LOULO: ANOTHER STAR IS BORN

Our new mine at Loulo poured its first gold in September

and shipped its first commercial consignment of bullion

four days before its official opening by President Amadou

Toumani Touré of Mali on 12 November. The mine

produced just under 68 000 ounces in the December

quarter at a total cash cost of US$165 per ounce.

While the start up was slightly later than originally

planned, Phase 1 of the plant was sufficiently complete

by the year end to allow steady gold production. This

was a major achievement for our project team,

considering the daunting logistical challenges presented

by the remoteness of the site and the lack of infrastructure

and by the failure of the main plant contractor, which

obliged us to take over the completion of Phase 2, the

hard-rock crushing circuit.

Phase 2 is now scheduled for commissioning in the

second quarter of 2006. Until then, production will be

maintained at planned levels by feeding soft and

screened ore through the Phase 1 circuit. This should

ensure that the delay of the hard rock circuit will not

have a negative effect on Loulo’s operating budget for

the year.

With production from Loulo’s open pit operation now

settled down, the scene is set for the next stage of the

project: the development of an underground operation,

which will not only significantly extend the life and

enhance the value of the mine, but will elevate it to true

world class status. During the course of 2005 SRK

Consulting conducted a feasibility study on the

underground development which confirmed our high

expectations of it. Since then we have completed a

detailed internal and external review of this study and

have fine tuned the original design. We have budgeted

US$20 million for this project in 2006, with portal

construction due to start in the third quarter and the

main decline development commencing in the last

quarter. We expect to access the first development ore

in late 2007.

In the meantime, we have continued to build the resource

base at Loulo, which grew by 24% to 9.9 million ounces

during the year despite the depletion by mining. The

most recent round of deep drilling has returned excellent

results, further defining and expanding the high grade

zones.

MORILA BACK ON TRACK

After a difficult start to the year, with production stuttering

as a result of persistent problems with the plant

expansion project, Morila recovered strongly. Production

of 651 110 ounces was well ahead of forecast and some

140 000 ounces up on 2004, and cash costs were

reasonably well contained at US$221 per ounce.

The remedial measures we initiated at the mine, which

included a change in the management team, are clearly

taking effect, with monthly throughput in the second

half of the year 10% up on the first. The plant is still not

Randgold Resources     Annual Report 2005 7

1 His Excellency, Amadou Toumani Touré, the President of Mali

with Philippe Liétard at the opening of the Loulo Mine on

12 November 2005.

2 First gold pour at Loulo in September 2005.

3 CEO Dr Mark Bristow addresses the dignatories and thousands

of guests at the official opening of Loulo.

4 Local residents in traditional costumes joined in the festivities.