Tongon Gold Mine

The Tongon gold mine is located within the Nielle mining permit, 628 kilometres north of the Côte d’lvoire port city of Abidjan and 55 kilometres south of the border with Mali. The Tongon gold mine and associated mining permit is owned by Société des Mines de Tongon SA (Tongon), in which Randgold has an 89.7% interest, the State of Côte d’lvoire 10% and 0.3% is held by Ivorian investors.

tongon map
Tongon

¹ Refer to explanation of non-GAAP measures provided on page F-41 of this annual report.

Achieved In 2017

  • 11% increase in gold production to 288 680oz
  • 12% reduction in total cash costs to $676/oz
  • 13% increase in tonnes treated
  • Full crushing circuit optimised after completion of 4th stage crushing circuit
  • Upgraded oxygen plant capacity by 20 tonnes
  • Tertiary crushers rebuilt by installing new top and bottom shell components
  • Mill throughput improved with installation of 8MW motor and discharge liner grating system
  • Power supply Busbar reconfiguration and capacitator installation completed to improve stability
  • Utilisation of grid power improved
  • OHSAS 18001 and ISO 14001 certifications maintained
  • Localisation of workforce continued to over 97.5% Ivorian
  • Investment continued in development of educational programmes, community health and agricultural projects to provide post-mining employment

 

Targeted For 2018

  • Produce 290 000oz of gold
  • Continue reduction of total cash cost/oz of production
  • Improve mill throughput following the installation of 8MW motor and discharge liner grating
  • Recommission tailings thickener to ensure increased tonnage and volumes
  • Optimise rougher flotation operation to Advance agribusiness initiative and ensure operational readiness at closure Replace ore reserves through ongoing exploration
  • Maintain OHSAS 18001 and ISO 14001 certification
  • Reduce malaria incidence rate
  • Achieve zero class 1 and 2 environmental incidents
  • Maintain and improve community relations, communication and social development
  • Continue with localisation of workforce and upgrading of skills base
  • Identify additional one years’ life of mine through brownfields exploration

Tongon Key Results

12 months ended 31 December 2017 2016
Mining    
Tonnes mined (000)    24 536            27 547
Ore tonnes mined (000)      4 334              4 195
Milling        
Tonnes processed (000)     4 360             3 853
Head grade milled (g/t)         2.5                 2.5
Recovery (%)       83.8               83.7
Ounces produced    288 680       260 556
Ounces sold    292 322       255 942
Average price received ($/oz)      1 262           1 247
Cash operating costs1 ($/oz)         638              734
Total cash costs1 ($/oz)         676              771
Gold on hand at period end² ($000)      3 188           7 070
Profit from mining activity1 ($000)  171 202         121 847
Gold sales1 ($000)    368 765       319 249

Randgold owns 89.7% of Tongon, with the State of Côte d’lvoire and outside shareholders owning 10% and 0.3% respectively. Randgold consolidates 100% of Tongon and shows the non-controlling interest separately.

1  Refer to explanation of non-GAAP measures provided on page F-41 of this report.

2  Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.

 

Tongon Production And Five Year Forecast

Tongon Production And Five Year Forecast

Tongon Total Mineral Resources And Ore Reserves^2

Tongon Total Mineral Resources And Ore Reserves

Tongon 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 2.9 2.4 1.6 1.4 0.15 0.11 0.13 0.10
Open pits Measured 5.1 5.6 2.7 2.8 0.44 0.51 0.39 0.45
  Indicated 16 15 2.6 2.6 1.3 1.2 1.1  
  Inferred 2.8 5.6 2.5 2.5 0.22 0.46 0.20 0.41
Underground Inferred 6.4 6.9 2.8 2.9 0.58 0.65 0.52 0.58
Total Mineral
Resources
Measured and indicated 24 23 2.5 2.5 1.9 1.9 1.7 1.7
  Inferred 9.2 13 2.7 2.8 0.80 1.1 0.72 1.0
Ore Reserves²                  
Stockpiles Proved 2.9 2.4 1.6 1.4 0.15 0.11 0.13 0.10
Open pits Proved 4.1 5.0 2.5 2.6 0.34 0.42 0.30 0.37
  Probable 9.3 12 2.5 2.5 0.74 0.95 0.66 0.84
Total Ore
Reserves
Proved and
probable
16 19 2.3 2.4 1.2 1.5 1.1 1.3

1  Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at an average cut-off of 0.6g/t. Underground mineral resources are those insitu                   mineral resources below the NZ, $1 500/oz pit shell reported at a 2.0g/t cut-off. All Tongon mineral resources were generated by Mamadou Ly, an officer of the company under the                    supervision of Simon Bottoms, an officer of the company and competent person.

2  Open pit ore reserves are reported at a gold price of $1 000/oz and at an average cut-off of 0.8g/t cut-off, including both dilution and ore loss factors. Open pit 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 89.7% interest in Tongon SA.

Mineral resource and ore reserve numbers are reported as per JORC 2012 and as such are 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.