In 2008, exploration concentrated on the extension of known orebodies and the discovery of new deposits both at producing mines and exploration sites. The company’s portfolio of projects covers some of the most prospective gold belts of West and East Africa and it has exploration programmes staffed by a team of 50 geologists in six countries, with 177 targets on 12 126 km² of groundholding.

1)Geologists examining drill core at Massawa in Senegal.

• In Senegal, at Massawa, Randgold Resources announced a significant new gold discovery during the year. Diamond drilling has delineated bedrock mineralisation over a distance of 7 kilometres of which 4 kilometres have been drilled to 100 metre by 50 metre spacing. Drilling continues to delineate the geometry of mineralisation and preliminary resource estimates are expected at the end of the first quarter of 2009.
  
• At Loulo, encouraging drill results have been received from Gounkoto and small oxide resources were defined and have subsequently been mined at Loulo 3. New exploration drilling on this target has confirmed continuous mineralisation over an 800 metre strike length with high grades open at depth.
  
• Following the successful consolidation of a 1 400 km2 land package in the Loulo district - straddling the highly prospective Senegal-Mali shear zone - a helicopter-borne VTEM electromagnetic and magnetic survey has been flown. This work has improved the geological and structural framework of the district and has highlighted large intrusive bodies, extensive folding and large scale boudinage structures. Weak anomalies were also detected over the orebodies and a number of look-alike responses along the known structures in the area are being studied. The interpretation also provided more information on the nature of the extensive iron alteration system in Senegal and across the border in Mali.
  
• At Morila, studies support a reduced intrusion-related gold system and conceptual models have been generated for targets at Sirakoro, SW Extension, Eastern Margin and Morila Deeps which require deep diamond drill holes to test.
  
• In Côte d'Ivoire, following the successful conversion of resources to reserves at Tongon, the exploration emphasis has shifted to the discovery of new ounces close to the existing orebodies, as well as the development of targets further afield.
  
• In Burkina Faso, physical exploration has been deferred and the focus has been on completing an updated geological estimate for the Kiaka deposit, which yielded 81.58 Mt at 1.01g/t for 2.65 Moz on uncut data. Gravity and heap leach testwork suggests a recovery of 67% while cyanide leach testwork increases this to above 80%. This data is now being integrated into an updated scoping study in order to make a decision on how to proceed with the project.
  
• During 2009 exploration will concentrate on three strategic areas:
  
  • Completing a scoping study at Massawa for a decision to complete a feasibility study.
    
  • Adding to the resource base at Tongon through the evaluation of satellite targets in the Nielle permit.
  • Targeting a new discovery in the Loulo district.
    
    

The company has deferred field exploration in Ghana, Burkina Faso and Tanzania while it evaluates new opportunities which have arisen as a result of the global economic slowdown.

 

2)Exploration drilling on Loulo permit in Mali.

MALI

LOULO
With the resource conversion work at both the Yalea and Gara orebodies complete, exploration concentrated on a two stage strategy:

• Providing above ROM grade, open pittable oxide ounces inside a 10 kilometre radius of the plant site.
  
• Evaluation of targets within the greater lease area (372 km2) and district to make a new discovery.
  
  

Gounkoto, a new target identified from electromagnetic data, is located in the southern part of the Loulo mining permit to the north of Faraba. The target is underlain by a 2 kilometre long north-northwest trending plus 30ppb gold in soil anomaly. Initial follow up work consisted of lithosampling which returned a number of strongly mineralised results (24.6g/t, 83.8g/t, 48.6g/t and 7.3g/t). These locations were subsequently trenched and results confirmed the prospectivity of the target (FRT03: 9.70 metres at 15.26g/t and FRT05: 35.75 metres at 10.66g/t). Two reconnaissance diamond drill holes were completed to provide information on the bedrock geology, structure, alteration and mineralisation to help assess the potential of this target.

FRDH01 was drilled under FRT05 and intersected 46.60 metres at 13.63g/t from 65.70 metres (including 7.40 metres at 13.78g/t from 65.70 metres and 14 metres at 33.40g/t from 95 metres). FRDH02, drilled beneath FRT03, returned 5.80 metres at 2.55g/t.

Both drill holes intersected strong brittle-ductile deformed rocks with intense alteration and sulphide (pyrite) mineralisation. RAB drilling, as further follow up, confirms bedrock mineralisation along a 1.3 kilometre north-northwest trending structural corridor, which is open in all directions. Trenching and geological modelling are in progress, which will lead to future drill motivations.

At Toronto, exploration has so far identified a 1 kilometre long structure based on anomalous intersections from RAB drilling, pitting and a trench which returned 28 metres at 1.25g/t. Mineralisation is hosted in pink, altered quartzites and shearbreccias which dip at a low angle (40°) to the east. The main structure, which strikes between 350° and 020°, is intersected by both northeast and northwest structures and there are prominent quartz tourmaline units within the corridor.

