UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated March 31, 2015
Commission File Number 1-14846
AngloGold Ashanti Limited
(Name of registrant)
76 Jeppe Street
Newtown, 2001
(P.O. Box 62117, Marshalltown, 2107)
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Regulation S-T Rule 101(b)(1):
Yes
No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Regulation S-T Rule 101(b)(7):
Yes
No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes
No X
Enclosure:
ANGLOGOLD ASHANTI MINERAL RESOURCE AND ORE RESERVE
STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014
STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014
MINERAL RESOURCE
AND ORE RESERVE
REPORT
AND ORE RESERVE
REPORT
2014
A TRULY
GLOBAL
PRODUCER OF GOLD
OUR
MISSION
To create value for our shareholders, our employees
and our business and social partners through safely
and responsibly exploring, mining and marketing
our products. Our primary focus is gold, but we will
pursue value creating opportunities in other minerals
where we can leverage our existing assets, skills and
experience to enhance the delivery of value.
OUR VISION
OUR VALUES
To be the
LEADING
mining company
Safety is our first value.
We place people first and correspondingly put the highest
priority on safe and healthy practices and systems of work.
We are responsible for seeking out new and innovative
ways to prevent injury and illness in our business and to
ensure that our workplaces are free of occupational injury
and illness. We live each day for each other and use our
collective commitment, talents, resources and systems to
deliver on our most important commitment .... to care.
We treat each other with dignity and respect.
We believe that individuals who are treated with respect
and who are entrusted to take responsibility, respond by
giving their best. We seek to preserve people’s dignity,
their sense of self-worth in all our interactions, respecting
them for who they are and valuing the unique contribution
that they can make to our business success. We are
honest with ourselves and others, and we deal ethically
with all of our business and social partners.
We value diversity.
We aim to be a global leader with the right people for
the right jobs. We promote inclusion and team work,
deriving benefit from the rich diversity of the cultures,
ideas, experiences and skills that each employee brings
to the business.
We are accountable for our actions and undertake
to deliver on our commitments.
to deliver on our commitments.
We are focused on delivering results and we do what
we say we will do. We accept responsibility and hold
ourselves accountable for our work, our behaviour,
our ethics and our actions. We aim to deliver high
performance outcomes and undertake to deliver on
our commitments to our colleagues, business and
social partners, and our investors.
We want the communities and societies in which
we operate to be better off for AngloGold Ashanti
having been there.
we operate to be better off for AngloGold Ashanti
having been there.
We uphold and promote fundamental human rights where
we do business. We contribute to building productive,
respectful and mutually beneficial partnerships in the
communities in which we operate. We aim to leave a
legacy of enduring value.
We respect the environment.
We are committed to continually improving our processes
in order to prevent pollution, minimise waste, increase
our carbon efficiency and make efficient use of natural
resources. We will develop innovative solutions to mitigate
environmental and climate risks.
1
CONTENTS
P8-19
GROUP OVERVIEW
8
The year in review
12
Mineral Resource by
country (inclusive of
Ore Reserve)
country (inclusive of
Ore Reserve)
13
Mineral Resource by
country (exclusive of
Ore Reserve)
country (exclusive of
Ore Reserve)
14
Ore Reserve by country
16
Reconciliation of
Inclusive Mineral
Resource: 2013 – 2014
Inclusive Mineral
Resource: 2013 – 2014
18
Reconciliation of Ore
Reserve: 2013 – 2014
Reserve: 2013 – 2014
P20-57
SOUTH AFRICA
20
Regional overview
22
South Africa
24
Kopanang
28
Moab Khotsong
34
Mponeng
44
TauTona
49
Surface Operations
56
Uranium
P58-111
CONTINENTAL AFRICA
58
Regional overview
61
Democratic Republic
of the Congo
of the Congo
64
Kibali
68
Mongbwalu
70
Ghana
72
Iduapriem
77
Obuasi
82
Guinea
84
Siguiri
92
Mali
94
Morila
97
Sadiola
103
Tanzania
104
Geita
P112-127
AUSTRALASIA
112
Regional overview
113
Australasia
116
Sunrise Dam
121
Tropicana
SUSTAINABLE
FREE CASH
FLOW
IMPROVEMENTS
AND RETURNS
OUR STRATEGY
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
2
P128-183
AMERICAS
128
Regional overview
132
Argentina
133
Cerro Vanguardia
138
Brazil
140
AGA Mineração
160
Serra Grande
166
Colombia
168
Gramalote
171
La Colosa
174
Quebradona
177
United States of
America
America
178
Cripple Creek & Victor
(CC&V)
(CC&V)
P184-193
ADMINISTRATIVE
INFORMATION
INFORMATION
185
Definitions
187
Glossary of terms
190
Abbreviations
191
Administrative
information for
professional
organisations
information for
professional
organisations
192
Administrative
information
information
We strive to
generate free cash
flow and returns
to shareholders,
after funding
our investment
requirements and
servicing our debt.
generate free cash
flow and returns
to shareholders,
after funding
our investment
requirements and
servicing our debt.
3
AngloGold Ashanti’s Mineral Resource and Ore Reserve are reported in
accordance with the minimum standards described by the Australia Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(the JORC Code, 2012 Edition), and also conform to the standards set
out in the South African Code for the Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (The SAMREC Code, 2007
edition and amended July 2009).
accordance with the minimum standards described by the Australia Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(the JORC Code, 2012 Edition), and also conform to the standards set
out in the South African Code for the Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (The SAMREC Code, 2007
edition and amended July 2009).
The Mineral Resource is inclusive of the Ore Reserve component unless otherwise stated. Note
also that all Mineral Resources and Ore Reserves listed in this document are attributable unless
otherwise stated.
Information is presented either by operating region, country, mine or project. The following
tables and graphs are used to illustrate developments across AngloGold Ashanti’s operations
during 2014:
Inclusive Mineral Resource and Ore Reserve comparison by region, country, mine and project;
development sampling results; details of average drill-hole spacing and type; Exclusive Mineral
Resource; Mineral Resource below infrastructure; Inclusive Mineral Resource and Ore Reserve
by-products; year-on-year reconciliation of the Mineral Resource and Ore Reserve; Inferred
Mineral Resource in business plan; Ore Reserve modifying factors; grade tonnage information
on the Mineral Resource and lists of appointed Competent Persons. Topics for brief discussion
include regional overview; country overview; Mineral Resource estimation; Ore Reserve
estimation; introduction; geology; exploration and projects.
GUIDE TO REPORTING
AngloGold Ashanti Limited (AngloGold Ashanti) publishes a suite of reports to record its overall
performance annually. The Integrated Report for the 2014 financial year should be read in
conjunction with our Notice of Meeting and Summarised Financial Information 2014, which
has been posted to shareholders, our Annual Sustainable Development Report 2014 and our
Annual Financial Statements 2014.
Other reports available for the financial year are this Mineral Resource and Ore Reserve Report
2014, operational profiles and country fact sheets. These reports are all available on our annual
report portal at www.aga-reports.com and www.anglogoldashanti.com. For terminology used,
please refer to the glossary of terms on page 187.
FOR NOTING:
The following key parameters should be noted in respect of our reports:
·
Production is expressed on an attributable basis unless otherwise indicated.
·
Unless otherwise stated, $ or dollar refers to US dollars throughout this suite of reports.
·
Locations on maps are for indication purposes only.
·
Group and company are used interchangeably.
·
‘Statement of financial position’ and ‘balance sheet’ are used interchangeably.
ABOUT THIS REPORT
Note: Rounding of figures in this
document may result in minor
computational discrepancies.
Throughout this report, the metric
system of measurement is used.
All grade tonnage graphs in this
document are for Mineral Resources.
document may result in minor
computational discrepancies.
Throughout this report, the metric
system of measurement is used.
All grade tonnage graphs in this
document are for Mineral Resources.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
4
Our primary
platform for reporting
is our online reporting website
www.aga-reports.com
THE
2014
SUITE OF REPORTS INCLUDES:
>IR
Integrated Report 2014
>SDR
Sustainable Development Report 2014*
>R&R
Mineral Resource and Ore Reserve Report 2014
>AFS
Annual Financial Statements 2014
>OPS
Operational profiles 2014**
>NOM
Notice of Annual General Meeting and Summarised
Financial Information 2014 (Notice of Meeting)
Financial Information 2014 (Notice of Meeting)
*
This report is an online report. A summary
report is available as a PDF.
report is available as a PDF.
** The operational profiles will be available on
the website by the end of April 2015.
5
P8-19
8
The year in review
12
Mineral Resource by country
(inclusive of Ore Reserve)
(inclusive of Ore Reserve)
13
Mineral Resource by country
(exclusive of Ore Reserve)
(exclusive of Ore Reserve)
14
Ore Reserve by country
16
Reconciliation of Inclusive
Mineral Resource: 2013 –
2014
Mineral Resource: 2013 –
2014
18
Reconciliation of Ore
Reserve: 2013 – 2014
Reserve: 2013 – 2014
LOCATED IN
11 COUNTRIES
ACROSS FOUR
REGIONS
This section provides an
overview of AngloGold
Ashanti’s Mineral
Resource and Ore
Reserve position and the
changes thereto in 2014.
overview of AngloGold
Ashanti’s Mineral
Resource and Ore
Reserve position and the
changes thereto in 2014.
