JERSEY, Channel Islands and NEW YORK, June 1, 2004 (PRIMEZONE) -- Latest assay results from the ongoing deep drilling programme at the Yalea deposit at Randgold Resources'(LSE:RRS) (Nasdaq:GOLD) Loulo project in Mali continue to demonstrate continuity of mineralisation along strike and down dip, confirming significant potential to extend the projected mine life to 15 years or more.
Loulo is currently being developed as an opencast mine, due to go into production in July next year and planned to produce above 200 000 ounces of gold per year over a six-year life-of-mine. In tandem with this development, the company's project and evaluation team together with SRK Consulting are undertaking a prefeasibility study on the potential for extending the mine underground. This is scheduled for completion in July this year, with a full feasibility planned by the year-end.
"Loulo is in fact turning into two projects in one -- the opencast operation on which it was banked and the very exciting underground potential we're currently defining, along with the satellite orebodies," chief executive Dr. Mark Bristow said today. "Indications are that Loulo could grow into a long-life, medium-sized producer. It's not inconceivable that these orebodies will continue to a depth below 1 000 metres, which would make it one of the best projects of its kind in Africa at present."
Of the 16 deep diamond drill holes drilled to date at Yalea, seven have been drilled to depths of between 400 and 500 metres below surface and have delineated the depth projection of high-grade payshoots from surface, intersecting strong sulphide mineralisation over true widths of between 3 and 36 metres with grades ranging up to 40g/t. The orebody remains open to the north and south and at depth.
The deep northern portion of the deposit has particularly significant potential with seven holes displaying the following selected intercepts: 7.3m@18.47g/t, 3.7m@23.97g/t, 4m@10.21g/t, 12m@18.56g/t, 25m@13.45g/t, 13.6m@28.3g/t and 14m@8.58g/t over a strike length of 750 metres.
YALEA DEEP DRILL RESULTS (listed from south to north)
Section Hole From To Lengt Au Depth Comments
number h g/t below
(m) surface
1441330 YDH126 373.0 379.0 6.0 6.80 318
1441440 YDH122 317.0 349.0 32.0 10.94 256
1441530 YDH123 329.0 334.0 5.0 7.44 278
1441620 YDH124 268.0 278.5 10.5 7.42 224
1441740 YDH125 336.0 344.0 8.0 4.15 278
1441840* YDH137 501.0 514.0 13.0 1.69 448 Faulted
Inter-section
1441930 YDH143 616.7 624.0 7.3 18.47 510
1441940 YDH127 357.0 372.0 15.0 5.25 301
1442050 YDH136 586.4 590.1 3.7 23.97 484
1442190* YDH142 546.0 550.0 4.0 10.21 439
1442240 YDH140 619.0 631.0 12.0 18.56 511
1442360* YDH141 547.0 572.0 25.0 13.45 452
1442470 YDH132 487.0 538.0 51.0 10.86 418
1442470 Incl. 523.0 536.6 13.6 28.30 418
1442470 or 530.0 536.6 6.6 40.23 418
1442590* YDH150 487.0 512.0 25.0 3.62 390
1442590* Incl. 495.0 502.0 7.0 5.62 390
1442680* YDH149 459.0 473.0 14.0 8.58 343
1442820* YDH134 471.0 475.5 4.5 1.99 365 Outside high
grade shoot
1442820 P125DH15 226.0 242.0 16.0 4.94 192
1442820 Incl. 231.0 242.0 11.0 6.50 192
1442900 P125DH14 215.0 224.0 9.0 3.67 182
1442980 P125DH16 218.0 231.0 13.0 6.37 178
* New results -- since 31 March 2004.
The Loulo 0 deposit five kilometres north of Yalea has also returned significant deep drill results. Drilling completed during the season has returned a number of economic intersections below the present pit design. These continue to delineate two high grade shoots, open with depth and with strike lengths of 300 and 400 metres. Intercepts are tabled below.
LOULO 0 DEEP RESULTS (listed from south to north)
Section Hole From To Length Au Depth Comments
Number (m) g/t Below
Surface
1447410 L0CP49 172.0 176.0 4.0 14.15 158 Southern
Shoot
1447320 L0CP35 183.9 187.7 3.8 6.50 169 Southern
Shoot
1447370 L0CP33 235.8 240.3 4.5 6.27 200 Southern
Shoot
1447440 L0CP34 251.0 256.0 5.0 6.22 229 Southern
Shoot
1447710 L0CP42 528.0 535.0 7.0 4.83 384 Southern
Shoot
1448090 L0CP40 260.6 281.1 20.5 10.70 220 Northern
Shoot
1448020 L0CP38 338.4 350.8 12.4 2.80 302 Northern
Shoot
1448180 L0CP39 261.8 281.0 19.2 6.69 222 Northern
Shoot
1448300 L0CP41 214.0 226.0 12.0 10.65 172 Northern
Shoot
1448350 L0CP53 222.5 228.0 5.5 3.58 181 Northern
Shoot
A further deep drilling programme is planned after the current rainy season to extend the indicated resources at Loulo 0 down to below 400 metres. To achieve these depths, Boart Longyear are currently mobilising a larger Sullivan 50 drill rig to site.
BACKGROUND ON RANDGOLD RESOURCES: Randgold Resources (LSE:RRS) (Nasdaq:GOLD) is an international gold mining and exploration business focused in Africa, incorporated in the Channel Islands in 1995 and listed on the London Stock Exchange in 1997 and Nasdaq in 2002.
On 22 September 2003, Randgold Resources was accepted as a member of the FTSE 250 Index.
It has to date discovered the 7 million ounce Morila deposit in southern Mali, the plus 2 million ounce Yalea deposit in western Mali and the 3 million ounce Tongon deposit in Cote d'Ivoire.
The Company successfully developed the Morila deposit into one of the world's largest and highest-margin gold mines, which since it commenced production in October 2000 has produced just over 2.5 million ounces at a total cash cost of approximately US$90 per ounce. The Company has commenced the development of a new mine at Loulo, with the open-pit operation scheduled to commence in July 2005. Feasibility study work on the underground potential to extend the life of the operation is continuing.
Randgold Resources has a prefeasibility project at Tongon in Cote d'Ivoire and a portfolio of prospective exploration projects in Mali, Cote d'Ivoire, Senegal and Tanzania.
Full information on the Company is available on the website at www.randgoldresources.com
DISCLAIMER: Statements made in this document with respect to Randgold Resources' current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Randgold Resources. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Randgold Resources cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. The potential risks and uncertainties include, among others, risks associated with: fluctuations in the market price of gold, gold production at Morila, the development of Loulo, estimates of reserves and mine life and liabilities arising from the closure of Syama. For a discussion on such risk factors, refer to the annual report on Form 20-F for the year ended 31 December 2002, which was filed with the Securities Exchange Commission on 27 June 2003. Randgold Resources assumes no obligation to update information in this release. Cautionary Note to US Investors: The United States Securities Exchange Commission (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 part 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.
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