Dakar, Senegal — MININGREVIEW.COM — 02 April 2009 – International gold mining and exploration company Randgold Resources – the owner of various gold mines in West Africa – says its deposit in Senegal has the potential to be one of its top discoveries.
“The Massawa project is a lot better than the company’s Tongon deposit in Ivory Coast was at the same stage of development,” said CEO Mark Bristow in a telephone interview with Bloomberg News from here. Tongon – which is scheduled to begin output next year – contains 3 million ounces of reserves, which is the estimated amount of gold that can be mined profitably.
“Massawa has lots more potential than Tongon,” Bristow insisted. “We have made a discovery that runs the risk of being one of our best,” he added.
“If it is as good as Tongon then that would be three world-class assets in excess of 3 million ounces each, which is a rare thing to find,” John McGloin, an analyst at Arbuthnot Securities Limited in London said in a telephone interview with Bloomberg News.
Randgold is looking for additional production as mining at one of its two Malian operations is due to end in the second quarter. Bristow also revealed in February that he had held talks about acquiring Moto Goldmines Limited, which plans to develop the Democratic Republic of Congo’s largest gold mine.
“Randgold – which is based Jersey – is carrying out drilling at Massawa, and will announce details of the so-called initial inferred resource this week,” Bristow said. “A bankable feasibility study is expected to be complete by the end of 2010, and there’s a very good chance Massawa will produce gold by 2013,” he added.
“We have always had as our focus the minimum of 3 million ounces, and there is every indication that this will be one of those projects,” Bristow concluded.