Quarterly Report 30 June 2007
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Quarterly Report 30 June 2007
EXPLORATION ACTIVITIES
It was a very busy quarter in exploration with 10 drill rigs operating in five countries. While Loulo has always been Randgold Resources' most prospective region, and continues to be so, it is now getting some serious competition from other areas in the company's portfolio, namely Senegal, Burkina Faso, Tanzania and most importantly the Côte d'Ivoire.
At Gara South, deep drilling continued and has outlined additional underground resources of 400 000 ounces at 4.9g/t and the orebody has now been confirmed to vertical depths of almost 700 metres below the surface and is still open.
Gara South : deep drillhole intersections Q2 - 2007
| |
From |
To |
Width |
Grade |
True width |
|
| Hole Id |
(m) |
(m) |
(g/t) |
(m) |
Including | |
| L0CP122 |
82.00 |
88.90 |
6.90 |
7.21 |
4.13 |
|
| 434.50 |
450.95 |
16.45 |
4.05 |
12.74 |
6.72m @ 7.44g/t | |
| LOCP127 |
562.70 |
572.22 |
9.52 |
6.69 |
8.22 |
3.07m @ 17.02g/t |
| LOCP129 |
835.90 |
849.10 |
13.20 |
4.80 |
9.38 |
3.50m@ 14.09g/t |
| 860.00 |
866.30 |
6.30 |
4.08 |
4.48 |
| |
| LOCP130 |
741.00 |
744.80 |
3.80 |
2.42 |
2.45 |
|
| 752.15 |
756.40 |
4.25 |
1.44 |
3.49 |
| |
| LOCP132 |
656.30 |
660.20 |
3.90 |
17.92 |
2.96 |
1.20m @ 58.80g/t |
At Faraba, also on the Loulo permit, drilling in the gap area between the main and northern zones has returned multiple mineralised intercepts, the best of which includes FADH015: 13.32 metres at 3.96g/t and 10.55 metres 8.68g/t and FADH019: 4.28 metres at 8.67g/t. Drill hole FADH018 drilled at Bandankoto, some 1.5 kilometres south of the main zone, on the same structure returned, amongst other intercepts, 24.12 metres at 2.16g/t. The drilling has extended the bedrock footprint of mineralisation to 3 kilometres and work is progressing to connect these zones, which are still separated due to the sheer size of the structure. Further afield in the Faraba area, a regional RAB programme has targeted surface gold anomalies and conceptual targets associated with prospective structures along the Faraba-P64 shear corridor. This programme has so far returned anomalous intersections at nine different targets and results are still being received.
Elsewhere in the Loulo permit, additional diamond drilling at Baboto is developing the structural and geological framework. At Yalea South, diamond drilling on conceptual targets intersected gold mineralisation associated with fractured quartzites with YSDH06 returning 5 metres at 4.86g/t. Diamond drilling along the P125 to Baboto structure returned 6 metres at 8.66g/t close to surface and at 185.90 metres a 44 metre wide zone of sheared silica-carbonate altered breccia returned 7 metres at 2.91g/t from 208 metres in borehole L3DH26.
In Senegal 9 203 metres of RAB drilling was completed, testing eight targets, and has been followed up by 2 660 metres of diamond drilling on three targets. The positive RAB results at Massawa have been confirmed by seven diamond holes which have now delineated bedrock mineralisation over three kilometres. The results are presented in the table below. Mineralisation locates in various lithologies (sediments, mafic volcanics and porphyries) but is structurally controlled with a prominent hangingwall and footwall structure, often graphitic. There are varying degrees to the intensity of alteration (silica-carbonate-sericite-pyrite-arsenopyrite) and locally brecciation and brittle fracturing are associated with the gold mineralisation.
