Randgold Resources Says Tongon Mine Performance Improving

(RTTNews) - Randgold Resources Ltd. (RRS.L, GOLD) said the remedial measures implemented to overcome the technical problems that have impacted the Tongon mine are starting to produce the desired results.

The mine's performance is improving, said Randgold Resources chief executive Mark Bristow.

Bristow said mill throughput and the recovery rate, the main challenges faced by the mine, were both being turned around by a determined effort on the part of the Tongon management team.

Their action plan also includes the replacement of the faulty crushers, which has now been completed with the new crushers currently being integrated into the larger circuit. The expansion of the flotation circuit will start when the necessary equipment arrives on site next month.

"By early next year Tongon should have achieved its targeted performance levels, but the improvement is already evident, and despite the setbacks and challenges the management team has had to contend with, the mine should come within 10% of its production guidance of 260000 ounces for 2014, with costs well contained," Bristow said.

Elsewhere in Cote d'Ivoire, Randgold has acquired two new permits while more are pending.