London, 30 July 2007 - Randgold Resources (LSE:RRS) (Nasdaq:GOLD) and IAMGOLD Corporation ('IAMGOLD') have concluded a joint venture agreement on IAMGOLD's Bambadji gold project in eastern Senegal. The 343 km² Bambadji permit is adjacent to Randgold Resource's Loulo mining complex across the border in Mali.
In terms of the agreement, Randgold Resources will earn a 51% stake in IAMGOLD's interest in the project by funding and completing a pre-feasibility study. IAMGOLD can then retain a 49% interest by co-funding a full feasibility study or dilute to 35% by letting Randgold Resources provide the full funding. Randgold Resources chief executive Mark Bristow said the agreement extended and consolidated the company's groundholding in the Loulo region, which it believed to be one of the most prospective gold exploration areas in the world at present.
"Past exploration on Bambadji has indicated the presence of favourable geology, geochemical anomalies and gold mineralisation with strong similarities to the Loulo project area. We already have a team there completing an interpretation of the Senegal-Mali structural corridor, which includes a 25 by 5 kilometre gold in soil anomaly that has seen very little drilling. The next phase will be target generation and the design of field exploration programmes to start in the last quarter of this year," he said.