MORILA

Randgold Resources reported that in the the quarter ended Jun30/09 the Morila joint venture successfully completed its conversion from a mining to a stockpile treatment operation during the quarter and produced 86 061 ounces of gold, in line with the life of mine plan, at a total cash cost of US$463/oz (US$375/oz prior to stockpile adjustments). The mine is continuing its drive to reduce costs to ensure that it remains a strong cash generator in its current incarnation.

The mine will start its transition to a stockpile retreatment operation towards the middle of next year while it is brought to a close in an orderly and responsible manner.

At Tiasso, five diamond drill holes totalling 1,397 metres to test the depth potential under mineralised trenches along 2 kilometres were completed. Mineralisation is related to a demagnetised and altered gabbro sill which locates at the contact between a hangingwall package of sediments consisting of conglomerates, sandstones and carbonaceous shales and a footwall package of volcaniclastics. There is strong silification together with iron carbonate alteration of the host gabbro and pyrite is the dominant sulphide. Results received to date returned narrow low grade intersections.