Baboto is part of a more than 5 kilometre mineralised structure which hosts the known targets of Baboto South, Central and North. During the year 4 400 metres of RAB drilling, along 16 lines, were completed. The purpose of this programme was to further extend the known targets at Baboto. Weakly mineralised results, including a best intersection of 24 metres at 1.21g/t extended the Baboto South target by an additional 600 metres of strike to the north. At Baboto Centre mineralisation has been extended by a further 100 metres, with best results of 30 metres at 2.15g/t and 21 metres at 2.93g/t. Two diamond holes were drilled to follow up the RAB results on the Central target. BADH027 returned 1 metre at 5.01g/t from 273 metres and BADH028 returned 1 metre at 1.69g/t from 160 metres.

Despite extensive work at Baboto over the past two years we have been unable to identify above ROM grade mineralisation with the average being less than 2g/t gold. While the target area represents a large mineralised structure, albeit at low grade, we have placed short term exploration on hold in order to explore targets with the potential for higher grades.

Regional work
Following the successful implementation of the ground consolidation strategy in the Loulo district a VTEM airborne electromagnetic (AEM) and magnetic survey was flown over the area. Interpretation of this data is continuing to develop new ideas and identify zones of interest across the district. A number of faint linear anomalies in the data coincide with known mineralised structures on the permit as well as the Gara and Yalea orebodies. Interpretation is identifying new structural domains, the presence of deep intrusives and improved geological control. A prospectivity analysis is being conducted to prioritise targets for follow up work across the greater Loulo district. Kolya and Mananord targets in the Bambadji permit are at the head of the queue. Kolya is a 2 kilometre long, folded and quartz veined quartz tourmaline unit similar to Gara. Previously this target was tested by 4 RC holes, all returning gold mineralisation (4 metres at 1.40g/t, 6 metres at 3.60g/t, 3 metres at 2.50g/t and 5 metres at 3.94g/t). Mananord is a 8.7 kilometre long structural corridor, anomalous in gold, with contrasting geological units and intrusives. Very little follow up work has been conducted and RAB drilling has started on both target areas to delineate locations for reconnaissance diamond drilling in 2009.

Morila exploitation lease
At Morila, integration of all data sets shows the deposit to have characteristics which include post-collisional mineralisation, arc-related magmatic signatures, the presence of a low-pressure contact metamorphic aureole, structural and lithological controls on mineralisation. This all supports a reduced intrusion-related gold system (RIRGS). The intrusives at Morila define two distinct magma series:

• A high-K, high-Ti calc-alkaline suite.
• A normal medium-K, calc-alkaline suite represented by composite dioritetonalite- granodiorite-granite intrusions.
  

Conceptual models have been generated for targets at Sirakoro, SW Extension, Eastern Margin and Morila Deeps which require deep diamond drill holes to test.

Southern Mali
The Southern Mali region is a highly prospective terrain as shown by the discoveries of the Morila and Syama deposits. The entire region is heavily lateritised, however, and rock outcrop is very limited. The most obvious regional soil geochemical anomalies have been investigated and no recent discoveries have been made in the region. We continue with generative programmes and the development of conceptual ideas. As part of the regional programme our teams have prioritised areas of interest and carried out a number of due diligence reviews.

3)David Mbaye (left), Senegal country manager, reviewing geological plans with geologists on the Bambadji project.

SENEGAL
Randgold Resources made a significant new gold discovery at Massawa during 2008. The Massawa target was first identified in 2007 and is located on the Main Transcurrent Shear Zone (MTZ) at the contact between the Mako volcanic belt and the Dalama sedimentary basin, in the Kounemba permit. During the course of 2008 a total of 58 diamond holes for 11 500 metres were drilled to further evaluate the target and delineate the geometry of gold mineralisation.

The host rocks which underlie the target comprise a sequence of intermediate volcaniclastics (lapilli tuff with angular lithic fragments of different sizes and compositions, tuff, ash-tuff, and fine-grained carbonaceous ash-tuff) and sedimentary rocks composed of lithic grit, greywacke, lithic quartzwacke and carbonaceous shale. The bedding strikes 020o, dips 60o to 76o to the west. Graded-bedding is common and suggests the sequence is overturned.

Mineralisation locates in various lithologies but is structurally controlled. There are varying degrees to the intensity of alteration (silica-carbonate-sericite pyritearsenopyrite) and locally brecciation and brittle fracturing are associated with the gold mineralisation. To date two main zones have been defined: a Central Zone and a Northern Zone. Within these zones there are multiple mineralised lodes but the principal lode in each zone is defined below:

Central Zone 1: 22.68 metres at 2.03g/t over a strike length of 983 metres (based on 13 holes). Mineralisation is associated with an altered and sulphidised gabbro, which has intruded along the main structure.

