Loulo-Gounkoto Mine Banner

Overview

Randgold’s flagship operation currently comprises the Loulo underground mines, Yalea and Gara, and the Gounkoto open pit mine. Production from the Loulo open pit operations started in 2005 followed by the development of the underground mines. Gounkoto, a greenfields discovery in 2009, poured its first gold in June 2011. The ore from Gounkoto is processed by the Loulo plant under a tolling agreement.

Based on current reserves, the complex has a scheduled Life of Mine to 2027.  It is now firmly established as a long life, high production operation, with the potential of an underground mine at Gounkoto being assessed along with a number of new satellite deposits.

The Loulo-Gounkoto complex is located in the west of Mali near the border with Senegal. Both the Loulo and Gounkoto mines are owned by Randgold (80%) and the State of Mali (20%).

Achieved in 2015

  • Produced 630 167oz at a total cash cost of $675/oz, in line with the prior year
  • Increased plant availability and throughput
  • Power distribution system stabilised and upgrade project on target for completion in 2017
  • Carbon regeneration kiln installed and elution upgrade project on track for Q1 2016
  • Completed gravity circuit upgrade
  • Successful transition from underground contract mining to owner mining
  • Updated Gounkoto underground feasibility and underground reserves increased to +1Moz
  • Mineral resources grow net of depletion and ore reserve replacement ongoing
  • Updated underground ventilation design completed
  • Gounkoto achieves LTI free year
  • ISO 14001 environmental and OHSAS 18001 health & safety management systems recertified

Targeted in 2016

  • Produce 670 000oz of gold
  • Improve throughput to 4.6Mt 
  • Improve recovery to >91%
  • Reduce cash costs per ounce of production
  • Commission two additional medium speed generators
  • Complete upgrade of elution circuit
  • Complete underground refrigeration project
  • Replace ore reserves through ongoing exploration
  • Complete Gounkoto underground versus superpit trade-off feasibility study
  • Maintain ISO 14001 and OHSAS 18001 certification
  • Reduce LTIFR at Loulo

Key 2015 numbers
for the 12 months ended 31 December

Equity ownership

 

80%

2015 production

(100%)

630 167oz

Total cash costs

($/oz)

675

Profit from mining activity#

(100%)

$298.4m

Safety certification

 

OHSAS 18001

Environmental certification

 

ISO 14001

Loulo mine

 

 

  • Total reserves

(100%)

4.7 Moz

  • Total resources measured and indicated

(100%)

7.1 Moz

  • Total resources inferred

(100%)

2.5 Moz

Lost Time Injury Frequency Rate

 

 

Gounkoto mine

 

 

  • Total reserves

(100%)

3.1 Moz

  • Total resources measured and indicated

(100%)

4.2 Moz

  • Total resources inferred

(100%)

0.5 Moz

Lost Time Injury Frequency Rate

 

 

# Profit from mining activity is calculated by subtracting total cash costs from gold sales, and is measured prior to depreciation, interest and corporate tax charges.

 

Loulo Mineral Resources and Ore Reserves

 

 

 

Tonnes (Mt)

 

Grade (g/t)

 

Gold (Moz)

Attributable gold3 (Moz)

at 31 December 2015

Category

2015

2014

2015

2014

2015

2014

2015

2014

Mineral resources1

 

 

 

 

 

 

 

 

Stockpiles

Measured

1.9

2.2

1.7

1.8

  0.1

  0.1

  0.08

0.1

Open pits

Measured

0.7

1.1

2.9

2.2

0.07

  0.07

0.05

  0.06

 

Indicated

11

7.0

2.6

2.3

  0.9

  0.5

  0.7

  0.4

 

Inferred

3.2

7.0

3.0

2.2

  0.3

  0.5

  0.2

  0.4

Underground

Measured

15

12

5.0

4.3

  2.4

  1.7

  1.9

  1.3

 

Indicated

22

29

5.1

5.0

3.6

4.7

2.9

3.8

 

Inferred

17

13

4.1

3.7

2.2

1.6

1.8

1.3

TOTAL MINERAL RESOURCES

Measured and indicated

51

 52

4.4

4.3

  7.1

7.1

 5.7

5.7

 

Inferred

20

20

3.9

3.2

2.5

2.1

2.0

1.7

Ore reserves2

 

 

 

 

 

 

 

 

