AngloGold Ashanti Announces Mineral Resources and Ore Reserves as at 31 December 2004
|Wednesday, March 30, 2005
|AngloGold Ashanti announced Mineral Resources of 218.2 million ounces and Ore Reserves of 78.9 million ounces as at 31 December 2004. The statement forms part of the company's 2004 Annual Report which was published today.
The AngloGold Ashanti Ore Reserves as at 31 December 2004, compared with the combined December 2003 Ore Reserves of AngloGold and Ashanti, showed a year-on-year decrease of 5 million ounces (to 78.9 million ounces) with depletion totalling 7.6 million ounces during the year, indicating a real increase of 2.6 million ounces before depletion. The Ore Reserves in respect of the AngloGold assets alone decreased year-on-year from 63.1 million ounces to 60.9 million ounces; the effect of the merger between AngloGold and Ashanti was therefore to increase Ore Reserves by 20.3 million ounces.
Ore Reserves were determined at a gold price of $375 per ounce and an exchange rate of R7.86 = $1. In determining the economic parameters to be used, AngloGold Ashanti was guided by the preferred position of the SEC in the United States with parameters being based on a three-year historical average gold price.
"This gold price assumption is regarded by the AngloGold Ashanti executive as being conservative compared with our long-term view of the gold price, but is appropriate for the purpose of determining our Ore Reserves, " CEO Bobby Godsell commented. He added: "The company's goal remains to grow reserves over time through the combination of brownfields exploration, organic growth and our new frontiers exploration and junior partnership strategies."
During 2004 and the beginning of 2005, the AngloGold Ashanti 2003 and 2004 Mineral Resource and Ore Reserve statements and evaluation process were submitted to independent consultants for review. The Mineral Resources and Ore Reserves from a number of randomly selected operations and evaluation processes were reviewed and the company was informed that the audit had identified no material shortcomings.
Details of the Ore Reserves and Mineral Resources and a summary of the variances can be found in the Annual Report for 2004.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by the Competent Persons listed below. They are either members of the Australian Institute of Mining and Metallurgy or Recognised Overseas Professional Organisations. They are all full-time employees of the company.
The Competent Person for AngloGold Ashanti's Exploration is:
Competent Persons for AngloGold Ashanti's Mineral Resources are:
- G F Wylie, MSc (Mining Engineering), BSc (Hons) (Geology), Dip Mgmt, AusIMM application pending, 28 years' experience
Competent Persons for AngloGold Ashanti's Ore Reserve are:
- V A Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MAusIMM, 19 years' experience
- M F O Brien, MSc (Engineering), BSc (Hons) (Geology), Dip Data, Pr.Sci.Nat, MAusIMM, 25 years' experience
The Competent Persons consent to the inclusion in this report of the matters based on their information in the form and context in which it appears
- C Brechtel, MSc (Mining Engineering), MAusIMM, 29 years' experience
- B W Guenther, BSc (Mining Engineering), MAusIMM, 24 years' experience
- D L Worral, ACSM, MAusIMM, 24 years' experience
- J van zyl Visser, BSc (Mineral Resource Management), PLATO, 18 years' experience
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Except for historical information contained herein, there are matters discussed in this news release that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For discussion of important factors including, but not limited to development of the Company's business the economic outlook in the gold mining industry, expectations regarding gold prices and production, and other factors, which could cause actual results to differ materially from such forward-looking statements, refer to the Company's annual report on the Form 20-F for the year ended 31 December 2003 which is filed with the Securities and Exchange Commission on 19 March 2004.