Gold-miner Randgold Resources has reported record production of 70 660 oz for the second quarter, at its Loulo mine, in Mali.

The output levels were achieved at the mine despite lower mining tonnages owing to interruptions caused by excavator breakdowns, CEO Mark Bristow said.

However, mill feed had been supplemented by dipping into stockpiles.

Further, deep drilling of the Loulo mine's Gara orebody had outlined an additional 400 000 oz of inferred resource at a grade of 4,9 g/t.

Bristow commented that the resource was still inferred, as there was some borehole drilling to be completed by the geologists.

A report by the company said that the mine's design would be extended to exploit this additional ore, which represented an 18% increase in Gara's underground resource.

The Yalea underground mine at Loulo was progressing well, and the twin declines were both at 400 m from the surface at a vertical depth of 75 m.

Loulo began as a twin-openpit operation, but the company is building two underground mines, Yalea and Gara, at the mine.

Bristow said that the Yalea mine was on track to intercept its first ore by the end of this year.

Exploration

Randgold Resources continued an aggressive exploration campaign during the quarter, with ten drill rigs operating in five different countries, namely the Cote d'Ivoire, Senegal, Burkina Faso, Ghana and Tanzania.

During the quarter ended June 30, exploration and corporate expenditure increased from $6,5-million to $8,6-million quarter-on-quarter, primarily owing to increased spend at the company's Tongon project, in the Cote d'Ivoire, which is now in the final feasibility stage.

Feasibility drilling at the Tongon project was progressing well, with an additional 39 drill holes for 9 146 m completed by the end of the quarter, Bristow said.

The company plans to produce its first gold at Tongon in the second half of 2010.

At this stage, the mine is expected to yield 250 000 oz/y at full capacity.

More than 4 km of continuous mineralisation had been outlined in the project's northern and southern zones, and additional targets, outside known orebodies, have been identified for follow up.

The environmental and social impact assessment element of the feasibility study has started, and detailed metallurgical work and infrastructural assessment are in progress.

The project will be rescoped by September and more details will be given when Randgold Resources presents its quarterly results in October/November.

Bristow said that the company would aim to place orders for long-lead items for the Tongon project by year-end.

The Tongon project is not the only target in the Cote d'Ivoire, as Randgold has identified 12 targets, within its Nielle permit, for follow-up work.

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