GROUP OVERVIEW
CAPTION: Using technology to improve
production and safety in deep-level mining
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
6
3
7
6
10
9
2
4
1
11
8
5
1 Argentina
Cerro Vanguardia (92.5%)
2 Brazil
Serra Grande
AGA Mineração
3 United States
Cripple Creek & Victor (CC&V)
4 Colombia
Gramalote (51%)
La Colosa
Quebradona (89.75%)
10 South Africa
Vaal River
Great Noligwa
(2)
Kopanang
Moab Khotsong
West Wits
Mponeng
TauTona
Surface Operations
(4)
11 Australia
Sunrise Dam
Tropicana (70%)
5 Guinea
Siguiri (85%)
6 Mali
Morila (40%)
(1)
Sadiola (41%)
Yatela (40%)
(3)
7 Ghana
Iduapriem
Obuasi
Obuasi
8 DRC
Kibali (45%)
(1)
Mongbwalu (86.2%)
9 Tanzania
Geita
SOUTH
AFRICA
AFRICA
AMERICAS
CONTINENTAL
AUSTRALASIA
SOUTH
AFRICA
AFRICA
GROUP OVERVIEW
GROUP OVERVIEW
OPERATIONS AND PROJECTS
Our operations and three advanced projects are grouped regionally as follows:
·
South Africa
·
Continental Africa (Ghana, Guinea, Mali, the Democratic Republic of Congo, Tanzania)
·
Americas (Argentina, Brazil, Colombia and the United States)
·
Australasia (Australia)
Location of AngloGold Ashanti’s operations and advanced projects
Percentages indicate the ownership interest in AngloGold Ashanti, whether held directly or indirectly. All operations are 100%-owned unless otherwise indicated.
(1)
Both Morila and Kibali are managed and operated by Randgold Resources Limited.
(2)
The process of integrating Great Noligwa into Moab Khotsong began in 2014 and, from an accounting perspective, these operations will be
treated as one cash-generating unit from 1 January 2015. This integration process will continue in 2015.
treated as one cash-generating unit from 1 January 2015. This integration process will continue in 2015.
(3)
Yatela mine ceased mining in 2014 and is preparing for mine closure.
(4)
Includes Mine Waste Solutions (MWS).
7
THE YEAR IN REVIEW
The AngloGold Ashanti Mineral Resource and Ore Reserve are reported in accordance with the
minimum standards described by the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code, 2012 Edition), and also conform to the standards set out
in the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral
Reserves (The SAMREC Code, 2007 edition and amended July 2009).
minimum standards described by the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code, 2012 Edition), and also conform to the standards set out
in the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral
Reserves (The SAMREC Code, 2007 edition and amended July 2009).
The Mineral Resource is inclusive of the Ore Reserve component unless otherwise stated. In complying with revisions to the JORC
Code, changes to AngloGold Ashanti’s Mineral Resource and Ore Reserve have been reviewed and it was concluded that none of
the changes are material to the overall valuation of the company. AngloGold Ashanti has therefore once again resolved not to provide
the detailed reporting as defined in Table 1 of the code. The company will however continue to provide the high level of detail it has in
previous years in order to comply with the transparency requirements of the code.
AngloGold Ashanti strives to actively create value by growing its major asset – the Mineral Resource and Ore Reserve. This drive is
based on active, well-defined brownfields and greenfields exploration programmes, innovation in both geological modelling and mine
planning, and continual optimisation of its asset portfolio.
GOLD PRICE
The following local prices of gold were used as a basis for estimation in the December 2014 declaration:
Local prices of gold
South Africa
Australasia
Brazil
Argentina
$/oz
ZAR/kg
AUD/oz
BRL/oz
ARS/oz
2014 Ore Reserve
1,100
398,452
1,261
2,801
8,979
2014 Mineral Resource
1,600
429,803
1,566
3,184
12,319
The JORC and SAMREC Codes require the use of reasonable economic assumptions. These include long-range commodity price
forecasts which are prepared in-house.
MINERAL RESOURCE
The total Mineral Resource decreased from 233.0Moz in December 2013 to 232.0Moz in December 2014. A gross annual increase of
8.7Moz occurred before depletion and disposals, while the net decrease after allowing for depletion and disposals was 1.0Moz. Changes in
economic assumptions from December 2013 to December 2014 resulted in a 6.4Moz decrease in the Mineral Resource, while exploration
and modelling resulted in an increase of 14.4Moz. Depletion from the Mineral Resource for the year totalled 5.9Moz and reduction from the
sale of Navachab, 3.8Moz. The Mineral Resource was estimated at a gold price of US$1,600/oz (2013: US$1,600/oz).
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
8
GROUP OVERVIEW
Mineral Resource
Moz
As at 31 December 2013
233.0
Disposal – Navachab
(3.8)
Sub-total
229.2
Depletion
(5.9)
Sub-total
223.3
Additions
Quebradona
Maiden Mineral Resource declaration of the Nuevo Chaquiro deposit
5.5
La Colosa
Mineral Resource growth due to exploration success
5.1
AGA Mineração
Exploration success at all three operations
2.1
Sunrise Dam
Revisions to the modelling approach
1.6
Siguiri
Hard-rock exploration additions from three deposits
1.5
Other
Additions less than 0.5Moz
1.5
Sub-total
240.6
Reductions
Mponeng
Data driven revision to models and Mineral Resource clean up
(3.4)
Kopanang
Mineral Resource clean-up of uneconomic and inaccessible areas
(1.8)
Moab Khotsong
(Including Great Noligwa)
Exploration-driven revisions to models
(1.4)
Geita
Increased costs resulting in reduced pit size
(0.9)
Other
Reductions less than 0.5Moz
(1.1)
As at 31 December 2014
Total
232.0
Rounding of numbers may result in computational discrepancies.
9
THE YEAR IN REVIEW
continued
ORE RESERVE
The AngloGold Ashanti Ore Reserve reduced from 67.9Moz in December 2013 to 57.5Moz in December 2014. This gross annual decrease of
10.5Moz includes depletion of 4.9Moz and the sale of Navachab, 1.9Moz. The remaining reduction of 3.7Moz in the Ore Reserve resulted from
changes to the economic assumptions between 2013 and 2014 which resulted in a reduction of 3.0Moz to the Ore Reserve, while exploration
and modelling changes led to the decrease of a further 0.7Moz. The Ore Reserve has been estimated using a gold price of US$1,100/oz
(2013: US$1,100/oz).
Ore Reserve
Moz
As at 31 December 2013
67.9
Disposal – Navachab
(1.9)
Sub-total
66.1
Depletion
(4.9)
Sub-total
61.1
Additions
Siguiri
Inclusion of fresh-rock from the Kami deposit
0.6
Sunrise Dam
Exploration success at Vogue
0.4
Other
Additions less than 0.3Moz
1.0
Sub-total
63.1
Reductions
Obuasi
Initial results of feasibility study
(2.6)
Mponeng
Revisions to the Carbon Leader Reef (CLR) and Ventersdorp Contact Reef
(VCR) models due to new exploration and development data
(1.3)
Moab Khotsong
(Including Great Noligwa)
New surface exploration data led to revision of the project Zaaiplaats models
(0.8)
CC&V
Increased costs and reduction in submarginal ounces
(0.4)
Other
Reductions less than 0.3Moz
(0.5)
As at 31 December 2014
Total
57.5
Rounding of numbers may result in computational discrepancies.
BY-PRODUCTS
Several by-products are recovered in the processing of the gold Ore Reserve. The AngloGold Ashanti Ore Reserve includes 55.6kt of
uranium oxide at the South African operations, 0.32Mt of sulphur in Brazil and 25.1Moz of silver in Argentina.
The maiden publication of the Nuevo Chaquiro Mineral Resource added 3.55Mt of copper, 76.5Moz of silver and 62.9kt of molybdenum
to the group’s total Mineral Resource.
COMPETENT PERSONS
The information in this report relating to exploration results, Mineral Resources and Ore Reserves is based on information compiled by
or under the supervision of the Competent Persons as defined in the JORC or SAMREC Codes. All Competent Persons are employed
by AngloGold Ashanti, unless stated otherwise, and have sufficient experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity being undertaking. The Competent Persons consent to the inclusion of exploration
results, Mineral Resource and Ore Reserve information in this report, in the form and context in which it appears. The legal tenure of
each operation and project has been verified to the satisfaction of the accountable Competent Person.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
10
During the past decade, the company has developed and implemented a rigorous system of internal and external reviews aimed
at providing assurance in respect of Ore Reserve and Mineral Resource estimates. The Mineral Resource and Ore Reserve at the
following operations were subject to an external review, in line with the policy that each operation or project will be reviewed by an
independent third party on average once every three years:
·
Mponeng
·
Moab Khotsong
·
Iduapriem
·
Sunrise Dam
·
Cerro Vanguardia
·
Serra Grande
·
Obuasi
The external reviews were conducted by the following companies: The Mineral Corporation (Mponeng and Moab Khotsong), Coffey
Mining (Iduapriem), Snowden (Sunrise Dam), Optiro (Cerro Vanguardia and Serra Grande), AMEC (Obuasi – Mineral Resource) and
SRK (Obuasi – Mineral Resource and Ore Reserve). Certificates of sign-off have been received from all companies conducting the
external reviews to state that the Mineral Resource and/or Ore Reserve at each operation complies with the JORC Code and the
SAMREC Code.
