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Randgold replaces 2016 Loulo-Gounkoto complex gold output, updates Morila reclamation plan

26th April 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – Africa-focused gold producer Randgold Resources said Tuesday it had replaced 100% of the 707 116 oz gold it produced in 2016 at the Mali-based Loulo-Gounkoto complex through ongoing exploration, placing the operation on track to meet 2017 production guidance of 690 000 oz gold, despite some industrial action in the first quarter.

The complex’s resource profile was bolstered by extensions at Gara, within the Loulo lease, and the approval of the Gounkoto superpit, CEO Mark Bristow said in a statement.

“The focus now is on finding additional resources to extend the operation’s life, but as things stand it is well placed to sustain an annual production rate in excess of 600 000 oz for at least the next ten years.”

The combined quarterly gold production for the Loulo-Gounkoto complex was 206 124 oz, an increase of 30% over the prior quarter, as more tonnes treated, better grade and improved recovery boosted performance. For 2016, gold output increased 12% to 707 116 oz, against 630 167 oz in the prior-year period, beating the full-year guidance by more than 37 000 oz.

Bristow noted that several new high-grade targets had been identified along the extensive geological structures that host the main deposits on the Loulo and Gounkoto leases, and the exploration team was also looking at some “exciting” opportunities to the north of the main Gara orebody, as well as extensions to other orebodies.

In the meantime, Nasdaq- and LSE-listed Randgold has engaged with the Malian fiscal administration to reach an amicable settlement of the disputes related to the Randgold group companies, which led to the Mali government’s decision in October last year to close the group's offices in the country's capital, Bamako, in escalation of the government’s long-running tax dispute with the gold major.

Randgold has agreed to pay the Mali government $25-million of an $80-million tax claim on the understanding that the parties will soon sit down to resolve all Randgold group tax issues.

The gold miner, which operates three mines in Mali, is disputing the tax assessments for 2011, 2012 and 2013.

Bristow said given Randgold’s long history of constructive partnership with the Mali government, he is confident the matter will be resolved within the framework of the mining conventions granted to the group.

MORILA CLOSURE PLAN
Meanwhile, Randgold says that while the Morila operation will continue to deliver value in its post-mining phase the miner progressing plans to develop the site further, into a commercial agricultural hub after its closure in 2019.

The Morila mine, which, according to Randgold, has since October 2000 produced more than six-million ounces of gold and distributed more than $2-billion to stakeholders, is currently processing tailings and returning them to the openpit as part of its self-funding closure strategy. 

Its self-funding capacity will be boosted by the development of the Domba satellite deposit, which has now been approved by the local community and the final environmental certification is awaited. Mining at Domba is scheduled to start after the rainy season, Randgold advised.

To offset the economic impact of its closure, Randgold said on Tuesday that, to date, Morila had spent $2-million on an initiative designed to convert the post-rehabilitation site with its remaining infrastructure into a 3 000-ha agricultural zone, or agripole, which it estimated will directly benefit some 50 000 local residents. 

The initiative is now being shared with the Songhai group, which has successfully rolled out similar projects in other African countries. The objective is for a combined Songhai and Morila/Randgold team to develop a plan to complete a feasibility study and business plan.

Edited by Creamer Media Reporter

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