SOURCE: Randgold Resources

August 02, 2005 09:09 ET


Jersey, Channel Islands -- (MARKET WIRE) -- August 2, 2005 --RANDGOLD RESOURCES LIMITED Incorporated in Jersey, Channel Islands Reg. No. 62686 LSE Trading Symbol: RRS Nasdaq Trading Symbol: GOLD


London, 2 August 2005 - The commissioning of the new Loulo gold mine, due to go into production later this month, is another landmark in Randgold Resources' dynamic relationship with the government and people of Mali, says chief executive Dr Mark Bristow.

"We are proud to have played a significant part in developing Mali into the third-largest gold producer on the African continent and thus to have made a major contribution to its economy. This mutually beneficial partnership is securely based on our confidence in the country and our productive working relationship with its mining and fiscal authorities," Bristow said.

The first phase of the Loulo project - an opencast mining operation - is being developed at a cost of US$89 million, excluding power, finance costs, working capital and exploration. Planning of an underground operation, which should increase the value and life of the mine, is currently being finalised, with shaftsinking provisionally scheduled for next year. On a stand alone basis, the development of an underground mine will require a further investment of some US$100 million to take it to steady-state production.

Loulo is the second world-class gold mine to have been developed in Mali by Randgold Resources. The first was Morila, which since it went into production in October 2000 has produced more than 3 million ounces of gold. Morila represents an initial capital investment of US$105 million and has to date returned US$376 million to its shareholders, which include the government of Mali with a 20% interest. It has contributed a further US$450 million to the Malian economy through royalties, taxes, payments to local suppliers, and salaries and wages.

Prior to the development of Morila, Randgold Resources acquired the Syama mine from BHP and spent US$63 million on modernising and expanding it in the late Nineties. When the gold price collapsed in 2001, Randgold Resources invested significant funds to preserve Syama by placing it on care and maintenance, and last year sold it to a new operator.


London, 2 August 2005 - The Morila mine has richly rewarded all its stakeholders and they should now make a strong commitment to the continued preservation of this major national asset. Randgold Resources discovered and developed Morila and owns 40% of the joint-venture operation.

In the June quarter, Morila's production profile continued to improve with plant throughput 12% higher than in the previous quarter and gold output of 165 359 ounces in line with forecasts. This follows a difficult period in which the mine was negatively affected by delays and difficulties with its plant expansion programme, as well as by the need to adjust to a lower gold grade.

"Randgold Resources has been working closely with the operator of the mine to overcome these problems and to return the mine to its full production capacity. By the end of June, we appear to have achieved our immediate aims and throughput has now been stabilised at what should be a sustainable level," says chief executive Dr Mark Bristow.

"However, this is by no means the end of the challenge facing the mine's management. Like any precious asset, Morila has to be tended carefully or it will lose its value. It needs a renewed commitment from all the stakeholders on site to the preservation of that value and the realisation of Morila's full potential. This means a strong focus on such issues as productivity and cost containment, as well as the maintenance of a productive and harmonious relationship between management and workers."

Chief Executive - Dr Mark Bristow +44 779 775 2288
Financial Director - Roger Williams +44 791 709 8939
Investor & Media Relations - Kathy du Plessis +27 11 728 4701,
Cell: +27 (0) 83 266 5847, Email:


DISCLAIMER: Statements made in this document with respect to Randgold Resources' current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Randgold Resources. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Randgold Resources cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. The potential risks and uncertainties include, among others, risks associated with: fluctuations in the market price of gold, gold production at Morila, the development of Loulo and estimates of resources, reserves and mine life. For a discussion on such risk factors refer to the annual report on Form 20-F for the year ended 31 December 2004 which was filed with the United States securities and exchange commission (The 'SEC') on 29 June 2005. Randgold Resources sees no obligation to update information in this release. Cautionary note to US investors; the SEC permits companies, in their filings with the SEC, to disclose only proven and probable ore reserves. We use certain terms in this release, such as "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.

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