post-fill depending on the grade of the area would be

the preferred mining method. Metallurgical test work

confirmed that the deeper ore is no different from the

shallower ore and that the current plant will be able to

process the underground ore.

The table on the previous pages summarises projected

capital and operating expenditure estimates for the

stand-alone Loulo 0 and Yalea underground project for

the periods indicated.

The board of directors approved the development of

the underground project based on the SRK study.

Subsequent to this, an experienced underground

manager was appointed to advance the development

of the underground project. An internal and external

review of the SRK underground mining plan was also

undertaken with the goal of developing a plan to exploit

both the Yalea and Loulo 0 orebodies optimally as part

of an integrated open pit and underground operation.

As a result of this review, the following changes were

made to the SRK plan and design:

Increase of the resource and reserve base against

the initial study at Yalea and Loulo 0 as well as the

upgrade of inferred to indicated resources as

a result of infill and extensional drilling.

Five additional levels available for stoping at Yalea.

The use of conveyor belts for transporting both waste

and ore from the underground section to surface.

This configuration offers numerous advantages, the

most prominent being the ability to increase

production rates beyond what is possible by

underground fleet transport. There will also be

ventilation and safety benefits.

Decline design incorporating long straight sections

at an inclination of -9 degrees;

The size of the single decline has been changed to

either a single larger (6.5 metre wide and 4.5 metre

high) or two smaller (4.5 metre wide and 4.5 metre

high) declines which provide a better sectional

ventilation intake area and accommodates the

proposed conveyor system. Currently the option of

using a twin decline system is preferred.

Indications at this stage are that while the Loulo 0

boxcut and initial portion of the decline will be

developed simultaneously with the Yalea boxcut

and decline, the focus will be on the development

of the Yalea mine and the Loulo 0 development,

based on ore feed requirements, will be scheduled

later.

Current mine scheduling indicates LOM production

will extend beyond 2020 and will average more than

250 000 ounces per annum.

A site visit by the prospective underground mining

contractors has taken place and award of the

contract is expected towards the end of April 2006.

The capital programme for 2006, estimated at some

US$20 million, has been approved and will allow for site

establishment, purchase of mining equipment and

establishment of the portal and declines. Portal

construction will start in the third quarter and the main

decline development should access first development

ore late 2007.

Randgold Resources    Annual Report 2005 17

2 and 3 Current scheduling indicates LOM production will extend

beyond 2020 and averages more than 250 000 ounces

per annum.