Exploration Activities

Exploration continued to deliver on five key strategic areas during the first quarter of 2010:

Gounkoto: As well as delivering a positive prefeasibility study at the project, exploration drilling extended the mineralised system to over 2 kilometres in strike length and down to vertical depths of 500 metres. Several holes in the north of the deposit have confirmed a steep plunge to high grade mineralisation, returning: GKDH098 - 34.6 metres at 11.54g/t (from 158.40 metres), GKDH105 - 15.75 metres at 6.75g/t (from 319.45), GKDH106 - 19.00 metres at 11.35g/t (from 351 metres) and GKDH177 - 12.10 metres at 6.39 g/t (from 596.90 metres). To the south of the deposit an additional high grade zone was intersected at depth in hole GKDH200 - 8.78 metres at 8.05g/t (from 346.05 metres). The drilling to date suggests the presence of plunging oblate high grade zones. Future drilling is targeting these zones of increased dilation and fluid flow within the Gounkoto system, both at depth and along strike.  The project is now progressing to full feasibility which is due for completion by year end.

Gounkoto: Q1 diamond drill intersections

 

Gounkoto and the southern part of the Loulo permit is considered to be very prospective.  We have already defined inferred resources of 567 000 ounces at 2.6g/t at Faraba.  There is a potential small resource at P64 and bedrock mineralisation has been intersected at Toronto, Bandankoto and extensions to Faraba. An RC drill programme of 350 holes for 35 000 metres has commenced to test the advanced targets of Faraba, P64 and Toronto as well as a number of conceptual ideas beneath thick alluvial cover as well as the proposed mine infrastructure.

Loulo mine satellite deposits: In the north of the permit work continues to deliver new resource ounces in proximity to the plant.

At Loulo 3, exploration focused on the north extension area (exploration camp) and the Loulo 3 - Loulo 2 gap.  In the north extension, drilling confirmed the continuation of mineralisation to the northeast over a strike length of 650 metres and enabled the calculation of total resources for the Loulo 3 deposit, post dilution, of 2.99Mt at 3.58g/t for 344 505 ounces. 

This quarter’s drilling in the Loulo 2 - Loulo 3 gap intersected the Yalea structure and confirmed that Loulo 2 and Loulo 3 are essentially the same system, however most intersections returned weak anomalism, with the best intersection being 4 metres at 4.09g/t.  The interpretation from Loulo 3 suggests there are segments of the main mineralised structure which dip at shallower angles and as yet have not been fully tested. Several areas of stronger grade along the Yalea structure are present and are prioritised for further work, including Loulo 1 and a programme of deeper diamond drill holes in Q2.

At PQ10, RC drilling was completed over the western structure with 46 holes for 3 504 metres drilled over a strike length of 600 metres and returned a small but high grade oxide resource: 14 000 ounces at 3.8g/t. The drilling also indicates the system is open along strike particularly to the north where the host structure continues to the PQ10 North target.

To the north of the Gara orebody, on the same structure, a fold has been mapped along the continuation of the quartz tourmaline unit which hosts the Gara mineralisation but remains untested. Rock samples have been collected and reconnaissance drilling is being planned. Iron Hill provides an intriguing target, with a gold in soil anomaly coincident with an EM linear and a favourable geological setting, including limestone, intrusive and iron mineralisation. 

At Bambadji also within the Loulo district but in Senegal, detailed geological mapping, rock sampling and trenching was carried out on a number of targets across the permit.  A 3 000 metre RC programme was designed to follow-up on previously identified anomalism at Kolya-Kabewest, Baquata, Goldfinger-Kabetea, and Kach targets.  Drilling started in late March, and preliminary interpretations indicate that mineralisation is being intersected. At Kolya the work is confirming the continuity of the 5 kilometre long structure. At Baquata, RC drilling has delineated a mineralised folded quartz tourmaline unit as well as a northeast trending shear zone. Gold assays results are pending.

