MINING COMPANY ANALYSIS: RESOLUTE MINING LIMITED 
 
1. Corporate Profile 
 
1.1 Company 
Description 
? Resolute is building shareholder value through its strength as a 
successful developer & operator of quality gold projects in Africa & 
Australia.  
? Its projects to date have yielded over 3.6 mil oz of gold. 
? The Company is actively progressing its portfolio of projects to 
enhance shareholder value. 
 
1.2 Corporate 
activities 
? 2004: RML acquired 100% of voting share capital of Carpentaria 
Gold Pty Ltd from Xstrata Queensland for $45m. RML borrowed 
A$20m to partially fund the acqusistion of Ravenswood Gold Project.
 ? 2004: acquired 100% of voting share capital of Randgold Resources 
(Somisy) Ltd, which owns 80% of Syama Gold Mine. 
? Entered into an option & joint venture agreement granting RML the 
right to earn a 60% interest in Etruscan?s interest in the Finkolo gold 
exploration permit. RML completed private placement in Etruscan for 
aggregare proceeds of $0.5m at a price of CAD$2.6 per share. 
? RML sold its nickel interests to Bullion for A$750,000, 10 mill fully 
paid shares in Bullion, 2.5 mill Bullion options at an exercisable price 
of 25 cents & 2.5 mill Bullion options at an exercisable price of 30 
cents 
? Central Asia Gold Ltd purchased RLM?s AGR Ltd shareholding by 
paying A$11.3 mill. 
? RLM sold its 12% sake in Gallery Gold Ltd for A$13m. 
? RML?s shareholding in Red Back Mining NL was liquidated 
? Dominion Mining has decided to proceed with U/g mine at the 
Challenger gold project, improving the likelihood of RML receiving 
royalties. 
? Agreement with Goldbelt Resources, a TSX venture Exchange listed 
company, to sell Resolute (West Africa) Ltd, the owner of the 
Belahouro project & exploration properties for cash, Goldbelt shares 
& warrants. RMl will receive cash of $1.5mill & Goldbelt shares & 
warrants to value of CAD$5m.l 
 
1.3 Shareholders ? Major shareholders 
o Alliance Life Common Fund Ltd: 38.69% 
o Equity Trustees Ltd: 7.80% 
o Acorn Capital Ltd: 6.51% 
 
1.4 Listing ? Listed on Australian Stock Exchange. ASX Code RSG 
 
1.5 # Shares ? Issued shares: 177 mill 
 
1.6 Share price ? Aus$ 1.10 (Dec 2005), US$0.83 
 
1.7 Market cap ? Aus$ 194mill (Dec 2005) , U$$147mill  
 
 
 
 
 
 
 
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2. Company Strategy  
 
2.1 Vision & 
Mission  
? Resolute is building shareholder value through its strength as a 
successful developer & operator of quality gold projects.  
? Its projects to date have yielded over 3.6 mil oz of gold. 
? The Company is actively progressing its portfolio of projects to 
enhance shareholder value. 
 
2.2 Strategy ? Profitably dispose of a number of non-core assets: 
o Sale of AGR Limited, Gallery Gold Limited & Red Back 
Mining NL providing A$ 34.1 mill and profit contribution of 
A17.7 mill. 
o Sale of exploration interests of Indee to Bullion Minerals 
o The cash has been directed into the Ravenswood & Syama 
? Purchase Ravenswood Mine from Xstrata at cost of $45 mill, 
elevating Resolute into the Top 3 Australian domiciled gold 
producers. View Ravenswood as a turnaround challenge with a 
rejuvenation plan. 
? Capital raising of A$14.5 mill through an issue of shares to 
institutional resource investors to partially fund the US$13 mill 
acquisition of the Syama Gold Project in Mali.   
? Restructure of hedge book with a focus on increasing price 
protection through put options.  
  
