TONGON PROJECT READY TO ADVANCE
London, 5 August 2005 - In 2002, Randgold Resources completed a prefeasibility study on the Tongon Project in the C^ote d'Ivoire which indicated that it had the potential to meet the company's criteria for investment; the unrest in the country has since prevented any other field work being carried out.
The prospect of peace has led the company to review the economics of the project. "While the gold price has increased US$100/oz since the prefeasibility study, substantial increases in diesel, steel and transport have negatively affected project economics world-wide," says general manager, exploration and evaluation, Adrian Reynolds. "We reviewed the previous work carried out at Tongon going back to the basics of orebody modelling through to final product, applying a fair deal of conservatism. Nevertheless our total resource is slightly larger at a higher grade and a preliminary economic assessment shows that the project exceeds our company hurdle rates as well as the other parameters of our strategic filter."
Babacar Diouf, valuation assistant, says: "We have designed a 27 000 metre drilling programme costing approximately US$3 million which will bring both the southern and northern zones to 50m x 50m drillhole spacing within 12 months of commencement. At the same time, we will complete the other aspects of the feasibility study, with the intention of completing the final feasibility within two years of the situation in the country stabilising, after the general elections which are planned for October this year."
Elsewhere in C^ote d'Ivoire, the company has maintained three additional permits in good standing and is reviewing data from several other prospects. C^ote d'Ivoire remains a significantly underexplored Birimian terrain and all available information is being incorporated into the company's generative Geographic Information System.
CONTINUING TO EXPAND THE FOOTPRINT
London, 5 August 2005 - Randgold Resources continues to deliver on its promise to expand its country exposure and project portfolio throughout the major gold belts of west and east Africa. The company's African footprint has increased to encompass some 11 500km^2 and a portfolio of 141 targets in six countries. New models and ideas, both in Ghana and Burkina Faso, have led to additional permit applications being submitted, covering 8 500km^2 of prospective greenstone belt.
Eight rigs have been drilling on four projects in two countries to hunt for new ounces and the deepest hole ever drilled by Randgold was completed to a down hole depth of 1 111 metres at Yalea on the Loulo project. Deep drilling at both Yalea and Loulo 0 have returned a positive underground development study which will add long-term value to the project. Additionally, exploration continues to discover further Yalea lookalike styles of mineralisation within the permit. Exploration has started on a new project, Sitakili, 21 kilometres east of Loulo which is a Tabakoto lookalike with mineralised porphyry dykes intruding folded sediments.
In Senegal, the company has built a well-balanced resource triangle with a portfolio of quality targets in the space of two years. To date six of 35 targets have been drilled, three of which have dropped off, one is parked and two require further drilling. Work continues to advance more targets to the drill phase. A new model and strategy at Morila are driving the development of a more aggressive exploration drilling programme to hunt for further hidden orebodies.
While on a recent trip to Tanzania to review the company's permit portfolio which overlies Achaean-age rocks, some of the oldest rocks in the world, exploration manager Paul Harbidge and the Tanzanian team took the opportunity to trek up the 2 878 metre Ol Donyo Lengai carbonatite volcano, so active that it cannot be measured in geological time. While the aim of climbing a mountain and conducting exploration are completely different there are similarities in the successful execution of both: A strategy, leadership, teamwork, a plan and relevant and correctly applied technology. The base of a mountain can be viewed as the base of a resource triangle where risk is lower. As one progresses up the triangle and mountain it becomes more difficult and the risk increases.
RANDGOLD RESOURCES ENQUIRIES:
Chief Executive - Dr Mark Bristow +44 779 775 2288
Financial Director - Roger Williams +44 791 709 8939
Investor & Media Relations - Kathy du Plessis +27 11 728 4701,
Cell: +27 (0) 83 266 5847, Email: randgoldresources@dpapr.com
Website: www.randgoldresources.com
