Resolute buys out Randgold at Syama… Randgold expanding resource at Loulou

Randgold Resources (GOLD-N) has sold its 80% stake in the Syama gold mine in southern Mali to Resolute Mining of Australia.

Resolute Mining has paid Randgold US$6 million in cash and has assumed mine liabilities totaling US$7 million (US$4 million of which has been paid to Randgold). The Malian government continues to have a 20% stake in the operation.

When the gold price is greater than US $350 per ounce, Randgold will receive a royalty of US$10 per oz. on the first million ounces attributable to Resolute, and US$5 per oz. on the following 3 million ounces.

The Syama mine has been kept on care and maintenance since 2002. It has an estimated proven and probable reserve of 12.9 million tonnes grading 3.93 grams gold per tonne, using a cutoff of 1.75 grams gold per tonne [T.N.M., April 19/04].

Resolute hopes to have completed mine-upgrades and be producing gold by late-2005.

Randgold is currently developing the Loulo gold mine in Mali, with expected production in mid-2005. The Loulou deposit and the Yalea deposit, 5 km to the south, are being developed as open pit operations. Recently drilling has tested both deposits at depth and a prefeasibility study is underway to assess the possibility of following open pit mining with an underground operation.

Highlights of recent drilling on the Yalea deposit include:

• 7.3 metres grading 18.47 grams gold per tonne, at a vertical depth of 510 metres;
• 12 metres grading 18.56 grams gold, at a vertical depth of 511 metres;
• 3.7 metres grading 23.97 grams gold, at a vertical depth of 484 metres; and
• 6.6 metres grading 40.23 grams gold at a vertical depth of 418 metres.

In 11 other holes on the deposit, intersections ranging from 4.5 to 32 metres in length, graded from 1.99 to 13.45 grams gold. The orebody remains open to the north and south and at depth.

Deep drilling of the Loulou 0 deposit has delineated two high grade shoots. Highlights include one hole that intersected 12 metres grading 10.65 grams gold per tonne, at a vertical depth of 172 metres and in another hole, 20.5 metres grading 10.7 grams gold at a vertical depth of 220 metres. In eight other holes assays of 2.8-14.15 grams gold were intersected over widths of 3.8-19.2 metres and at depths ranging from 158 to 384 metres.