Randgold Resources Limited
Incorporated in Jersey, Channel Islands
Registration No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
("Randgold" or the "company")
MATERIAL INCREASE IN KIBALI INDICATED RESOURCE
London, 30 November 2009 - Randgold Resources today announced a
material increase in the indicated mineral resource of its recently
acquired Kibali gold project in the Democratic Republic of the Congo.
The company said, following an update of the existing estimates by Cube
Consulting Pty Ltd (Cube), the indicated mineral resource was now
13.93 Moz which represents an increase of 23% over the previous
indicated mineral resource of 11.29 Moz. 7.67 Moz at a grade of 6.08
g/t from the Karagba-Chauffeur-Durba (KCD) deposit is now classified as
an underground indicated mineral resource and represents an increase
of 118% over the previous declared underground indicated mineral
resource of 3.53 Moz at a grade of 5.1 g/t.
Total inferred resources declined from 11.23 Moz to 5.83 Moz but
increased in grade from 3.3 g/t to 3.55 g/t. The decline in inferred
resources resulted partially from conversion to indicated mineral
resources as well as Randgold Resources' requirement that all resource
estimates reflect only those mineral resources for which there is a
reasonable prospect for eventual economic extraction. The Cube update
incorporated the results from infill drilling on the KCD deposit.
Chief executive Mark Bristow said the mineral resource update had
underlined the high quality of the Kibali orebody and was a step
forward in Randgold's review of the project following the completion of
the Moto Goldmines acquisition in October."We're now working on a review of
the geological model and expect to
continue to update resources and re-estimate reserves as we obtain new
results from our ongoing drill programmes and progress our
understanding of the geological controls on mineralisation. This will,
along with results from additional technical and process
reviews contribute to the ongoing optimisation of the feasibility
study completed by Moto," he said.
Details of the results of the update are set out below, together with
the mineral resources announced by Moto in March 2009:
Kibali Gold Project - November 2009
Open Pit Recoverable Resources greater than0.5g/t Au cut-off inside
USUSD1 000 Pit Shell and above 5685mRL
Indicated Mineral Inferred Mineral
Resources Resources
Mt Au g/t Au Moz Mt Au g/t Au Moz
Open Pit 92.2 2.11 6.25 32.8 3.09 3.26
Underground Resources greater than2.0g/t Au cut-off below 5685mRL
Indicated Mineral Inferred Mineral
Resources Resources
Mt Au g/t Au Moz Mt Au g/t Au Moz
KCD Underground 39.3 6.08 7.67 18.2 4.38 2.57
Total Open Pit and KCD
Underground 131.5 3.29 13.93 51.1 3.55 5.83
Moto Gold Project - March 2009
Total Resources at 1g/t Au cut-off
Indicated Mineral Resources Inferred Mineral Resources
Mt Au g/t Au Moz Mt Au g/t Au Moz
Total 112.4 3.1 11.29 107.2 3.3 11.23
Mineral resources for Kibali, as updated in November 2009, are reported
within the criteria laid out by the JORC Code to reflect only those
mineral resources for which there is a reasonable prospect for eventual
economic extraction. Therefore, open pit mineral resources have been
classified as the in situ mineral resources falling within the USUSD1 000
per oz Whittle pit shell at a 0.5 g/t gold cut-off. The underground
mineral resources for the KCD deposit are reported as those in situ
resources below the pit to underground interface (5685mRL), reported at
a 2 g/t gold cut-off.
Further details of the feasibility study on Kibali and the results of
the mineral resource estimates update by Cube are contained in the
mineral expert's report which forms part of the circular which Randgold
has today posted to its shareholders and are also contained in the
Technical Report (NI 43-101) - Kibali Gold Project in the Democratic
Republic of Congo, dated 27 November 2009, available on the SEDAR
website at www.sedar.com
Kibali is one of the largest undeveloped gold deposits in Africa. The
Moto feasibility study envisages an open pit and underground mining
operation which will produce approximately 2.4 Moz of gold in its first
five years of operation with total mineral reserves estimated to be 5.5
Moz. Randgold's stake in Kibali is held through a joint venture with
AngloGold Ashanti Limited and following completion of the acquisition
of a further stake in the project from OKIMO, Randgold and AngloGold
Ashanti will each have an effective 45% interest in Kibali, with OKIMO
holding the remaining 10% stake.
