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.
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 $676/oz
- 13% increase in tonnes treated
- Full crushing circuit optimised after completion of 4th stage crushing circuit
- Upgraded oxygen plant capacity by 20 tonnes
- Tertiary crushers rebuilt by installing new top and bottom shell components
- Mill throughput improved with installation of 8MW motor and discharge liner grating system
- Power supply Busbar reconfiguration and capacitator installation completed to improve stability
- Utilisation of grid power improved
- OHSAS 18001 and ISO 14001 certifications maintained
- Localisation of workforce continued to over 97.5% Ivorian
- Investment continued in development of educational programmes, community health and agricultural projects to provide post-mining employment
Targeted For 2018
- Produce 290 000oz of gold
- Continue reduction of total cash cost/oz of production
- Improve mill throughput following the installation of 8MW motor and discharge liner grating
- Recommission tailings thickener to ensure increased tonnage and volumes
- Optimise rougher flotation operation to Advance agribusiness initiative and ensure operational readiness at closure Replace ore reserves through ongoing exploration
- Maintain OHSAS 18001 and ISO 14001 certification
- Reduce malaria incidence rate
- Achieve zero class 1 and 2 environmental incidents
- Maintain and improve community relations, communication and social development
- Continue with localisation of workforce and upgrading of skills base
- Identify additional one years’ life of mine through brownfields exploration
Tongon Key Results
|12 months ended 31 December||2017||2016|
|Tonnes mined (000)||24 536||27 547|
|Ore tonnes mined (000)||4 334||4 195|
|Tonnes processed (000)||4 360||3 853|
|Head grade milled (g/t)||2.5||2.5|
|Ounces produced||288 680||260 556|
|Ounces sold||292 322||255 942|
|Average price received ($/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 Total Mineral Resources And Ore Reserves^2
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|
|Measured and indicated||24||23||2.5||2.5||1.9||1.9||1.7||1.7|
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.