HomeGoldSharp rise in Randgold reserve base

Sharp rise in Randgold reserve base

Randgold CEO Mark
Bristow at Loulo
in Mali
London, England — MININGREVIEW.COM — 03 April 2008 – The latest resource and reserve declaration by international gold mining and exploration company Randgold Resources – published here today as part of its 2007 annual report – shows a significant increase in both asset categories.

Chief executive Mark Bristow emphasised that this continuing expansion of the company’s reserve base provided a solid foundation for Randgold’s forecast of a 50% growth in production by 2011.

At the attributable level, measured, indicated and inferred resources rose 8% from 12.55 Moz at the end of 2006 to 13.5 Moz a year later, while proved and probable reserves increased by almost 25% from 6.29 Moz to 7.78 Moz, net of depletion by mining of some 400 000 oz during the past year.

The report states that the increases are mainly attributable to continuing exploration at the company’s Loulo complex in Mali, and at the Tongon project in Cote d’Ivoire, currently in the early stages of development as a new mine.

At Loulo, the Gara underground reserve – which will host the second underground mine at the four-mine complex – was extended to the south at depth. Loulo’s total resource base rose to 11.94 Moz, and proved and probable reserves to 7.4 Moz, according to the report.

At Tongon, it adds, the completion of 30 000m of diamond drilling during the year increased the resource base to more than 4 Moz. Of this amount, indicated resources now form 83% of the total in-pit resource. The total probable reserves, based on the feasibility resource, stand at 1.61 Moz, with a further 1.17 Moz of potentially mineable in-pit resource.

The report points out that the upgrade of the majority of the resources to indicated status at year end is expected to produce significant increases in declared reserves. Open pit optimisations are currently underway to confirm the updated reserve, and are expected to be published with the company’s first quarter results on 6 May. Meanwhile, drilling continues to test strike and depth extensions, as well as exploring mineralised targets close to Tongon.