AMN - MALI: Morila post-mining plan advances

Randgold Resources is progressing plans to develop the Morila Gold Project site in Mali into a commercial agricultural hub after its closure in 2019. Randgold’s chief executive Mark Bristow said this would ensure Morila continued to deliver value in its post-mining phase.

Morila, which has produced more than 6 million ounces of gold and distributed more than $2 billion to stakeholders since October 2000, is currently processing tailings and returning them to the open pit as part of its self-funding closure strategy.

Its self-funding capacity will be boosted by development of the Domba satellite deposit, which has now been approved by the local community and final environmental certification is awaited. Mining at Domba is scheduled to start after the current rainy season.
To offset the economic impact of its closure, Morila has spent $2 million on an initiative designed to convert the post-rehabilitation site with its remaining infrastructure into a 3000-hectare agricultural zone or ‘agripole’, which is estimated will directly benefit 50,000 residents.

The initiative is being shared with the Songhai group, which has successfully rolled out similar projects in other African countries. The object is for a combined Songhai and Morila/Randgold team to develop a plan to compete a feasibility study and business plan, which will be presented for approval by the shareholders and endorsement by the Malian government.

Turning to Randgold’s other Malian operation, Loulo-Gounkoto, Mark Bristow said after its solid 2016 performance, the complex was on track to achieve 2017 production guidance of 690,000 ounces of gold despite some industrial action in the first quarter of the year.

“Supported by the extensions at Gara, within the Loulo lease, and the approval of the Gounkoto super pit, the complex last year replaced all the gold that it mined. The focus now is on finding additional resources to extend the operation’s life, but as things stand it is well placed to sustain an annual production rate in excess of 600,000 ounces for at least the next 10 years,” he said.

A number of new high-grade targets have been identified along the extensive geological structures that host the main deposits on the Loulo and Gounkoto leases, and the exploration team is looking at some exciting opportunities to the north of the main Gara orebody as well as extensions to other ore bodies.

In the meantime, Randgold has engaged with the Malian fiscal administration to reach an amicable settlement of the disputes related to the Randgold group companies. Given Randgold’s long history of constructive partnership with the Malian government, Mark Bristow said he was confident the matter would be resolved within the framework of mining conventions granted to the group.

www.randgoldresources.com