD) - The development ofRandgold Resources' new Yalea underground mine at its Loulo project in Mali wasofficially launched today with the turning of the first sod by the Minister ofMines, Energy and Water, Hamed D Semega. The two open-cast mines at Loulo went into production late last year and to June2006 had already poured 184 000 ounces of gold. The Yalea development willraise the project's production from 250 000 ounces per year to in excess of 400000 ounces per year and reduce its cost profile over the next five years. It isexpected to remain in production beyond 2020. The boxcut and portalconstruction at Yalea is now well advanced and excavation of the declines isscheduled to begin before the end of the year. Randgold Resources expects toaccess the first development ore in late 2007. A second underground mine - Loulo 0 - is currently at the final planningstage. To distinguish it clearly from the overall project, Loulo 0 is beingrenamed Gara after a nearby stream. Speaking at the sod-turning ceremony, Randgold Resources chief executive MarkBristow said Loulo's systematic transformation into a four-mine complexunderlined the project's enormous brownfields potential. "Randgold Resources is known for its commitment to organic growth driven byexploration and it was our discovery of the Yalea deposit that made Loulo aviable project in the first place. Further exploration showed that undergroundmines could be developed to complement the open-cast operations on which theproject was initially based. These will significantly extend the life andenhance the value of the project and have elevated it to true world-classstatus," he said. 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 Fax: +27 11 728 2547 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 2005 annual report notes that the financial statements do not reflectany provisions or other adjustments that might arise from the claims and legalprocess initiated by Loulo against MDM. Other potential risks and uncertaintiesinclude risks associated with: fluctuations in the market price of gold, goldproduction at Morila, the development of Loulo and estimates of resources,reserves and mine life. For a discussion on such other risk factors refer to theannual report on Form 20-F for the year ended 31 December 2005 which was filedwith the United States Securities and Exchange Commission (the 'SEC') on 29 June2006. Randgold Resources assumes no obligation to update information in thisrelease. Cautionary note to US investors: the 'SEC' permits companies, in theirfilings with the 'SEC', to disclose only proven and probable ore reserves. Weuse certain terms in this release, such as "resources", that the 'SEC' does notrecognise and strictly prohibits us from including in our filings with the 'SEC'. Investors are cautioned not to assume that all or any parts of ourresources will ever be converted into reserves which qualify as 'proven andprobable reserves' for the purposes 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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