HomeGoldLoulo falling short of 2010 production target

Loulo falling short of 2010 production target

Morila gold mine
“’ to close soon
Bamako, Mali — MININGREVIEW.COM — 02 August 2010 – Mali’s biggest gold mine “’ which is 80% owned by Randgold Resources “’ will fall short of its 400 000 ounce target for this year, but the company says it is targeting an output of 480 000 ounces for 2011.

The Loulo mine is Randgold’s flagship mine in Mali. The company “’ a West African-focused gold miner “’ owns 80% of the Loulo mine with Mali’s government holding the rest. The company also has interests in two other Malian mines, Morila and Gounkoto.

Loulo mine manager Amadou Konta told Reuters in an interview that this year’s production was seen at 378 000 ounces, more than 5% short of the 400 000 ounce target. He did not give any reason for the change.

“The forecasts for 2011 are up at 480 000 ounces … and that is not taking into account Gounkoto,” Konta said, referring to the mine in the west of the country where Randgold has confirmed great gold upside.

Randgold chief executive Mark Bristow called Gounkoto a "world class deposit" and confirmed some 1.6 million ounces of reserves. Loulo’s reserves stood at 6 million ounces, he added.

Morilla, a joint operation with Anglogold Ashanti, is winding down and due to close in the next few years.

Randgold had increased its capacity at Loulo and was now able to treat 300 000 tonnes of ore a month compared with 200 000 tonnes a month last year, Konta said.