The Kibali announcement comes during a very busy period for the
company, which is also expanding its flagship Loulo complex in Mali and
building a new mine at Tongon in the Cote d'Ivoire, where it has
recently increased its stake to 89%. In addition, it has recently
reported an inferred mineral resource for its Gounkoto project in Mali
which, along with the Massawa project in Senegal, is at the
prefeasibility stage. Earlier this month it also concluded the sale of
its interest in the Kiaka project in Burkina Faso. It retains an
interest in the upside of Kiaka through an equity holding in the
acquiring company, Volta Resources Inc.
RANDGOLD RESOURCES ENQUIRIES
Dr Mark Bristow
Chief Executive
Tel: +44 788 071 1386
Tel: +44 779 775 2288
Graham Shuttleworth
Financial Director
+44 779 614 4438
+44 1534 735 333
Kathy du Plessis
Investor & Media Relations
Tel: +44 20 7557 7738
email: randgoldresources@dpapr.com
Website: www.randgoldresources.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements within
the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934, and applicable Canadian
securities legislation. Forward-looking statements include, but are not
limited to, statements with respect to the future price of gold, the
estimation of mineral reserves and resources, the realisation of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, reserve determination and reserve
conversion rates. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"will","plans", "expects" or "does not expect", "is expected",
"budget","scheduled", "estimates", "forecasts", "intends", "anticipates"
or"does not anticipate", or "believes", or variations of such words and
phrases or state that certain actions, events or results "may","could",
"would", "might" or "will be taken", "occur" or "be achieved".
Assumptions upon which such forward looking statements are based are in
turn based on factors and events that are not within the control of
Randgold and there is no assurance they will prove to be correct.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Randgold (including
the Kibali gold project) to be materially different from those
expressed or implied by such forward-looking statements, including but
not limited to: risks related to the integration of Randgold and Moto,
risks related to mining operations, including political risks and
instability and risks related to international operations, actual
results of current exploration activities, conclusions of economic
evaluations, changes in project parameters as plans continue to be
refined, as well as those factors discussed in the section entitled"Risk
Factors" in Randgold's annual report on Form 20-F for the year
ended 31 December 2008 which was filed with the US Securities and
Exchange Commission (the "SEC") on 15 May 2009, in the section
entitled"Risk Factors" in Randgold's shareholder circular published on 30
November 2009 and the risk factors contained in the Moto management
information circular dated 10 September 2009 which was filed and is
available on the SEDAR website at www.sedar.com Although Randgold has
attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. Randgold does not undertake to update any
forward-looking statements herein, except in accordance with applicable
securities laws.
CAUTIONARY NOTE TO US INVESTORS: the SEC generally permits companies,
in their filings with the SEC, to disclose only those mineral deposits
that qualify as proven and probable ore reserves for purposes of the
SEC's Industry Guide 7. Under the SEC's Industry Guide 7 standards,
mineralisation may not be classified as a "reserve" unless the
determination has been made that the mineralisation could be
economically and legally produced or extracted at the time the reserve
determination is made. We use certain terms in this release, such
as "inferred", "indicated" and "resources", that the SEC does not
recognise and strictly prohibits us from including in our filings with
the SEC. Investors are cautioned not to assume that all or any parts of
our resources will ever be converted into reserves which qualify as'proven
and probable reserves' for the purposes of the SEC's Industry
Guide number 7.
KIBALI QUALIFIED PERSONS
The previously announced mineral resource estimates related to Kibali
included in this release were reviewed and approved by Patrick (Rick)
Adams, a director of Cube Consulting Pty Ltd ("Cube"), and Terje (Ted)
Hansen, a director of Cube (each a Qualified Person under National
Instrument 43-101 - Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators ("NI 43-101")) and documented in the
Amended and Restated Technical Report, Moto Gold Project, Democratic
Republic of Congo, dated 20 April 2009. The mineral reserve, mineral
resource and gold production estimates related to Kibali included in
this release were reviewed and approved by Quinton de Klerk, a director
of Cube, Patrick (Rick) Adams, a director of Cube, Paul Kerr,
a senior consultant (underground mining) employed by SRK Consulting
(South Africa) (Pty) Ltd, Fred Kock, a lead metallurgist of Orway
Mineral Consultants (WA) Pty Ltd, and Rodney Quick, an officer of
Randgold (each a Qualified Person under NI 43-101) and documented in
the Technical Report (NI 43-101) - Kibali Gold Project in
the Democratic Republic of Congo, dated 27 November 2009. Each of
these reports is available on the SEDAR website at www.sedar.com
The JORC Code reporting guidelines referred to in this release are
equivalent to the guidelines adopted by the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") under NI 43-101, and if
presented in accordance with the CIM Definition Standards on Mineral
Resources and Mineral Reserves adopted by the CIM Council, the mineral
resource presentation would be materially the same.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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