Randgold replenishes resources in record production year

Randgold Resources | March 31, 2016 | 9:30 am Precious Metals Africa Europe Gold 

London,  ̶  Randgold Resources’ annual resource and reserve declaration, published today as part of its annual report for 2015, shows attributable measured and indicated resources steady at 21.1 million ounces while inferred resources are marginally up to 6.7 million ounces.  Total attributable reserves of 14.6 million ounces reflect a 3.5% reduction after mining depletion, with no change in the grade, in a year that delivered record production of 1.2 million ounces.

Loulo’s total mineral resources increased by 5%, net of depletion.  This was driven by a significant increase of plus 600 000 ounces in the Gara underground inferred resources from the positive results of the Gara South drilling.  Further drilling and design work are expected to convert a large portion of these resources to reserves in 2016.  A drilling programme to define high grade resources is underway at Yalea as well.  Total ore reserves after depletion decreased by 4% to 4.7 million ounces at 4.6g/t.  At neighbouring Gounkoto, total ore reserves remained above 3 million ounces with an 8% increase in grade on the back of an updated underground feasibility study which increased the underground reserve to 1.1 million ounces at 7.2g/t.  A lower cost profile and higher grade resource model have highlighted the potential for a superpit mining option, which together with an underground mine is now the subject of a trade-off study planned for completion in 2016.

At Kibali in the Democratic Republic of Congo, total reserves decreased to 10.6 million ounces at 4.1g/t from 11.0 million ounces at 4.1g/t, with mining depletion being partly offset by gains from underground and the Pakaka and Gorumbwa satellite deposit.  Resources were down after depletion by 5% as a result of mining and the ongoing assessment of the substantial resource base acquired from Moto.

In Côte d’Ivoire, Tongon’s resources and reserves decreased marginally with partial replacement from ongoing advanced grade control drilling within the pit.  Drilling continues to highlight the potential for further gains within and immediately below the current Southern Zone pit design and nearby satellite deposits which will be further tested in 2016.

Group general manager evaluation Rod Quick said Randgold’s reserve and resource management was based on the calculation of its Life of Mine reserves at a gold price of $1 000/oz, coupled with a strong emphasis on the optimal exploitation of the various orebodies by each of the operations.

Chief executive Mark Bristow said the fact that the group’s reserve grade remained intact demonstrated that Randgold had not been forced into high-grading by the challenging market conditions.

“We’ve been able to steer a steady course through some choppy waters because our long term strategy takes the cyclical nature of the gold mining industry fully into account.  By ensuring that our operations are focused on real returns and breakeven cash flows, we have secured a profitable consolidated business plan for at least 10 years at an annual production in excess of one million ounces, based on our existing reserves.  In the meantime, our exploration teams are hard at work replenishing those reserves as well as hunting for our next big discovery,” he said.

RESOURCE AND RESERVE DECLARATION at 31 December 2015 (abridged)

MINE/PROJECT Category Tonnes Grade Gold Attributable

Gold
2015 2014 2015 2014 2015 2014 2015 2014
Mt Mt g/t g/t Moz Moz Moz Moz
MINERAL RESOURCES
Kibali 45% 45%
Measured 10 8.1 2.2 1.9 0.7 0.5 0.3 0.2
Indicated 124 130 3.8 3.8 15 16 6.8 7.2
Sub total Measured and
Indicated		 134 139 3.7 3.7 16 16 7.2 7.4
Inferred 47 53 2.5 2.6 3.9 4.4 1.7 2.0
Loulo 80% 80%
Measured 18 15 4.5 3.8 2.6 1.9 2.1 1.5
Indicated 33 36 4.3 4.5 4.5 5.2 3.6 4.2
Sub total Measured and
Indicated		  

51

 52 4.4 4.3 7.1 7.1 5.7 5.7
Inferred 20 20 3.9 3.2 2.5 2.1 2.0 1.7
Gounkoto 80% 80%
Measured 5.0 5.5 2.9 3.6 0.5 0.6 0.4 0.5
Indicated 25 22 4.7 4.4 3.7 3.2 3.0 2.5
Sub total Measured and
Indicated		 30 28 4.4 4.3 4.2 3.8 3.3 3.0
Inferred 5.3 7.5 3.1 3.2 0.5 0.8 0.4 0.6
Morila 40% 40%
Measured – 0.02 – 4.0 – 0.003 – 0.001
Indicated 23 14 0.5 0.6 0.4 0.3 0.2 0.1
Sub total Measured and
Indicated		 23  

14

 0.5 0.6 0.4 0.3 0.2 0.1
Inferred 1.8 11 0.6 0.6 0.03 0.2 0.01 0.1
Tongon 89% 89%
Measured 8.8 6.8 2.7 2.3 0.8 0.5 0.7 0.5
Indicated 22 27 2.6 2.6 1.8 2.2 1.6 2.0
Sub total Measured and
Indicated		 30 34 2.6 2.5 2.6 2.7 2.3 2.4
Inferred 12 12 2.8 2.7 1.1 1.0 1.0 0.9
Massawa 83% 83%
Measured 0.2 0.2 5.1 5.1 0.03 0.03 0.03 0.03
Indicated 35 35 2.6 2.6 2.9 2.9 2.4 2.4
Sub total Measured and
Indicated		 35 35 2.6 2.6 3.0 3.0 2.5 2.5
Inferred 23 24 2.5 2.1 1.8 1.7 1.5 1.4
TOTAL
RESOURCES		 Measured and
Indicated		 304  

301

 3.4 3.4 33 33 21 21
Inferred 110 128 2.8 2.5 10 10 6.7 6.6
ORE RESERVES
Kibali 45% 45%
Proved 4.0 5.4 1.8 1.8 0.2 0.3 0.1 0.1
Probable 76 78 4.3 4.3 10 11 4.7 4.8
Sub total Proved and
probable		 80 83 4.1 4.1 11 11 4.8 4.9
Loulo 80% 80%
Proved 8.6 2.2 4.5 1.8 1.2 0.1 1.0 0.1
Probable 23 31 4.7 4.8 3.4 4.7 2.7 3.8
Sub total Proved and
probable		 32 33 4.6 4.6 4.7 4.9 3.7 3.9
Gounkoto 80% 80%
Proved 4.1 4.4 3.1 3.8 0.4 0.5 0.3 0.4
Probable 16 18 5.2 4.6 2.7 2.6 2.2 2.1
Sub total Proved and
probable		 20 22 4.8 4.4 3.1 3.2 2.5 2.5
Morila 40% 40%
Proved – 0.02 – 4.0 – 0.003 – 0.001
Probable 15 13 0.6 0.7 0.3 0.3 0.1 0.1
Sub total Proved and
probable		 15 13 0.6 0.7 0.3 0.3 0.1 0.1
Tongon 89% 89%
Proved 8.2 7.1 2.3 2.2 0.6 0.5 0.5 0.4
Probable 18 23 2.4 2.4 1.4 1.7 1.3 1.5
Sub total Proved and
probable		 26  

30

 2.4 2.3 2.0 2.2 1.8 2.0
Massawa 83% 83%
Proved
Probable 21 21 3.1 3.1 2.0 2.0 1.7 1.7
Sub total Proved and
probable		 21 21 3.1 3.1 2.0 2.0 1.7 1.7
TOTAL ORE
RESERVES		 Proved and
probable		 194 201 3.6 3.6 23 24 15 15

 

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