SOURCE: Randgold Resources

November 02, 2009 02:09 ET

Randgold Resources Expands on Its Moto Deal

LONDON--(Marketwire - November 2, 2009) - (LSE: RRS) (NASDAQ: GOLD) Following the completion of the Moto Goldmines acquisition, Randgold Resources will move quickly to fill in the gaps in the feasibility study on the Moto gold project - now renamed Kibali - and to bring the mine into production as soon as possible.

Chief executive Mark Bristow said the company planned to announce a definitive timeline for the development of the project by January 2010, when it will have completed its update of the geological model. It will then start optimising the feasibility study, and re-estimate reserves and resources in the light of the updated geological model.

Randgold and its joint venture partner AngloGold Ashanti announced on 31 October that they had entered into a definitive agreement with the Congolese parastatal company OKIMO to purchase an additional 20% stake in the project for US$113.6 million. Following this transaction they will each hold 45% of the project, with OKIMO retaining 10%.

"Our negotiations with the government regarding the acquisition of Moto and then the purchase of an additional stake in Kibali have been inclusive and productive, and in the process we've developed a good working relationship with OKIMO and the regulatory authorities. With all the negotiations now successfully concluded, we can get on with the job of building the mine," Bristow said.

He noted that the Randgold capital projects team which would be responsible for Kibali was the same one which had successfully built the Morila and Loulo mines in Mali and was currently developing the Tongon mine in Côte d'Ivoire.

Kibali is one of the largest undeveloped gold deposits in Africa. The feasibility study completed by Moto in March this year envisages an open pit and underground operation with probable mineral reserves of 5.5 million ounces, which is planned to produce some 2.4 million ounces of gold in its first five years of production. Kibali also has indicated mineral resources of 11.3 million ounces and inferred mineral resources of 11.2 million ounces.

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Contact Information


    Dr Mark Bristow
    Chief Executive
    Tel: +44 788 071 1386
    Tel: +44 779 775 2288

    Graham Shuttleworth
    Financial Director
    Tel: +44 779 614 4438
    Tel: +44 1534 735 333

    Kathy du Plessis
    Investor & Media Relations
    Tel: +44 20 7557 7738
    email: Email Contact

    Incorporated in Jersey, Channel Islands
    Reg. No. 62686
    LSE Trading Symbol: RRS
    Nasdaq Trading Symbol: GOLD
    ("Randgold" or the "Company")