JOHANNESBURG (miningweekly.com) – Dual-listed miner Randgold Resources was considering the development of a third underground mine at its Loulo-Gounkoto gold mining complex, in Mali.

CEO Mark Bristow said in a statement on Monday that a feasibility study on an underground mine at Gounkoto had been completed and that the findings of the study would be made known when the company published its 2014 results later this month.

Randgold was also planning to increase gold production from the existing Yalea and Gara underground and Gounkoto openpit mine at the complex this year.
 
"Regardless of the potential Gounkoto underground mine, subject to the gold price remaining at current levels, the complex is forecast to up its profitability from its existing mining activities through increased production and reduced unit costs on the back of higher grades, improved recoveries and the benefits of its ongoing capital projects," Bristow added.

He noted that currently, Loulo-Gounkoto had reserves in excess of eight-million ounces of gold. Based on these reserves, the complex had an estimated mine life up to 2027.

During the last year, the complex’s crusher circuit was upgraded and two additional medium-speed generators were commissioned, giving the complex about 50 MW of installed capacity.

In addition, an underground backfill system had been commissioned and ramped up, enabling a virtual 100% extraction from the high-grade stopes at Yalea and Gara. The finalisation of the refrigeration and next phase of ventilation plans, as well as the upgrading and optimisation of the power distribution system and the elution and regeneration plants, were on the cards for this year.

"We believe the Senegal–Mali shear zone, which hosts Loulo-Gounkoto, is one of the most prolific gold regions in Africa, with the capacity to rival Ghana's Obuasi, and we are continuing our hunt for more multimillion-ounce gold deposits there. We're also expanding our presence in the area through joint ventures with junior miners who have promising early-stage projects," Bristow said.

"Randgold has now been operating in Mali for almost 20 years and the Loulo-Gounkoto complex is a testament to our creed that we build mining businesses which benefit our host countries and their people, as well as our shareholders.  There have been many challenges along the way, but the strong relationships and the spirit of cooperation we have cultivated with the government, the community and the workers have enabled us to overcome these," Bristow noted.

He added that this cooperation was not confined to commercial issues, citing the company’s participation in initiatives to fight diseases such as Ebola, malaria, polio and other rare tropical diseases.