HomeGoldSignificant gold resource increase

Significant gold resource increase

Tongon core in the
foreground – project
offices in the
London, England — MININGREVIEW.COM — 03 April 2009 – International gold mining and exploration company Randgold Resources has shown a significant increase year-on-year in both asset classes through the conversion of its Tongon resources in Côte d’Ivoire into reserves, and through the entry of its Massawa deposit in Senegal into the resource category.
The latest resource and reserve declaration, published here as part of Randgold’s 2008 annual report, showed that at the attributable level, measured, indicated and inferred resources had risen from 13.50 million ounces at the end of 2007 to 16.13 million ounces  – an increase of 20%. This was mainly attributable to the delineation of a 3.39 million ounce inferred resource at its 83% owned Massawa project.

It added that attributable proved and probable reserves had registered a rise of 14% from 7.78 million ounces to 8.87 million ounces, net of depletion of some 380 000 ounces during the year. The increase was primarily related to the conversion of resources to reserves at the Tongon project in Côte d’Ivoire, where total probable reserves had expanded to +3 million ounces ,and Randgold’s shareholding in the project had increased from 76.5% to 84% during the year.

It also reflected an improvement from 4.23 g/t to 4.42 g/t in the proved and probable reserve grade at Loulo, due to the depletion of lower grade in-pit reserves and better grade delineation of the underground reserve.

“The strong conversion at Tongon – where we have taken 3.11 million ounces of inferred resources in 2006 compared to 3.16 million ounces of probable reserve in 2008 – epitomises our dedication to rapidly moving projects from early discovery to reserve declaration,” said CEO Mark Bristow. “The same is planned for Massawa, where we intend to move the project to prefeasibility by the end of 2009, and feasibility by end of 2010. The continuing growth in the company’s reserves and resources provides a solid foundation to beat our forecast of a 50% growth in production by 2011 and beyond,” Bristow added.