 
 
 
3. Review of Operations  
 
3.1 Mining Operations 
 
i) Golden Pride Gold Mine  
1 Operation 
Description   
? Opencast gold mine 
2 Host Country 
Location 
? Tanzania, 750km northeast of Dar es Salaam 
? 240 km south of  Mwanza 
 
3 Legal  ? Deposit discovered in the early 1990?s by Samax Gold, which 
formed a joint venture with BHP in 1994 to develop it 
? 1996: BHP?s interest was acquired by Resolute, which later also 
acquired Samax Gold?s share of the project 
? 1997: construction of site started 
 
4 Geology & 
Exploration  
? Deposit occurs within Archaen Tanzanian Craton. 
? One of number of gold deposits which makes up Lake Victoria Gold 
Field 
? Resolute has active exploration program 
? Further reserves to east of pit 
? Beyond lease area 15 concessions within 60 km of mine 
? Any resources discovered could be trucked to Golden Pride for 
processing 
 
 
 
  
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5 Mineral 
Resources & 
Reserves 
 
Resource Statement 
Orebody 
classific. 
Tons 
(mill) 
Grade (g/t) Contained oz 
Measured 2.04 2.0 131,200 
Indicated 3.75 2.0 241,000 
Inferred 7.80 1.9 476,000 
Total    
 
Reserve Statement 
Orebody 
classific. 
Tons 
(mill) 
Grade (g/t) Contained oz 
Proven 5.67 2.2 401,000 
Probable 2.85 2.4 219,900 
Total    
 
 
6 Mining  ? Mining is a conventional operation 
? Mining is undertaken by Moolman Brothers (Grinekar LTA) 
? Fleet: O&K  RH90 excavators in conjunction with Cat 777D trucks  
? Strip ratio: 6.3 
? Ore mined predominantly oxide 
? Blasting by BME 
? Pit 2.7km long & 140m deep, will go down to depth of 240m 
? Working to extend the life of mine, by boosting near mine 
exploration: acquired interest in several prospects further to the east 
along the Golden Pride shear   
  
7 Metallurgy ? Golden Pride was designed as a 1.6 mt / a 
? CIL operation 
? 3.7 MW ball mill 
? Pebble crushing circuit 
? Plant capacity 2.6 Mt/a 
 
 
8 Production   
Production Statistics 
Item UoM 2004 
Ore mined tons 2,588,690 
Ore milled  tons 2,811,835 
Au grade g/t 1.99 
Recovery % 94 
Ounces produced Oz 169,151 
Cash cost $/oz 228 
 
 
9 Infrastructure ? Major development during 2002 was $10.2 mill upgrade of plant 
? Plant upgrade managed by Lycopodium of Perth  
? New waste dump 
? Expansion of mine?s standby power station 
? Upgrade of power line 
? Only first 100km of 240km are tarred & gravel surface, difficult 
during rainy season  
? Logistics a continuing  
 
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10 Logistics & 
Suppliers 
? Mining contractor: Moolman Brothers  
? Drilling & blasting: B&E 
? SGS provides lab services 
? Manson?s Mine Logistics runs the camp 
? Ball mill sourced from Mt Kidstone operation in Queensland & 
refurbished prior to dispatch to Tanzania  
? Purchase of second hand thickener 
? South African contractors appointed to upgrade road 
?  
 
11 Marketing ? Gold market fundamentals  
  
12 Human 
Resources 
? The total workforce on site 630, including contractors 
? Contractors 50% 
? Less than 30 expatriates on site 
? 3 of the 8 managers Tanzanian citizens 
 
13 Environmental 
& Social 
? The mine won the inaugural Presidential Award for Environmental 
Excellence & Leadership in 2002 
? Mine?s Environmental management Plan developed in conjunction 
with international consultants Wardell Armstrong & meets 
international standards 
? Activities: 
? Review groundwater potential seepage 
? 70ha programmed for rehabilitation 
? Completion of remaining environmental mamagement system 
elements 
? Mine closure plan submission 
? Reforestation of community land 
? 250,000 seedlings of 32 native tree species propagated in nurseries. 
? Hand over of the mine on closure to the University of Dar es Salaam 
to create a mining campus on site. 
? Water supply system has been provided to the town of Nzega. 
? Schools renovated or rebuilt, farmers have been trained, police post 
has been built, voluntary teachers & a doctor have been brought in 
from Autralia. 
? Emphasize technology transfer & capacity building.  
? Holden Pride have invested in excess of $1mill. 
 
14 Financial   
Capex Opex 
 
Item $ 
Total $49mill  
US$ 220/oz 
 
NPV: unknown 
IRR: unknown 
 
15 Operations 
Risks 
? Mine moving into the leanest 12 months as treating lowest grade 
material from the centre of the pit 
?  
 
 
 
 
 
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3.2 Mine Development 
 
No mine development projects. 
 
