Loulo Back On Track (Randgold Resources -- GOLD)
from MineBox
Randgold Resources in Africa
London and Nasdaq listed gold miner Randgold Resources posted a solid net profit of US$13 million for the March quarter on the back of an increase in profit from mining to US$33 million, resulting from its new Loulo gold mine and a higher gold price.
Reporting its results yesterday, the company said the second phase of the Loulo plant - threatened with derailment by a defaulting contractor - was back on track for completion towards the end of the second quarter. Meanwhile Loulo’s Phase 1 throughput, recoveries and costs before additional costs relating to temporary crushing were in line with expectations, and production of 64 677 ounces in the mine’s first full quarter of operation was on target.
Planning for the underground developments to complement Loulo’s existing open-pit operations progressed with the completion of the detailed design and production scheduling of the Yalea underground section. A contractor will be appointed next month and main decline development is due to start towards the end of 2006, with the first stoping ore likely to be accessed by the end of 2007.
Chief executive Dr Mark Bristow said a particularly significant aspect of what had generally been a challenging but good quarter was the increase to 56% in the reserve-to-resource ratio at Loulo.
“While the discovery of new ounces is important, it’s the conversion of these resources to reserves that is really critical in creating value. We have been very successful in converting the Yalea resources to reserves as a result of the deep drilling programme and the completion of the detailed underground mine plan,” he said.
Exploration within the Loulo region continued to highlight the potential for further extensions to the known orebodies as well as identifying new deposits. The company is also progressing early stage exploration programmes in Burkina Faso and Ghana.
- 09 May 2006
