Randgold plans deep drilling at Yalea (May 05, 2005)

The Yalea gold deposit in western Mali appears to be delivering on promises that it would persist at depth, as owner Randgold Resources (GOLD-Q) readies a new deep-drilling program.

Drill results released with Randgold’s quarterly report show intersections at vertical depths of 500 to 800 metres, confirming earlier assessments of Yalea’s geometry as a plunging, “shooty” gold vein deposit. The deep grades are similar to those in the known Yalea resource, though the mineralized intersections are narrower.

Three recent drill holes at depth returned intersections of:

• 6 metres grading 4.6 grams gold per tonne in hole YDH-192;
• 7 metres grading 1 gram per tonne deeper in the same hole;
• 4.8 metres grading 3.17 grams gold per tonne in hole YDH-193, and
• 1.8 metres grading 4.73 grams gold per tonne in hole YDH-184, the deepest intersection so far on the deposit.

Randgold plans to test the structure at a deeper level with a 1,000-metre drill hole.

Development of the Loulo property, which includes both the Yalea and Loulo 0 gold deposits, is on schedule, with mining at the Loulo 0 open pit having started in December. The plant, scheduled to start milling in July, received the first of two ball mills in the past quarter. Earthwork on the water storage dam and the tailings dam continue against the onset of the rainy season in July.

Reserves at Loulo were pegged at 15.2 million tonnes grading 3.78 grams gold per tonne, all in the Loulo 0 open pit. A development study on the underground resources at Loulo and Yalea is due by the end of June.

Yalea’s resource was recalculated at 34.1 million tonnes grading 4.78 grams gold per tonne.