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Randgold Resources Ltd. (GOLD - Snapshot Report) 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 considering current gold prices. As a result, Randgold does not expect to complete the final feasibility study of the project by the end of 2014 as was planned earlier.

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. (AU - Snapshot Report), Lake Shore Gold Corp. (LSG) and Pretium Resources Inc. (PVG - Snapshot Report). While AngloGold carries a Zacks Rank #1 (Strong Buy), Lake Shore Gold and Pretium Resources maintain a Zacks Rank #2 (Buy).

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