Randgold announces reserves and resources update

Randgold Resources’ latest resource and reserve declaration, shows a significant increase in both asset categories.

At the attributable level, measured, indicated and inferred resources rose from 12.55 million ounces at the end of 2006 to 13.5 million ounces, while proved and probable reserves increased from 6.29 million ounces to 7.78 million ounces, net of depletion by mining of some 400 000 ounces during the past year. 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 million ounces and proved and probable reserves to 7.4 million ounces.

At Tongon, the completion of 30 000 metres of diamond drilling during the year increased the resource base to more than 4 million ounces. 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 million ounces with a further 1.17 million ounces of potentially mineable in-pit resource. 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 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.

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