ANGLOGOLD ASHANTI LIMITED: Tropicana Gold Project Progress Update

ANGLOGOLD ASHANTI LIMITED: Tropicana Gold Project Progress Update
AngloGold Ashanti Limited 
(Incorporated in the Republic of South Africa \ Reg. No. 1944/017354/06) 
ISIN No. ZAE000043485 - JSE share code: ANG \ CUSIP: 035128206 - NYSE share
code: AU 
News Release 
31 January 2013 
                Tropicana Gold Project Progress Update                      
The Tropicana Gold Project (AngloGold Ashanti Ltd 70% and manager, Independence
Group NL 30%) remains on schedule to begin production in the December 2013
Located 330 kilometres east-northeast of Kalgoorlie in Western Australia, the
project was approved in November 2010. 
Since that time Tropicana's Mineral Resource (100% project) has grown by 2.8
million ounces, and the potential for extensions to the known ore zones and the
discovery of additional ore within trucking distance of the processing plant
remains high. 
The Mineral Resource (100% project), as at 30 December 2012, has grown to 118
million tonnes grading 2.08 grams per tonne containing 7.89 Moz of gold*. This
growth primarily reflects additional drilling carried out as part of the Havana
Deeps Pre-Feasibility Study (PFS), targeting the down plunge and along-strike
extents of the Havana ore body outside the current Havana Pit. 
Gold production in the first three years of operation remains in the range of
470,000-490,000 ozpa (100% project) at slightly increased cash costs of between
A$590/oz-A$630/oz**, compared to a forecast of A$580/oz-A$600/oz at approval.
The increase is largely due to higher fuel prices, which were also impacted by
the reduction in fuel rebates associated with the introduction of the carbon
At approval, Tropicana had a life of 10 years and exploration success has
extended this to more than 11 years. 
Life of mine (LOM) production has increased slightly to 3.6 Moz from 3.45 Moz
at approval, while LOM cash costs remain in the original range of A$710/
oz-A$730/oz. It is likely LOM production will increase as more of the Mineral
Resource is converted into Ore Reserves. 
Ore Reserves have increased by 0.5 Moz (an increase of 15%) since approval to
56.4 Mt at 2.16 g/t for 3.91 Moz. Updated Ore Reserves will be released on
completion of the Havana Deeps PFS which is examining the economic trade-off
between open pit and underground mining of the Havana Deeps Mineral Resource.
The PFS will be completed during 2013. 
Engineering design and procurement activities are now complete and all major
equipment items have been delivered to the site. At the end of the December
2012 quarter construction was 55.6% complete. 
With the award during the quarter of the major Structural, Mechanical & Piping
(SMP) and Electrical & Instrumentation (E&I) contracts, the Joint Venture
partners can now provide an update on the project capital costs. 
On a 100% project basis, the estimated capital expenditure has increased to
between A$820-A$845 million*. This represents an 11% increase on the mid-point
of the capex range forecast at the time the project was approved in November
2010. At that time capital expenditure (nominal) was forecast to be between
A$725-$775 million. 
AngloGold Ashanti CEO Mark Cutifani attributed the higher forecast to
significant increases in construction labour costs and decreased productivity,
which had resulted in higher on-site labour requirements. However, in the
context of AGA this increase is in line with additional contingencies held at
the Board level, with the new estimates consistent with the top end cost range
flagged at the time of approval. 
"The West Australian construction market is overheated and this, along with
extreme skills shortages, has impacted labour productivity and subsequently
costs," he said. 
"Even in this environment the team has done very well to contain project costs
through tight scope and schedule control, in contrast to many other resources
projects currently in construction. 
"Progress to date has confirmed our confidence in the strength of Tropicana and
exploration continues to deliver the upside we believed was present at
"Pre-commissioning will begin in the third quarter leading to the commencement
of production and production ramp-up in the fourth quarter." 
The first phase of mining fleet mobilisation is complete and contractor
Macmahon Holdings commenced mining ahead of schedule, with more than 3.3
million bank cubic metres mined by the end of 2012. The next phase of
mobilisation is scheduled to begin in February 2013. 
During the December quarter near mine exploration returned encouraging results
at Boston Shaker and Springbok. Better results included 5 metres at 5.2 g/t
from 108 m and 7m at 3.6 g/t from 413 m at Springbok and 9m at 5.4 g/t from
439m at Boston Shaker (see drill hole detail in Appendix 1). 
The down dip extensions of Boston Shaker and Tropicana, along with other nearby
targets, will be tested during 2013. Regional exploration will continue to
assess the prospectivity of the Joint Venture's large tenement holding in the
Tropicana Belt, and numerous targets have been identified for follow up
drill-testing during the coming year. 
An exploration budget of A$20 million has been approved by the JV partners for
near-mine and regional exploration in 2013. 
Tel: E-mail: 
Andrea Maxey (Investors & Media) +61 8 9425 4603 /+61400072199 
Stewart Bailey (Investors) +1 212 858 7701/+1 646 338 4337 
Mike Bedford (Investors) +44 122 593 8483 
Certain statements made in this communication, 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 and other operating results, growth prospects and
outlook of AngloGold Ashanti's operations, individually or in the aggregate,
including the achievement of project milestones, the completion and
commencement of commercial operations of certain of AngloGold Ashanti's
exploration and production projects and the completion of acquisitions and
dispositions, any plan regarding the restructuring of any of AngloGold
Ashanti's operations, AngloGold Ashanti's liquidity and capital resources and
capital expenditure and the outcome and consequence of any potential or pending
litigation or regulatory proceedings or environmental issues, are
forward-looking statements regarding AngloGold Ashanti's operations, economic
performance and financial condition. These forward-looking statements 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 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, political 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 and other factors, refer to
AngloGold Ashanti's annual report for the year ended 31 December 2011, which
was distributed to shareholders on 4 April 2012, the company's 2011 annual
report on Form 20-F, which was filed with the Securities and Exchange
Commission in the United States on 23 April 2012 and the prospectus supplement
to the company's prospectus dated July 17, 2012 that was filed with the
Securities and Exchange Commission on July 25, 2012. 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, stakeholders 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 today's
date 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. 
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 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 / JSE Compliance: 
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 Ore Reserves is based on
information compiled by Salih Ramazan, a full-time employee of AngloGold
Ashanti Australia Ltd, who is a member of the AusIMM. Salih Ramazan 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. Salih Ramazan consents to the inclusion in the report
of the matters based on the information in the form and context in which it
Appendix 1: Drill hole details Boston Shaker & Springbok 
Please refer to Appendix included in the announcement on the website - 
*See ASX announcement on 4 December 2012 for full details of the Mineral
Resource. AngloGold Ashanti's website at has full
details of the Mineral Resources and the Ore Reserve. 
** Based on an average AUD:USD exchange rate for the period of 0.9537 and an
average oil price of US$113.3/bbl 
*Based on an average AUD:USD exchange rate of 0.98 and an average oil price of
-0- Jan/31/2013 09:27 GMT
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