Numerous internal Mineral Resource and Ore Reserve process reviews were completed by suitably qualified Competent Persons from
within AngloGold Ashanti. A documented chain of responsibility exists from the Competent Persons at the operation to the company’s
Mineral Resource and Ore Reserve Steering Committee.
Accordingly, the Chairman of the AngloGold Ashanti Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc
(Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Ore Reserve
processes for AngloGold Ashanti and is satisfied that the Competent Persons have fulfilled their responsibilities. VA Chamberlain has
27 years’ experience in exploration and mining, is employed full-time by AngloGold Ashanti and can be contacted at the following
adddress: 76 Jeppe Street, Newtown, 2001, South Africa.
Attributable Inclusive Mineral Resource
– by region
– by region
(Moz)
·
South Africa
85.6
· Continental Africa
64.3
·
Australasia
9.6
·
Americas
72.5
Total
232
Attributable Ore Reserve –
by region
by region
(Moz)
·
South Africa
27.5
· Continental Africa
18.9
·
Australasia
3.5
·
Americas
7.6
Total
57.5
GROUP OVERVIEW
11
GROUP OVERVIEW
Mineral Resource by country – inclusive of Ore Reserve (attributable)
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
South Africa
Measured
147.19
2.35
345.91
11.12
Indicated
946.99
1.93
1,829.48
58.82
Inferred
47.34
10.31
487.87
15.69
Total
1,141.52
2.33
2,663.26
85.63
Democratic Republic of Congo
Measured
3.66
1.92
7.02
0.23
Indicated
63.39
4.08
258.70
8.32
Inferred
29.28
3.56
104.30
3.35
Total
96.32
3.84
370.01
11.90
Ghana
Measured
45.94
4.76
218.80
7.03
Indicated
114.54
3.73
427.72
13.75
Inferred
147.31
2.78
410.08
13.18
Total
307.79
3.43
1,056.60
33.97
Guinea
Measured
25.03
0.61
15.16
0.49
Indicated
125.20
0.80
100.12
3.22
Inferred
74.94
1.01
75.79
2.44
Total
225.17
0.85
191.06
6.14
Mali
Measured
5.32
0.77
4.09
0.13
Indicated
47.54
1.75
83.42
2.68
Inferred
6.78
0.93
6.32
0.20
Total
59.64
1.57
93.82
3.02
Tanzania
Measured
–
–
–
–
Indicated
69.00
3.14
216.78
6.97
Inferred
19.55
3.65
71.38
2.30
Total
88.55
3.25
288.17
9.26
Australia
Measured
31.77
1.43
45.46
1.46
Indicated
83.83
2.25
188.70
6.07
Inferred
23.35
2.73
63.84
2.05
Total
138.95
2.14
298.00
9.58
Argentina
Measured
13.70
1.50
20.55
0.66
Indicated
28.49
2.91
82.80
2.66
Inferred
6.02
2.65
15.97
0.51
Total
48.21
2.47
119.32
3.84
Brazil
Measured
19.88
5.74
114.18
3.67
Indicated
22.21
5.49
121.90
3.92
Inferred
50.06
5.79
289.65
9.31
Total
92.15
5.71
525.74
16.90
Colombia
Measured
14.80
0.79
11.62
0.37
Indicated
993.13
0.83
822.36
26.44
Inferred
979.16
0.47
464.20
14.92
Total
1,987.08
0.65
1,298.18
41.74
United States
Measured
236.13
0.76
179.96
5.79
Indicated
151.70
0.67
101.91
3.28
Inferred
40.80
0.72
29.42
0.95
Total
428.63
0.73
311.28
10.01
Total
Measured
543.41
1.77
962.74
30.95
Indicated
2,646.03
1.60
4,233.89
136.12
Inferred
1,424.57
1.42
2,018.80
64.91
Total
4,614.01
1.56
7,215.43
231.98
Rounding of figures may result in computational discrepancies.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
12
Mineral Resource by country – exclusive of Ore Reserve (attributable)
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
South Africa
Measured
15.75
15.17
239.06
7.69
Indicated
251.24
3.49
877.25
28.20
Inferred
13.43
18.32
246.09
7.91
Total
280.43
4.86
1,362.39
43.80
Democratic Republic of Congo
Measured
1.99
1.37
2.72
0.09
Indicated
26.23
3.99
104.63
3.36
Inferred
29.28
3.56
104.30
3.35
Total
57.50
3.68
211.65
6.80
Ghana
Measured
29.64
5.85
173.26
5.57
Indicated
75.35
3.39
255.47
8.21
Inferred
146.27
2.76
403.56
12.97
Total
251.26
3.31
832.29
26.76
Guinea
Measured
–
–
–
–
Indicated
54.22
0.82
44.19
1.42
Inferred
74.94
1.01
75.79
2.44
Total
129.16
0.93
119.98
3.86
Mali
Measured
5.16
0.73
3.79
0.12
Indicated
19.17
1.64
31.51
1.01
Inferred
6.78
0.93
6.32
0.20
Total
31.11
1.34
41.62
1.34
Tanzania
Measured
–
–
–
–
Indicated
40.39
2.98
120.49
3.87
Inferred
19.55
3.65
71.38
2.30
Total
59.94
3.20
191.88
6.17
Australia
Measured
3.50
0.83
2.89
0.09
Indicated
55.33
2.18
120.88
3.89
Inferred
23.35
2.73
63.84
2.05
Total
82.18
2.28
187.62
6.03
Argentina
Measured
4.45
2.08
9.24
0.30
Indicated
24.43
2.36
57.60
1.85
Inferred
6.02
2.65
15.97
0.51
Total
34.90
2.37
82.81
2.66
Brazil
Measured
10.22
6.36
65.00
2.09
Indicated
15.38
4.85
74.50
2.40
Inferred
48.75
5.80
282.50
9.08
Total
74.34
5.68
422.00
13.57
Colombia
Measured
14.80
0.79
11.62
0.37
Indicated
993.13
0.83
822.36
26.44
Inferred
979.16
0.47
464.20
14.92
Total
1,987.08
0.65
1,298.18
41.74
United States
Measured
128.42
0.74
95.32
3.06
Indicated
93.27
0.68
63.10
2.03
Inferred
30.25
0.71
21.56
0.69
Total
251.94
0.71
179.98
5.79
Total
Measured
213.94
2.82
602.91
19.38
Indicated
1,648.14
1.56
2,571.98
82.69
Inferred
1,377.77
1.27
1,755.49
56.44
Total
3,239.84
1.52
4,930.39
158.52
Rounding of figures may result in computational discrepancies.
GROUP OVERVIEW
13
Ore Reserve by country – attributable
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
South Africa
Proved
133.45
0.64
85.20
2.74
Probable
713.99
1.08
768.72
24.71
Total
847.45
1.01
853.92
27.45
Democratic Republic of Congo
Proved
2.41
1.76
4.25
0.14
Probable
34.89
4.28
149.44
4.80
Total
37.31
4.12
153.69
4.94
Ghana
Proved
17.51
2.78
48.72
1.57
Probable
41.79
4.03
168.56
5.42
Total
59.30
3.66
217.28
6.99
Guinea
Proved
25.03
0.61
15.16
0.49
Probable
70.07
0.77
54.29
1.75
Total
95.09
0.73
69.44
2.23
Mali
Proved
–
–
–
–
Probable
28.47
1.83
52.09
1.67
Total
28.47
1.83
52.09
1.67
Tanzania
Proved
–
–
–
–
Probable
28.61
3.37
96.29
3.10
Total
28.61
3.37
96.29
3.10
Australia
Proved
28.27
1.51
42.57
1.37
Probable
28.19
2.38
67.09
2.16
Total
56.46
1.94
109.66
3.53
Argentina
Proved
9.76
1.18
11.55
0.37
Probable
6.01
4.78
28.73
0.92
Total
15.77
2.55
40.29
1.30
Brazil
Proved
7.17
4.18
29.95
0.96
Probable
8.79
4.76
41.86
1.35
Total
15.96
4.50
71.81
2.31
United States
Proved
107.71
0.79
84.64
2.72
Probable
58.07
0.66
38.44
1.24
Total
165.78
0.74
123.07
3.96
Total
Proved
331.30
0.97
322.03
10.35
Probable
1,018.90
1.44
1,465.51
47.12
Total
1,350.20
1.32
1,787.54
57.47
Rounding of figures may result in computational discrepancies.