Massawa, Senegal: Deep drilling at the project has confirmed continuity of the lithological sequence, structure, alteration and gold mineralisation to a depth of 640 metres below the surface.  Results include: 17.15 metres at 3.49g/t, including 4 metres at 6g/t in the Central Zone and 29.20 metres at 3.75g/t, including 12.60 metres at 5.98g/t in North 1. The step out drilling, testing the mineralisation along strike, intersected the Massawa system and proved continuity of high grades 200 metres north of Lion Extension with 1.60 metres at 15.49g/t. In Massawa South drilling returned broad low grade intersections (MWDDH464 - 22.85 metres at 0.59g/t) but revealed a similar geological and alteration package as the Central Zone.

Massawa: Q1 diamond drill intersections

In proximity to Massawa, there are a number of targets which have had varying degrees of follow-up work completed on them, from trenching through RAB to diamond drilling, and all highlight the possibility of providing additional ounces, described below:  

•  The Main Transcurrent Shearzone (MTZ) not only hosts Massawa but also the targets of Delya some 12 kilometres to the north and Kwasara, 5.5 kilometres to the south of the Central Zone.  This forms 26 kilometres of strike potential.
  
• Immediately to the west of Massawa is the subparallel Bakan Corridor hosting the targets of Tiwana, Tina, Tizia, Khosa and Bakan. Preliminary trenching and RAB drilling have been completed confirming a bedrock gold source to soil anomalies.
  
• Sofia is part of a 7 kilometre anomalous North-South structural corridor which also hosts the Mikona, Majiva and Matiba targets within ground held by Randgold. So far 3.4 kilometres of strike have been tested by drilling, results return both broad low grade (44 metres at 2g/t) mineralisation and narrow high grade (6 metres at 9.5g/t) intercepts. At present the inter-hole spacing is 400 to 600 metres.
  
• At Bambaraya previous trenching and diamond drilling confirmed gold mineralisation: BBTR001 - 13.2 metres at 3.59g/t, BBTR002 - 18 metres at 2.93g/t, BBTR003 - 8 metres at 4.5g/t, BBTR004 - 12 metres at 4.06g/t and 4 metres at 5.48g/t, BBTR006 - 14 metres at 2.01g/t and 9.5 metres at 1.13g/t. BBTR010 - 16 metres at 1.70g/t, BBTR007 - 18 metres at 2.26g/t and BBDDH002 - 12 metres at 3.17g/t. Mineralisation is hosted within northeast trending pillow basalts and is associated with silica-sericite-tourmaline-iron carbonate-pyrite alteration, over a 1 kilometre strike extent. "
  
• Q2 will see a 20 000 metre plus RC drill programme aimed at testing these satellite targets.

Côte d’Ivoire: An airborne electromagnetic (EM) survey was flown over the Senoufo belt in Northern Côte d’Ivoire covering the permits of Nielle (host to Tongon), Diawala and Fapoha. The data is generating a much improved geological and structural model for the belt and together with additional geological layers is advancing the follow-up of targets around the Tongon orebodies. Seydou-Jubula is currently showing the most promise where a second trench has returned: 16.5 metres at 3.52g/t, this was in follow-up to trench 1 which returned 19 metres at 5.32g/t. A 15 000 metre RAB drilling programme has started to further advance this target together with other targets.

The geological advancement of the Kibali project: Infill drilling both at the base of the KCD pit and at depth testing underground lodes confirmed the geological model and upside potential to add further resources: DDD350 - 71 metres at 3.52g/t (from 382 metres), DDD359 - 91 metres at 5.90g/t (from 445 metres) and DDD375 - 12 metres at 5.57g/t from 626 metres). 

Within the KCD open pit, the present model is a broad envelope based on a 0.3g/t cut off, however following the relogging of 163 bore holes on 17 cross sections over a strike length of 860 metres, nine individual lodes have now been defined.

Analysis of the Sesengue to KCD drill data identified a potential 800 metre gap not previously identified. This gap locates in proximity to the old Durba mill and Okimo underground workings. Phase 1 reconnaissance diamond drilling has commenced to test this area and the first boreholes have intersected minersalisation, in varying thicknesses from 4 to 47 metres, gold assay results are pending.

Kibali: Q1 diamond drill intersections