Randgold increases reserves and ups grade

Randgold increases reserves and ups grade 
JERSEY, CHANNEL ISLANDS -- (Marketwire) -- 03/28/13 --  Randgold
Resources (TSX VENTURE: IAE) (NASDAQ: GOLD) (LSE: RRS) 


 
 
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
("Randgold Resources", "Randgold" and the "company")
 
INCREASING RESERVES AND UPPING GRADE, RANDGOLD BUCKS INDUSTRY TREND
AGAIN
 
London, 28 March 2013 - Randgold Resources increased its attributable
reserves in 2012, despite their depletion from mining in a year that
delivered record production. At the same time, the company continued
to improve its overall reserve grade.
 
Randgold's annual mineral resource and reserve declaration, published
today as part of its annual report for 2012, shows total attributable
mineral reserve ounces up by 803000 to 16.36 million. In line with
the company's focus on quality over quantity, the group reserve grade
was increased from 3.84 to 3.87g/t, while total attributable resources
were down from 28.25 to 27.21 million ounces.
 
Randgold's general manager evaluation Rod Quick noted that the grade
improvement had been driven principally by the group's flagship Loulo,
Gounkoto and Kibali deposits."This ability to add quality ounces from
extensions to our known
orebodies and to continue converting ounces from the inferred to the
indicated category shows the value of our strategy of focusing on world
class deposits," he said."It's also worth noting that we haven't used the
higher gold price to
boost our ounces. For the second year running, we have calculated our
reserves at a relatively conservative US$1000/oz of gold while our
resources have been estimated at US$1500/oz."
 
At Kibali, the giant gold mine Randgold is developing in the Democratic
Republic of Congo, total reserves now stand at 10.92 million ounces at
4.10g/t, up from 10.21 million ounces at 4.04g/t, as a result of grade
control drilling in the KCD pit and extension drilling of the 5000
Underground Lode. At Loulo in Mali underground reserves have increased
by 90000 ounces despite mining depletion, principally as a result of
grade increases around the Yalea 'purple patch' as well as at Gara.
The neighbouring Gounkoto open pit mine reported lower reserves, due to
mining depletion, but with a significant grade improvement. The
incorporation of the low grade Faraba pit into the total Gounkoto
reserves caused a lowering of the overall Gounkoto reserve grade from
5.06g/t to 4.73g/t. However the quality of the Gounkoto underground
mineral resource improved significantly with grade increasing from
4.66g/t to 6.43g/t and bodes well for the generation of further high
grade reserves post the completion of the underground feasibility
study. In Cote d'Ivoire, Tongon's resources and reserves as well as
the grade were impacted negatively by the mine's underperformance in
2012. With last year's operational problems now under control,
however, the mine should be able to drive recoveries up and costs down,
which should result in an increase in reserves.
 
Chief executive Mark Bristow said while the gold mining industry in
general was decreasing the grade at which it mined in order to maintain
production profiles, and thus intensifying cost pressures, Randgold was
able to replace its depleted ounces at a higher grade."The measure of a
gold mining company's value is not only its resource
and reserve base, but also the way in which it invests in the future.
Randgold is strategically well positioned, with a substantial portfolio
of quality greenfields prospects. We continue to explore aggressively
across West and Central Africa's most prospective gold belts. We're
also looking to expand our footprint there through joint ventures with
junior exploration companies, some of whom hold good assets but are
unable to develop them in a stressed market," Bristow said.
 
RESOURCE AND RESERVE DECLARATION at 31 December 2012(abridged)
 
Mine/project                Category   Tonnes  Grade  Gold  Attributable
                                        (Mt)   (g/t) (Moz)  gold (Moz)
MINERAL RESOURCES
 
Kibali                                                            45%
 
               Measured and indicated   134.68  3.48   15.08     6.78
 
                             Inferred    55.40  2.20    3.91     1.76
 
Loulo                                                             80%
 
               Measured and indicated    56.22  4.67    8.45     6.76
 
                             Inferred    16.74  3.36    1.81     1.45
Gounkoto                                                          80%
 
