Randgold Resources Ltd.
) is considering the sale of its Massawa gold project, located in
eastern Senegal. The company has reportedly been approached by
several groups interested in the project.
The Massawa project does not meet Randgold's current development
requirements. The minimum investment criteria of 3 million ounces
of gold at 3 grade per ton (g/t) is not met by the project. The
company's focus is on the metallurgical recovery process as well
as the power source.
Geologically and metallurgically, it is the most complex orebody
and the cost of power will be critical to its viability
. As a result, Randgold does not expect to complete the final
feasibility study of the project by the end of 2014 as was
However, the company is not really actively seeking a buyer for
the project and feels that the economics of the project may
improve with the discovery of additional gold or by finding a way
to access cheaper power.
Randgold owns 83.25% of the Massawa project in partnership with a
local company which holds a 6.75% interest after providing for
the State of Senegal's right to a non-contributory 10% share of
any mine developed on the property.
Based in St. Helier, the Channel Islands, Randgold is an African
focused gold mining and exploration company. The company has
proven ability to discover multi-million ounces of gold deposits
and convert them into profitable mines. It also has a strong
balance sheet to support funding of new developments.
Randgold currently retains a Zacks Rank #5 (Strong Sell).
Other companies in the gold mining industry with favorable
Zacks Rank are
AngloGold Ashanti Ltd.
Lake Shore Gold Corp.
Pretium Resources Inc.
). While AngloGold carries a Zacks Rank #1 (Strong Buy), Lake
Shore Gold and Pretium Resources maintain a Zacks Rank #2
ANGLOGOLD LTD (AU): Free Stock Analysis
RANDGOLD RSRCS (GOLD): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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