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Gold/Mining/Energy : RANDGOLD and EXPLORATION (RANGY) -- Ignore unavailable to you. Want to Upgrade?

To: EZbeliever who wrote (143)	11/12/1998 10:21:00 AM
From: POLARBEAR	Read Replies (1) \| Respond to of 448

RANDGOLD RESOURCES Quarter to 30 September 1998 Ounces produced in the quarter to 30 September 1998 were 41,242 ounces, an increase of 33 per cent. over the previous quarter. Ounces produced in August were 15,121 and in September 15,764. This highlights the impact of the first phase of the expansion programme coming through. The second phase of the expansion programme is on schedule for commissioning in November 1998. $7.5 million was spent on capital in the quarter. Cash operating costs per ounce have been reduced to the levels forecast for phase one of the expansion programme of $250 per ounce. $260 per ounce was achieved in August and $246 per ounce in September. Six months to 30 September 1998 Production for the 1998 interim period is 22 per cent. higher than for the six months to 30 September 1997. This is mainly due to expanded capacity from the first phase capital programme completed in June 1998. After commissioning of phase one, costs have reduced and Syama is now making cash operating profits, although there is a cash operating loss for the six months due to the results from the first four months of the period. The awarding of the Syama heap leach project, referred to in the previous quarter's report, has been postponed until the current expansion programme is fully commissioned when a review of all alternatives for the treatment of oxide and transitional ore will be undertaken. The proposed method to implement the required hedging programme in respect of 50 per cent. of Syama's production for the next 3 years is to purchase put options at a floor price of not less than $300 per ounce. To reduce the cost of acquiring the put options we are accumulating a forward position. To date we have a forward sale of 130,000 ounces at an average price of $305 per ounce. Exploration and Project Activities Mali The Morila pre-feasibility study was independently audited by Resource Service Group ( RSG ) of Perth, Australia. RSG indicate that the internal study is appropriate and realistic although the Company's overall resource and grade estimates may be conservative. A 10,000 metre bankable feasibility drilling programme at the San prospect, Morila Project, commenced in October. The programme is designed to convert the resource from an indicated to measured status. A detailed ground survey for site installation is presently in progress. The bankable feasibility study is on schedule for completion by the end of March 1999. The Company has signed a Heads of Agreement with West African Gold to undertake work on the Medinandi Permit which locates south of the Loulo and Selou permits. The acquisition of Medinandi consolidated the Randgold Resources ground holding in the Loulo region, almost doubling the ground held along the Loulo structure. Exploration programmes designed to add to the resource base at Loulo will commence in November 1998 on the Loulo and Selou permits. Cote d'Ivoire At the Tongon prospect, Nielle permit, results received from a 6,000 metre RAB and RC drilling programme have led to the delineation of two mineralised zones. The southern zone hosts multiple gold bearing units within a 100 metre wide shear grading 1 to 8 g/t over an 1,800 metre strike length. The northern zone contains a single goldbearing unit grading at 1.44 g/t over an average width of 22 metres for a strike length of 2,200 metres. Tanzania Discussions are in progress with interested parties with a view to turning Golden Ridge to account. Elsewhere in Tanzania the Company is undertaking due diligences on properties with a view to defining new opportunities for acquisition. General Elsewhere in West Africa exploration activities centred on data compilation and interpretation during the wet season. Programmes were finalised for the forthcoming field season commencing in October 1998. In line with the Company's strategy exploration activities now reflect a clear focus on priority advanced targets. This focus is reflected in a rationalisation of holdings and a reduction in ground from 21,098 km2 to 16,158 km2. Prospects 1. The Syama expansion programme is due to be completed in November, on schedule and within budget. Forecast production at an annual rate of 270,000 ounces at a cash operating cost of approximately $210 per ounce is expected from the first quarter of calendar 1999. For the quarter ending 31 December 1998, the Directors anticipate production of 53,000 ounces at a cash operating cost per ounce of $249. 2. The bankable feasibility at Morila is due for completion by the end of March 1999. 3. We have previously advised that the Company intends to undertake an open offer to convert the $20 million loan from Randgold Resources ( Holdings ) Limited to equity in the Company and to offer all other shareholders the opportunity to subscribe for shares on the same basis. At the same time the Company is also proposing to undertake a cash placing of up to 985,000 additional shares with prospective institutional investors. Details of the open offer and placing are contained in the document published today. On behalf of Randgold Resources Limited R A R Kebble Chairman D M Bristow Managing Director 29 October 1998 RANDGOLD ASSETS ( AS OF 30 SEP 98 ) 6,306,041 DURBAN SHARES 967,126 DURBAN OPTIONS 2,826,992 DURBAN "B" OPTIONS 9,094 HARMONY SHARES 1,917,727 HARMONY OPTIONS 1,553,100 RANDFONTEIN SHARES 150,000 WESTERN AREA SHARES 300,000 JCI GOLD SHARES 4,218,410 KELGRAN LIMITED SHARES 75,214 BENCO SHARES 11,379,944 RANDGOLD RESOURCES SHARES $20 MILLION ADDITIONAL R.RES. SHARES 61,000,000 RAND SOUTHERN ERA PAYMENT 15,000,000 RAND CASH NAVACHAB ( 10% ) T.G.M.E. ( 75% ) MINERAL RIGHTS PACKAGE