Randgold Resources said Thursday that at the attributable level, measured, indicated and inferred resources rose to 16.13 million ounces at the end of 2008, from 13.50 million ounces at the end of 2007 - an increase of 20%.

The continuing growth in the company's reserves and resources provides a solid foundation to beat forecast of a 50% growth in production by 2011 and beyond", chief executive Mark Bristow said in a statement accompanying the annual report and accounts.

The increases in 2008 resources are mainly attributable to the delineation of 3.39 million ounce inferred resource at its 83% owned Massawa project in Senegal, Bristow said.

Attributable proved and probable reserves registered a rise of 14% from 7.78 million ounces to 8.87 million ounces, net of depletion of some 380 000 ounces during the year.

The increase is primarily related to the conversion of resources to reserves at the Tongon project in Cote d'Ivoire where total probable reserves expanded to 3 million ounces and Randgold Resources' shareholding in the project increased from 76.5% to 84% during the year, he said.

It also reflects an improvement from 4.23 g/t to 4.42 g/t in the proved and probable reserve grade at Loulo, due to the depletion of lower grade in pit reserves and better grade delineation of the underground reserve.

"The strong conversion at Tongon, where we have taken 3.11 million ounces of inferred resources in 2006 to 3.16 million ounces of probable reserve in 2008, epitomises our dedication to rapidly moving projects from early discovery to reserve declaration. The same is planned for Massawa, where we intend to move the project to prefeasibility by the end of 2009, and feasibility by end of 2010", Bristow said.

"It is worth noting that the expansion and enhancement of our asset base were entirely generated by exploration and conversion, in line with our commitment to value creation", he added.

In the report, chief executive Mark Bristow, said Morila produced its 5mth ounce of gold during the year and is currently being repositioned as a profitable stockpile treatment operation. Loulo continued to make progress with an expansion programme designed to increase its production some 50% by 2010.

Work is underway on Tongon - the third mine to be built by Randgold Resources - which is scheduled for commissioning in the fourth quarter of 2010, Bristow said.

Massawa has continued to shape up as a major discovery which could well have the makings of the company's fourth mine, slotting in behind Tongon and extending its record of creating stakeholder value through discovery and development.

Bristow says cost control is still a major focus area for the company and it has managed to keep its costs, in absolute terms, below the average inflationary increases for the industry.

While Randgold Resources' West African base still holds great potential for further world class discoveries, it has recently expanded its exploration scope to encompass the gold belts located within the Congo Craton in Central and East Africa.

Also in the annual report, chairman Philippe Lietard says that while 2009 will be another challenging year for Randgold Resources, with much to do on the development front, the company is securely placed to benefit from gold's continued strength.

"Its robust balance sheet, with available cash of more than US$250 million, gives it the capacity to self-fund its growth projects - a very considerable advantage in the current climate", Lietard said.