6th May 2008 07:02
Randgold Resources Ld06 May 2008 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD RESERVES UP 52% AT TONGON PROJECT London, 6 May 2008 - Randgold Resources today reported a material increase inthe probable reserves at its Tongon project in Cote d'Ivoire, currently in theearly stages of development as the company's third gold mine in West Africa. A further conversion of the increased resources recently published in the annualreport - which showed an indicated resource at Tongon of 41.96Mt @ 2.37g/t for3.2 million ounces, and a further 12.99Mt @ 2.56g/t for 1.07 million ounces inthe inferred category - has produced a 52% increase in the probable reserves.These now stand at 32.76Mt @ 2.32g/t for 2.44 million ounces. The ore reserveestimate is based on US$550/oz with a cut-off grade of 1g/t. The numbersinclude dilution and ore loss. During the quarter, an agreement was also concluded with Randgold Resources'joint venture partner in Cote d'Ivoire, New Mining CI, to increase Randgold'sinterest in the joint venture to 90%. Consequently, after providing for theGovernment's 10% free participation as per the mining code, Randgold now owns aneffective 81% interest in the Tongon project, which is reflected in the tablebelow. ORE RESERVE ESTIMATE at April 2007Deposit Category Tonnes Grade Ounces Attributable Ounces (Mt) (g/t) (Moz) (Moz) 81%Northern zone Probable 5.59 2.40 0.43 0.35Southern zone Probable 27.17 2.30 2.01 1.63TOTAL PROBABLE 32.76 2.32 2.44 1.98 Ore reserve estimate based on US$550/oz pit. Cut-off grade =1g/t. Dilution andore loss included in reserve numbers. A small amount of inferred resources remains within the pit design and as suchhas not been declared as reserve. It is reported below as potentially mineableresources. Infill drilling continues to upgrade these resources to theindicated category and it is intended to convert these to reserves by the thirdquarter of this year. Meanwhile, drilling to delineate high-grade shoots and totest the continuation of the mineralised structure at depth has been completedat the base of the northern zone pit. In the southern zone, drilling hasindicated better intercepts associated with the intersection of the braidedshear system; this will be the focus of follow-up exploration. These resultswill be included in the updated resource and reserve declaration in the thirdquarter. POTENTIALLY MINEABLE RESOURCE at April 2007Deposit Tonnes Grade Ounces Attributable Ounces (Mt) (g/t) (Moz) (Moz) 81%Southern zone 5.46 2.13 0.37 0.30 Chief executive Mark Bristow said that, as expected, Tongon had now passed the 2million ounce reserve mark. "We are very positive about the prospectivity of this area and believe there isstill scope for further growth in the resource base. Here, as elsewhere in thesix countries where we operate, exploration continues to build our reserves,enabling us to forecast increased production at a time when industry output isshrinking," he said. "As a result of our increased participation as well as the success of our infilldrilling programme, Randgold Resources share of the Tongon reserves haveincreased by 61%." RANDGOLD RESOURCES ENQUIRIES:Chief Executive Financial Director Investor & Media RelationsDr Mark Bristow Graham Shuttleworth Kathy du Plessis+44 788 071 1386 +44 779 614 4438 +44 20 7557 7738+44 779 775 2288 +44 1534 735 333 Email: [email protected]: www.randgoldresources.com DISCLAIMER: Statements made in this document with respect to RandgoldResources' current plans, estimates, strategies and beliefs and other statementsthat are not historical facts are forward-looking statements about the futureperformance of Randgold Resources. These statements are based on management'sassumptions and beliefs in light of the information currently available to it.Randgold Resources cautions you that a number of important risks anduncertainties could cause actual results to differ materially from thosediscussed in the forward-looking statements, and therefore you should not placeundue reliance on them. The potential risks and uncertainties include, amongothers, risks associated with: fluctuations in the market price of gold, goldproduction at Morila and Loulo, the development of Loulo and estimates ofresources, reserves and mine life. For a discussion on such risk factors referto the annual report on Form 20-F for the year ended 31 December 2006 which wasfiled with the United States Securities and Exchange Commission (the 'SEC') on25 June 2007. Randgold Resources sees no obligation to update information inthis release. Cautionary note to US investors; the 'SEC' permits companies, intheir filings with the 'SEC', to disclose only proven and probable ore reserves.We use certain terms in this release, such as "resources", that the 'SEC' doesnot recognise 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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