Randgold Resources eye energy improvement to boost Tongon

Group chief executive Mark Bristow said had completed its capital project designed to improve throughput and recovery, oncluding with the commissioning of its fourth-stage crushing circuit.

Adding recent drilling results indicated the potential for additional reserves and resources within and below Tongon's existing open pits, Bristow said the gold mine was continuing to make headway in its drive to overcome technical issues, with gold production up 7% to 242 948 ounces in 2015 as the flotation upgrade and crushing circuit extension programme started delivering results.

"Tongon is targeting annual production of 290,000 ounces in 2016 but there are still significant challenges in its way," he said at a local media briefing in the Côte d'Ivoire.

"Chief among these is the continued instability of the grid power supply, which has a major impact on the mine's cost structure. The Tongon team is in discussion with the Ivorian power utility to resolve this problem."

Apart from Tongon, Randgold's Ivory Coast portfolio has been viewed by some analysts at something of a challenge, having absorbed significant cash and management time.

Randgold's recent reserve report indicated declined by 500koz with depletion at Kibali (100koz), Loulo (200koz) and Tongon (200koz) although average grade remained unchanged at 3.6g/t.