Central Zone 2: 13.29 metres at 2.59g/t over a strike length of 600 metres (based on 8 holes). Mineralisation is shear zone hosted; a lapilli tuff acts as a prominent marker horizon in the hangingwall of mineralisation.

The Northern Zone is shear zone hosted, at the contact between volcaniclastics and sediments. This has now been divided into two zones:

• Northern Zone 1: 8.74 metres at 2.84g/t over a strike length of 1.13 kilometres (based on 17 holes).
• Northern Zone 2: 11.30 metres at 6.37g/t over a strike length of 821 metres (based on 10 holes). Mineralisation in both zones is similar to the 600 metre shear zone hosted Central Zone.

The results from diamond drilling completed in 2008 are presented in the table below:

To date the mineralised system at Massawa extends over a distance of 7 kilometres of which 4 kilometres have been drilled to a 100 metre by 50 metre spacing. Mineralisation is open in all directions, especially along strike to the north, termed Lion Extension, where the last drill hole MWDH058 returned 12.25 metres at 3.50g/t, drilled below RAB hole MWRAB343: 42 metres at 7.60g/t. Further results from RAB drilling and rock chip sampling extend the potential in this area to an additional 1 kilometre to the north. Diamond drilling continues while an initial inferred resource estimate was completed on the above 4 kilometre strike producing an inferred resource of 36.76 Mt at a grade of 2.87g/t for gold content of 3.39 Moz. Preliminary metallurgical testwork has been completed and confirms sulphide recoveries of approximately 90%.

While the exploration work concentrated on Massawa during the year, the Mako Belt as a whole is highly prospective and in addition to Massawa there are a number of satellite targets requiring follow up exploration. These include the Bakan Corridor, Sofia and Delaya. However, Massawa remains our strategic priority.

CÔTE D’IVOIRE

Nielle
In Côte d’Ivoire, the resource conversion work has been completed at Tongon and the emphasis has now moved to evaluating satellite targets in the Nielle permit as well as testing the Tongon orebodies at depth. A twofold strategy has been implemented:

• Near mine targets, less than 10 kilometres from the plant site and within trucking distance. The priority is to evaluate targets which, although potentially small, have grades above ROM.
  
• Targets beyond 10 kilometres with the potential to become stand- alone operations.

In the Northern Zone, drill results highlight the potential for higher grade plunging lodes at depth, confirmed by hole TND140 which intersected 27.51 metres at 5.32g/t. The preliminary down-dip potential of the orebody has been tested with the completion of four deep diamond drill holes, to target 350 metres below the surface. The results are presented in the table below:

An additional hole, drilled between the two pits of the Northern Zone (TND236), returned a very encouraging intersection: 14.85 metres at 6.42g/t. This highlights further opportunities to increase the resource potential of the pits. At surface the structure is narrow and weakly mineralised.

Satellite targets
Preliminary exploration work has started on three targets, Tongon South, Tongon East and Poungbe. Desktop studies were also completed on Koulivogo, Yvette- Nafoun and Soloni which form the next level of targets for follow up, due to their favourable geology, structural setting and surface gold anomalism.

Reconnaissance diamond drilling was completed at Tongon East and Poungbe. At Tongon East, TED001 intersected 150 metres of strong alteration and pyrite mineralisation below a trench returning 61 metres at 2.09g/t. Gold assay results returned multiple intersections: 8.49 metres at 1.07g/t from 38.15 metres; 7.20 metres at 2.92g/t from 62.10 metres; and 8.20 metres at 1.83g/t from 82.25 metres. At Poungbe, two diamond drill holes, totalling 304 metres, were completed to test a 1.1 kilometre long anomalous in gold, structural corridor. PED001 returned 12.00 metres at 3.79g/t in saprolite from a volcaniclastic protolith. PED002 returned 19.32 metres at 0.65g/t from 76.93 metres and 4.55 metres at 1.64g/t from 81.15 metres. RAB drill programmes have been designed to test the broader target areas in the first quarter of 2009.

The Tongon South area is located approximately 6 kilometres southwest of the Tongon Southern Zone. Historical work by BHP Billiton and Randgold Resources included the completion of regional and detailed soil sampling over the area, the excavation of 235 pits and litho sampling. Gold mineralisation is largely hosted in quartz veins, and possible brittle fracturing with silicification close to a granodiorite-gabbro lithological boundary. Historical pitting and trenching over soil anomalies returned favourable results in particular in two trenches - TST002: 16 metres at 8.08g/t (including 6 metres at 19.64g/t in quartz veins) and TST004: 10 metres at 1.36g/t. An initial programme of RAB fence lines has been proposed to better delineate the target at surface prior to diamond drilling.

