The joint venture between Randgold (NYSE:GOLD) and AngloGold Ashanti(NYSE:AU) on the Kibali gold mine is about to enter into the construction stage, as relocation of residents to a new town built just for them has started.
There wasn't the typical level of resistance for the new town, which will eventually be made up of over 3,500 houses accommodating close to 15,000 people, a government office, church buildings, schools, 7 medical centers and 5 public market places.
While Randgold and AngloGold each hold 45 percent of the project, development responsibilities are Randgold's.
According to Randgold's CEO, Mark Bristow, he believes Kibali is the largest gold mine in Africa outside of South Africa.
It includes a Proven & Probable mineral reserve of 74.32 million tons of ore grading 4.21 g/t gold for a total of 10.05 million ounces of gold.
The most recent resource estimate places Measured and Indicated categories at 124 million tons grading 3.4 g/t for 13.54 million ounces and a further Inferred resource of 59 million tons at 2.6 g/t for 4.9 million ounces.
As the company explores and delineation drilling continues, an increasing amount of mineral resource is being brought into reserve status.
In the early years of production, gold output on an annual basis is expected to be at about 400,000 ounces.
AnglGold Ashanti was trading at $44.07, falling $0.34, or 0.77 percent, as of 10:11 AM EDT. Randgold was trading at $87.90, down $0.43, or 0.49 percent.
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