Randgold replenishes reserves in record production year
Monday, March 30, 2015
London, 30 March 2015 - Randgold Resources increased its total attributable ore reserves in 2014 despite significant depletion from mining in a year that delivered record production of 1.15 million ounces.  The company’s annual resource and reserve declaration, published today as part of its annual report for 2014, shows attributable reserves up by 0.8% to 15.2 million ounces while resources decreased by 3% to 27.8 million ounces.

Randgold reserve and resource management executive Rod Quick said this was achieved through ongoing exploration and resource conversion.  “We are committed to replacing the ounces we mine through our ongoing brownfields exploration and drilling programmes,” he said. 

At Kibali in the DRC, total reserves decreased to 11 million ounces at 4.1g/t from 11.6 million ounces at 4g/t as a result depletion, partly offset by gains in underground reserve and the conversion of the Gorumbwa open pit resource to reserve.

At Loulo in Mali, reserves decreased to 4.9 million ounces due to mining depletion.  Drilling continues to test the depth and strike extensions of the two principal orebodies, Yalea and Gara, and is expected to deliver resource increases during 2015.  The neighbouring Gounkoto saw total reserves increase to over 3 million ounces on the back of the completion of the underground feasibility study which added 900 000 ounces to the reserve base.  There is still real potential to expand this reserve through ongoing drilling and optimisation work, said Quick.

In Côte d’Ivoire, Tongon’s resources were increased and reserves replenished by ongoing orebody gains from advanced grade control drilling within the pit.  Drilling continues to highlight the potential for further gains within and immediately below the current pit design which will be tested this year.

Chief executive Mark Bristow said that, unlike most of the gold mining industry, Randgold had not needed to write down its reserves and resources as the gold price dropped because it had calculated its reserves at $1 000/oz and its resources at $1 500/oz for the past four years.

“We have looked closely at all our mines to ensure that they will still be profitable at $1 000/oz and we’ll continue to review our operations against a range of gold price scenarios.  With the inclusion of Gounkoto underground we are now able to demonstrate a 10 year plan of plus 1 million ounce production per year and all our operations will be profitable at a $1 000/oz gold price which is unique in the industry,” he said.

RESOURCE AND RESERVE DECLARATION at 31 December 2014 (abridged)

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