| Tue 26 Jul 2011, 8:00 | | ANG - AngloGold Ashanti Limited - Anglogold Ashanti announces Tropicana Gold |
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ANG - AngloGold Ashanti Limited - Anglogold Ashanti announces Tropicana Gold
Project Ore reserve increase
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
ANGLOGOLD ASHANTI ANNOUNCES TROPICANA GOLD PROJECT ORE RESERVE INCREASE
The Ore Reserve estimate for the Tropicana Gold Project in Western Australia has
increased by 540,000 ounces.
The Tropicana Gold Project, 330 kilometres east-northeast of Kalgoorlie, is part
of the Tropicana Joint Venture, owned by AngloGold Ashanti Australia Ltd (70%
and manager) and Independence Group NL (30%).
The Mineral Resource and Ore Reserve at Tropicana was updated as at June 30,
2011, to reflect recent increases in the gold price and changes to the resource
model through increased drill density in the Havana South and Boston Shaker
zones.
The Measured, Indicated and Inferred Mineral Resource estimate increased
slightly to 78.6 million tonnes grading 2.12 grams Au per tonne containing 5.36
million ounces of gold, while the Ore Reserve estimate increased more
significantly to 56.4 Mt grading 2.16 g/t Au containing 3.91 Moz of gold (see
Table 1).
Table 1
100% Basis Mineral Resource Ore Reserve
Mt g/t Moz Mt g/t Moz
Dec - 10 76.5 2.15 5.28 47.9 2.19 3.37
Jun - 11 78.6 2.12 5.36 56.4 2.16 3.91
Change 2.2 -0.03 0.08 8.4 -0.03 0.54
The increased Ore Reserve estimate was primarily due to the inclusion of the
Boston Shaker pit, which added 243,000 oz, and conversion of Inferred Resources
into Indicated status at Havana South, which added a further 257,000 oz Au. The
use of higher gold prices (see Table 2) also had a positive impact.
Table 2
Gold Price Mineral Resource Ore Reserve
US$ A$ $/US$ US$ A$ A$/US$
Dec - 10 1,100.0 1,309.5 0.84 880.0 1,100.0 0.80
Jun - 11 1,600.0 1,400.0 1.14 1,100.0 1,210.0 0.91
Change 500.0 90.5 0.30 220.0 108.8 0.11
The majority of drilling included in the estimate was infill drilling, and as
such, the changes to the Mineral Resource are relatively small, largely
reflecting changes in the gold price and cut-off grade.
Drilling is continuing in the Swizzler area (between the Tropicana and Havana
pits) and at Havana Deeps. A pre-feasibility study is being carried out on open
pit and underground mining options of the Havana Deeps mineralisation and is
anticipated to add to Mineral Resource.
The Boards of AngloGold Ashanti and Independence approved development of the
Tropicana Gold Project in November last year. Based on Mineral Resource and Ore
Reserve estimates at that time, the approved project was to produce between
470,000-490,000 ounces of gold per annum in its first three years of production
and would average 330,000-350,000 oz pa over the life of the operation, which
was estimated to be at least 10 years. Cash costs were forecast to be A$580/
oz-A$600/oz in the first three years.
The effect of increases in Mineral Resource and Ore Reserves since November
2010 has not been reflected in these production or cash cost forecasts.
The capital cost, including pre-production expenditure, is estimated
to be A$690-A$740 million (real).
Construction of 220 kilometres of new road from Pinjin to Tropicana began
in the June quarter and detailed engineering design is underway, ahead of
plant construction starting in early 2012.
The project remains on schedule to pour first gold in the December quarter
of 2013.
Johannesburg
26 July 2011
JSE sponsor: UBS
ENDS
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@AngloGoldAshanti.com
Mike Bedford (Investor) +27 11 637 6273 mbedford@anglogoldashanti.com
Stewart Bailey(Investor) +1 2128364303 sbailey@anglogoldashanti.com
Certain statements made in this communication, including, without limitation,
those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, cash costs and other operating
results, growth prospects and outlook of AngloGold Ashanti`s operations,
individually or in the aggregate, including the completion and commencement
of commercial operations of certain of AngloGold Ashanti`s exploration and
production projects, the completion of announced mergers and acquisitions
transactions, AngloGold Ashanti`s liquidity and capital resources, and
expenditure and the outcome and consequences of any litigation proceedings
or environmental issues, contain certain forward-looking statements regarding
AngloGold Ashanti`s operations, economic performance and financial condition.
Although AngloGold Ashanti believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that
such expectations
will prove to have been correct. Accordingly, results could differ materially
from those set out in the forward-looking statements as a result of, among
other factors, changes in economic and market conditions, success of business
and operating initiatives, changes in the regulatory environment and
other government actions including environmental approvals and actions,
fluctuations in gold prices and exchange rates, and business and operational
risk management. For a discussion of certain of these factors, refer to
AngloGold Ashanti`s annual report for the year ended 31 December 2010, which
was distributed to shareholders on 29 March 2011. The company`s 2010 annual
report on Form 20-F, was filed with the Securities and Exchange Commission in
the United States on May 31, 2011. AngloGold Ashanti undertakes no obligation
to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after today`s date or to
reflect the occurrence of unanticipated events. All subsequent written or
oral forward-looking statements attributable to AngloGold Ashanti or any
person acting on its behalf are qualified by the cautionary statements herein.
AngloGold Ashanti posts information that is important to investors on the
main page of its website at www.anglogoldashanti.com and under the "Investors"
tab on the main page. This information is updated regularly. Investors should
visit this website to obtain important information about AngloGold Ashanti.
JORC Compliance: The information in this report that relates to Ore Reserves
is based on information compiled by Marek Janas, a full time employee of
AngloGold Ashanti Australia Ltd, who is a member of the AusIMM. Marek Janas
has sufficient experience relative to the type and style of mineral deposit
under consideration, and to the activity which has been undertaken, to
qualify as a Competent Person (or Recognised Mining Professional) as defined
in the 2004 Edition of the JORC Code. Marek Janas consents to the release of
this reserve based on the information in the form and context in which it
appears.
The information in this report that relates to Mineral Resources is based
on information compiled by Mark Kent, a full-time employee of AngloGold
Ashanti Australia Ltd, who is a member of the AusIMM. Mark Kent has
sufficient experience relative to the type and style of mineral deposit
under consideration, and to the activity which has been undertaken, to
qualify as a Competent Person (or Recognised Mining Professional) as
defined in the 2004 Edition of the
JORC Code. Mark Kent consents to the release of this resource based on the
information in the form and context in which it appears.
The information in this report that relates to Exploration Results is based on
information compiled by Mark Doyle, a full-time employee of AngloGold Ashanti
Australia Ltd, who is a member of the AusIMM. Mark Doyle has sufficient
experience relative to the type and style of mineral deposit under consideration
and to the activity that has been undertaken, to qualify as a Competent Person
(or Recognised Mining Professional) as defined in the 2004 Edition of the JORC
Code. Mark Doyle consents to the release of this resource based on the
information in the form and context in which it appears.
Date: 26/07/2011 08:00:01 Produced by the JSE SENS Department.
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