July 31, 1998
woza.co.za
Randgold Resources reports attributable loss of $9,343m for second quarter
from Randgold Resources
Randgold Resources strengthens management team
London-listed Randgold Resources Ltd today reported generally improved results for the June quarter, with gold sales up to US$9,29m from the March quarter's $7,474m and an attributable loss of $9,343m compared to the previous quarter's $23,759m.
Randgold Resources owns and operates the Syama Gold Mine in Mali, has two projects in Mali, Morila and Loulo, which are both in an advanced stage of development, and holds an extensive portfolio of mineral rights in other parts of Africa.
The company said the first phase of the Syama gold mine's expansion programme has been successfully commissioned and the second phase was on track for completion in November this year.
The company added that results from its Morila project, also in Mali, were continuing to exceed expectations. Latest drilling results had confirmed a total resource of some 16.3 million tons at a grade of 4.17 g/t, which translates into over two million ounces of gold.
"The pre-feasibility study supports the fast-tracking of this project, even at current gold price levels, and a full bankable feasibility study has been commissioned for completion by March next year. Morila could be developed into a high-quality, low-cost producer by 2000," chief executive Dr Mark Bristow said.
In the meantime a development decision on one of Randgold Resources' other advanced projects, Loulo in western Mali, has been delayed. However, exploration will continue at the current rate. A gold price of $350 per ounce or an additional discovery of a deposit similar to Yalea is required for a go-ahead.
Golden Ridge in Tanzania has come up to original expectations, but in terms of size now ranks behind Morila and Loulo. Randgold Resources is currently reviewing the future of this venture with its partner, Pangea Goldfields.
Bristow said the fast-tracking of the Syama upgrade programme was working. A new crusher, open circuit milling, flotation circuit and a new elution plant have been commissioned and an additional SAG mill is scheduled for commissioning by November. The programme is designed to increase production to 270 000 ounces per year while reducing costs to $210/oz.
"The commissioning of additional power generators impacted negatively on plant availability and affected the results of an otherwise improved quarter for Syama. Nevertheless, tons mined reached a new record level of 4.9 million for the quarter while cash costs were down to $277/oz by June. Gold production for the quarter was 30 956 ounces against the previous quarter's 24 961," Bristow said.
Elsewhere in Africa, there were particularly encouraging results from the Tongon prospect in Cote d'Ivoire, where continuity of surface mineralisation has been confirmed over 1 600m.
"The regional exploration programmes in our target countries are continuing, with the focus on the more advanced prospects defined during the past year. We now have 26 targets at or above the advanced stage," Bristow said.
Randgold Resources strengthens management team
Peter Kinver has been appointed managing director of Somisy SA and general manager of Syama gold mine in Mali.
Kinver has 22 years experience in the management of large-scale mining operations, most recently as managing director of Ashanti Goldfields' flagship mine Obuasi, where he was responsible for a major turnaround in production and costs.
He succeeds John Steele, who has returned to Randgold Resources' head office as general manager: capital projects after having overseen the Syama expansion programme for the past 18 months. In his new position Steele will supervise the development of the Morila and Loulo projects in Mali. |