Massawa : diamond drillhole results Q2 - 2007
| From |
To |
Width |
Grade |
||
| Hole Id |
(m) |
(m) |
(m) |
(g/t) |
Including |
| MWDDH001 |
67.02 |
82.45 |
15.43 |
1.59 |
|
| |
118.55 |
122.90 |
4.35 |
6.71 |
|
| |
132.93 |
138.50 |
5.57 |
8.80 |
|
| MWDDH002 |
108.20 |
112.20 |
4.00 |
1.47 |
|
| |
135.94 |
148.10 |
12.16 |
2.90 |
|
| MWDDH003 |
78.00 |
87.30 |
9.30 |
3.80 |
|
| |
94.04 |
100.00 |
5.96 |
5.47 |
|
| |
131.80 |
140.50 |
8.70 |
2.60 |
|
| MWDDH004 |
140.62 |
143.70 |
3.08 |
1.60 |
|
| MWDDH005 |
102.00 |
105.40 |
3.40 |
2.70 |
|
| |
137.00 |
146.52 |
9.52 |
6.90 |
2.07m @ 28.40g/t |
| MWDDH006 |
104.50 |
115.09 |
10.59 |
1.68 |
|
| |
132.45 |
148.58 |
16.13 |
4.10 |
|
| |
176.50 |
178.50 |
2.00 |
2.45 |
|
| |
240.05 |
262.00 |
21.95 |
1.74 |
7.45m @ 3.31g/t |
| MWDDH007 |
156.00 |
183.32 |
27.32 |
5.80 |
1.00m @ 95.50 g/t |
| |
1.10m @ 32.30 g/t | ||||
| |
217.20 |
237.00 |
19.80 |
1.15 |
|
| |
306.00 |
308.00 |
2.00 |
3.59 |
|
At Bambaraya, drilling did not confirm the potential of this target and no further work will be carried out there. Further diamond drilling was postponed at Sofia and Delaya pending RAB drilling on the two respective corridors. A joint venture has been concluded with IAMGOLD on their 343km2 Bambadji permit, adjacent to Loulo and consolidates our groundholding in that region. Randgold Resources has the option to earn a 51% in the project by funding and completing a prefeasibility study. Following the prefeasibility study, IAMGOLD can retain a 49% stake in the project by co-funding a full feasibility study or dilute to a 35% stake. A team is on the ground completing geological traverses to develop an interpretation of the Senegal - Malian structural corridor and includes a 25 by 5 kilometre gold in soil anomaly which has seen very little drilling. This will lead on to a target generation phase and the design of field programmes for commencement in the final quarter of the year.
In Burkina Faso, on the Kiaka target a geological estimate of 2 million ounces at approximately 1g/t has been calculated confirming the large tonnage, low grade, bulk mineable nature of the target. New results for the quarter include KDH015: 202 metres at 0.76g/t, KDH016: 201 metres at 0.81g/t and KDH017: 166 metres at 1.26g/t. An economic scoping study is being completing including metallurgy, pit optimisations and financial analysis.
In Ghana, we now have an established portfolio of defined gold in soil and gold in rock targets. Follow-up work on the Bole permit has returned multiple 1 to 5 kilometre long gold in soil anomalies along a 14 kilometre structural corridor. The team is now busy with preliminary trenching prior to possible RAB drilling in the final quarter of the year.
In Côte d'Ivoire, Randgold Resources continues to make progress with the feasibility drilling at Tongon and by quarter end an additional 39 diamond drill holes for 9 150 metres had been completed (24 holes for 4 100 metres in the northern zone and 15 holes for 5 030 metres in the southern zone). This brings the total drilling to 69 holes for 14 600 metres out of the planned 30 000 metre programme. Drilling will continue during July, but will then break for two months due to the annual wet season. This will enable the completion of the updated scoping study, including new geological and resource models.
The main shear zone in the northern zone has now been defined over a 2.2 kilometre strike, trends 250° - 260° and dips 80° - 70° northwest. It is represented by wide zones of pervasively foliated and altered mafic volcaniclastics. The mineralisation locates between a hangingwall and footwall shear which are both commonly graphitic. The mineralised zone is associated with increased silicification, sulphidation and fine brecciation. The results received during the quarter are presented in the table below. In addition four deep holes are in the process of being drilled to test for depth continuity, at this stage to 250 vertical metres; the first hole cut 50 metres of mineralisation between two graphitic shears, results are pending.
