Name and Location
Kibali gold project, Orientale province, Democratic Republic of Congo (DRC).

Client
The Kibali joint venture comprises Randgold Resources (45%), AngloGold Ashanti (45%) and DRC State-owned mining company Société des Mines d’Or de Kilo-Moto (10%). Randgold is the developer and operator of the mine.

Project Description
The Kibali operation will comprise an integrated underground and openpit mine, a twin-circuit sulphide and oxide plant, with a throughput of six-million tonnes a year, four self-constructed hydropower stations and a standby high-speed thermal power generator for backup during the dry season.

The project is being constructed over two overlapping phases.

Phase 1 covers the metallurgical plant, the first phase of the tailings storage facility, the construction of a hydropower station, a backup thermal power plant, construction of the tailings storage facility, openpit mining, all shared infrastructure and the completion of the resettlement programme.

Phase 2 involves the development of the underground mine, including a twin decline and single-shaft vertical system and three hydropower stations.

The current life-of-mine plan envisages average yearly output of about 600 000 oz for the first 12 years, with an average grade of 4.1 g/t.

Value
Kibali represents an initial investment of $1.725-billion by Randgold and AngloGold Ashanti.

Duration
Phase 1 will run from the first quarter of 2012 to the fourth quarter of 2013.

Phase 2 is expected to deliver first ore in 2014 and to reach steady-state production by 2015.

Latest Developments
The Kibali gold project has successfully started production ahead of its original year-end target and moved into commercial production on one mill stream during October 2013.

In the quarter ended September 30, 2013, critical circuits to get the oxide stream on line ahead of schedule were prioritised, resulting in the earlier than forecast first gold in October. Work continues on completing the outstanding metallurgical plant and infrastructure packages to move the second mill stream into commercial production in the first quarter of 2014.

The first phase of the cyanide tailings storage facility has been completed for use and the balance of the facility, together with the flotation tailings storage facility remains on schedule for completion by the end of the year.

The first of four hydropower stations – Nzoro 2 – is well advanced and is on track to be completed by the end of the first quarter of 2014.

Total decline metres for the September quarter was 1 222 m, which was ahead of plan, culminating in the total development of 2 580 m to date.

At the end of September, the vertical shaft presink was at 102.4 m. The Kibble winder mechanical and electrical was 98% complete and the headgear erection was 95% complete. Preparation for the main sink is in progress and continues on schedule, with an expected start date in November.

An update of mineral resources was completed in the September quarter, which resulted in a 670 000 oz increase in the total resource.

The current underground mine schedule aims to optimise the previous production profile presented in the feasibility study. The resulting optimisation of the mine schedule is expected to lead to a more optimal ounce profile, achievable through the increased number of large production stopes available and the shaft being able to hoist unconstrained from 2018.

The resettlement action plan continued to maintain construction of the remaining houses at a rate of between 60 and 80 houses a week for the September quarter. All 4 213 houses had been completed by the end of September and subsequently the relocation of the last households will take place in the final quarter of this year.

Key Contracts and Suppliers
Byrnecut (underground development); Shaft Sinkers (vertical shaft development); DTP (openpit mining)and DRA (metallurgical facility design and engineering, procurement and construction management).

On Budget and on Time?
The project remains on track to deliver first gold in the fourth quarter of 2013.

Contact Details for Project Information
Randgold Resources, tel +44 20 7557 7738 or email randgold@dpapr.com.