Name of the Project
Obuasi gold mine redevelopment.

Location
The project is located in the Ashanti region of Ghana.

Client
AngloGold Ashanti.

Project Description
Obuasi has been in a limited operated phase since 2014. The project aims to redevelop the mine into a modern, productive, long-life and high-margin mining operation. The mine has mineral reserves of 5.8-million ounces and mineral resources of 34-million ounces. The redevelopment will establish Obuasi as a mechanised underground mining operation.

The approach to redevelopment will be fundamentally different from how the mine was operated in the past. The mine will use automation and controls for improved operational efficiencies and consistent performance.

The project will be undertaken in two phases, with Stage 1 comprising project establishment, mine rehabilitation and development, as well as plant and infrastructure refurbishment to allow for production at 2 000 t/d for the first operating year. This is expected to take about 18 months. The second phase includes the refurbishment of the underground materials handling system, shafts and ventilation; and construction of the primary crusher, the semiautogenous/ball circuit, carbon regeneration, a new gold room and tailings storage facility. This is expected to take a further 12 months and enable the operation to increase capacity to 4 000 t/d. The operation is then expected to ramp up to 5 000 t/d over the following three years.

Production for the first ten years will be focused on the upper orebodies and is expected to be 350 000 oz to 450 000 oz at an average head grade of 8.1 g/t.

In the following ten years, production will average 400 000 oz to 450 000 oz.

Potential Job Creation
The project envisages a smaller, but skilled, workforce that can operate in a mechanised/automated operation. The operation is expected to create between 2 000 to 2 500 jobs. Additional roles will be required during the construction phase of the project.

Net Present Value/Internal Rate of Return
Not stated.

Value
Initial project capital expenditure (capex) of between $450-million and $500-million, excluding preproduction capital of $64-million, is expected in the first two-and-half years.

After the completion of Phase 2, extended project capex of $94-million is expected to continue until Year 6, covering the development of the Obuasi Deeps decline to the lower level of the mine, refurbishment of the Kwesi Mensah shaft, installation of new underground pumpstations and construction of the flotation tailings storage facility.

Duration
The first gold pour is expected in the third quarter of 2019.

Latest Developments
AngloGold Ashanti has awarded a joint venture (JV) between Ausdrill and Barminco Holdings in a $375-million mining services contract at the Obuasi project.

The five-year contract covers a full suite of underground mining services at Obuasi, and works are expected to start in the first quarter of the 2019 calendar year.

About 550 people will be employed on the project team.

Key Contracts and Suppliers
Underground Mining Alliance, a joint venture between African Underground Mining Services and Rocksure International (mining services contract).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
AngloGold Ashanti media and investors, Stewart Bailey, tel +27 11 637 6031 or email sbailey@anglogoldashanti.com.