/ 13 November 2005

Randgold opens new mine in Mali

Malian President Amadou Toumani Toure on Saturday officially opened Randgold Resources’ new Loulo gold mine in the west of his country.

The company said in a statement that the mine shipped its first commercial consignment of 8710 fine ounces of gold, valued at about $4-million, on Tuesday.

”The mine plans to ship bullion on a weekly basis from now on,” read the statement.

Developed at a cost of about $113-million, the new mine has been designed to produce an average of more than 200 000 ounces per year from open-pit operations.

”A complementary underground operation, which will substantially extend the size, value and life of the project, is currently being developed.”

Randgold Resources also owns the Morila mine in the West African country.

The chairperson of Randgold Resources, Philippe Litard, said western Mali has the potential to become a significant new gold region, and the infrastructure that has been put in place at Loulo is such that it could serve as the development hub not only for this region, but also for the nearby goldfields of eastern Senegal.

Loulo is owned by Societe des Mines de Loulo SA, in which Randgold Resources has an 80% interest with the balance being held by the state of Mali. — Sapa