News


RESERVES UP 52% AT TONGON PROJECT
Monday, May 5, 2008

London, 6 May 2008 - Randgold Resources today reported a material increase in the probable reserves at its Tongon project in Côte d’Ivoire, currently in the early stages of development as the company’s third gold mine in West Africa.

A further conversion of the increased resources recently published in the annual report - which showed an indicated resource at Tongon of 41.96Mt @ 2.37g/t for 3.2 million ounces, and a further 12.99Mt @ 2.56g/t for 1.07 million ounces in the inferred category - has produced a 52% increase in the probable reserves.  These now stand at 32.76Mt @ 2.32g/t for 2.44 million ounces.  The ore reserve estimate is based on US$550/oz with a cut-off grade of 1g/t.  The numbers include dilution and ore loss.

During the quarter, an agreement was also concluded with Randgold Resources’ joint venture partner in Côte d’Ivoire, New Mining CI, to increase Randgold’s interest in the joint venture to 90%. Consequently, after providing for the Government’s 10% free participation as per the mining code, Randgold now owns an effective 81% interest in the Tongon project, which is reflected in the table below.

ORE RESERVE ESTIMATE at April 2007        

 

Deposit

 

Category


Tonnes
(Mt)


Grade
(g/t)


Ounces
(Moz)

Attributable
Ounces
(Moz)

 

 

 

 

 

81%

Northern zone

Probable

5.59

2.40

0.43

0.35

Southern zone

Probable

27.17

2.30

2.01

1.63

TOTAL PROBABLE

32.76

2.32

2.44

1.98

Ore reserve estimate based on US$550/oz pit.  Cut-off grade =1g/t.  Dilution and ore loss included in reserve numbers.


A small amount of inferred resources remains within the pit design and as such has not been declared as reserve.  It is reported below as potentially mineable resources.  Infill drilling continues to upgrade these resources to the indicated category and it is intended to convert these to reserves by the third quarter of this year.  Meanwhile, drilling to delineate high-grade shoots and to test the continuation of the mineralised structure at depth has been completed at the base of the northern zone pit.  In the southern zone, drilling has indicated better intercepts associated with the intersection of the braided shear system; this will be the focus of follow-up exploration.  These results will be included in the updated resource and reserve declaration in the third quarter.


POTENTIALLY MINEABLE RESOURCE at April 2007                      

 

Deposit

 

Category


Tonnes
(Mt)


Grade
(g/t)


Ounces(Moz)

Attributable
Ounces
(Moz)

 

 

 

 

 

81%

Southern zone

Probable

5.46

2.13

0.37

0.30


Chief executive Mark Bristow said that, as expected, Tongon had now passed the 2 million ounce reserve mark.

“We are very positive about the prospectivity of this area and believe there is still scope for further growth in the resource base.  Here, as elsewhere in the six countries where we operate, exploration continues to build our reserves, enabling us to forecast increased production at a time when industry output is shrinking,” he said.

“As a result of our increased participation as well as the success of our infill drilling programme, Randgold Resources share of the Tongon reserves have increased by 61%.”

"


© Copyright 2015 - Randgold Resources Limited