 
3.3 Feasibility Studies  
 
i) Syama 
 
1 Project 
Description 
? The Syama Gold Mine was brought into production in 1990 by BHP 
? The Mine was purchased by Randgold Resources in 1996 & has 
produced over 1.5 mill oz 
? Following a sustained drop in the gold price during the late 1990?s, 
operations were suspended in early 2001 and the mine was placed 
on care & maintenance. 
? In 2003, resolute entered into a 12 option ?to-purchase agreement 
during which it evaluated the economics of re-opening the project. 
? In 2004 Resolute exercised its option to acquire the project based on 
positive conclusions of a pre-feasibility redevelopment study. 
? The Feasibility Study programme commenced in May 2004, 
scheduled for completion end 2004. 
? Lycapodium has indicated a 15 months project schedule to: 
o refurbish & replace existing equipment 
o install the new floatation plant 
o rehabilitate the electrostatic precipitator 
o refurbish the roaster 
?  
2 Project Stage ? Prefeasibility  
 
3 Host Country / 
Location 
? Mali 
? In the south of Mali, 30 km from the Cote d?Ivoir border and 300km 
south-east of the capital Bamako. 
 
4 Legal   ? In 2003, 12 option?to-purchase agreement  
? In 2004, exercised the option  
 
? The Syama project comprises a single exploitation lease (200km2), 
which covers a 30km strike extent of the Syama shear zone. 
5 Geology & 
Exploration 
? The shear zone extends 200km into northern Cote d?Ivoire. 
? Gold mineralization is controlled by intersecting north-north east 
trending faults. 
? Mineralization in the main ore body has a strike length of 800m, 
averages 40m to 50m in width, and has been confirmed by diamond 
drilling to be open at 600m below surface. 
? Orebody is refractory due to gold being locked in pyrite.  
? Additional drilling towards the base of the new pit design. 
? Orebody below the pit remains robust, with intersection of 3.65 g/t,  
is 400m below surface & 100m below the new pit design. 
  
6 Mineral 
Resources & 
Reserves 
.  
Resource Statement 
Orebody 
classific. 
Tons 
(mill) 
Grade (g/t) Contained oz 
Measured 4.15 2.9 384,313 
Indicated 27.78 3.0 2,677,681 
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Inferred 15.82 2.9 1,468, 518 
Total 47,760,509 3.0 4,530,512 
 
Reserve Statement 
Orebody 
classific. 
Tons 
(mill) 
Grade (g/t) Contained oz 
Proven 2.24 3.6 259,300 
Probable 10.56 4.0 1,358,000 
Total 12.80 3.9 1,617,300  
7 Mining ? Mining method used: open cut  
? New pit design: deepening of current open-pit, underground mining 
? 2 scenarios being evaluated: 2.0 Mtpa & 2.6 Mtpa 
 
8 Metallurgy ? Because of the graphite & refractory gold, roasting has been used to 
oxidize the pyrite and liberate the gold for recovery in the CIL circuit. 
? Graphite is destroyed in the process of roasting. 
? Overall recoveries of up to 83% have been achieved in operations 
previously. 
? Metallurgical testwork to demonstrate the concentrate roasting 
process has achieved overall gold recoveries of 87%. 
? Roasting testwok & calcine leaching working has established 
operating conditions for the proposed plant. 
? The production of carbonate concentrate from the ore has been 
successfully achieved and SO2 capture in excess of 70% has been 
established. 
 
9 Infrastructure ? No information 
 
10 Marketing ? No information 
?  
11 Human 
Resources 
? No information 
 
12 Environmental 
& Social  
? No information 
 
13 Consultants ? Lycopodium was awarded the engineering, capital and operating 
cost studies.  
 
14 Financial  ? Financing & fiscal negotiations are being conducted in parallel with 
the study  
15 Implementation ? Gold production is expected to commence the first half of 2006. 
 
16 Project Risks ? No information 
 
 
 
3.4 Exploration 
 
3.4.1 Exploration Strategy 
 
? In Tanzania: focused on areas proximal to the Golden Pride Mine & the Nyakafuru Project. 
? Due to the high gold price and accelerated exploration world wide, a shortage of drill rigs has 
occurred. This has delayed follow up of targets & slowed the definition of new resources. 
 
