Randgold Resources Limited
Incorporated in Jersey, Channel Islands
Registration No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
("Randgold" or the "Company")
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART IN,
INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
RANDGOLD RESOURCES POSTS CIRCULAR TO SHAREHOLDERS AND ANNOUNCES
REVISED MINERAL RESOURCES AT KIBALI
London, United Kingdom, 30 November 2009 - Randgold Resources
Limited (LSE : RRS ) (NASDAQ : GOLD ) announces that, further to the
announcement made on 31 October 2009, it has today posted a circular
(the "Circular") to its shareholders convening a general meeting to be
held on 16 December 2009 at 8:30 am at the registered office of
Randgold at La Motte Chambers, La Motte Street, St Helier, Jersey JE1
1BJ, Channel Islands (the "General Meeting"). An ordinary resolution
will be proposed at the General Meeting to approve the acquisition by
Randgold of an additional 10% indirect interest in Kibali Goldmines
s.p.r.l. ("Kibali Goldmines").
The Circular will shortly be available for inspection at the UK Listing
Authority's Document Viewing Facility, which is situated at: Financial
Services Authority, 25 The North Colonnade, Canary Wharf, London E14
5HS. In addition, a copy of the Circular will shortly be available on
the Company's website, www.randgoldresources.com or can be inspected
at the Company's registered office at La Motte Chambers, La Motte
Street, St Helier, Jersey JE1 1BJ, Channel Islands during normal
business hours on any weekday (Saturdays, Sundays and public holidays
excepted).
Revised mineral resources at the Kibali Gold Project
Following completion of the acquisition of Moto Goldmines Limited
("Moto") by Randgold and AngloGold Ashanti Limited ("AngloGold"),
the mineral resource estimates on the Kibali Gold Project have been
updated by Cube Consulting Pty Ltd ("Cube") and incorporate infill
drilling completed on the Karagba-Chauffeur-Durba deposit
("KCD deposit"). Mineral resources for the Kibali Gold Project are
reported within the criteria laid out by The 2004 Australasian Code for
Reporting of Mineral Resources and Ore Reserves (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 0.5g/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 2g/t gold cut-off. As a result of the
update, indicated mineral resources are now 13.93 Moz (of which 7.67
Moz are at a grade of 6.08g/t and fall into the KCD deposit underground
indicated mineral resource) and inferred mineral resources are 5.83
Moz. This represents a material increase in the indicated mineral
resources for the project compared to the 11.29 Moz previously
announced by Moto, and a revised underground mining plan
is currently being developed to determine
the impact on mineral reserves for the project. The present feasibility
study on the Kibali Gold Project contemplates an open pit and
underground mining operation producing approximately 2.4 Moz of gold in
the first five years of operation, with total mineral reserves
estimated to be 5.5 Moz. Further details of the feasibility study on
the Kibali Gold Project 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 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
Work is ongoing to review and update the geological model for the
Kibali Gold Project to integrate all surface and underground mapping
and historical data with drill data for the project. The Company
expects to be in a position by January 2010 to give a definite timeline
on the development of the Kibali Gold Project. During 2010, Randgold
will be looking to optimise the feasibility study on the Kibali Gold
Project, including re-estimating the project's mineral resources and
mineral reserves in the light of the updated geological model.
Background to the Kibali Acquisition
On 31 October 2009, Randgold announced that, together with
AngloGold, it had entered into an agreement for the acquisition of a
further 20% interest in Kibali Goldmines from L'Office des Mines d'Or
de Kilo-Moto ("OKIMO") for an aggregate consideration of
approximatelyUSUSD113.6 million (the "Kibali Acquisition"). The Kibali
Acquisition
will be effected by Kibali (Jersey) Limited ("Kibali (Jersey)"), a
company that is jointly owned by Randgold and AngloGold and the same
vehicle which holds Randgold's and AngloGold's joint venture interest
in Moto as acquired on 15 October 2009. Following completion of
the Kibali Acquisition, Randgold and AngloGold will together hold a 90%
joint venture interest in Kibali Goldmines through Kibali (Jersey)
(both directly and indirectly) and OKIMO will hold the remaining
10% interest.
