LOULO (GARA MINE)

Randgold Resources Ltd. provided a production update for LOULO (GARA MINE), located in Mali.

Randgold Resources Ltd reported that during the quarter ended Sep30/09 water control and ventilation issues hampered the development and operating performance of Loulo's Yalea underground mine but remedial steps have been taken to correct this. During the quarter, work started on the boxcut for Gara, which will be Loulo's second underground mine. Loulo produced 86 940 ounces of gold at a total cash cost of US$591/oz (Q2: 87 261 ounces at US$483/oz). The cost increase was mainly attributable to the mobilisation of a second mining contractor and the mining of additional lower-grade volumes from the open pit as a result of the slower than expected ramp-up in tonnage from the Yalea underground operation. During the quarter Loulo produced its millionth ounce of gold.

Randgold Resources Ltd reported that in the third quarter ended Sep30/09 Loulo produced 86 940 ounces of gold at a total cash cost of US$591/oz (Q2: 87 261 ounces at US$483/oz). The cost increase was mainly attributable to the mobilisation of a second mining contractor and the mining of additional lower-grade volumes from the open pit as a result of the slower than expected ramp-up in tonnage from the Yalea underground operation. During the quarter Loulo produced its millionth ounce of gold. Water control and ventilation issues hampered the development and operating performance of Loulo's Yalea underground mine but remedial steps have been taken to correct this. During the quarter, work started on the boxcut for Gara, which will be Loulo's second underground mine.