Randgold Resources    Annual Report 2005 21

Ore reserves

Based on the current orebody model, the updated ore

reserve is estimated for Morila depleted for mining to

31 December 2005 (see table on previous page).

The gold price at which pit optimisation has been run

has increased from US$375 per ounce to US$425 per

ounce, but this increase has to some degree been offset

by increases of input costs, such as diesel, transport

and steel balls.

The success of the infill and resource extension drilling

has led to an additional 508 449 ounces of reserves

being identified, substantially replacing the 715 000

ounces delivered to the mill. The increased density of

drilling has led to the proportion of reserves in the higher

confidence proven category to increase from 50% to

70%. It is currently estimated that mining activities will

cease during 2008 with processing of stockpiles

continuing until 2013.

Exploration

Morila focused its exploration activities on extending

the existing orebody and discovering new deposits

which can be processed using the Morila plant.

Significant additional resource ounces were added

during the year as a result of drilling extensions to the

fringes of the orebody. Drilling has concentrated on the

Tonalite extension to the south and the Morila shear zone

west extension. Drilling to the south indicated that

instead of the orebody being cut off by the Tonalite

intrusion, the intrusion is of a more limited extent than

previously thought and the mineralised horizon extends

at depth to the south. As this extension to the south is

aligned with the high grade axis, it is now the subject

of an intensive exploration programme.

Drilling at the Samacline target, 600 metres to the west

of the pit, has also continued during the year. Close

spaced intersections have been effected through

deflections from two boreholes in order to assess short

scale variability. Assessment of a potentially mineable

resource is underway.

Randgold Resources has continued to believe in the

potential of the mine lease to deliver another Morila type

orebody and a new exploration programme of the

200km

2

mine lease area was initiated by the year end.

This regional exploration comprises tactical and strategic

targets and 40 000 metres of drilling is planned to cover

the area. The programme is being guided in certain

areas by a recently completed structural synthesis that

has emphasised the unique and discordant architecture

of the Morila structural domain. This work has enabled

a more rigorous prospectivity analysis to be completed,

which ranks the different prospective domains

and highlights the areas most likely to host blind

mineralisation.

Human resources

Manpower

The board of Morila appointed Richard le Sueur as

independent chief executive on 12 September 2005.

Manning levels related to permanent and temporary

Morila and contractor employees on the mine at

31 December 2005, were as follows:

MORILA EMPLOYEES

Dec 2005

Dec 2004

National permanent

456

406

Temporary

0

44

Expatriate

33

50

Total

489

500

8 Crusher ore stockpile at Morila.