               Measured and indicated    26.78  4.80     4.13    3.30
 
                             Inferred     4.03  3.75     0.49    0.39
 
Morila                                                            40%
 
               Measured and indicated     4.90   1.56    0.25    0.10
 
                             Inferred    41.33   0.43    0.58    0.23
 
Tongon                                                            89%
 
               Measured and indicated    35.34   2.63    2.99    2.66
 
                             Inferred    10.06   2.69    0.87    0.78
 
Massawa                                                           83%
 
                            Indicated    37.33   2.65    3.18    2.65
 
                             Inferred     3.36   3.92    0.42    0.35
 
TOTAL MEASURED AND INDICATED             295.25  3.59   34.07   22.25
RESOURCES
 
TOTAL INFERRED RESOURCES                 130.92  1.92    8.08    4.95
 
MINERAL RESERVES
 
Kibali                                                            45%
 
                  Proven and probable    82.89    4.10   10.92   4.91
 
Loulo                                                             80%
 
                   Proven and probable   39.97    4.93    6.34   5.07
 
Gounkoto                                                          80%
 
                   Proven and probable   18.32    4.73    2.78   2.23
 
Morila                                                            40%
 
                              Probable    4.88    1.51    0.24   0.09
 
Tongon                                                            89%
 
                   Proven and probable   33.79    2.43    2.64   2.35
 
Massawa                                                           83%
 
                              Probable   20.73    3.07    2.05   1.70
 
TOTAL PROVEN AND PROBABLE               200.60    3.87   24.96  16.36
RESERVES
 
ENQUIRIES
 
Chief Executive       Financial Director    Investor & Media Relations
Mark Bristow          Graham Shuttleworth   Kathy du Plessis
+447880711386         +441534735333         +442075577738
+447797752288         +447797711338         Email:
                                            randgoldresources@dpapr.com
Website: www.randgoldresources.com
 
Randgold reports its mineral resources and mineral reserves in
accordance with the JORC code and are equivalent to National Instrument
43-101. The reporting of ore reserves is also in accordance with SEC
Industry Guide 7. Open pit mineral resources consist of insitu mineral
resources at a 0.5g/t cut-off falling within a US$1 500/oz optimised
pit shell. Underground mineral resources are those mineral resources
falling below the open pit resources reported at cut-off grades of
between 1.5g/t to 2.0g/t. Open pit and underground mineral reserves
are economic at a gold price of US$1 000/oz, except for the Morila pit
which is calculated at a gold price of US$1 300/oz. Open pit rese
rves
are calculated at a weighted average cut-off grade of 1.08g/t. Our
underground reserves are calculated at a weighted average cut-off grade
of 2.34g/t. Our stockpile reserves at Morila are calculated at a
cut-off grade of 0.68g/t. Dilution and ore loss are incorporated into
the calculation of reserves. Addition of individual line items may not
sum to sub totals because of the rounding off to two decimal places.
Mineral resources are inclusive of mineral reserves.
 
COMPETENT PERSONS:
 
Yalea and Gara mineral resources from Loulo were calculated by Mr
Abdoulaye Ngom, an officer of the company, under the supervision of Mr
Jonathan Kleynhans, an officer of the company and Competent Person.
Loulo 3 and Baboto mineral resources from Loulo were calculated by Mr
Ivan Doku, an independent consultant, and reviewed by Mr Jonathan
Kleynhans, an officer of the company and Competent Person. Faraba
mineral resources from Gounkoto were calculated by Mr Jonathan
Kleynhans, an officer of the company and Competent Person. Tongon
mineral resources were calculated by Mr Mamadou Ly and Mr Babacar
Diouf, both officers of the company, under the supervision of Mr
Jonathan Kleynhans, an officer of the company and Competent Person.
Morila mineral resources were calculated by Mr Adama Kone, an officerof the
company, under the supervision of Mr Jonathan Kleynhans, an
officer of the company and Competent Person. Kibali mineral resources
were calculated by Mr Ernest Doh, an officer of the company and
Competent Person. Morila open pit resources were calculated by Miss
Paula Oligive, an independent consultant, under the supervision of Mr
Jonathan Kleynhans, an officer of the company and Competent Person.
Gounkoto mineral resources were calculated by Mr Fredrick de Bruin, an
independent consultant, under the supervision of Mr Jonathan Kleynhans,
an officer of the company and Competent Person. Mr Johan Kleynhans and
Mr Rodney Quick are members of SACNASP and both have sufficient
experience in the style of mineralisation and types of deposits under
consideration and the activity which they are undertaking as Competent
Persons as defined in the 2004 addition in the 'Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves'.
 