GROUP OVERVIEW
continued
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
14
GROUP OVERVIEW
15
GROUP OVERVIEW
continued
Reconciliation of Inclusive Mineral Resource (Au content Moz)
Sources of change
as at 31 December 2014
Previous
year
Depletion
Gold
price
Cost
Exploration
Metho-
dology
Acquisition/
Disposal
Other
Current
year
South Africa
Great Noligwa
1.636
–
–
–
–
–
–
(1.636)
–
Kopanang
6.792
(0.265)
–
(1.627)
(0.166)
–
–
–
4.734
Moab Khotsong
20.202
(0.456)
–
(0.149)
(1.115)
(0.283)
–
1.791
19.990
Vaal River Surface
4.626
(0.193)
–
–
(0.047)
0.090
–
0.010
4.486
Mine Waste Solutions
2.406
(0.135)
–
–
0.006
0.118
–
(0.014)
2.382
Mponeng
52.551
(0.458)
–
(2.188)
(0.335)
–
–
(0.902)
48.669
TauTona
4.461
(0.245)
–
(0.439)
(0.236)
0.057
–
0.187
3.785
West Wits Surface
1.594
(0.027)
–
–
0.004
0.019
–
(0.009)
1.581
Total
94.267
(1.779)
–
(4.402)
(1.889)
0.002
–
(0.573)
85.626
Continental Africa
Kibali
9.968
(0.462)
–
(0.139)
0.484
(0.531)
0.058
9.378
Mongbwalu
2.518
–
–
–
–
–
–
–
2.518
Iduapriem
6.338
(0.187)
–
–
0.305
0.102
–
0.052
6.611
Obuasi
27.395
(0.362)
–
–
0.053
0.274
–
–
27.359
Siguiri
4.927
(0.284)
–
(0.261)
1.588
–
–
0.172
6.143
Morila
0.233
(0.066)
–
–
–
0.009
–
0.016
0.193
Sadiola
3.099
(0.094)
–
(0.188)
0.031
(0.030)
–
0.006
2.824
Yatela
0.006
(0.011)
–
–
–
–
–
0.005
–
Navachab
3.909
(0.059)
–
–
–
–
(3.850)
–
–
Geita
10.663
(0.544)
–
(1.186)
0.179
0.204
–
(0.051)
9.265
Total
69.056
(2.069)
–
(1.774)
2.640
0.029
(3.850)
0.258
64.290
Australasia
Sunrise Dam
3.227
(0.287)
–
–
0.118
1.491
–
–
4.550
Tropicana
5.406
(0.390)
( 0.008)
0.021
–
–
–
0.003
5.031
Total
8.633
(0.677)
( 0.008)
0.021
0.118
1.491
–
0.003
9.581
Americas
Cerro Vanguardia
4.129
(0.266)
–
(0.005)
0.142
(0.165)
–
–
3.836
AGA Mineração
11.959
(0.481)
–
0.079
1.459
(0.209)
–
0.796
13.601
Serra Grande
2.989
(0.148)
–
–
0.225
–
–
0.235
3.302
Gramalote
3.088
–
–
–
–
–
–
–
3.088
La Colosa
28.053
–
–
–
5.092
–
–
–
33.145
Quebradona
–
–
–
–
5.504
–
–
5.504
Cripple Creek and Victor
10.842
(0.474)
–
(0.343)
0.060
(0.067)
–
(0.010)
10.008
Total
61.061
(1.370)
–
(0.269)
12.481
(0.441)
–
1.021
72.484
Grand total
233.017
(5.894)
(0.008)
(6.425)
13.351
1.081
(3.850)
0.709
231.982
Rounding of figures may result in computational discrepancies.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
16
Net diff
%
Comments
(1.64)
(100)
Transferred entire Mineral Resource from Great Noligwa mine to Moab Khotsong mine.
(2.06)
(30)
Decrease in the Mineral Resource due to clean up of uneconomic and inaccessible areas as well as slight value drop.
(0.21)
(1)
Geological model changes driven by surface drilling resulted in structure and estimation domain changes which was offset by the transfer in
from Great Noligwa.
from Great Noligwa.
(0.14)
(3)
Changes are due to waste rock dumps and sulphur paydam depletions offset by additions to tailings storage facilities and waste rock dumps.
Aerial survey volume adjustments to waste rock dump material are also included.
Aerial survey volume adjustments to waste rock dump material are also included.
(0.02)
(1)
Changes due to processing of Hartebeesfontein, Buffelsfontein and Ellaton tailings storage facilities through the Mine Waste Solutions plant
(depletion).
(depletion).
(3.88)
(7)
Decrease in CLR due to new geological model offset by transfer of some ground from TauTona. Mineral Resource clean up of the VCR
(uneconomic and inaccessible areas) offset by a value increase in below 120 level and Western Ultra Deep Levels (WUDLs).
(uneconomic and inaccessible areas) offset by a value increase in below 120 level and Western Ultra Deep Levels (WUDLs).
(0.68)
(15)
Depletion, Mineral Resource transfers to Mponeng as well as Mineral Resource clean up and a slight drop in value accounts for the change.
(0.01)
(1)
Depletion occurred from the Mponeng and Savuka waste rock dumps. Additions were due to deposition on the Mponeng waste rock dump
and tailings storage facilities growth due to deposition of plant residue.
and tailings storage facilities growth due to deposition of plant residue.
(8.64)
(9)
(0.59)
(6)
New exploration data resulted in updates to the ore zones at Karagba, Chauffeur and Durba deposit and Gorumbwa.
–
–
Mineral Resource unchanged.
0.27
4
Growth due to the addition of new Inferred Mineral Resource additions from Block 3W and Block 5.
(0.04)
(0)
Changes due to remodelling and depletion from mining.
1.22
25
Losses due to increase in costs and depletion offset by declaration of the maiden fresh-rock Mineral Resource at Kami, Bidini and Sorofe.
(0.04)
(17)
Small changes due to remodelling.
(0.28)
(9)
Increased mining costs resulted in smaller Mineral Resource shells.
(0.01)
(100)
Cessation of mining and preparing for mine closure.
(3.91)
(100)
The Navachab operation was sold.
(1.40)
(13)
Negative changes largely due to increased costs affecting Mineral Resource pit shells and cut-off grades at the Nyankanga and Geita Hill pits.
(4.77)
(7)
1.32
41
Surface Mineral Resource change is due to depletion from stockpiles to supplement underground mill feed during the year. Increase in
underground Mineral Resource is due to changes in grade control sampling and modelling, Mineral Resource estimation approach and
reporting.
underground Mineral Resource is due to changes in grade control sampling and modelling, Mineral Resource estimation approach and
reporting.
(0.37)
(7)
Major change is depletion, slightly offset by lower cut-off grade for open pit.
0.95
11
(0.29)
(7)
Mainly depletions.
1.64
14
For Cuiabá, the main additions are for the Fonte Grande Sul deep orebody, Galinheiro Footwall orebody and addition of the sill pillars.
Losses are related to tonnage decrease due to reduced ore zone thickness and the density estimation procedure. Lamego had additions by
exploration at Carruagem and also some model changes to delineate a higher grade Mineral Resource inside the total mineralised structure.
At Córrego do Sítio the main additions were in the Sangue de Boi and Sao Bento sulphide orebodies, and for the Rosalino and Pinta Bem
oxide orebodies.
Losses are related to tonnage decrease due to reduced ore zone thickness and the density estimation procedure. Lamego had additions by
exploration at Carruagem and also some model changes to delineate a higher grade Mineral Resource inside the total mineralised structure.
At Córrego do Sítio the main additions were in the Sangue de Boi and Sao Bento sulphide orebodies, and for the Rosalino and Pinta Bem
oxide orebodies.
0.31
10
The Mineral Resource increased due to the continuing additions from the Inga orebody as well as opportunities recognised in the Mina III.
–
–
Mineral Resource unchanged.
5.09
18
Growth due to exploration success which drove the orebody to the north-east and to depth.
5.50
100
Maiden Nuevo Chaquiro Inferred Mineral Resource – delivered by greenfields exploration success.
(0.83)
(8)
The Mineral Resource was impacted by increased operating costs associated with implementation of selective mining and mill operations.
Model precision was increased at the heap leach ore cut-off to reduce ore tonnage risk. Waste dump construction negatively impacted
Mineral Resource at depth in Altman and Wild Horse.
Model precision was increased at the heap leach ore cut-off to reduce ore tonnage risk. Waste dump construction negatively impacted
Mineral Resource at depth in Altman and Wild Horse.
