Côte d’Ivoire to benefit from joint Randgold, Newcrest exploration

JOHANNESBURG (miningweekly.com) – Côte d’Ivoire, which is fast becoming the darling of mining investors, will soon be on the beneficial receiving end of a joint Randgold Resources and Newcrest exploration thrust in the south-east of the West African country.

London-listed gold discoverer and developer Randgold announced on Friday that it had signed a heads of agreement with Newcrest of Australia to establish a joint venture (JV) for the exploration, development and mining of mineral resources in an area of interest covering the extension of prolific Ghanaian gold belts and associated geological structures.

Randgold will manage the exploration programme as well as any mines that it produces, the company said in a release to Creamer Media’s Mining Weekly Online.

A technical committee of senior geologists from both companies will work closely with the Randgold exploration team and a JV board will oversee the exploration programme and any consequent development projects.

Randgold chief executive Dr Mark Bristow said there would be a concerted effort to unlock the potential of an area that had not yet been explored in depth.

“The bigger the footprint, the greater the opportunity, and both Newcrest and Randgold believe in Côte d’Ivoire and the potential for the discovery of truly world-class gold deposits,” Bristow added.

Randgold, which reported 58% higher profits of $77.3-million in the three months to the end of September, has set its sights on developing three new gold projects in the next five years.

The company is impressed by the investor-friendliness of the Côte d'Ivoire government and its current priorities are to fast-track the development of the Boundiali structures of Côte d'Ivoire with the aim of making a world-class discovery; establish whether Massawa or Gbongogo could replace Tongon, a mine Randgold already has in the West African country; define mineable satellites around Tongon while replacing depletion at the other mines; and continue to drive programmes to feed the company’s resource portfolio.

Forecast cash flows generated from operations are expected to support funding for the three new projects as well as increased dividends.

The sustainability activity of the company is built on the premise of devoting part of the value of the orebody to communities around its mines, in a way that aims to elevate the quality of life and leave an ongoing economic legacy after its mines close.

Before it builds a mine, it completes a baseline study to define an 'affected footprint' with every village in the affected footprint qualifying for potable water and primary education.

The company sees gold’s long-term fundamentals as being perfectly aligned for a constantly increasing price, starting six to nine months out, against the backdrop of the gold mining industry having gone ex-growth.

Randgold’s own gold mines are designed to be profitable at a gold price of $1 000/oz.

Its Kibali gold mine in the Democratic Republic of Congo has an 11-million-ounce gold reserve; its Loulo-Gounkoto mine complex in Mali a 4.7-million-ounce reserve; and its Tongon mine a two-million-ounce reserve.