The Loulo, Tongon, Morila and Gounkoto open pit mineral reserves were
calculated by Mr Shaun Gillespie, an independent consultant and
Competent Person and member of SAIMM. Kibali open pit mineral reserves
were generated by Mr Nicholas Coomson, an officer of the company and
Competent Person and member of AusIMM. Loulo underground reserves were
calculated by Mr Mamou Toure, an officer of the company, and reviewed
by Mr Mark Odell, an independent consultant and Competent Person and
practising professional engineer. Massawa mineral reserves remain
unchanged from last year and were calculated by Mr Onno ten Brinke, an
independent consultant and Competent Person and member of AusIMM, and
reviewed by Mr Rodney Quick, an officer of the company and Competent
Person. The Kibali underground mineral reserves were calculated by Mr
Tim Peters of Piran Mining and reviewed by Mr Dan Donald of Mine RP,
both independent consultants and Competent Persons and members of
AusIMM. All Competent Persons have sufficient experience in the style
of mineralisation and types of deposits under consideration and the
activity which they are undertaking as Competent Persons as defined in
the 2004 addition in the 'Australasian Code for Reporting Exploration
Results, Mineral Resources and Ore Reserves'.
 
ANNUAL REPORT:
 
Randgold has posted its annual report for the year ended 31 December
2012 to shareholders and its Form-20F for the same period is expected
to be filed with the United States Securities and Exchange Commission
('SEC') today. Once published, both reports will be available on the
company's website at www.randgoldresources.com for viewing and/or
downloading. Shareholders can download a copy of the proxy form from
our website and those wishing to appoint a proxy via the CREST system
should do so via the issuer's agent (ID number 3RA50). Details
regarding the submission of proxies can be obtained from the notice of
annual general meeting section, also on the website at
www.randgoldresources.com.
 
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
 
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements within
the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934, and applicable Canadian
securities legislation. Forward-looking statements include, but are
not limited to, statements with respect to the future price of gold,
the estimation of mineral reserves and resources, the realisation of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, reserve determination and reserve
conversion rates. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
'will','plans', 'expects' or 'does not expect', 'is expected',
'budget','scheduled', 'estimates', 'forecasts', 'intends', 'anticipates'
or'does not anticipate', or 'believes', or variations of such words and
phrases or state that certain actions, events or results 'may','could',
'would', 'might' or 'will be taken', 'occur' or 'be
achieved'. Assumptions upon which such forward-looking statements are
based are in turn based on factors and events that are not within the
control of Randgold and there is no assurance they will prove to be
correct. Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Randgold to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to mining operations, including political risks and instability
and risks related to international operations, actual results of
current exploration activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, as well
as those factors discussed in Randgold's filings with the SEC).
Although Randgold has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Randgold does not
undertake to update any forward-looking statements herein, except in
accordance with applicable securities laws. CAUTIONARY NOTE TO US
INVESTORS: The SEC permits companies, in their filings with the SEC, to
disclose only proven and probable ore reserves. We use certain terms
in this release, such as 'resources', that the SEC does not recognise
and strictly prohibits us from including in our filings with the SEC.
Investors are cautioned not to assume that all or any parts of our
resources will ever be converted into reserves which qualify as 'proven
and probable reserves' for the purposes of the SEC's Industry Guide
number 7.
 
                    This information is provided by RNS
          The company news service from the London Stock Exchange
 
END

  
Contacts:
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rns@londonstockexchange.com
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