11.42
19
(1.04)
(0)
GROUP OVERVIEW
17
Reconciliation of Ore Reserve (Au content Moz)
Sources of change
as at 31 December 2014
Previous
year
Depletion
Model
change
Change in
economics
New ounces
from projects
Scope
change
Acquisition/
Disposal
Other
Current
year
South Africa
Great Noligwa
0.478
–
–
–
–
–
–
(0.478)
–
Kopanang
1.455
(0.160)
0.065
–
–
(0.057)
–
(0.055)
1.248
Moab Khotsong
6.122
(0.323)
(0.606)
–
–
0.069
–
0.220
5.482
Vaal River Surface
4.460
(0.171)
0.008
(0.106)
–
–
–
0.013
4.204
Mine Waste Solutions
2.248
(0.121)
0.069
–
–
–
–
(0.001)
2.195
Mponeng
14.567
(0.363)
(1.267)
–
0.318
(0.326)
–
–
12.929
TauTona
1.388
(0.230)
(0.165)
–
–
0.211
–
–
1.203
West Wits Surface
0.184
(0.027)
(0.019)
–
0.063
–
–
(0.009)
0.193
Total
30.901
(1.394)
(1.915)
(0.106)
0.381
(0.103)
–
(0.310)
27.454
Continental Africa
Kibali
5.166
(0.297)
(0.004)
(0.021)
0.097
–
–
–
4.941
Iduapriem
1.971
(0.174)
(0.006)
(0.153)
0.004
0.052
–
0.005
1.699
Obuasi
8.141
(0.233)
–
(2.383)
–
(0.260)
–
0.021
5.286
Siguiri
1.842
(0.202)
(0.053)
0.069
0.536
0.017
–
0.024
2.233
Morila
0.044
(0.048)
0.086
–
–
(0.002)
–
0.019
0.100
Sadiola
1.432
(0.093)
(0.076)
0.267
–
(0.040)
–
0.085
1.575
Navachab
1.918
(0.045)
–
–
–
–
(1.873)
–
–
Geita
3.899
(0.546)
(0.050)
(0.284)
–
–
–
0.077
3.096
Total
24.413
(1.636)
(0.103)
(2.506)
0.636
(0.233)
(1.873)
0.232
18.930
Australasia
Sunrise Dam
1.177
(0.306)
–
–
0.391
0.024
–
–
1.287
Tropicana
2.630
(0.386)
–
(0.004)
–
–
–
–
2.239
Total
3.807
(0.692)
–
(0.004)
0.391
0.024
–
–
3.526
Americas
Cerro Vanguardia
1.570
(0.279)
0.156
0.039
–
(0.191)
–
–
1.295
AGA Mineração
1.971
(0.432)
(0.003)
0.051
0.051
(0.018)
–
0.192
1.811
Serra Grande
0.566
(0.148)
0.026
0.010
–
0.040
–
0.004
0.497
Cripple Creek and Victor
4.710
(0.362)
0.098
(0.495)
0.006
–
–
–
3.957
Total
8.817
(1.221)
0.276
(0.395)
0.057
(0.169)
–
0.196
7.561
Grand total
67.938
(4.943)
(1.742)
(3.011)
1.465
(0.480)
(1.873)
0.118
57.471
Rounding of figures may result in computational discrepancies.
GROUP OVERVIEW
continued
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
18
Net diff
%
Comments
(0.48)
(100)
With the integration of Great Noligwa into the greater Moab Khotsong, the entire Ore Reserve was transferred to Moab Khotsong.
(0.21)
(14)
Depletions with slight geological model changes reduced the Ore Reserve.
(0.64)
(10)
Model changes (geological structure and facies changes) in the Zaaiplaats (PZ2) area and Middle mine resulted in a reduction in overall Ore
Reserve, despite the transfer in from Great Noligwa.
Reserve, despite the transfer in from Great Noligwa.
(0.26)
(6)
Changes are mainly due to depletions and a reduction in grade from the marginal ore material.
(0.05)
(2)
Changes are due to depletions which were slightly offset with a small increase in tonnages in the estimated Ore Reserve.
(1.64)
(11)
The reduction is mainly due to the latest Mineral Resource model reductions, with a portion of old Savuka Ore Reserve being transferred to
TauTona.
TauTona.
(0.18)
(13)
The Ore Reserve was negatively impacted by changes in the Mineral Resource model.
0.01
5
Additional tailings material has been included in the Ore Reserve and will be processed through the Savuka plant. Further changes are
attributable to depletion.
attributable to depletion.
(3.45)
(11)
(0.23)
(4)
Mainly depletions.
(0.27)
(14)
The main reason for the reduction in the Ore Reserve was depletion with additional losses due to increased costs.
(2.86)
(35)
Change in the mine design due to reductions in price, increase in the cut-off grade, removal of incremental and marginal all served to reduce
the Ore Reserve. Increases in dilution percentages reduced grade of significant number of stopes below the cut-off grade causing a further
reduction. These changes were all the result of the initial phase of the feasibility study currently underway.
the Ore Reserve. Increases in dilution percentages reduced grade of significant number of stopes below the cut-off grade causing a further
reduction. These changes were all the result of the initial phase of the feasibility study currently underway.
0.39
21
Gains due to reduction in cost, the inclusion of the hard-rock project and some scope changes offset the depletion and minor model changes.
0.06
126
Model changes due to conversion of Mineral Resource to Ore Reserve, depletions due to ore mined from the pit and material from the tailings
storage facility wall B.
storage facility wall B.
0.14
10
Key changes to the Ore Reserves are the completion of FE4 and Tambali, model update and cut-off grade change due to a reduced cost
structure. The stockpiles have been depleted, as well as a material changes due to change in economics, updated survey and updated drilling
results.
structure. The stockpiles have been depleted, as well as a material changes due to change in economics, updated survey and updated drilling
results.
(1.92)
(100)
The Navachab operation was sold.
(0.80)
(21)
Changes in economic parameters and model changes from Nyankanda and Geita Hill pits had a significant negative impact on the Ore Reserve
as did depletion. Higher contract cost assumptions for ore mining and hauling cost has had a negative impact on satellite pits.
as did depletion. Higher contract cost assumptions for ore mining and hauling cost has had a negative impact on satellite pits.
(5.48)
(22)
0.11
9
The surface Ore Reserve reduced due to depletion of stockpiles to supplement underground mill feed. Overall Ore Reserve ounces increased
due to the release of the Vogue domain geological model and the increase in the Mineral Resource in other domains via grade control drilling.
due to the release of the Vogue domain geological model and the increase in the Mineral Resource in other domains via grade control drilling.
(0.39)
(15)
Major changes are depletion and a change in cutoff grade for reporting of transported, upper saprolite and transitional material.
(0.28)
(7)
(0.27)
(18)
The method of estimation of the Ore Reserve for open pit and heap leach material was changed. Model changes occurred at Cuncuna, Osvaldo
Diez and Vanguardia 3. Economic changes include change of the local gold price and the operating cost. Scope changes were a results of the
estimation method change.
Diez and Vanguardia 3. Economic changes include change of the local gold price and the operating cost. Scope changes were a results of the
estimation method change.
(0.16)
(8)
At the Cuiabá mine, the model changes were due to a combination of positive exploration countered by higher selectivity and kriging of the
density; change in economics resulted from a review of the cut-off grades; scope changes resulted as a consequence of changing the mining
method from cut and fill to long hole stoping in some areas. For the Lamego mine, their were significant exploration addition and these were
countered by changes in the evaluation methodology. At Córrego do Sítio additions came from the São Bento mine and for the surface mine
the positive effects of FOREX variations and the review of contract mining costs, added to the Ore Reserve and compensated for depletion.
density; change in economics resulted from a review of the cut-off grades; scope changes resulted as a consequence of changing the mining
method from cut and fill to long hole stoping in some areas. For the Lamego mine, their were significant exploration addition and these were
countered by changes in the evaluation methodology. At Córrego do Sítio additions came from the São Bento mine and for the surface mine
the positive effects of FOREX variations and the review of contract mining costs, added to the Ore Reserve and compensated for depletion.
(0.07)
(12)
Upgrade of Mineral Resource at Pequizão and Mina III allowed for an increased Ore Reserve. Revised costs re-allocation benefited the Ore
Reserve at Mina III (and decreasing the Ore Reserve at Mina Nova); at Mina III the inclusion of pillars for reclaiming added further to the Ore
Reserve.
Reserve at Mina III (and decreasing the Ore Reserve at Mina Nova); at Mina III the inclusion of pillars for reclaiming added further to the Ore
Reserve.
(0.75)
(16)
Model changes utilised the single ore percent model. Model changes resulted from updated variography, composite precision, and exploration drilling.
Updated costs to actuals and for mining streams contributed to the loss due to economics.
Updated costs to actuals and for mining streams contributed to the loss due to economics.
(1.26)
(14)
(10.47)
(15)
GROUP OVERVIEW
19
P20-57
20
Regional overview
22
South Africa
24
Kopanang
28
Moab Khotsong
34
Mponeng
44
TauTona
49
Surface Operations
56
Uranium
The South African region
includes four deep-level
mines and its surface
operations.
includes four deep-level
mines and its surface
operations.
CAPTION: Infrastructure at Moab Khotsong
mine
Contribution to regional production – 2014
·
Kopanang
11
· Moab Khotsong (incl. Great Noligwa) 26
·
Mponeng
26
·
TauTona
19
·
Surface operations
18
%
Contribution to group production – 2014
·
South Africa
28
· Rest of AngloGold Ashanti
72
%
IMPLEMENTING
NEW
TECHNOLOGY TO
SAFELY MINE,
ALL OF THE
GOLD, ONLY THE
GOLD, ALL OF
THE TIME
SOUTH AFRICA
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
20
SOUTH AFRICA
continued
Regional overview
SOUTH AFRICA
As at December 2014, AngloGold Ashanti’s operations in South Africa had a total Mineral Resource
(inclusive of the Ore Reserve) of 85.63Moz (2013: 94.27Moz) and an Ore Reserve of 27.45Moz
(2013: 30.90Moz).
(inclusive of the Ore Reserve) of 85.63Moz (2013: 94.27Moz) and an Ore Reserve of 27.45Moz
(2013: 30.90Moz).
This is equivalent to around 37% and 48% of the group’s Mineral Resource and Ore Reserve respectively. The South African operations
produced 1.2Moz of gold in 2014, or 28% of group production, and 1.31Mlb of uranium oxide.
AngloGold Ashanti’s South Africa operations comprise four deep-level underground mines and three surface processing entities,
collectively referred to as Surface Operations.