3.4.2 Exploration Projects 
 
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i) Golden Pride Area - Tanzania 
 
1 Project 
Description 
? Exploration project in close proximity to Golden Pride Mine 
 
2 Project Stage ? Early exploration 
3 Host Country / 
Location 
? Tanzania 
? 500m east along strike from Golden Pride open cut mine 
 
4 Legal ? Ownership Structure: unknown 
 
5 Exploration 
Activities 
? Reverse circulation drilling to assess the width, strike, extent & tenor 
of gold mineralization 
? Several phases of drilling have defined a mineralised zone 300m 
long  
 
6 Results ? Anomalous values including 10m@ 1.3g/t  intersected  
 
 
 
ii) Nyakafuru Area - Tanzania 
 
1 Project 
Description 
? Exploration project in Nyakafuru area 
? Tenements cover a sequence of intercalated mafic volcanics 
 
2 Project Stage ? Early exploration 
3 Host Country / 
Location 
? Tanzania 
? Within a 20km radius of Nyakafuru area 
 
4 Legal ? Joint venture with Gallery Gold & Sub Sahara Resources Ltd 
 
5 Exploration 
Activities 
? Regional soil, auger and induced polarization surveys to define 
targets for air core drilling 
? Reverse circulation drilling on the Kanegele shear 
 
6 Results ? Anomalous values including 10m@ 1.3g/t  intersected  
 
 
 
iii) Etruscan Finkolo JV - Mali 
 
1 Project 
Description 
? Exploration project to the south of Syama tenure 
? Concession covers a further 25km strike continuation on the highly 
prospective Syama Shear and associated stratigraphy 
? Historical aeromagnetics and ground induced polarisation data 
acquired by BHP, Randgold & Etruscan, currently being re-
 evaluated over the whole belt. 
? This data together with newly released data from the Mali regional 
geophysical SYSMIN surveys will be used to re-evaluate the area   
 
2 Project Stage ? Early exploration 
 
3 Host Country / 
Location 
? Mali, south of Syama tenure 
 
4 Legal ? Resolute elected to commence it?s earn in obligation on 1 April 2004.
  
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5 Exploration 
Activities 
? Initial core drilling will twin previous high grade intersections & 
attempt to confirm the orientation of the high grade intercepts. 
? Drilling by Etruscan in late 2003, to follow up a number of 
geophysical & geochemical targets  
 
6 Results ? 38m @ 6.4 g/t & 20m @ 17.1 g/t  
 
 
 
iv) Akoase ? Ghana  
 
1 Project 
Description 
? Exploration project in Ghana, northeast of the Newmont, Akim, multi 
million ounce deposit in a similar structural & geological setting 
 
2 Project Stage ? Early exploration 
 
3 Host Country / 
Location 
? Ghana, 140 km northwest of Accra 
 
4 Legal ? Resolute elected to commence it?s earn in obligation on 1 April 2004.
  
5 Exploration 
Activities 
? Wide spaced drilling & trenching of the main anomaly  
? 42 shallow reverse circulation holes drilled to date have been drilled 
on elevated sections at 200m spacing. 
? Further infill & extension drilling is planned 
 
6 Results ? Multiple 1 to 10m wide zones stacked with a shear system that is up 
to 100m wide & has anomalous soil & trench results over several km 
? Intersections: 1m @ 20.5 g/t? 
 
 
 
v) Burkina Faso   
 
1 Project 
Description 
? Goldbelt Resources  
2 Project Stage ?  
3 Host Country / 
Location 
? Burkina Faso 
 
4 Legal ? Agreement with Goldbelt Resources, a TSX venture Exchange listed 
company, to sell Resolute (West Africa) Ltd, the owner of the 
Belahouro project & exploration properties for cash, Goldbelt shares 
& warrants 
? Subject to approval by TSX venture exchange & Goldbelt 
shareholders 
? Resolute will receive $1.5 mill & Goldbelt shares & warrants to a 
value of C$5 mill. 
? Resolute will become a major shareholder of Goldbelt & will assist it 
in identifying other gold exploitation opportunities in West Africa. 
? Goldbelt intends to undertake a major capital raising to advance the 
Belahouro project & has committed to immediate exploration 
expenditure of at least $250,000 on the tenements. 
5 Exploration 
Activities 
 
6 Results  
 
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3.5 Resolute African Project Locations 
 
i) Mali  
  
  
Golden Pride
  
ii) Mali 
 
 
Syama 
 
 
 
 
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3.6 Company Portfolio Overview 
 
 
1 
2 
3 
4 
1. Golden Pride 
2. Syama 
3. Exploration Projects: Golden Pride Area, Nyakafuru Area, Etruscan Finkolo JV, Akoase 
4. Burkina Faso Ventures   
 
 
4. The Team 
 
4.1 Board of Directors 
 
Non- Executive Chairman : Peter Huston 
? B.Juris, LLB, B.Com, LLM 
? Experience: barrister, solicitor, corporate & revenue law, public listings, reconstructions, 
equity raisings, mergers & acquisitions, advised a number of major Public Company Floats 
 
 
CEO: Peter Ross Sullivan 
? B E, MBA 
? Engineer involved in the development of resource companies for 20 years 
? 4 years experience in corporate finance with an investment bank, 2 years corporate 
development role with an Australian resource group, experience in the management & 
strategic development of resource companies. 
 
