Randgold Officially Opens Gounkoto Mine in Mali

Mineweb reported that Randgold Resources Ltd.’s (LSE:RRS,NASDAQ:GOLD) Mali-based Gounkoto mine, the fourth that the company has in that country, is now officially open.

As quoted in the market news:

[T]he new Gounkoto mine is going to be a very significant producer for Randgold.  While the official opening was this week, the mine has actually been producing for most of the past year – and paid back its capital cost in its first year.

Gold output from Gounkoto in Q1 this year totalled 71,650 ounces(which was actually 18% lower than in Q4 2011 as it was mining lower grade blocks as per the mine plan).  Cash costs were $764/ounce over the period – higher than in Q4 2011 because of the lower grades being mined.  Ore reserves for Gounkoto were last stated at 16.96 million tonnes grading 5.06 g/t gold for a total of 2.76 million ounces.  The total resource, though, is much higher at a little over 5 million ounces – and there is great scope for resource expansion through ongoing exploration in the Loulu/Gounkoto area.

Over a 5 year period Randgold’s stock price has risen a massive 440% – a performance that dwarfs that of any other significant gold miner by a huge margin.

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