LOULO, Mali RANDGOLD RESOURCES will proceed with the development of a new 200,000-oz/year gold mine in western Mali. The Loulo open pit will need an investment of US$80 million before it goes into production in July 2005. It will have a six-year life.
The production forecast is based on reserves of 1.4 million oz identified in two main pits. "The feasibility study does not include the satellite orebodies or the underground," CEO Mark Bristow said. "Current resources are 4.3 million ounces and exploration results from deep drilling programs under the open pit reserves are demonstrating the strike and depth continuity of these orebodies, confirming the potential for extending Loulo’s life as an underground operation. There is a strong indication that Loulo can be grown into a long-life, medium-sized producer with total cash costs in the US$200 to US$230 per ounce range."
Loulo is situated some 350 km west of the capital Bamako, near the border with Senegal. It is owned by Socit des Mines de Loulo (SOMILO) in which Randgold Resources has an 80% interest, with the government of Mali holding the rest. See also www.randgoldresources.com.