Inclusive Mineral Resource
South Africa
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
147.19
2.35
345.91
11.12
Indicated
946.99
1.93
1,829.48
58.82
Inferred
47.34
10.31
487.87
15.69
Total
1,141.52
2.33
2,663.26
85.63
Exclusive Mineral Resource
South Africa
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
15.75
15.17
239.06
7.69
Indicated
251.24
3.49
877.25
28.20
Inferred
13.43
18.32
246.09
7.91
Total
280.43
4.86
1,362.39
43.80
Ore Reserve
South Africa
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
South Africa region
Proved
133.45
0.64
85.20
2.74
Probable
713.99
1.08
768.72
24.71
Total
847.45
1.01
853.92
27.45
Great
Noligwa
West Wits
Surface
TauTona
Vaal River
Surface
Kopanang
Moab
Khotsong
Mponeng
Mine Waste
Solutions
Mine Waste
Solutions
Moz
60
50
40
30
20
10
0
December 2013
December 2014
South Africa Mineral Resource – attributable
Per operation/project
Moz
16
14
12
10
8
6
4
2
0
Great
Noligwa
West Wits
Surface
TauTona
Vaal River
Surface
Kopanang
Moab
Khotsong
Mponeng
December 2013
December 2014
South Africa Ore Reserve – attributable
Per operation/project
21
SOUTH AFRICA
continued
Regional overview
Operations
0
400km
SOUTH AFRICA
West Wits operations
Mponeng
TauTona
Surface operations
TauTona
Surface operations
Vaal River operations
Kopanang
Moab Khotsong
Moab Khotsong
(1)
Surface operations
(2)
Durban
Bloemfontein
Pretoria
Johannesburg
Carletonville
Klerksdorp
East London
Port Elizabeth
Cape Town
North West
Free State
COUNTRY OVERVIEW
All four underground operations are 100% owned by AngloGold Ashanti. The mining operations are all located within the Witwatersrand
Basin and are in two mining districts, the Vaal River and West Wits areas.
·
The Vaal River operations consist of the Kopanang and Moab Khotsong mines (Great Noligwa has been incorporated with Moab
Khotsong) and are situated near the town of Klerksdorp. The primary reefs mined by these operations are the Vaal Reef (VR) and
the secondary Crystalkop Reef (C Reef).
·
The West Wits operations consist of the Mponeng and TauTona mines and are situated near the town of Carletonville. The primary
reefs mined by these operations are the Carbon Leader Reef (CLR) and the Ventersdorp Contact Reef (VCR).
The Surface Operations include the Vaal River Surface, Mine Waste Solutions (MWS) and the West Wits Surface processing operations
that re-work and retreat the waste rock dumps and tailings dams which result from the mining and processing of the primary and
secondary reef horizons.
At the South African operations, a sequential and/or scattered grid mining method is employed to extract the gold in the deep, narrow,
tabular orebodies. The grid is pre-developed through a series of haulages and crosscuts. Stoping takes place by means of breast
mining using conventional drill and blast techniques. The smallest mining unit (SMU) is 100m x 100m.
(1)
Great Noligwa was included in the Moab Khotsong operation in 2014.
(2)
Includes Mine Waste Solutions (MWS).
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
22
MINERAL RESOURCE ESTIMATION
The sampling data used in Mineral Resource estimation includes underground chip samples, underground drill-holes and surface drill-
holes. All sample locations are reported as a composite over a mineralised width, resulting in a single channel width (cm) and metal
accumulation (cm.g/t) value.
AngloGold Ashanti makes use of a Bayesian geostatistical approach where, in the absence of dense sampling data, gold estimations
are based on a combination of the observed data and external knowledge relating to the data. A Bayesian geostatistical approach
asserts that the area to be evaluated forms part of a larger continuous entity, to which the observed data belongs.
Mixed support Co-Kriging is used in the estimation of the Mineral Resource for all South African underground operations. It is a
technique that enables the use of data of mixed support, allowing both drill-hole and underground sampling data to be used together.
Estimation is performed into large block sizes, generally >210m x 210m, which fully capture the within-block variance, allowing the Co-
Kriging of data of different support sizes over long ranges. Estimation is done per geological homogeneous zone, in logarithmic space,
because of the highly skewed gold distribution. The final gold estimates are then calculated by back transforming the estimates, using
lognormal four parameter distribution models. Simple Kriging is used for grade control and Measured Mineral Resource at a 30m x
30m block size and constrained by the weight of the mean value.
The Mineral Resource is initially reported as inclusive of the Ore Reserve as it forms the basis for the Ore Reserve conversion process.
Mineral Resource cut-off grades are computed for each operation, by reef horizon. These cut-off grades incorporate a profit margin
that is relevant to the business plan. Grade tonnage curves are produced for each operation, which show the potential of the deposit
at different cut-off grades.
ORE RESERVE ESTIMATION
Mine design delineates the mining areas and supporting development for each mining level and section, usually by extrapolating the
existing mining design. The in situ Mineral Resource is scheduled monthly for the full life of mine plan. The value estimates for these
schedules are derived from the Mineral Resource model.
Modifying factors are applied to the in situ Mineral Resource to arrive at an Ore Reserve estimate. These factors include a dilution factor
to accommodate the difference between the milling width and the stoping width, as well as the mine call factor (MCF).
Development sampling results from January – December 2014
Development values represent actual results of sampling, no allowances having been made for adjustments necessary in estimating
the Ore Reserve.
Statistics are shown in metric units
Advanced
metres
(total) *
Sampled
metres
Ave. channel
width
(cm)
Sampled gold
Sampled uranium
Avg. g/t
Avg. cm.g/t
Avg. kg/t
Avg. cm.kg/t
South Africa
Vaal River
Great Noligwa mine
Crystalkop Reef
514.3
136.0
30.9
17.48
540
0.55
16.81
Vaal Reef
632.4
56.0
46.1
45.62
2,103
2.63
31.54
Kopanang mine
Vaal Reef
9,680.5
1,450.0
17.6
69.38
1,221
5.11
89.45
Moab Khotsong mine
Vaal Reef
7,150.6
738.0
127.2
27.78
3,533
1.26
157.65
West Wits
Mponeng mine
Ventersdorp Contact Reef
7,131.7
1,442.0
66.6
19.91
1,326
–
–
TauTona mine
Carbon Leader Reef
6,591.2
750.0
28.7
92.44
2,653
0.82
23.07
* This includes both on-reef and off-reef development.
SOUTH AFRICA
23
SOUTH AFRICA
continued
Kopanang
INTRODUCTION
Kopanang is located in the Free State province, approximately 170km south-west of Johannesburg and 10km south-east of the
town of Orkney. The current mining lease encompasses an area of 35km
2
and is bound by Great Noligwa to the east, China African
Precious Metals to the north and the Jersey fault (1,000m displacement) to the south. South-west of the mining lease the orebody is
uneconomic to mine and no extension beyond the current lease is envisaged.
Shaft sinking was initiated in 1977 and completed by 1981 with production beginning in 1984. Two gold-bearing reef horizons are
accessed via a twin-shaft system which descends to a maximum depth of 2,334m, while the main working levels are situated between
1,300m and 2,064m below surface. A sequential grid mining layout is used from which scattered mining takes place.
GEOLOGY
Kopanang is situated in a structurally complex area of the Witwatersrand Basin, which has been subjected to numerous tectonic
events. The VR is the principal economic horizon at Kopanang and the C Reef is the secondary economic horizon. Both reefs are
part of the Witwatersrand Supergroup and are stratigraphically located near the middle of the Central Rand Group. The C Reef forms
the top of the Johannesburg Subgroup, while the VR lies approximately 265m below the C Reef. The two tabular bodies are both
gold- and uranium-bearing, currently only the VR is mined, with limited C Reef mining planned during the life of mine. The C Reef is
accessible through the VR infrastructure. These conglomerate units dip at an average of 21° towards the south and occur in a 2,100m
thick sedimentary sequence comprising the Central Rand Group.
Mining is complicated by the presence of an assortment of steep (85°– 50°) north-dipping and younger low-angle (50°–15°) south-
dipping faults. The interplay of these main fault regimes, along with abundant pre- and post-dating dykes, makes for a complex and
geologically challenging deposit.
A geological model is employed to delineate variations (either lateral or vertical) in characteristics of the VR. The current geological
model thus subdivides the VR into homogeneous zones – referred to as geozones, facies or estimation domains (EDs), based on
geological and grade characteristics.
North West Province
N
Free State Province
Klerksdorp
Orkney
Village Main Reef
Hartebeestfontein
Stilfontein
Village Main Reef
Buffelsfontein
China African
Precious Metals
Precious Metals
Weltevreden
Vaal River
Village Main Reef
Tau Lekoa
Village Main Reef
Border
Great Noligwa
Moab
Khotsong
Kopanang
Kilometres
0
1
2
3
4
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
24
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Kopanang
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
5 x 5
–
–
–
X
–
Chip sampling
Stoping
Indicated
100 x 100
X
–
–
–
–
Underground
drilling
Inferred
1,000 x 1,000
X
–
–
–
–
Surface drilling
Grade/Ore control
–
–
–
X
–
See Measured
Category
Inclusive Mineral Resource
Kopanang
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Crystalkop Reef
Measured
0.06
11.72
0.72
0.02
Indicated
0.55
11.27
6.15
0.20
Inferred
0.25
16.04
4.04
0.13
Total
0.86
12.70
10.91
0.35
Vaal Reef Base
Measured
2.66
14.65
38.94
1.25
Indicated
4.83
14.51
70.04
2.25
Inferred
0.93
21.75
20.31
0.65
Total
8.42
15.36
129.29
4.16
Vaal Reef Above Infrastructure
Measured
–
–
–
–
Indicated
0.62
11.23
7.02
0.23
Inferred
0.00
8.26
0.01
0.00
Total
0.63
11.23
7.03
0.23
Kopanang
Total
9.90
14.86
147.23
4.73
EXPLORATION
In 2014, no Mineral Resource generating exploration drilling was conducted at Kopanang or on properties adjacent to Kopanang.
