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15 December 2016

AngloGold Ashanti lifts Tropicana ore reserve and production outlook

Acrobat Version (Download Full PDF here)

AngloGold Ashanti Ltd is pleased to report an improved production outlook at the Tropicana Gold Mine in Western Australia, based on higher mining and processing rates along with a 45% increase in the mine’s Ore Reserve estimate.

Tropicana is a joint venture between AngloGold Ashanti Australia Ltd (70% and manager) and Independence Group NL (30%).

A strategy to address the planned decline in production following the end of grade streaming last year has been successful with the throughput capacity of the processing plant lifting from 5.8 million tonnes per annum (mtpa) to 7.5 mtpa and the introduction of a 600 tonne shovel to accelerate mining rates.

Gold production is expected to increase to an annualized rate of between 450,000 – 490,000 ounce per annum from the second half of calendar 2017, with further increases anticipated, depending on the outcome of the Long Island Study.

“We’ve adopted an innovative, holistic approach that demonstrates the quality of this asset and the enhanced returns it will deliver to stakeholders,” Michael Erickson, AngloGold Ashanti’s Senior Vice President Australia said. “The Tropicana mineralised system remains open along strike and at depth and the recent exciting drilling results make us optimistic that we can further improve the outlook.”

A programme of 161,000 metres of reverse circulation and diamond drilling carried out during 2015 and 2016 to test the strike extent and down-dip extensions of the known mineralised system has been highly successful, contributing to a 45% increase in Ore Reserves and a 27% increase in the Mineral Resource, highlighting the significant upside potential of the system.

Drilling is continuing as part of the Long Island Study, which is investigating large cutbacks to the pits utilizing low-cost mining options including strip mining and backfilling to minimise waste haulage costs.

The Ore Reserve estimate for Tropicana (100% project) has increased by 1.18 million ounces of contained gold, with all of this increase in the Havana Pit. Further reserve growth from Boston Shaker is anticipated in 2017, and in the longer term from Havana South, where infill drilling programmes are still to be completed.

The Mineral Resource estimate for Tropicana (100% project) has increased by 1.73 million ounces of contained gold, largely through significant additions in the Havana South and Boston Shaker zones as a result of applying the Long Island mining methods and costs, and through an increase to the underground Mineral Resource along the entire strike length of the Tropicana mineralised system.

In contrast to previous Tropicana resource statements, the new resource reflects the intention to backfill pits. Resources below pits that are proposed for backfilling are reported on the basis of potential future extraction by underground mining. This approach contributes to the large increase in the underground resource. As drilling and ongoing mining studies are completed it is anticipated there will be a high conversion of open pit resources to reserves over the life of the operation.

The details of the Ore Reserve and Mineral Resource estimate are provided in tables and graphs that can be viewed in the Acrobat Version (Download Full PDF here).

15 December 2016

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Forward-Looking Information and Non-GAAP Financial Measures

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, total 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 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 December 31, 2015 filed with the United States Securities and Exchange Commission on March 31, 2016. 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.

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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