Name and Location
Tropicana joint venture (JV) gold project, Australia.
Client
The project is a JV between AngloGold Ashanti Australia (70%) and Independence Group (30%).
Project Description
The Tropicana project is located at the northern end of the Tropicana JV tenements and is centred on the opencut mining of the Tropicana, Havana and Havana South deposits.
The project currently has a total mineral reserve of about 118-million tonnes, grading 2.08 g/t gold for 7.89-million ounces, and an ore reserve of 57.1-million tonnes, at 2.12 g/t gold for 3.9-million ounces.
The approved project will produce 3.45-million ounces of gold over a ten-year mine life.
The project will use conventional drill-and-blast and truck-and-excavator opencut mining methods. The 5.8-million-tonne-a-year capacity (fresh ore) process plant has been designed for water and energy efficiency, with the comminution circuit comprising two-stage crushing, high-pressure grinding rolls, ball milling and a carbon-in-leach circuit for gold recovery.
Value
Capital expenditure for the project is estimated at between A$820-million and A$845 million on a 100% basis.
Duration
Construction began in the June quarter of 2011 and first gold is expected in the September quarter of 2013.
Latest Developments
AngloGold Ashanti has produced its first gold at the Tropicana JV.
Gold production occurred ahead of schedule and within budget, with the project delivering new ounces below its current average cost structure.
Tropicana was initially scheduled to start production in the fourth quarter of 2013, with the JV partners spending between A$820-million and A$845-million to bring the project to production.
In the first three years of operation, the mine will produce between 470 000 oz and 490 000 oz of gold at cash costs of between A$590/oz and A$630/oz.
The focus will now be on achieving a smooth ramp-up of the processing plant to nameplate capacity of 5.5-million tonnes a year, within the next three months.
The company will also aim to expand the resource base by finding additional mineralisation close to the plant, while also testing promising targets in the JV tenement area.
Key Contracts and Suppliers
Macmahon Contractors (mining contractor).
On Budget and on Time?
Gold production occurred ahead of schedule and within budget. The project was originally forecast to begin production in the fourth quarter of this year.
Contact Details for Project Information
AngloGold Ashanti Australia investor relations, Andrea Maxey, tel +61 8 9425 4603 or email sbailey@anglogoldashanti.com.
Independence Group investor relations, tel +61 8 9479 1777, fax +61 8 9479 1877 or email contact@igo.com.au.
MacMahon Contractors, tel +61 8 9232 1000 or fax +61 8 9232 1001.