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.

morila map
morila

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
Mining    
Tonnes mined (000)    2 291                -
Ore tonnes mined (000)       502                -
TSF material processed (000)    4 940         1 760
Milling        
Tonnes processed (000)     5 453         3 774
Head grade milled (g/t)         0.6             0.6
Recovery (%)       67.2           79.4
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
Attributable (40%)    
Gold sales1 ($000)    34 429       26 034
Ounces produced    28 008       21 609
Ounces sold    27 125       20 918
Gold on hand at period end ($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 Production And Five Year Forecast

Morila Total Mineral Resources And Ore Reserves^2

Morila Total Mineral Resources And Ore Reserve

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
Mineral Resources¹                  
Stockpiles Measured - - - - - - - -
Open pit Indicated 0.25 0.52 1.6 3.2 0.013 0.054 0.0052 0.022
  Inferred - - - - - - - -
TSF Measured 16 - 0.51 - 0.26 - 0.10 -
  Inferred 0.94 0.94 0.45 0.45 0.014 0.014 0.0055 0.0055
Total Mineral
Resources
Measured and indicated 16 22 0.53 0.59 0.27 0.41 0.11 0.17
  Inferred 0.94 0.94 0.45 0.45 0.014 0.014 0.0055 0.0055
Ore Reserves²                  
Stockpiles Proved - - - - - - - -
Open pit Probable 0.29 - 1.3 - 0.013 - 0.0051 -
TSF Probable 10 15 0.54 0.55 0.18 0.27 0.071 0.11
Total Ore
Reserves
Proved and
probable
11 15 0.56 0.55 0.19 0.27 0.077 0.11

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.