Exploration was focused on supporting the business plan development and stoping by increasing the geological confidence of the
Inferred and Indicated Mineral Resource.
PROJECTS
New Technology Reef Boring Project
The reef-boring project at Kopanang is focused on improving the current mining method so as to better extract the thin- and lower-
value reefs. Aims of the new technology are to increase productivity, improve gold recovery, reduce development costs and improve
safety. Testing of the reef-boring initiative is continuing on the 42 level at Kopanang.
SOUTH AFRICA
25
Exclusive Mineral Resource
Kopanang
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
0.91
26.09
23.72
0.76
Indicated
1.36
30.52
41.56
1.34
Inferred
1.05
22.05
23.17
0.74
Total
3.32
26.63
88.45
2.84
The Exclusive Mineral Resource has been reduced by 1Moz year on year as a result of a detailed programme to identify uneconomic and
inaccessible areas. The current Exclusive Mineral Resource can be attributable to design and schedule losses, areas for investigation
for future inclusion in the Ore Reserve and marginal gold mineralisation.
Mineral Resource below infrastructure
No Mineral Resource is reported below infrastructure.
ORE RESERVE
Ore Reserve
Kopanang
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Crystalkop Reef
Proved
0.01
3.83
0.03
0.00
Probable
0.46
5.27
2.42
0.08
Total
0.47
5.24
2.45
0.08
Vaal Reef Base
Proved
1.80
5.99
10.80
0.35
Probable
4.18
6.12
25.58
0.82
Total
5.98
6.08
36.37
1.17
Kopanang
Total
6.45
6.02
38.83
1.25
SOUTH AFRICA
continued
Kopanang
6.79
-0.26
0.00
-1.63
-0.17
0.00
-0.00
0.00
4.73
Ounces
(millions)
(millions)
7.0
6.5
6.0
5.5
5.0
4.5
4.0
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposals
2014
Kopanang
Mineral Resource reconciliation: 2013 to 2014
1.45
-0.16
0.06
0.00
0.00
-006
-0.05
0.00
1.25
Ounces
(millions)
(millions)
1.50
1.45
1.40
1.35
1.30
1.25
1.20
1.15
–
–
–
–
–
–
–
2013
Deple-
tion
Model
change
Change in
economics
New
ounces
from
projects
Scope
change
Other
Acquisition/
disposal
2014
Kopanang
Ore Reserve reconciliation: 2013 to 2014
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
26
Ore Reserve modifying factors
Kopanang
Gold
price
Cut-off
grade
Cut-off
value
Stoping
width
Dilution
Diluted
MCF MetRF
31 December 2014
ZAR/Kg
g/t Au
cm.g/t Au
cm
%
g/t
%
%
Crystalkop Reef
398,452
9.08
1,000
110.1
60.9
8.16
60.0
94.4
Vaal Reef Base
398,452
9.49
1,000
105.4
54.4
7.25
68.0
94.3
Inferred Mineral Resource in business plan
Kopanang
Tonnes
Grade
Contained gold
as at 31 December 2014
million
g/t
Tonnes
Moz
Comments
Crystalkop Reef
0.06
9.56
0.58
0.02
In situ Content
Vaal Reef Base
0.08
8.11
0.62
0.02
In situ Content
Total
0.14
8.75
1.20
0.04
With appropriate caution, a portion of the Inferred Mineral Resource was included in the business plan during the optimisation process.
This accounts for 2% of the business plan.
Ore Reserve below infrastructure
No Ore Reserve is reported below infrastructure.
COMPETENT PERSONS
Kopanang
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Brenda Freese
SACNASP
400294/14
17 years
BSc Hons (Geology)
GDE (Mineral Economics)
Ore Reserve
Pieter Enslin
PLATO
PMS 0183
32 years
HND (Mineral Resource
Management)
MSCC
GDE (Mineral Economics)
0
2
4
6
8
10
12
14
16
18
20
T
onnes above cut-off (millions)
onnes above cut-off (millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
30
28
26
24
22
20
18
16
14
12
10
9
8
7
6
5
4
3
2
0
Tonnes above cut-off
Ave grade above cut-off
Kopanang
Grade tonnage curve – Underground (metric)
–
–
–
–
–
–
–
–
–
SOUTH AFRICA
27
INTRODUCTION
Moab Khotsong (Great Noligwa was included in the Moab Khotsong operation in 2014), is situated near the towns of Orkney and
Klerksdorp, about 180km south-west of Johannesburg. The mining lease area lies to the south-east of the Kopanang mine. Moab
Khotsong, a relatively new mine, produced its first gold in 2003.
The mine exploits three distinct portions of the Moab Khotsong lease area, namely the Top mine (above 85 level), the Middle
mine (85 to 101 level) and the Lower mine (101 to 118 level). The Middle mine exploits the Vaal Reef (VR) to depths of between
2,600m and 3,054m below surface on the down-thrown side of the De Hoek and Jersey fault complex. The Lower mine exploits
the Vaal Reef (VR) to depths of between 3,400m and 4,000m below surface on the down-thrown side of the Jersey fault.
In 2014, Great Noligwa was included in that part of Moab Khotsong known as the Top mine which exploits VR and C Reef at
depths of between 1,500m and 2,600m below surface.
The extension of the Moab Khotsong mine to the down-thrown side of the fault complex is strategic because the life of the Vaal River
operations could be increased significantly. Moab Khotsong was developed so that it would be well positioned to exploit surrounding
ore blocks. The most important of these blocks is the Zaaiplaats blocks to the south-west of the current Moab Khotsong infrastructure
and extending some 400m deeper than the existing mine.
Mining at Moab Khotsong is based on a scattered mining method together with an integrated backfill support system that incorporates
bracket pillars.
GEOLOGY
The VR is the principal economic horizon at Moab Khotsong and the C Reef is the secondary economic horizon. Both reefs are part
of the Witwatersrand Supergroup and are stratigraphically located near the middle of the Central Rand Group. The C Reef forms the
top of the Johannesburg subgroup, while the VR lies approximately 265m below the C Reef.
The VR unit can reach a maximum thickness of 2m and consists of a thin basal conglomerate (the C facies) and a thicker sequence
of upper conglomerates (the A facies). These two sedimentary facies are separated by the B facies, which is a layer of barren
orthoquartzite. A facies is the principal economic horizon within the VR, but remnants of the C facies are sporadically preserved below
the A facies. High gold values in the VR are often located at the base of this unit and are associated with high uranium values as well
as with the presence of carbon. Uranium is a very important by-product.
The C Reef is mined on a limited scale only in the Top mine, in the central part where a high-grade, north-south orientated sedimentary
channel, containing two economic horizons, has been exposed. To the east and the west of this channel, the C Reef is poorly
developed with relatively small areas of economic interest. As with the VR, high uranium values are also often associated with high gold
values and the presence of a 5mm to 2cm thick carbon seam at the base of the conglomerate. To the north of the mine, the C Reef
sub-crops against the Gold Estates Conglomerate Formation and, in the extreme south of the mine, the C Reef has been eliminated
by a deep Kimberley erosion channel and the Jersey fault. Although the C Reef is preserved in the eastern parts of the Middle mine
no development or stoping has taken place on the C Reef to date.
A geological model is employed to delineate variations (either lateral or vertical) in characteristics of the VR. The current geological
model thus subdivides the VR into homogeneous zones (referred to as geozones, facies or EDs) based on geological and grade
characteristics.
The geology at Moab Khotsong is structurally complex with large fault-loss areas. The geological setting is one of crustal extension,
bounded in the north-west and south-east by major south-dipping fault systems with north-dipping Zuiping faults sandwiched
between them. The De Hoek and Buffels East faults structurally bound the reef blocks of the Middle mine to the north-west and
south-east respectively and the northern boundary is a north-dipping fault. Drilling is currently taking place in the Middle mine area to
obtain structural information below 101 level.
Given the magnitude of the displacement across the De Hoek fault (more than 700m down to the south), geological structures
encountered on the up-thrown side of the De Hoek fault cannot be locally projected to the down-thrown side and vice versa.
It is only once the development is through the De Hoek fault that geological mapping information will have any bearing on the
reef blocks, and a considerable amount of exploration drilling is required to accurately delineate these blocks in this structurally
complex area.
SOUTH AFRICA
continued
Moab Khotsong
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
28
EXPLORATION
Brownfields exploration is focused on improving confidence in the geological model. One surface drilling machine and eight
underground drilling machines were in operation during 2014.
Drilling of the surface drill-hole MZA10 began in March 2014 and will increase structural and grade confidence in the Zaaiplaats project
area. Information from this hole will support structural clarity in an area of lower seismic confidence resulting from surface interference
from the Mercator Transformer station in the seismic data set obtained in 2012. MZA10 is well ahead of schedule and continues to
achieve exceptional drilling advances. A VR intersection is expected in the second quarter of 2015.
