Loulo underground mine

Name of the project and location
Loulo underground mine, Mali.

Project description
Go-ahead has been given for the development of an underground gold-mine at Loulo, in Mali.

The board decision in favour of developing an underground mine at Loulo comes hot on the heels of the commissioning of Loulo’s opencast operation, which poured its first gold in September.

The project will involve the sinking of a decline shaft below the newly-opened openpit and considerable mechanisation.

The underground mine will extend the mine’s life to 23 years.

Value
$100-million, which will take financial commitment in the entire Loulo complex to $200-million.

Duration
A start on the construction of the proposed underground operation is expected by mid-year 2006.

Breakdown of main contracts
None stated.

Client
Randgold Resources.

Latest developments
An experienced underground manager has been appointed to advance the development of the underground project and a review of critical issues is under way. This three-month review will culminate in an integrated plan designed to optimise the value of the combined open-pit and underground operations. At the end of this period, decisions will be made regarding issues such as: contract vs owner-operator mining; review of capital requirements and scheduling; fast-tracking the access of high-grade areas of Yalea; alternative access and ore-transport facilities, and simultaneous or staggered development of the declines.

Participants
None stated.

Construction materials
Not stated.

On budget and on time?
The project has just been announced.

Contact details for project information
Randgold Resources Media and Investor Relations, Kathy du Plessis, tel (011) 728 4701, fax (011) 728 2547, email randgoldresources@dpapr.com