Randgold Resources     Annual Report 2005 9

At present our triangle holds 159 quality targets, our

land position covers a total area of 20 006km

2

in the

most prospective gold belts of West and East Africa,

where we are active in six countries, looking for our next

big one. Our exploration strategy is a simple one:

we develop good models and then we establish a

dominant land position where we have full scope to

apply these.

Loulo and the area around it remains our most

prospective region. In addition to the ongoing work

around Loulo 0, Yalea and their satellites, we have

generated new targets elsewhere on the lease as

well as outside it. We believe the Loulo region may

host multiple large deposits and could in time

develop into a major gold region, with our mine there

as its hub.

Earlier in this review, I outlined the exploration approach

we and our joint venture partners are following on the

Morila lease. Outside the lease area but still in the

Morila region, Randgold Resources is the major

landholder. We are currently developing a three

dimensional exploration model for this region and plan

to start conceptual drilling later this year.

In Senegal, we are prioritising 31 targets along the

Sabodala belt and in Burkina Faso, we have extended

and consolidated our position along the southern half

of the Markoye fault system, which already hosts a

known 8 million ounces in six deposits held by other

mining companies. We have built a big land package

in Tanzania, where we hold the dominant position in the

Musoma greenstone belt, and we have started drilling

on the recently acquired Kiabakari permit. We are

gradually establishing a presence in Ghana, where we

have been granted three permits and have entered into

a joint venture with a junior.

A FORMIDABLE TEAM EFFORT

Over the past 10 years, Randgold Resources has not

just grown in size and scope. It has also developed

into a fully independent, integrated business, while its

management has matured into a well rounded unit that

can handle the most formidable corporate and

operational challenges with great dexterity. During 2005,

this team built one new mine - deftly picking up the

pieces when the contractor faltered - and fixed another.

It finalised plans for its first underground development.

It undertook a complex, multi-jurisdictional equity

offering with smooth efficiency. It expanded the

exploration horizons, consolidated the land positions

and built the resource base. It talked to the market and

listened to investors. It strengthened relationships with

stakeholders. The success of these diverse efforts is

reflected in our results for the year and our prospects

for 2006.

I thank my colleagues on the executive committee, our

regional managements and all the people in our offices

and operations, spread across nine countries, for the

outstanding contribution they have again made to

Randgold Resources’ progress. I also thank our board

for their wise counsel, and our advisors and suppliers

for their support.

BUILDING OUR FUTURE

In the year ahead, our operational focus will be on

completing the Loulo plant, ensuring that the mine

meets its targets, and starting the underground

development there. We shall also be playing our part

in raising throughput at Morila to full capacity,

containing costs and supplementing the resource. At

the project level, we hope to advance the feasibility

study on Tongon. Our exploration teams will be finding

and evaluating targets in six countries.

While Randgold Resources is primarily committed to

organic growth, we have shown in the past that we are

not averse to the right kind of corporate transaction,

and we shall continue to consider acquisition, merger

and joint venture possibilities in Africa and elsewhere.

The healthy cash flows from Morila and Loulo, and our

robust balance sheet, place us in a strong position not

only to implement our own growth plans but to take

advantage of attractive opportunities that may arise.

Randgold Resources has the means - and the will - to

build its own future.

Mark Bristow

Chief executive