Tongon northern zone : diamond drillhole results Q2 - 2007
| |
From |
To |
Width |
Grade |
|
| Hole Id |
(m) | (m) | (m) |
(g/t) |
Including |
| TND 065 |
73.92 |
79.39 |
5.47 |
2.21 |
|
| TND 066 |
123.17 |
130.07 |
6.90 |
1.43 |
|
| TND 067 |
93.03 |
94.87 |
1.84 |
2.96 |
|
| TND 068 |
101.61 |
109.41 |
7.80 |
1.27 |
|
| 121.00 |
125.00 |
4.00 |
4.58 |
||
| 128.43 |
134.21 |
5.78 |
1.10 |
| |
| TND 069 |
138.36 |
141.33 |
2.97 |
18.99 |
|
| TND 070 |
39.50 |
46.00 |
3.60 |
1.18 |
|
| 56.50 |
67.09 |
10.59 |
1.60 |
||
| 79.07 |
81.40 |
2.33 |
3.66 |
||
| 94.94 |
100.00 |
5.06 |
2.03 |
||
| 105.77 |
110.00 |
4.23 |
0.76 |
| |
| TND 071 |
26.50 |
32.00 |
5.50 |
1.11 |
|
| 37.35 |
47.02 |
9.67 |
0.90 |
||
| 51.00 |
53.00 |
2.00 |
2.26 |
||
| 61.75 |
68.15 |
6.40 |
0.51 |
| |
| TND 072 |
86.72 |
93.09 |
6.37 |
1.59 |
|
| 95.78 |
108.09 |
12.31 |
2.84 |
| |
| TND 074 |
90.00 |
112.20 |
22.20 |
|
|
| TND 075 |
46.00 |
50.00 |
4.00 |
1.47 |
|
| 67.00 |
82.95 |
15.95 |
1.25 |
| |
| TND 103 |
47.50 |
57.36 |
9.86 |
2.16 |
|
| 77.83 |
86.34 |
8.51 |
1.09 |
||
| 120.02 |
125.77 |
5.75 |
1.17 |
| |
| TND 104 |
135.50 |
158.20 |
22.70 |
3.00 |
8.71m @ 5.47g/t |
| TND 105 |
126.05 |
141.69 |
15.64 |
3.27 |
3.60m @ 9.62g/t |
| TND 106 |
99.48 |
115.55 |
16.07 |
0.91 |
|
| TND 107 |
98.06 |
114.63 |
16.57 |
3.26 |
|
| TND 108 |
92.69 |
113.24 |
20.55 |
3.46 |
|
| TND 109 |
83.35 |
109.05 |
25.70 |
3.39 |
7.30m @ 5.61g/t |
| TND 110 |
137.32 |
160.30 |
22.98 |
1.41 |
|
| 164.00 |
178.00 |
14.00 |
1.77 |
The southern zone is more geologically complex with multiple zones trending in a 045° - 050° direction with variable dips from 75° - 60° to the northwest. Drilling has confirmed continuous mineralisation over a 2 kilometre strike length which is open in all directions. The ore zones appear lensoid in shape and thus their strike and depth continuity are variable. The mineralised zones are hosted within quartz and shear bounded, northwest dipping, brecciated volcaniclastic zones.
The results received during the quarter are presented in the table below.
