Mining

Mining operations are carried out under contract by

Somadex, which is a subsidiary of DTP Terrassement,

the mining arm of the French construction company

Bouygues. An alliance agreement which incorporates

the principle of sharing the potential savings achieved

by the contractor using agreed productivity assumptions

and allowing for an agreed return has produced

successes particularly in the improvement of productivity.

During the year, the smaller mining fleet brought to site

to assist with mining in 2004 was decommissioned as

a result of the increased productivity.

The mine to mill project continued with the powder factor,

blast patterns and blast initiation all being improved

during the year. This has resulted in better fragmentation.

In the third quarter of the year, Somadex staff embarked

on an unprocedural strike which was subsequently

declared illegal. Total tonnes mined for the third quarter

of 2005 were negatively affected by the strike. However

by focusing on mining ore and blending from the higher

grade stockpile ore, overall gold production was

maintained. The strike was over by the fourth quarter

and the mining team was able to achieve the annual

budgeted total tonnes mined.

Ore processing

Mechanical failures and bottlenecks associated with the

expanded plant continued to negatively affect plant

throughput during the year. Randgold Resources worked

with AngloGold Ashanti to understand and address the

issues and the strategy of aiming for a gradual but

sustainable increase in throughput appears to be working.

This was evidenced by the increase during throughput

during the second half of the year, which was 10% higher

on average than in the first half.

Mineral resources

The mineral resource base estimated for the mine using

the results from infill drilling programmes as well as

resource extension drilling, depleted to the end of 2005,

is shown below:

MORILA

Attri-

MINERAL RESOURCES

butable

Tonnes

Tonnes

Grade

Grade

Gold

Gold

gold

(Mt)

(Mt)

(g/t)

(g/t)

(Mozs)

(Mozs)

(40%)

Category

2005

2004

2005

2004

2005

2004

(Mozs)

Morila

Measured      20.06     17.32        2.73        2.95        1.76        1.64

 Indicated      14.01     11.96        3.00        3.56        1.35        1.37

Sub-total           Measured

and indicated      34.07     29.28        2.84        3.20        3.11        3.01        1.24

 Inferred        3.78       4.47         3.19       3.79        0.39        0.54        0.16

As a result of resource extension drilling in the south of the pit and in the pit wall (“the Tonalite extension”) as well as

in the north west of the pit, the mine has been successful in replacing all but a small portion of the resources depleted

by mining last year.

Cut-off grade for resources = 1g/t.

Resources are reported within the US$475 per ounce pit shell.

MORILA

Attri-

ORE RESERVES

butable

Tonnes

Tonnes

Grade

Grade

Gold

Gold

gold

(Mt)

(Mt)

(g/t)

(g/t)

(Mozs)

(Mozs)

(40%)

Category

2005

2004

2005

2004

2005

2004

(Mozs)

Morila

Proved       15.95      11.92        3.21       3.39        1.65        1.30

Probable        6.19      13.87        3.63       2.87        0.72        1.28

Sub-total        Proved and

probable      22.14      25.79        3.33        3.11        2.37        2.58       0.95

Pit optimisation carried out at a price of US$425 per ounce.

Dilution of 10% and ore loss of 5% are incorporated into the calculation of reserves.

Cut-off grade of 1.4g/t.

Stockpiled ore included.

See comments and US disclaimer on page 65.

20 Annual Report 2005    Randgold Resources