ENQUIRIES
Chief Executive Financial Director Investor & Media Relations
Dr Mark Bristow Graham Shuttleworth Kathy du Plessis
+44 788 071 1386 +44 1534 735 333 +44 20 7557 7738
+44 779 775 2288 +44 779 614 4438 Email: randgoldresources@dpapr.com
Website: www.randgoldresources.com
HSBC Bank plc, which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for Randgold
and AngloGold and no one else in connection with the Kibali Acquisition
and will not be responsible to anyone other than Randgold and AngloGold
for providing the protections afforded to clients of HSBC, nor for
providing advice in relation to the Kibali Acquisition, the contents of
this announcement or any other matter referred to herein.
ABOUT RANDGOLD
Randgold is a gold mining and exploration company with its principal
activities focused on West Africa and stated proven and probable
reserves of 8.82 Moz as at 31 December 2008 for Loulo, Tongon and
Massawa and 30 April 2009 for Morila. In Mali, Randgold has an 80%
controlling interest in the Loulo mine, which is currently mining from
two open pits and has just commenced mining from one underground mine
whilst developing a second underground mine. In the Loulo region,
Gounkoto, on the Loulo permit, is shaping up as a significant new
discovery. Also in Mali, Randgold owns a 40% interest in the Morila
joint venture, the owner of the Morila mine, which it also operates. In
Cote d'Ivoire, Randgold owns an effective 89% controlling interest in
the Tongon development project, where it has commenced construction and
expects to be in production towards the end of 2010. In Senegal,
Randgold has a new discovery, Massawa, which is at prefeasibility stage
and which it believes has multi million ounce potential and the makings
of a world-class orebody. Randgold also has exploration permits and
licenses covering substantial areas in Mali, Cote d'Ivoire, Burkina
Faso, Senegal and the Democratic Republic of the Congo.
On 15 October 2009, Randgold acquired a 50% indirect interest in Moto
through a joint venture with AngloGold. Moto is a gold exploration and
development company which owns a 70% stake in the Kibali Gold Project
in the north-east of the Democratic Republic of the Congo and has
advanced the project from exploration through to feasibility. The
project is a joint venture between OKIMO and Moto and covers an area of
approximately 1 836 km2 with significant mineral resources and growth
potential.
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.
RANDGOLD QUALIFIED PERSONS
The mineral reserve estimate related to the Loulo Gold Mine was
reviewed and approved by Herbert Gerald Waldeck and Mark David Wanless
of SRK Consulting (South Africa) (Pty) Ltd ("SRK") (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 Technical Report on the Loulo Gold
Mine, Randgold Resources, Mali, dated 3 September 2009. The mineral
reserve estimate related to the Tongon Project was reviewed and
approved by Mark David Wanless and Herbert Gerald Waldeck of SRK and
documented in the Technical Report on the Tongon Development Project,
Ivory Coast, dated 10 September 2009. The mineral resource estimate
related to the Massawa Project was reviewed and approved by Mark David
Wanless of SRK and documented in the Technical Report on the Massawa
Project, Senegal, dated 3 September 2009. The mineral reserve estimate
related to the Morila Gold Mine was reviewed and approved by Shaun
Wayne Crisp (a Qualified Person under NI 43-101) and Herbert Gerald
Waldeck of SRK and documented in the Technical Report on the Morila
Gold Mine, Randgold Resources, Mali, dated 3 September 2009. Each of
these reports is available on the SEDAR website at www.sedar.com
KIBALI QUALIFIED PERSONS
The previously announced mineral resource estimates related to the
Kibali Gold Project included in this release were reviewed and approved
by Patrick (Rick) Adams, a director of Cube, and Terje (Ted) Hansen, a
director of Cube (each a Qualified Person under 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 the Kibali Gold Project 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, 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.
Randgold Resources Limited
David Haddon
General Counsel and Secretary
Tel: +44 1534 735 333
This information is provided by RNS
The company news service from the London Stock Exchange
END
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