 
 
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Non- Executive Director: Thomas Cummings Ford 
? FAICD 
? Investment banker & financial consultant with over 30 years experience in the finance 
industry 
 
 
Non- Executive Director: Bill Price 
? B.Com, FCA 
? Chartered accountant with over 35 years experience in the accounting profession 
? Taxation & accounting experience in corporate & mining sector 
 
 
Company Secretary: Greg Fitzgerald 
? C.A, B.Bus 
? 15 years resources related experience & extensive commercial experience managing finance 
& administrative matters for listed companies. 
 
 
5. Corporate Governance Practices  
 
? Board responsibilities defined 
? Directors independence 
? Remuneration & Nomination Committee 
? Ethical Standards & Code of Conduct 
? Securities Trading 
? Corporate reporting 
? Audit Committee 
? External Auditors 
? Continuous disclosure 
? Shareholder communication 
? Risk management 
? Remuneration policies 
 
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6. Finance 
 
6.1 Financing: Equity  
 
Key movements in share capital 
 
Date  Activity # shares Issue Price $ 
2004 Balance beginning  2004 177,185,773l $71.42ml
  Exercise of listed options  137,523 $0.80 $0.11m
  Exercise of unlisted 
options  
290,000 $0.81 $0.23m
  Placement of shares  12,295,082 $1.22 $0.11m
 2005 Balance end of year $71.44m
  
 
6.2 Financing: Debt 
 
Date Loan Institution Interest    Terms 
2004 $11m 
revolving 
credit 
Standard 
Bank 
London   
? ? Expiration date June 2006 
? No fixed schedule of repayment 
? Full amount to be repaid on or before 
maturity, subject to compliance with 
covenant ratios. 
 
Security: 
? Loan secured by a fixed & floating 
charge over the assets of Resolute 
Tanzania Ltd (RTL), a share mortgage 
over RML shareholding in RTL, 
? Completion testing was finished in 
2003 & as such loan is no longer 
recourse to RML. 
? Total assets of the entities over which 
security exists amounts to A$167m. 
 
 
6.3 Financial Instruments 
 
Financial instruments used to reduce exposure to unpredictable fluctuations in the project life 
revenue streams.  
 
i) Gold hedging:  
 
 
Forward Sales Contracts & Put Options bought 
 
Forward sales Put Options Bought Total Price Protection 
Hedging 
oz Sales 
price 
A$/oz 
oz Strike  
price 
A$/oz 
oz Price A$/oz 
278,882 509 307,500 547 586,382 530 
  
 
 12
Call Options Sold, Maturity within 1 year 
 
A$ Call Options Sold  A$ Call Options Sold Total Call Options Sold 
oz Strike 
price 
A$/oz 
oz Strike  
price 
A$/oz 
oz Price A$/oz 
255,000 655 95,000 391 350,000 564 
  
 
 
 
 
 
 
 
 
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6.4 Financial Assessment 
 
 
 
 
 
 
 
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6.5. Share Price Movement  
 
i) Comparison Share Price vs. Dow Jones Global Exploration & Mining Index (April 2006)   
 
 
 
 
ii) Analysis of Share Price Movement 
 
? Resolute?s share price increased rapidly in 2003 and peaked in Dec 2004. 
? The share price dropped by 120% over a 13 month period, but shortly thereafter levelled at 
120%, below the DJ Exploration & Mining Index. 
? In April 2006, the share price shot up massively to catch up with the Index. 
? The share price has kept below the index for all of 2005. 
 
 
7. Information Sources 
 
1. Resolute Mining  Limited Annual Report  2004 
2. ?Golden Pride- the mine that started Tanzania?s gold Boom? , African Mining, March-April 
2004 
3. Financial Times analytical charting, www.mwprices.ft.com, 25 April 2006 
 
 
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