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AngloGold Ashanti Declares 1.8Moz Maiden Ore Reserve (Attrib.) for Gramalote
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN: ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti” or the “Company”)
20 February 2018
NEWS RELEASE
AngloGold Ashanti Declares 1.8Moz Maiden Ore Reserve (Attrib.) for Gramalote
(JOHANNESBURG – PRESS RELEASE) - AngloGold Ashanti is pleased to announce the
Maiden Ore Reserve for the Gramalote project, consisting of attributable 63.7Mt @ 0.86 g/t
gold and contained metal content of 1.8Moz. This is a Joint Venture between AngloGold (51%
and manager) and B2Gold (49%). The Gramalote project is located on the eastern flank of the
Cordillera Central near the towns of Providencia and San Jose del Nus in the municipality of
San Roque, in the north-west of the Antioquia Department. It is approximately 230km north-
west of Bogota and 124km north-east of Medellin.
The enhanced Pre-Feasibility study was completed in September 2017 and approved
by the board to proceed to Feasibility Study. The project will now undergo a full
feasibility study, during which all metrics, including capital and costs, will be optimised.
No capital for development of the project has been committed.
“We are developing this as a good long-term option in our pipeline, and will be working hard
to optimise all of its key elements – including capital -- during the feasibility study phase,”
Ludwig Eybers, AngloGold Ashanti’s Chief Operating Officer-International said. “While we are
a long way from committing any capital to this project, it represents good value that we will
realise over time.”
The Project has several strengths, both externally and intrinsic to the ore and the orebody
itself.
External factors are:
• Reliable water supply – high rainfall region.
• Adjacent to a national highway, which connects to a river and seaports.
• Proximity to the national electricity grid with ample low-cost power and stable record of
hydro-electric power.
• Technically capable workforce within Colombia.
• Community support due to mining tradition and the opportunity to bring prosperity to
the area if the project is developed.
Factors intrinsic to the ore and orebody are:
• Relatively low strip ratio of 2.5:1.
• Amenability to grade streaming to increase early cash flow.
• Strong metallurgical response, resulting in low process operating costs and high
recovery, compared to a typical hard rock gold mine using whole ore leach.
Mining will be by open pit methods commencing in the high-grade portion of the main
Gramalote Pit and progressing through a series of cut-backs in Gramalote and in the two
satellite pits, Trinidad and Monjas West. The total rock movement is expected to rise to just
under 60 Mtpa in the second year of operation, and remain at that level until the ninth year
before declining. The total material moved is expected to include material rehandled from the
stockpiles.
The project concluded that a SAG-Ball mill circuit along with flotation and leaching is expected
to provide the best economics. The Gramalote ore will be treated using a simple circuit and is
expected to perform extremely well metallurgically.
- The sulphide and oxide ores will be treated through separate grinding and flotation
circuits, optimising operational performance.
- The plant nameplate feed rate will be 11 Mtpa of sulphide ore and 4 Mtpa of oxide.
After oxide ore is depleted in the ninth year of production, 15 Mtpa of sulphide ore will
be fed.
- The process for both ores will involve floating the gold into a low-mass concentrate
which is leached, while the benign flotation tails are placed in a Tailings Management
Facility (TMF).
- The sulphide ore is expected to achieve close to 95% overall gold recovery with a very
coarse grind size, minimising costs.
- Recovery from the oxide ore is anticipated to be roughly 82%, but the process is still
expected to be more profitable than a whole ore leach process.
Key infrastructure highlights include:
- Existing port facilities, including sea (Cartagena at 640km, Barranquilla at 768km) and
river ports (73 km), and a national highway.
- On-site facilities to be constructed include the TMF, a creek diversion, a residential
camp and offices.
- A high voltage power line, 26 km long, will be required to connect to the national grid.
This will be constructed and operated by a major Colombian power distribution
company.
The project aims at producing a total of 4.22Moz of gold over the life of the mine at a rate of
between 300 and 450koz for the first eight years, at attractive AISC levels over the life of
foreseeable mining operations.
Please refer to the full disclosure on www.anglogolashanti.com, which contains the Maiden
publication of the Gramalote Ore Reserve on Table 1 in terms of the SAMREC code and the
updated Ore Reserve and Mineral Resource estimates reported in accordance with the South
African Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves,
the 2016 SAMREC Code and Johannesburg Stock Exchange (JSE) Listing Requirements.
Ends
Johannesburg
20 February 2018
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
CONTACTS
Media
Chris Nthite +27 11 637 6388/+27 83 301 2481
cnthite@anglogoldashanti.com
Stewart Bailey +27 81 032 2563 / +27 11 637 6031
sbailey@anglogoldashanti.com
General inquiries media@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563 / +27 11 637 6031
sbailey@anglogoldashanti.com
Sabrina Brockman +1 646 880 4526/ +1 646 379 2555
sbrockman@anglogoldashanti.com
Fundisa Mgidi +27 11 6376763 / +27 82 821 5322
fmgidi@anglogoldashanti.com
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those
concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs, all-in
sustaining costs, all-in costs, cost savings and other operating results, productivity improvements, growth prospects and outlook
of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones,
commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects
and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources
and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or
environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic
performance and financial condition.
These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause
AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or
achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the
expectations reflected in such forward-looking statements and forecasts 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, social and political and market conditions, the success of
business and operating initiatives, changes in the regulatory environment and other government actions, including environmental
approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business
and operational risk management.
For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December
2016, which was filed with the United States Securities and Exchange Commission (“SEC”). These factors are not necessarily
all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those expressed in any
forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results.
Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes
no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. 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.
The financial information contained in this news release has not been reviewed or reported on by the Company's external auditors.
This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP
performance measures and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance
prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled
measures other companies may use. 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.
Incorporated in the Republic of South Africa Reg No: 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU
Website: www.anglogoldashanti.com
Date: 20/02/2018 08:09:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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