Tongon southern zone : diamond drillhole results Q2 - 2007
| |
From |
To |
Width |
Grade |
|
| Hole Id |
(m) | (m) | (m) |
(g/t) |
Including |
| TND 078 |
92.67 |
106.11 |
13.44 |
1.63 |
5.12m @ 3.12g/t |
| |
120.15 |
124.56 |
4.41 |
2.71 |
|
| |
133.25 |
136.00 |
3.35 |
22.77 |
1.20m @ 62.00g/t |
| |
175.10 |
214.55 |
39.45 |
2.12 |
|
| TND 079 |
192.43 |
203.81 |
11.38 |
2.49 |
|
| TND 080 |
84.55 |
87.16 |
2.61 |
1.10 |
|
| 139.00 |
141.12 |
2.12 |
5.64 |
||
| 182.50 |
184.25 |
1.75 |
8.49 |
||
| 189.48 |
198.95 |
9.47 |
2.09 |
||
| 202.21 |
206.60 |
4.39 |
1.11 |
||
| 209.62 |
216.17 |
6.55 |
2.30 |
||
| |
228.66 |
232.43 |
3.77 |
8.70 |
|
| TND 081 |
224.85 |
239.44 |
14.59 |
1.46 |
|
| TND 082 |
106.15 |
113.86 |
7.71 |
3.01 |
|
| 134.10 |
137.14 |
3.04 |
0.99 |
||
| 251.19 |
253.37 |
2.18 |
5.91 |
||
| |
259.80 |
261.71 |
1.91 |
2.11 |
|
| TND 083 |
150.36 |
155.21 |
4.85 |
2.80 |
|
| 233.16 |
239.95 |
6.79 |
5.52 |
4.39m @ 8.13g/t | |
| |
249.55 |
255.10 |
5.55 |
4.86 |
|
| TND 085 |
164.14 |
165.40 |
1.26 |
5.30 |
|
| 190.84 |
194.24 |
3.40 |
1.38 |
||
| 205.65 |
216.58 |
10.93 |
3.14 |
||
| 220.11 |
228.96 |
8.85 |
1.57 |
||
| 239.84 |
243.14 |
3.30 |
7.72 |
||
| 278.10 |
282.15 |
4.05 |
8.46 |
||
| |
296.10 |
297.70 |
1.60 |
2.91 |
|
| TND 086 |
140.42 |
143.60 |
3.18 |
2.00 |
|
| 153.66 |
205.77 |
52.11 |
3.91 |
14.76m @ 4.98g/t | |
| |
24.12m @ 4.47g/t | ||||
| 221.40 |
226.71 |
5.31 |
4.67 |
||
| 235.98 |
259.31 |
23.33 |
3.98 |
8.08m @ 5.98g/t | |
| 303.91 |
307.04 |
3.13 |
5.58 |
||
| |
317.37 |
333.48 |
16.11 |
3.05 |
8.52m @ 4.62g/t |
| TND 087 |
134.04 |
140.40 |
6.36 |
1.24 |
|
| 151.80 |
154.61 |
2.81 |
1.87 |
||
| 161.30 |
165.55 |
4.25 |
2.09 |
||
| 180.20 |
188.30 |
8.10 |
1.29 |
||
| |
253.80 |
266.86 |
13.06 |
2.48 |
|
| TND 091 |
96.00 |
107.65 |
11.65 |
4.45 |
9.00m @ 5.20g/t |
| 119.00 |
121.00 |
2.00 |
0.10 |
||
| 132.10 |
144.60 |
12.50 |
3.06 |
||
| 159.08 |
170.10 |
11.02 |
4.14 |
||
| 204.00 |
209.00 |
5.00 |
1.50 |
||
| |
259.30 |
268.60 |
9.30 |
2.52 |
|
| TND 092 |
110.15 |
118.30 |
8.15 |
2.48 |
|
| 154.20 |
162.10 |
7.90 |
1.97 |
||
| 184.00 |
189.40 |
5.40 |
1.01 |
||
| 250.00 |
262.30 |
12.30 |
2.53 |
||
| |
274.00 |
292.60 |
18.60 |
2.26 |
|
In addition to the feasibility drilling a review of 19 targets within the Nielle permit has been completed and highlighted 12 targets for follow-up work. Tongon East is the highest priority; the target is characterised by a strong surface gold geochemical anomaly, 1 kilometre long at plus 500ppb and so far has been tested by two trenches; TST002: 16 metres at 8.37g/t and TST004: 6 metres at 2.06g/t, 2 metres at 12.86g/t and 4 metres at 2.10g/t.
In Tanzania following the conclusion of the Miyabi joint venture with African Eagle, diamond drilling commenced on the first of two regional lines across a 7 by 2 kilometre northeast trending soil anomaly, which already hosts resources of 520 000 ounces at 1.3g/t. Results are pending.
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