News Column

Randgold increases reserves and ups grade

Mar 28 2013 12:00AM



JERSEY, CHANNEL ISLANDS -- (Marketwire) -- 03/28/13 -- Randgold Resources (TSX VENTURE: IAE) (NASDAQ: GOLD) (LSE: RRS)

RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNASDAQ Trading Symbol: GOLD("Randgold Resources", "Randgold" and the "company")INCREASING RESERVES AND UPPING GRADE, RANDGOLD BUCKS INDUSTRY TRENDAGAINLondon, 28 March 2013 - Randgold Resources increased its attributablereserves in 2012, despite their depletion from mining in a year thatdelivered record production. At the same time, the company continuedto improve its overall reserve grade.Randgold's annual mineral resource and reserve declaration, publishedtoday as part of its annual report for 2012, shows total attributablemineral reserve ounces up by 803000 to 16.36 million. In line withthe company's focus on quality over quantity, the group reserve gradewas increased from 3.84 to 3.87g/t, while total attributable resourceswere down from 28.25 to 27.21 million ounces.Randgold's general manager evaluation Rod Quick noted that the gradeimprovement had been driven principally by the group's flagship Loulo,Gounkoto and Kibali deposits."This ability to add quality ounces fromextensions to our knownorebodies and to continue converting ounces from the inferred to theindicated category shows the value of our strategy of focusing on worldclass deposits," he said."It's also worth noting that we haven't used thehigher gold price toboost our ounces. For the second year running, we have calculated ourreserves at a relatively conservative US$1000/oz of gold while ourresources have been estimated at US$1500/oz."At Kibali, the giant gold mine Randgold is developing in the DemocraticRepublic of Congo, total reserves now stand at 10.92 million ounces at4.10g/t, up from 10.21 million ounces at 4.04g/t, as a result of gradecontrol drilling in the KCD pit and extension drilling of the 5000Underground Lode. At Loulo in Mali underground reserves have increasedby 90000 ounces despite mining depletion, principally as a result ofgrade increases around the Yalea 'purple patch' as well as at Gara.The neighbouring Gounkoto open pit mine reported lower reserves, due tomining depletion, but with a significant grade improvement. Theincorporation of the low grade Faraba pit into the total Gounkotoreserves caused a lowering of the overall Gounkoto reserve grade from5.06g/t to 4.73g/t. However the quality of the Gounkoto undergroundmineral resource improved significantly with grade increasing from4.66g/t to 6.43g/t and bodes well for the generation of further highgrade reserves post the completion of the underground feasibilitystudy. In Cote d'Ivoire, Tongon's resources and reserves as well asthe grade were impacted negatively by the mine's underperformance in2012. With last year's operational problems now under control,however, the mine should be able to drive recoveries up and costs down,which should result in an increase in reserves.Chief executive Mark Bristow said while the gold mining industry ingeneral was decreasing the grade at which it mined in order to maintainproduction profiles, and thus intensifying cost pressures, Randgold wasable to replace its depleted ounces at a higher grade."The measure of agold mining company's value is not only its resourceand reserve base, but also the way in which it invests in the future.Randgold is strategically well positioned, with a substantial portfolioof quality greenfields prospects. We continue to explore aggressivelyacross West and Central Africa's most prospective gold belts. We'realso looking to expand our footprint there through joint ventures withjunior exploration companies, some of whom hold good assets but areunable to develop them in a stressed market," Bristow said.RESOURCE AND RESERVE DECLARATION at 31 December 2012(abridged)Mine/project Category Tonnes Grade Gold Attributable (Mt) (g/t) (Moz) gold (Moz)MINERAL RESOURCESKibali 45% Measured and indicated 134.68 3.48 15.08 6.78 Inferred 55.40 2.20 3.91 1.76Loulo 80% Measured and indicated 56.22 4.67 8.45 6.76 Inferred 16.74 3.36 1.81 1.45Gounkoto 80% Measured and indicated 26.78 4.80 4.13 3.30 Inferred 4.03 3.75 0.49 0.39Morila 40% Measured and indicated 4.90 1.56 0.25 0.10 Inferred 41.33 0.43 0.58 0.23Tongon 89% Measured and indicated 35.34 2.63 2.99 2.66 Inferred 10.06 