An updated geological mineral resource and mineral reserve estimate was completed during the quarter as part of the prefeasibility. The infill drilling has resulted in some changes to the geological model including:

• extension along strike and depth;
  
• the thinning of the model in the centre of the orebody; 
  
• interpretation of a thrust block of waste over the northern portion of the orebody;
  
• the delineation of moderate results near surface with the better grades being reported at depth limiting the depth of the US$700/oz reserve pit.

These changes have resulted in a higher strip ratio than in the original scoping study, which currently restricts the mineral resource and mineral reserve pits from extending to the base of the mineral resource model.  The ore beneath the US$1 000/oz resource pit is steeply dipping with good continuity and grade at depth resulting in additional underground mineral resources being defined.

The open pit mineral resources have been defined as those falling within a US$1 000/oz pit, while inferred underground mineral resources are those below the pit shell at a 2g/t cut-off as summarised in the table below. 

 
*  Attributable gold (Moz) refers to the quantity attributable to Randgold based on Randgold's 80% interest in the Loulo project. 

Open pit mineral resources are reported as teh insitu mineral resources at a 0g/t cutt-off falling within the US$1 000/oz pit shell.

Underground mineral resources are those insitu mineral resources below the US$1 000/oz pit shell reported at a 2g/t cut-off.


An open pit optimisation and pit design was carried out with the following parameters :

• US$2.74/tonne LOM mining cost;
  
• US$19/tonne processing cost;
  
• US$3.50/tonne administration cost;
  
• 95%, 93% and 91% metallurgical recovery for oxide, transition and fresh ore assuming a simple process of crush, mill and cyanide leach;
  
• slope angles of 40 degree in oxide and 45 degree in hard rock;  and
  
• 10% dilution and 3% ore loss.

The following open pit mineral reserve was defined within a designed pit based on the US$700/oz optimisation shell:

All metallurgical testwork completed to date has confirmed the high gold recoveries in the ore.  A simple process of crush, mill, gravity and cyanide leach is proposed.  The mineral reserve supports a 100 000 tonne per month plant with estimated operating costs of US$14.01/t for oxide material and US$19.51/t for sulphide material.  A capital construction cost of US$184 million is proposed.

Digby Wells and Associates together with national consultants ESDCO have completed a social and environmental prefeasibility and no fatal flaws have been identified. A number of sacred sites and two archaeological sites have been identified which will be preserved and all infrastructure designed in such a way as to avoid these sites.

The stand alone open pit reserve schedule produced the following ounce production profile with a strip ratio of 12.5:1 and includes a 13Mt pre-strip to expose sufficient ore.   Total gold production is estimated at 1.49Moz over a seven year mine life.

GOUNKOTO: Open pit mineral reserve ounce profile   

 
The incorporation of scoping schedules for the Faraba and P64 satellite bodies together with a two year pre-strip of 35.6Mt exposes sufficient ore to support a 150 000 tonnes per month operation for a seven year life.  This schedule produced the following ounce profile, which significantly enhances the upfront gold produced:

GOUNKOTO: Open pit reserve with 2 year pre-strip and Faraba and P64 scopings

Based on the encouraging deeper drill results received this quarter, an additional underground scoping was undertaken.  A conceptual underground project of 11.6Mt at 5.45g/t for 2.0Moz was generated within two higher grade shoots beneath the reserve pit.  The result of including the underground resources into a mining schedule extends the life of the operation to 16 years with an estimated total  gold production of 3.67Moz.


GOUNKOTO: FINANCIAL ASSESSMENTS 

Assessment 1 : Based on US$700/oz mineral reserve pit, with 1 year pre-strip and 1000 tpm plant throughput.

Assessment 2 : As per Assessment 1 above plus the Faraba and P64 scoping pits, with two year pre-strip and 150 000tpm plant throughput.

Assessment 3 : As per Assessment 2 above plus the underground scoping, with two year pre-strip and 150 000tpm plant throughput.

*  The fiscal parametrs are based on the prevailing Malian 1991 Mining Code, which include a 6% royalty and a five year tax holiday.

Assessments 2 and 3 are preliminary assessments that have been conducted by Randgold on schedules that include inferred mineral resources.  These assessments are preliminary in nature, in that they use inferred mineral resources that are considered too speculative geologicaly to have economic considerations applied to them that would enable them to be categorised as mineral reserves and there is no certainty that the preliminary assessment will be realised.


Randgold Qualified Persons
Information regarding data verification, quality assurance programmes, exploration results, exploration information and property information for the Gounkoto project was completed by Mr Chiaka Berthe, an officer of Randgold Resources under the supervision of Mr Rodney Quick an officer of Randgold Resources and a Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (‘NI 43-101’).  The mineral resource estimate related to the Gounkoto project, presented in this release was generated by Mr Chiaka Berthe, an officer of Randgold Resources and supervised by Mr Rodney Quick, an officer of Randgold Resources and Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (‘NI 43-101’).  The information in this release that relates to open pit reserves was carried out by Mr Onno ten Brinke, an officer of Randgold Resources and Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (‘NI 43-101’).  Randgold considers the information to be a material change and, as such, a new Technical Report for the Gounkoto Project will be filed within 45 days after the issue of this release and will be available under Randgold’s profile on the SEDAR website at www.sedar.com