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Loulo Underground Project
LSE: RRS NASDAQ: GOLD

Loulo Underground Development Project


Yalea mine

The Yalea underground mine produced a total of 158 944 tonnes of ore at 4.30g/t during the first quarter of 2010, a 41% improvement on the previous quarter.

A total of 1 611 metres was developed during the quarter, 42% more than that achieved in Q4 2009. The twin declines were advanced by a total of 302 metres, 5% more than that advanced in the previous quarter. Development rates are trending upwards, with the highest developed metres per day of 37.5 metres this year recorded at the end of March, whilst the operation is starting to see more consistency in its delivery. The Yalea declines have now been advanced for a total distance of 1 592 metres and 264 metres vertical from surface.

Main production achievements were the starting of 013L and 038L stoping as well as finalising the stoping on 046L and 066L.  In addition, the development of the next stoping block on 063L and 088L has commenced.

Improvements in safety standards and housekeeping continue to be effected.  Furthermore, training has been increased to provide more multi-skilled employees for the trackless fleet. The integration of previous contractor resourced teams with the Yalea underground team has resulted in a single mining unit.


Gara mine

Another important milestone was reached when, on 31 March 2010, the first round was blasted at Randgold’s new Gara underground mine.

The initial development contract for Gara has been awarded to African Underground Mining Services (AUMS), a 50/50 joint venture between Ausdrill and Barminco.

Gara underground mine will be accessed via twin decline tunnels similar to those employed at its sister mine, Yalea. Incorporated in the design is a vehicle decline for men, machinery and material as well as a conveyor decline which will be equipped with 450tph capacity conveyor for the transporting of both ore and waste to surface. Both declines will be developed 5 metres wide by 5 metres high, descending at an inclination of  -9.5° and will have straight sections of 550 metres, which coincides with the design length of one section of conveyor belt. Provision has been made for ore and waste passes at the ends of all switchbacks in the declines, which will give the mine flexibility in terms of ore and waste rock storage capacity.

The twin decline development is scheduled to commence in the second quarter, after the portal construction has been completed, and is expected to reach the first ore from development in December 2010.

Ore will be mined at Gara by means of a variation of Sub Level Open Stoping. The mined out stopes will be supported with backfill in the form of concrete sill pillars on drawpoint levels and waste rock fill from underground development and open pit sources.

The mine is expected to start stoping operations in Q3 2011 and build up to producing approximately 100 000 tonnes per month from Q1 2012 onwards.