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Overview

Mining at Tongon began in April 2010 and gold production from the open pit operation started in December 2010.

The Tongon mine comprises two open pit operations, the Southern and Northern Zones. The mine currently has a seven year Life of Mine but exploration, aimed at adding to the current reserves and extending the life of the mine, continues.

The Tongon mine is located within the Nielle exploration permit in the north of Côte d’lvoire, 55km south of the border with Mali. Randgold owns 89% of the mine, the State of Côte d’lvoire 10% and 1% is held by a local company.

 

 

Achieved in 2015

  • 7% increase in gold production to 242 948oz
  • 4% reduction in total cash cost to $836/oz due to improved efficiency and cost control
  • Recovery and throughput increased
  • New rougher flotation circuit completed and commissioned
  • Underperforming Vibrocone crushers replaced with Hydrocone crushers
  • New 4th stage crushing circuit Phase 1 installed by year end
  • Repayment of capital and shareholders loans completed
  • 35% of 2015 ounce depletion replaced through in-fill grade control drilling
  • OHSAS 18001 and ISO 14001 certifications maintained
  • Malaria incidence rate decreased by 16% year on year
  • Continued localisation of workforce to over 97% Ivorian
  • Received ‘Award for Excellence’ and recognised as the best mine in the country for the second year running by the President of Côte d’lvoire

Targeted in 2016

  • Produce 290 000oz of gold
  • Reduce total cash cost/oz of production
  • Optimise the flotation concentrate ultra-fine grinding operation to improve recovery
  • Complete and commission Phase 2 installation of the 4th stage crushing circuit
  • Maintain OHSAS 18001 and ISO 14001 certification
  • Maintain and improve community relations and social development
  • Conclude the agribusiness feasibility study in partnership with government
  • Continue the localisation of Tongon’s management and skills base
  • Reduce LTIFR
  • Pay dividends

Key 2015 numbers
for the 12 months ended 31 December

Equity ownership

 

89%

2015 production

(100%)

242 948oz

Total cash costs

($/oz)

836

Profit from mining activity#

(100%)

$75.4m

Total reserves

(100%)

2.0 Moz

Total resources measured and indicated

(100%)

2.6 Moz

Total resources inferred

(100%)

1.1 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 corporate tax charges.

Tongon Mineral Resources and Ore Reserves

 

 

 

Tonnes (Mt)

 

Grade (g/t)

 

Gold (Moz)

    Attributable    gold3 (Moz)

at 31 December

Category

2015

2014

2015

2014

2015

2014

2015

2014

Mineral resources1

 

 

 

 

 

 

 

 

Stockpiles

Measured

2.4

3.0

1.3

1.3

0.1

0.1

0.09

0.1

Open pits

Measured

6.9

3.9

3.3

3.1

0.7

0.4

0.6

0.3

 

Indicated

22

27

2.6

2.6

1.8

2.2

1.6

2.0

 

Inferred

5.7

4.3

2.6

2.5

0.5

0.3

0.4

0.3

Underground

Indicated

-

-

-

-

-

-

-

-

 

Inferred

6.4

7.5

2.9

2.8

0.6

0.7

0.5

0.6

TOTAL MINERAL RESOURCES

Measured and

Indicated

 

30

 

34

 

2.6

 

2.5

 

2.6

 

2.7

 

2.3

 

2.4

 

Inferred

12

12

2.8

2.7

1.1

1.0

1.0

0.9

Ore reserves2

 

 

 

 

 

 

 

 

Stockpiles

Proved

2.4

3.0

1.3

1.4

0.1

0.1

0.1

0.1

Open pits

Proved

5.8

4.2

2.7

2.8

0.5

0.4

0.4

0.3

 

Probable

18

23

2.4

2.4

1.4

1.7

1.3

1.5

TOTAL ORE RESERVES

Proved and probable

 

26

 

30

 

2.4

 

2.3

 

2.0

 

2.2

 

1.8

 

2.0

1     Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at a 0.54g/t cut-off. Underground mineral resources are those insitu mineral resources below the NZ, $1 500/oz pit shell reported at a 2.0g/t cut-off. Mineral resources were generated by Mr Simon Bottoms, an officer of the company and competent person.


2     Open pit ore reserves ore reported at a gold price of $1 000/oz and 0.8g/t cut-off 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.

3     Attributable gold (Moz) refers to the quantity attributed to Randgold based in its 89% interest in Tongon SA.  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.