Morila Mine Banner

Overview

Morila was discovered, developed and financed by Randgold. The mine was commissioned in October 2000 and, since inception, has produced more than 6Moz of gold and paid more than $2 billion to stakeholders.

In 2009, Morila was converted to a stockpile treatment operation. Closure of the operation was originally scheduled for 2013 but a pit pushback and tailings treatment project is expected to extend its life to 2017.

Work continues on the development of a commercial agri-business to utilise the mine’s infrastructure and provide sustainable economic activity in the area after Morila’s eventual closure.

Morila is situated 280km south east of Bamako, the capital of Mali, and is a joint venture between Randgold (40%), AngloGold Ashanti (40%) and the State of Mali (20%). Randgold has operated Morila since February 2008.

 

Achieved in 2015

  • Produced 122 374oz, exceeding annual target by 11%
  • Reduced total cash cost of production substantially to $674/oz
  • Successfully completed pit 4S pushback
  • Continued profitable processing of mineralised waste
  • Workforce appropriately downsized to ensure continued profitability
  • Plant recovery rate improved despite lower grades
  • Waste de-capping commenced in line with the TSF retreatment plan
  • Commercial scale agribusiness projects advanced and potential partners identified
  • LTI free year

Targeted in 2016

  • Produce 90 000oz of gold
  • Maintain low total cash cost/oz of production
  • Complete mining and processing of mineralised waste ore
  • Mine and process ore from Domba pit
  • Start processing TSF material
  • Manage downsizing of the operation
  • Continue to advance the agribusiness projects and begin handover to partners

Key 2015 numbers
for the 12 months ended 31 December

Equity ownership (operated by Randgold Resources)

 

40%

2015 production

(100%)

122 374oz

Total cash costs

($/oz)

674

Profit from mining activity#

(100%)

$60.5m

Total reserves

(100%)

0.3 Moz

Total resources measured and indicated

(100%)

0.4 Moz

Total resources inferred

(100%)

0.03 Moz

Safety certification

 

OHSAS 18001

Lost Time Injury Frequency Rate

 

 

Environmental certification

 

ISO 14001

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

Morila 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

-

0.02

-

4.0

-

0.003

-

0.001

 

Inferred

0.8

1.3

0.7

0.8

0.02

0.03

0.01

0.01

Open pit

Indicated

0.5

0.6

3.2

3.0

0.05

0.06

0.02

0.02

 

Inferred

-

0.2

-

3.7

-

0.02

-

0.01

TSF

Indicated

23

14

0.5

0.5

0.4

0.2

0.2

0.09

 

Inferred

0.9

9.7

0.5

0.5

0.01

0.2

0.01

0.06

TOTAL MINERAL RESOURCES

Measured and Indicated

24

14

0.6

0.6

0.4

0.2

0.2

0.1

 

Inferred

1.8

11

0.6

0.6

0.03

0.2

0.01

0.1

Ore reserves2

 

 

 

 

 

 

 

 

Stockpiles

Proved

-

0.02

-

4.0

-

0.003

-

0.001

Open pit

Probable

-

0.6

-

3.0

-

0.06

-

0.02

TSF

Probable

15

12

0.6

0.5

0.3

0.2

0.1

0.08

TOTAL ORE RESERVES

Proved and probable

15

13

0.6

0.7

0.3

0.3

0.1

0.1

1     Open pit mineral resources are those located within the $1 500/oz pit shell reported at $1 500/oz cut-off of 0.5g/t. Stockpile mineral resources are also reported at a $1 500/oz gold price and reported at a 0.5g/t cut-off. TSF mineral resources are reported at a $1 500/oz reported at a 0.3g/t cut-off. Open pit and TSF mineral resources were generated by Mr Jonathan Kleynhans, an officer of the company and competent person.


2     TSF ore reserves are reported at a $1 000/oz cut-off grade of 0.5g/t. Ore reserves were calculated by Mr Shaun Gillespie, an officer of the company and competent person.


3      Attributable gold (Moz) refers to the quantity attributed to Randgold based in its 40% interest in Morila.  Mineral resource and ore reserve numbers are reported as per JORC 2012 and as such 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.