AngloGold Ashanti Australia Ltd is pleased to announce a Mineral Resource increase for the Tropicana Gold Project in Western Australia. The Tropicana Gold Project, located 330 kilometres east north-east of Kalgoorlie, is part of the Tropicana Joint Venture, which is 70% owned by AngloGold Ashanti Australia (the manager) and 30% by Independence Group NL.
The Measured, Indicated and Inferred Mineral Resource for the project is now 75.3 million tonnes grading 2.07 grams/tonne for 5.01 million ounces of gold.
This represents an increase of approximately 1 million ounces from the first Mineral Resource estimate released for the project in December 2007, and the new estimate is predominantly in the Measured and Indicated category, providing a higher level of confidence.
AngloGold Ashanti Australia’s share of the upgraded resource is 3.51 Moz.
The Mineral Resource has been identified within a US$1,000/oz optimisation shell at an AUD:USD exchange rate of 0.80. This is equivalent to an Australian dollar gold price of A$1,250/oz. A cut-off grade of 0.6 g/t has been used for oxide and transitional material and 0.7 g/t for fresh material.
Drilling completed subsequent to the Mineral Resource estimate has resulted in high grade intersections outside of the Mineral Resource shell in the Havana South area, including 10.0 m @ 3.74 g/t Au from 101m and 5.0 m @ 22.5 g/t Au from 120m in TPRC990 and 10.0 m @ 10.1 g/t Au from 139m in TPRC991. Drilling scheduled for early 2009 is likely to result in further additions to the Mineral Resource in this area.
The Mineral Resource increase has been driven predominantly by extensions to mineralisation identified by ongoing drilling, particularly at Havana, and to a lesser extent by increases in the gold price.
A new mining plan and schedule is being developed to incorporate the increase in Mineral Resource. Pre-feasibility work at the project, based on mining the Tropicana and Havana deposits, is expected to be completed in the June quarter this year. This study is examining a range of treatment rates between 5.5-7.0 Mtpa, which would produce between 250,000 – 420,000 ozpa over a mine life of 10 -15 years.