Gold-mining major AngloGold Ashanti stepped up its exploration efforts for the second quarter, spending $43-million on exploration activities, compared with the $31-million spent during the previous quarter.

The company’s greenfield team has made more discoveries than any of the other major gold or mining companies. The company has discovered 22,6-million ounces of gold in total from greenfield drilling at an average cost of $22/oz.

AngloGold Ashanti CEO Mark Cutifani comments that this shows that the company’s $90-million exploration budget for this year will be money well spent.

The total exploration expenditure for the second quarter, inclusive of expenditure at equity-accounted associates, was $23- million for brownfield exploration and $20-million for the company’s greenfields exploration.

Cutifani says that a joint venture agreement was signed with Laurentian Goldfields to advance greenfield exploration in specific areas in Quebec, Ontario and Saskatchewan.

In addition, the company formed a strate- gic partnership with Dubai-based explorer Thani Dubai, to drill and ultimately deve- lop new deposits in North Africa and the Middle East.

The greenfield team also maintained its activities in Australia, the Americas, China, South-East Asia, sub-Saharan Africa and Russia.

Meanwhile, Cutifani says that drilling at the La Colosa prospect, in Colombia, remains suspended pending the conclusion of a public appeal process. “The company is working towards a posi- tive outcome in this regard and is working closely with the Colombian government and community organisations to ensure the best possible plan for continued exploration and ultimately the development of La Colosa,” he adds. Further, the prefeasibility study on the Tropicana gold project, in Australia, was completed during the quarter and a deci- sion was taken by AngloGold Ashanti and its partner, Independence Group, to proceed with a full bankable study.

Tropicana, which boasts a resource of five-million ounces, presents the opportunity to gain a foothold in an important new gold district, about 300 km from Kalgoorlie, says Cutifani.

The bankable study will determine whether to use contractor or owner mining, and whether to opt for gas or diesel power supplied by a third party.

Once developed, the mine is expected to produce an average of between 330 000 oz/y and 410 000 oz/y, at a total cash cost of between A$590/oz and A$710/oz, over a ten-year initial life.

Cutifani points out that there is potential to increase resources and mine life through additional drilling at the nearby Havana South and other prospects.