EXPLORATION ACTIVITIES

The first quarter of 2008 has seen the exploration teams making the most of the dry season across both West and East Africa by advancing their projects as per the strategic objectives.

In Senegal, at Massawa, a new phase of diamond drilling confirmed the continuity of mineralisation and the presence of coarse visible gold, while further surface exploration including soil sampling and RAB drilling has extended the target from 2.8 kilometres to over 6 kilometres in strike length. Geologically the target is underlain by a sequence of overturned sediments and volcanics, which have been intruded by felsic dykes, gabbros and granitic bodies. Mineralisation locates in various lithologies (sediments and porphyries) but is structurally controlled with a prominent hangingwall and footwall structure, exploiting carbonaceous sedimentary units. 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. The table below details the results received from the latest phase of diamond drilling, which has so far concentrated along a 1 kilometre segment of the overall 6 kilometre mineralised structure:
 

In addition to Massawa in Senegal, exploration work has been continuing on adjacent satellite targets within the Bakan Corridor where RAB drilling on the Tiwana target has defined a continuous zone of low grade gold mineralisation along a 2.2 kilometre strike. At Sofia, RAB drilling has now defined two approximately 2 kilometre long targets for additional diamond drilling.

At Loulo the first quarter has been relatively quiet as the airborne EM survey was flown over the 1 400km² consolidated groundholding in the Loulo district. The data is now being processed and modelled. Early observations of the raw data indicate that the survey provides a more detailed structural and geological framework, clearly defines the Senegal-Mali shear zone, folding, the intersection of north east and north south structures, which play a key role in controlling gold mineralisation, and a number of large intrusives. The data is currently with external consultants to complete a detailed interpretation and three dimensional modelling which will incorporate all of the geological and drill data; this will enable a detailed target generation study, which will drive future exploration programmes.

At Morila, Randgold Resources’ team has started reviewing and validating all of the exploration and mining data in order to develop an exploration model for drill testing in Q4. This recent work reveals the orebody relates to a north west shear system and the development of an overturned fold at the contact between fine and coarser grained sediments. These may be unconformable and marked by a mafic volcanic unit as defined by the geochemical and petrographic studies. Granodiorite and tonalitic igneous intrusions played a key role in creating the heat flow and driving the hydrothermal cell. The extension of this target to the east is considered to be a high priority.

In Mali South, work has focused on reconnaissance RAB drilling of the Bagoe East and Bagoe West permits held in joint venture with African Gold Group (AGG). These permits cover prospective Morila-type settings along the Banifin shear zone in close proximity to the Morila deposit. Gold mineralisation is associated with splay structures from the main shear, anticlinal folds and granitic intrusions.

In Burkina Faso at Kiaka, preparations are underway to drill test the possible extension to mineralisation along the axis of a plunging anticline to the north where the last diamond hole returned KDH013 returned 166 metres at 1.26g/t. In addition, a 10 000 metre RAB drilling programme is underway to evaluate regional targets. Of these Limsega is the most advanced where exploration has identified a 3.4 kilometre long anomalous gold in soil structural corridor. Trenching has returned a best intercept of 22 metres at 2.27g/t, including 10 metres at 3.71 g/t.

In Ghana, work on the Bole NE concession has identified five targets for follow-up work. All targets are associated with parasitic folds on the limbs of a much larger regional anticline and shear structures have been mapped along the fold limbs. Gold mineralisation concentrates in the hinge zone of the folds and within the shears associated quartz veins and silica-sericite alteration zones. Trenching is underway in preparation for RAB drilling during Q2.

In Côte d’Ivoire, great progress has been made at Tongon in the conversion of in pit resources to reserves. While this programme continues, deeper drilling on both deposits is also underway to test the continuation of high grade plunging shoots. Randgold Resources also has drill motivations prepared for Tongon East, South and Poungbe satellite targets within the Nielle permit and preparations are underway to re-establish a base at the Boundiali permit, 100 kilometres to the west of Nielle, where Randgold Resources has the advanced target of Tiasso waiting to be drilled. This target is characterised by a 2 kilometre long gold in soil anomaly which was previously tested by five trenches. Of these, three returned encouraging results: TAT001 - 25 metres at 4.39g/t; TAT003 - 8 metres at 2.78g/t; TAT004 - 14 metres at 2.66g/t, 4 metres at 25.98g/t and 10 metres at 1.49g/t.

In Tanzania, RAB drilling has been completed on targets along a 20 kilometre north west trending structural corridor at Miyabi, in joint venture with African Eagle, where results are pending. Following the granting of permits in the Proterozoic mobile belt surrounding the Archaean craton soil sampling and mapping have been completed. Gold mineralisation is hosted in highly deformed and silicified metamorphosed rock units above a major thrust. The units consist of thinly bedded impure marble and biotite gneiss/granulite.