Stockpiles

Proved

1.9

2.2

1.7

1.8

0.1

  0.1

  0.08

0.1

Open pits

Probable

5.3

4.2

3.4

2.5

0.6

0.3

0.5

0.3

Underground

Proved

Probable

6.7

18

-

27

5.3

5.0

-

5.1

1.1

2.9

-

4.4

0.9

2.3

-

3.5

TOTAL ORE RESERVES

Proven and probable

32

33

4.6

4.6

4.7

4.9

3.7

3.9

1    Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pitshell reported at an average cut-off of 0.7g/t. Underground mineral resources are those insitu mineral resources of the Yalea and Gara deposits that fall below the design pits and are reported at a cut-off of 1.9g/t for Yalea and 1.7g/t for Gara. Mineral resources were generated by Mr Simon Bottoms, an officer of the company and competent person. Mineral resources for Loulo 3, Baboto & Gara West were generated by Mr Mamadou Ly, an officer of the company, under the supervision of Mr Simon Bottoms, an officer of the company and competent person.

2     Open pit ore reserves are reported at a gold price of $1 000/oz and an average cut-off of 1.1g/t and include dilution and ore loss factors. Open pit ore reserves were calculated by Mr Shaun Gillespie, an officer of the company and competent person. Underground ore reserves are reported at a gold price of $1 000/oz and a cut-off of 2.6g/t for Yalea underground and 2.2g/t for Gara underground and includes dilution and ore loss factors. Underground ore reserves were calculated by Mr Andrew Fox, an external consultant and competent person.

3     Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 80% interest in Loulo.  Mineral resource and ore reserve numbers are reported as per JORC 2012 and as such are reported to the second significant digit.

Refer to the notes to the annual resources and reserves declaration on page 95 of the 2015 annual report.

 

 

Gounkoto mineral resources and ore reserves

 

 

 

Tonnes (Mt)

 

Grade (g/t)

 

Gold (Moz)

    Attributable    gold3 (Moz)

at 31 December 2015

Category

2015

2014

2015

2014

2015

2014

2015

2014

Mineral resources1

 

 

 

 

 

 

 

 

Stockpiles

Measured

1.9

1.7

1.9

1.9

0.1

0.1

0.09

0.08

Open pits

Measured

3.2

3.8

3.4

4.3

0.3

0.5

0.3

0.4

 

Indicated

17

15

3.9

3.9

2.1

1.9

1.7

1.5

 

Inferred

2.2

3.7

2.2

2.6

0.2

0.3

0.1

0.2

Underground

Indicated

7.5

7.1

6.5

5.7

1.6

1.3

1.3

1.0

 

Inferred

3.1

3.8

3.8

3.8

0.4

0.5

0.3

0.4

TOTAL MINERAL RESOURCES

Measured and Indicated

Inferred

 

30

5.3

 

28

7.5

 

4.4

3.1

 

4.3

3.2

 

4.2

0.5

 

3.8

0.8

 

3.3

0.4

 

3.0

0.6

Mineral reserves2

 

 

 

 

 

 

 

 

Stockpiles

Proved

1.9

1.7

1.9

1.9

0.1

0.1

0.09

0.08

Open pits

Proved

2.2

2.7

4.2

4.9

0.3

0.4

0.2

0.3

 

Probable

12

13

4.4

4.0

1.6

1.7

1.3

1.4

 Underground

Probable

4.7

4.7

7.1

6.0

1.1

0.9

0.9

0.7 

TOTAL ORE RESERVES

Proved and probable

20

22

4.8

4.4

3.1

3.2

2.5

2.5

1     Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at an average cut-off of 0.9g/t. Underground mineral resources are those insitu mineral resources below the $1 500/oz pit shell reported at 2.0g/t cut-off. Mineral resources for Gounkoto were generated by Mr Sekou Diallo and Mr Mamadou Ly, both officers of the company, under the supervision of Mr Simon Bottoms, an officer of the company and competent person.


2     Open pit ore reserves are reported at a gold price of $1 000/oz and 1.3g/t cut-off and include dilution and ore loss factors. Open pit ore reserves were calculated by Mr Philemon Frimpong, an officer of the company, under the supervision of Mr Shaun Gillespie, an officer of the company and competent person. Underground ore reserves are reported at a gold price of $1 000/oz and a cut-off of 3.0g/t and include dilution and ore loss factors. Underground ore reserves were calculated by Mr Tim Peters, an external consultant and a competent person.


3     Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 80% interest in Gounkoto.  Mineral resource and ore reserve numbers are reported as per JORC 2012 and as such are reported to the second significant digit.


Refer to the notes to the annual resources and reserves declaration on page 95 of the 2015 annual report.