2.69 0.87 0.78Massawa 83% Indicated 37.33 2.65 3.18 2.65 Inferred 3.36 3.92 0.42 0.35TOTAL MEASURED AND INDICATED 295.25 3.59 34.07 22.25RESOURCESTOTAL INFERRED RESOURCES 130.92 1.92 8.08 4.95MINERAL RESERVESKibali 45% Proven and probable 82.89 4.10 10.92 4.91Loulo 80% Proven and probable 39.97 4.93 6.34 5.07Gounkoto 80% Proven and probable 18.32 4.73 2.78 2.23Morila 40% Probable 4.88 1.51 0.24 0.09Tongon 89% Proven and probable 33.79 2.43 2.64 2.35Massawa 83% Probable 20.73 3.07 2.05 1.70TOTAL PROVEN AND PROBABLE 200.60 3.87 24.96 16.36RESERVESENQUIRIESChief Executive Financial Director Investor & Media RelationsMark Bristow Graham Shuttleworth Kathy du Plessis+447880711386 +441534735333 +442075577738+447797752288 +447797711338 Email: randgoldresources@dpapr.comWebsite: www.randgoldresources.comRandgold reports its mineral resources and mineral reserves inaccordance with the JORC code and are equivalent to National Instrument43-101. The reporting of ore reserves is also in accordance with SECIndustry Guide 7. Open pit mineral resources consist of insitu mineralresources at a 0.5g/t cut-off falling within a US$1 500/oz optimisedpit shell. Underground mineral resources are those mineral resourcesfalling below the open pit resources reported at cut-off grades ofbetween 1.5g/t to 2.0g/t. Open pit and underground mineral reservesare economic at a gold price of US$1 000/oz, except for the Morila pitwhich is calculated at a gold price of US$1 300/oz. Open pit reservesare calculated at a weighted average cut-off grade of 1.08g/t. Ourunderground reserves are calculated at a weighted average cut-off gradeof 2.34g/t. Our stockpile reserves at Morila are calculated at acut-off grade of 0.68g/t. Dilution and ore loss are incorporated intothe calculation of reserves. Addition of individual line items may notsum to sub totals because of the rounding off to two decimal places.Mineral resources are inclusive of mineral reserves.COMPETENT PERSONS:Yalea and Gara mineral resources from Loulo were calculated by MrAbdoulaye Ngom, an officer of the company, under the supervision of MrJonathan Kleynhans, an officer of the company and Competent Person.Loulo 3 and Baboto mineral resources from Loulo were calculated by MrIvan Doku, an independent consultant, and reviewed by Mr JonathanKleynhans, an officer of the company and Competent Person. Farabamineral resources from Gounkoto were calculated by Mr JonathanKleynhans, an officer of the company and Competent Person. Tongonmineral resources were calculated by Mr Mamadou Ly and Mr BabacarDiouf, both officers of the company, under the supervision of MrJonathan Kleynhans, an officer of the company and Competent Person.Morila mineral resources were calculated by Mr Adama Kone, an officerof thecompany, under the supervision of Mr Jonathan Kleynhans, anofficer of the company and Competent Person. Kibali mineral resourceswere calculated by Mr Ernest Doh, an officer of the company andCompetent Person. Morila open pit resources were calculated by MissPaula Oligive, an independent consultant, under the supervision of MrJonathan Kleynhans, an officer of the company and Competent Person.Gounkoto mineral resources were calculated by Mr Fredrick de Bruin, anindependent consultant, under the supervision of Mr Jonathan Kleynhans,an officer of the company and Competent Person. Mr Johan Kleynhans andMr Rodney Quick are members of SACNASP and both have sufficientexperience in the style of mineralisation and types of deposits underconsideration and the activity which they are undertaking as CompetentPersons as defined in the 2004 addition in the 'Australasian Code forReporting Exploration Results, Mineral Resources and Ore Reserves'.The Loulo, Tongon, Morila and Gounkoto open pit mineral reserves werecalculated by Mr Shaun Gillespie, an independent consultant andCompetent Person and member of SAIMM. Kibali open pit mineral reserveswere generated by Mr Nicholas Coomson, an officer of the company andCompetent Person and member of AusIMM. Loulo underground reserves werecalculated by Mr Mamou Toure, an officer of the company, and reviewedby Mr Mark Odell, an independent consultant and Competent Person andpractising professional engineer. Massawa mineral reserves remainunchanged from last year and were calculated by Mr Onno ten Brinke, anindependent consultant and Competent Person and member of