Modern Mining August 2017

MINING News

Randgold Resources’ Tongon gold mine in Côte d’Ivoire continues to ramp up production as it tracks its 2017 target of 285 000 ounces, Chief Executive Mark Bristow said at a media briefing in Abidjan on 22 July. Bristow said with Tongon now oper- ating to plan, its focus had shifted to finding additional reserves and resources to replace depleted ounces and extend the mine’s life beyond its current four-year horizon. At the same time, the mine has continued its engagement with employees and other regional stakeholders. Elsewhere in Côte d’Ivoire, Randgold’s exploration programmes have defined a Tongon on course to produce 285 000 ounces in 2017 large target at Boundiali in the Fonondara corridor, which Bristow described as potentially the most exciting gold pros- pect in West Africa. The company has just completed its annual review of its explora- tion targets, which Bristow said had also highlighted very positive results from its other holdings in the country, under- lining again Côte d’Ivoire’s exceptional prospectivity. “The success of Côte d’Ivoire’s growing gold mining industry is a tribute to the vision and commitment shared by the gov- ernment and the industry, and to a mining code which is fair to both parties,” Bristow stated.

750 metre level in recent years, we are still constrained in our ability to move increased quantities of ore and development waste. Accordingly, in quarter 2, Caledonia took the decision to safeguard the long-term production target of 80 000 ounces in 2021 by prioritising capital development tonnage over ore production tonnage. This resulted in the 2017 production target being reduced from 60 000 ounces to a revised target of between 52 000 and 57 000 ounces. Tongon last quarter declared its second dividend, of which the government’s share, including taxes, was US$20 million. In total, the Tongon mine has contributed just under US$1 billion to the Ivorian economy in the form of royalties, taxes, dividends, salaries, payments to local suppliers and community investments since it started production in 2010.  “We cannot rest on past achievements, however, and the future of the industry depends on new discoveries and devel- opments. There have been some project failures recently and these I believe have shown the need for greater resolve and engagement by the government, particu- larly in the north of the country, where the new opportunities are located.” Bristow said the single biggest chal- lenge facing the industr y was the increasing and unhindered encroach- ment of illegal mining, as was happening at Boundiali. While all stakeholders should address this growing problem, it was ulti- mately the government’s responsibility to assert the rule of law. The delivery of new projects was also being impeded by delays and difficulties in the permitting process, but the new mining cadastre sys- tem recently put in place by the Ministry in charge of mines gave hope that these problems would be resolved very soon, he said. He noted that Randgold’s US$28 mil- lion contribution to a public-private partnership investment in the power infra- structure had not yet been settled despite the Ivorian power utility having earned almost US$100 million from supplying the mine and surrounding communities.

Open-pit mining operations at Tongon (photo: Randgold Resources).

Capital development tonnage at Blanket gold mine prioritised

57 000 ounces and remains on track with progress towards its long-term target of 80 000 ounces by 2021. Commenting on the production for Q2, Steve Curtis, Caledonia’s CEO, said: “Notwithstanding the 8,5 % increase in production in the first six months of 2017 compared to the first six months of 2016, the second quarter of 2017 presented some operating challenges at Blanket. Although we have improved the infrastructure on

Caledonia Mining Corporation reports that approximately 12 522 ounces of gold were produced during the quarter ended 30 June (Q2 2017). This amount was approx- imately equivalent to the gold produced in Q2 2016 (12 510 ounces). Gold produced for the first half of 2017 was 25 316 ounces, an 8,5 % increase on the 23 322 ounces pro- duced in the first half of 2016. Caledonia maintains its 2017 full year production guidance of between 52 000 ounces and

10  MODERN MINING  August 2017