Boundiali
The Boundiali permit (1 314 km2) is located approximately 60 kilometres west of Nielle and is host to numerous gold in soil anomalies, which have seen little follow up exploration.

At Tiasso, five diamond drill holes totalling 1 397 metres were completed to test the depth potential under mineralised trenches, along a 2 kilometre strike length. From east to west the geology consists of argillite, carbonaceous shale, conglomerate, gabbro and volcaniclastic sediment. The gabbro is a sill which intrudes along the contact between a western volcanoclastic unit and an eastern conglomerate. Hydrothermal mineralisation is hosted in conglomerates which have been sheared and gabbro. Gold assay results returned narrow 2 to 10 metre zones of sub 1g/t and 1 metre high grade (5g/t to a maximum of 19.80g/t) from quartz veins. These results have lowered the prospectivity of Tiasso. However Sani is now taking the lead with positive trench results over 1.5 kilometres (15 metres at 3.25g/t, 14 metres at 3.10g/t and 4.0 metres at 1.38g/t) and together with the targets of Yelle, Fonondia and Koffre will be the focus of exploration programmes in 2009.

BURKINA FASO
In Burkina Faso, on the Kiaka target, a further six diamond drill holes for 2 805 metres were completed testing upside models to the main and hangingwall zones of mineralisation.

The stratigraphy of the deposit, from west to east, consists of quartz garnet mica schist, quartz feldspar schist, amphibolite and quartz biotite schist. There are local intercalations of graphitic layers. These sequences have been intruded by gabbro in the northern and southern corner of the deposit. All these rocks have been variably altered and mineralised. Late mafic sills intrude the lithologies creating internal waste.

Gold mineralisation at Kiaka is low grade, associated with a broad alteration system (silica-biotite-chlorite), and pyrrhotite (85%), fine pyrite (9%) and arsenopyrite (4%). These sulphides can be disseminated or aligned with the fabric, with a possible paragenetic sequence being: Ilmenite Leucoxene + Rutile Arsenopyrite + Gold Pyrite Pyrrhotite + Chalcopyrite + Pendlandite.

Petrographic analysis and gold count by Microsearch CC (56 blocks of core and outcrop material) found that gold was mainly included within metamorphic minerals (hornblende and biotite).

While the entire Kiaka system covers a strike length of 2.85 kilometres, modelling has concentrated on the best intercepts of the Kiaka Main Zone, (0.75 kilometres of the total 1.25 kilometre strike length) and the Hangingwall Zone (0.65 kilometre strike length). An updated geological estimate has been calculated using the inverse distance method and has yielded 81.58 Mt at 1.01g/t for 2.65 Moz, on uncut data. Gravity and heap leach testwork suggests a recovery of 67%, while cyanide leach testwork increases this to above 80%. This project does not pass all the company’s filters for further investment and various options are being reviewed to bring it to account.

A 12 000 metre plus RAB drilling programme was also completed on targets within the Burkina Faso portfolio; the most encouraging of these are Limsega and Goulanda where broad 3 to 5 kilometre long anomalous corridors are being identified for follow up work.

GHANA
In Ghana, we have deferred field exploration work while we compare our portfolio of four permits (1 841 km²) against new opportunities.

Work during the year on targets within the Bole NE permit have delineated low grade bedrock mineralisation, associated with the intersection of northeast trending shears and folds within metasedimentary rocks; adjacent to a major regional structure. While no economic mineralisation has been discovered at surface, a conceptual model has been developed, that of a blind deposit associated with a folded lithological unit not exposed at surface and the gold anomalism represents the leakage from this buried mineralisation.

Stream sediment surveys were also completed on two new permits: Wuru and Tongo, both adjacent to the Bole permit in the north of the country. At Wuru, anomalous gold assay results (up to 2g/t) were returned from the sampling programme, along a 20 kilometre long by 20 kilometre wide volcano-sedimentary belt in association with the extension of the Markoye Fault from Burkina Faso. At Tongo, gold assay results returned an anomalous area measuring 10 kilometres by 6 kilometres, with a maximum value of 2.02g/t associated with a large regional fold within a metasedimentary unit wedged between basement granites.

TANZANIA
In Tanzania, we have returned the majority of our permits to the government or joint venture partners following extensive exploration. We are currently completing an updated generative study to highlight areas of interest for new permit applications or joint venture opportunities. The Southern Lake Victoria Goldfield, the Proterozoic mobile belts and new greenstone belts within the Craton are our focus of attention.

This data is also being integrated into a much bigger study incorporating the Central African region of the continent: Cameroon, Democratic Republic of Congo, Central African Republic, Uganda and Kenya.