Morila Gold Mine
The Morila gold mine is situated some 280 kilometres southeast of Bamako, the capital of Mali, and 900 kilometres to the north of the port of Abidjan in Côte d’Ivoire. The mine and associated mining lease is owned by Société des Mines de Morila SA (Morila), a joint venture company held by Randgold (40%), AngloGold Ashanti (40%) and the State of Mali (20%). The mine is operated by Randgold. Mine closure was originally scheduled for 2013 but retreatment of the TSF material, mining of the Domba satellite pit and an agreement to acquire Birimian Limited’s Ntiola and Viper targets, have extended the life of mine to 2020. Work continues on the development of commercial agribusiness to provide sustainable economic activity in the area once the mine closes.
¹ Refer to explanation of non-GAAP measures provided on page F-41 of this annual report.
Morila Key Results
|12 months ended 31 December||2017||2016|
|Tonnes mined (000)||2 291||-|
|Ore tonnes mined (000)||502||-|
|TSF material processed (000)||4 940||1 760|
|Tonnes processed (000)||5 453||3 774|
|Head grade milled (g/t)||0.6||0.6|
|Ounces produced||70 019||54 022|
|Ounces sold||67 812||52 296|
|Average price received ($/oz)||1 269||1 245|
|Cash operating costs1 ($/oz)||911||1 039|
|Total cash costs1 ($/oz)||988||1 113|
|Profit from mining activity1 ($000)||19 108||6 867|
|Gold sales1 ($000)||34 429||26 034|
|Ounces produced||28 008||21 609|
|Ounces sold||27 125||20 918|
|Gold on hand at period end2 ($000)||2 040||800|
|Profit from mining activity1 ($000)||7 643||2 747|
Randgold owns 40% of Morila with the State of Mali and joint venture partner AngloGold Ashanti owning 20% and 40% respectively. The group equity accounts for its 40% joint venture holding in Morila.
1 Refer to explanation of non-GAAP measures provided on page F-41 of this annual report.
2 Gold on hand represents gold in doré at the mine multiplied by the prevailing spot gold price at the end of the period.
Morila Production And Five Year Forecast
Morila Total Mineral Resources And Ore Reserves^2
Achieved In 2017
- Produced 70 019oz from ongoing TSF retreatment and Domba satellite pit
- Completed Domba permitting and commenced mining in September
- Ntiola and Viper feasibility projects completed and included in 2018 mine plan
- Started development of agribusiness initiative as part of mine closure plan
- Maintained OHSAS 18001 and ISO 14001 certification
- Achieved zero lost time injuries compared to LTIFR of 0.56 in 2016
- Upgraded tailing line to TSF
- Decreased malaria incidence rate by 15%
- Completed feasibility studies for the agribusiness legacy initiative and applied for formal endorsement of the project by the government
Targeted For 2018
- Produce 95 000oz from open pit material and TSF retreatment
- Complete the mining of the Domba pit and its rehabilitation programme
- Sustain plant recovery above 92%
- Complete permitting process for Ntiola and Viper deposits and ensure operational readiness to start mining
- Receive formal endorsement by the government for the agribusiness legacy initiative as part of the closure plan
- Advance agribusiness initiative and ensure operational readiness at closure Replace ore reserves through ongoing exploration
- Maintain OHSAS 18001 and ISO 14001 certification
Morila Mineral Resources And Ore Reserves
|Mine/Project||Category||Tonnes (Mt)||Grade (g/t)||Gold (Moz)||Attributable Gold3 (Moz)|
|at 31 December Category||2017||2016||2017||2016||2017||2016||2017||2016|
|Measured and indicated||16||22||0.53||0.59||0.27||0.41||0.11||0.17|
1 Open pit mineral resources are those located within the $1 500/oz pit shell reported at $1 500/oz cut-off of 0.46g/t. TSF mineral resources are reported at a $1 500/oz reported at a 0.33g/t cut-off. Open pit and TSF mineral resources were generated by Jonathan Kleynhans, an external consultant and competent person.
2 TSF ore reserves are reported at a $1 000/oz cut-off grade of 0.49g/t. Ore reserves were calculated by Shaun Gillespie, an officer of the company and competent person.
3 Attributable gold (Moz) refers to the quantity attributed to Randgold based in its 40% interest in Morila.
Mineral resource and ore reserve numbers are reported as per JORC 2012 and as such reported to the second significant digit. All mineral resource tabulations are reported inclusive of that material which is then modified to form ore reserves. Refer to the notes to the annual resources and reserves declaration on page 107 of this annual report.