AMN - MALI: Randgold steps up gold production

Randgold Resources is stepping up production at the Loulo-Gounkoto Gold Project in Mali with increased grades expected in this half. This is being initiated with the start of the pushback at Gounkoto’s new super pit.

Chief executive Mark Bristow said that as expected, the complex’s production profile was weighted towards the back half of the year because of the big pushback’s impact in the first two quarters.

He said it was now getting back to its normal run rate as indicated by an increase in production in the September quarter.

Randgold is encouraged by ongoing exploration at and around the Loulo-Gounkoto project.

West Africa operations general manager Chiaka Berthe said brownfields exploration on the ore body extensions was confirming the potential for the complex to keep replacing depleted reserves with ounces of the same quality.

“Loulo-Gounkoto is one of the largest operations of its kind in the world and has been a pillar of the Malian economy since Loulo went into production in 2005," he said.

The latest exploration results show that its life is likely to extend beyond the current 10-year horizon.”

The greenfields exploration team also continues to build out targets to the north and south of the Loulo-Gounkoto structures along a 70-kilometre strike in one of the world’s most prolific gold regions.

Mali is Africa's third-biggest producer of gold after South Africa and Ghana, with mines operated by multi-national companies including Randgold, AngloGold Ashanti, B2Gold and Resolute Mining.

Randgold has also entered into discussions on a potential joint venture with the Mali Government to explore a regional area of interest to develop a detailed geological dataset.

In terms of the proposal, Randgold will have the first choice of identified prospects and the rest will be made available to the government to attract other investors.

The process will offer some private holders of rights in the area the opportunity to become potential equity partners in new ventures.

A mediation process is underway in a bid to reach an amicable settlement of Randgold group companies’ tax and TVA issues with the government through a jointly appointed facilitator and third-party experts.

“This again demonstrates that our constructive partnership approach is the best way to resolve occasional disagreements with our host governments,” Mark Bristow said.

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