AusIMM, andreviewed by Mr Rodney Quick, an officer of the company and CompetentPerson. The Kibali underground mineral reserves were calculated by MrTim Peters of Piran Mining and reviewed by Mr Dan Donald of Mine RP,both independent consultants and Competent Persons and members ofAusIMM. All Competent Persons have sufficient experience in the styleof mineralisation and types of deposits under consideration and theactivity which they are undertaking as Competent Persons as defined inthe 2004 addition in the 'Australasian Code for Reporting ExplorationResults, Mineral Resources and Ore Reserves'.ANNUAL REPORT:Randgold has posted its annual report for the year ended 31 December2012 to shareholders and its Form-20F for the same period is expectedto be filed with the United States Securities and Exchange Commission('SEC') today. Once published, both reports will be available on thecompany's website at for viewing and/ordownloading. Shareholders can download a copy of the proxy form fromour website and those wishing to appoint a proxy via the CREST systemshould do so via the issuer's agent (ID number 3RA50). Detailsregarding the submission of proxies can be obtained from the notice ofannual general meeting section, also on the website NOTE REGARDING FORWARD-LOOKING STATEMENTS:Except for the historical information contained herein, the mattersdiscussed in this news release are forward-looking statements withinthe meaning of Section 27A of the US Securities Act of 1933 and Section21E of the US Securities Exchange Act of 1934, and applicable Canadiansecurities legislation. Forward-looking statements include, but arenot limited to, statements with respect to the future price of gold,the estimation of mineral reserves and resources, the realisation ofmineral reserve estimates, the timing and amount of estimated futureproduction, costs of production, reserve determination and reserveconversion rates. Generally, these forward-looking statements can beidentified by the use of forward-looking terminology such as'will','plans', 'expects' or 'does not expect', 'is expected','budget','scheduled', 'estimates', 'forecasts', 'intends', 'anticipates'or'does not anticipate', or 'believes', or variations of such words andphrases or state that certain actions, events or results 'may','could','would', 'might' or 'will be taken', 'occur' or 'beachieved'. Assumptions upon which such forward-looking statements arebased are in turn based on factors and events that are not within thecontrol of Randgold and there is no assurance they will prove to becorrect. Forward-looking statements are subject to known and unknownrisks, uncertainties and other factors that may cause the actualresults, level of activity, performance or achievements of Randgold tobe materially different from those expressed or implied by suchforward-looking statements, including but not limited to: risksrelated to mining operations, including political risks and instabilityand risks related to international operations, actual results ofcurrent exploration activities, conclusions of economic evaluations,changes in project parameters as plans continue to be refined, as wellas those factors discussed in Randgold's filings with the SEC).Although Randgold has attempted to identify important factors thatcould cause actual results to differ materially from those contained inforward-looking statements, there may be other factors that causeresults not to be as anticipated, estimated or intended. There can beno assurance that such statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements. Randgold does notundertake to update any forward-looking statements herein, except inaccordance with applicable securities laws. CAUTIONARY NOTE TO USINVESTORS: The SEC permits companies, in their filings with the SEC, todisclose only proven and probable ore reserves. We use certain termsin this release, such as 'resources', that the SEC does not recogniseand strictly prohibits us from including in our filings with the SEC.Investors are cautioned not to assume that all or any parts of ourresources will ever be converted into reserves which qualify as 'provenand probable reserves' for the purposes of the SEC's Industry Guidenumber 7. This information is provided by RNS The company news service from the London Stock ExchangeEND

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