Eight underground diamond drilling (DD) machines are currently deployed to carry out capital drilling on the Top, Middle and Lower mines.
This drilling is primarily used to obtain structural and grade information aimed at increasing the Mineral Resource base of Moab Khotsong.
Two drilling rigs are currently deployed in the Top mine to obtain structural information on the VR blocks below 76 level. Three drilling rigs
are deployed in the Middle mine to obtain structural information on the VR blocks below 101 level while three drill rigs are located in the
Middle mine to obtain structural information on both the VR and C Reef horizons in the eastern area of the mine.
Three drilling rigs were deployed to carry out capital drilling associated with the Zaaiplaats project. One pneumatic machine was used
to drill for cover and two rigs were used to drill for exploration for long inclined boreholes (LIB). The primary purpose of the drilling
was to improve confidence in both geological and grade distribution in the Zaaiplaats block. A total of four underground LIBs were
completed. Two of the four LIB drill-holes (LIB78 and LIB79) were completed in the first quarter of 2014 and successfully intersected
the VR horizon. Two additional LIBs (LIB86 and LIB87) were drilled to prove the block of ground above 101 level and both holes failed
to instersect the VR. Drilling was completed during August 2014 and two LIB machines were re-deployed to Middle mine below 101
level drilling and the pneumatic machine was decommissioned.
PROJECTS
The initial development of Moab Khotsong was taken with a view that the new mine would be well positioned to facilitate the
exploitation of additional ore blocks adjacent and contiguous to current mining areas. The most important of these blocks is the
Zaaiplaats blocks, positioned to the south-west of the current Moab Khotsong infrastructure and extending below the existing mine.
The Moab Khotsong Top and Middle mines are expected to produce some 2.1Moz of gold. Zaaiplaats will provide an additional
3.3Moz, of gold, extending the mine’s life to approximately 2040. The seismic survey interpretation and new drilling information
incorporated into the geological model in the first quarter of the year resulted in a total reduction in gold of 1.12Moz in the Zaaiplaats
project area (0.39Moz and 0.73Moz in phase 2 and phase 3 respectively).
Based on the company’s capital rationalisation needs in 2013, board approval was granted for project deferral. In alignment with the
latest 2015 business plan, the project recommencement date is scheduled for January 2017.
Additional study work began in the third quarter of 2014, taking into account the new geological information as well as trade-offs with
alternative investment opportunities such as the Middle mine below 101 extension. The study will investigate the optimum growth
opportunity for Moab Khotsong in accessing the Zaaiplaats orebody and the Middle mine below 101 level extension from a single
common infrastructure. Report back on the study outcome is planned for early 2015.
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Moab Khotsong
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
5 x 5
–
–
–
–
Chip sampling
Stoping
Indicated
100 x 100,
800 x 800
–
–
–
–
Underground
drilling
Inferred
1,000 x 1,000
–
–
–
–
Surface drilling
Grade/Ore control
–
–
–
–
See Measured
Category
SOUTH AFRICA
29
Inclusive Mineral Resource
Moab Khotsong
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Vaal Reef Lower mine – Area A
Measured
–
–
–
–
Indicated
0.20
18.89
3.86
0.12
Inferred
1.35
14.99
20.26
0.65
Total
1.56
15.50
24.13
0.78
Vaal Reef Lower mine – Area B
Measured
–
–
–
–
Indicated
4.76
8.30
39.53
1.27
Inferred
1.41
8.61
12.14
0.39
Total
6.17
8.37
51.68
1.66
Vaal Reef Lower mine – Area C
Measured
–
–
–
–
Indicated
1.45
13.33
19.37
0.62
Inferred
2.25
12.12
27.30
0.88
Total
3.71
12.60
46.68
1.50
Vaal Reef Lower mine – Zaaiplaats
Measured
–
–
–
–
Indicated
8.97
17.66
158.49
5.10
Inferred
3.32
16.38
54.39
1.75
Total
12.29
17.32
212.88
6.84
Vaal Reef – Middle mine
Measured
1.99
20.26
40.35
1.30
Indicated
5.74
22.19
127.42
4.10
Inferred
0.71
19.50
13.77
0.44
Total
8.44
21.51
181.54
5.84
Vaal Reef – Top mine
Measured
0.52
18.07
9.46
0.30
Indicated
1.24
14.86
18.45
0.59
Inferred
0.28
18.23
5.19
0.17
Total
2.05
16.15
33.09
1.06
Vaal Reef – Great Noligwa
Measured
1.29
19.77
25.59
0.82
Indicated
0.29
14.15
4.15
0.13
Inferred
0.02
22.84
0.35
0.01
Total
1.60
18.77
30.09
0.97
Vaal Reef – Great Noligwa Shaft Pillar
Measured
0.08
15.99
1.21
0.04
Indicated
1.53
15.62
23.88
0.77
Inferred
–
–
–
–
Total
1.60
15.63
25.08
0.81
Crystalkop Reef – Middle mine area
Measured
–
–
–
–
Indicated
–
–
–
–
Inferred
0.94
9.48
8.90
0.29
Total
0.94
9.48
8.90
0.29
Crystalkop Reef – Great Noligwa
Measured
0.24
15.10
3.57
0.11
Indicated
0.26
15.31
4.04
0.13
Inferred
0.00
24.19
0.08
0.00
Total
0.50
15.27
7.70
0.25
Moab Khotsong
Total
38.87
16.00
621.77
19.99
SOUTH AFRICA
continued
Moab Khotsong
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
30
Exclusive Mineral Resource
Moab Khotsong
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
2.44
18.44
45.05
1.45
Indicated
13.70
15.75
215.84
6.94
Inferred
8.07
13.19
106.48
3.42
Total
24.22
15.17
367.37
11.81
The majority of the Exclusive Mineral Resource is located in the Lower mine area and consists mainly of designed rock engineering
bracket pillars and designed dip pillars.
Mineral Resource below Infrastructure
Moab Khotsong
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
1.05
20.17
21.15
0.68
Indicated
18.58
14.97
278.19
8.94
Inferred
9.18
14.10
129.52
4.16
Total
28.81
14.89
428.87
13.79
20.20
-0.46
0.00
-0.15
-1.12
-0.28
1.79
0.00
19.99
Ounces
(millions)
(millions)
20.5
20.0
19.5
19.0
18.5
18.0
17.5
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Moab Khotsong
Mineral Resource reconciliation: 2013 – 2014
6.12
-0.32
-0.61
0.00
0.00
0.07
0.22
0.00
5.48
Ounces
(millions)
(millions)
6.2
6.1
6.0
5.9
5.8
5.7
5.6
5.5
5.4
5.3
5.2
5.1
5.0
6.1
6.0
5.9
5.8
5.7
5.6
5.5
5.4
5.3
5.2
5.1
5.0
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2013
Other
2014
Moab Khotsong
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Change in
economics
New
ounces
from
projects
Scope
change
Acquisition/
disposal
SOUTH AFRICA
31
SOUTH AFRICA
continued
Moab Khotsong
ORE RESERVE
Ore Reserve
Moab Khotsong
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Vaal Reef Lower mine –
Zaaiplaats
Proved
–
–
–
–
Probable
10.65
9.76
103.91
3.34
Total
10.65
9.76
103.91
3.34
Vaal Reef – Middle mine
Proved
1.00
12.03
12.03
0.39
Probable
2.78
13.04
36.30
1.17
Total
3.78
12.78
48.33
1.55
Vaal Reef – Top mine
Proved
0.35
8.55
2.98
0.10
Probable
0.33
7.15
2.37
0.08
Total
0.68
7.86
5.36
0.17
Vaal Reef – Great Noligwa
Proved
1.11
7.56
8.38
0.27
Probable
0.25
7.22
1.82
0.06
Total
1.36
7.50
10.21
0.33
Crystalkop Reef – Great Noligwa
Proved
0.22
5.55
1.21
0.04
Probable
0.25
5.98
1.49
0.05
Total
0.47
5.78
2.70
0.09
Moab Khotsong
Total
16.94
10.06
170.50
5.48
Ore Reserve modifying factors
Moab Khotsong
Gold
price
Cut-off
grade
Cut-off
value
Stoping
width
Dilution
Diluted
MCF MetRF
31 December 2014
ZAR/Kg
g/t Au
cm.g/t Au
cm
%
g/t
%
%
Vaal Reef Lower mine – Zaaiplaats
398,452
5.51
750
136.0
43.0
9.76
81.0
96.0
Vaal Reef – Middle mine
398,452
4.55
750
165.0
47.0
12.78
78.0
96.0
Vaal Reef – Top mine
398,452
4.55
750
165.0
52.0
7.86
78.0
96.0
Vaal Reef – Great Noligwa
398,452
4.75
750
158.0
62.0
7.50
60.0
95.0
Crystalkop Reef – Great Noligwa
398,452
5.28
750
142.0
58.0
5.78
61.0
95.0
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
32
Inferred Mineral Resource in business plan
Moab Khotsong
Tonnes
Grade
Contained gold
as at 31 December 2014
million
g/t
Tonnes
Moz
Comments
Vaal Reef Lower mine –
Zaaiplaats
2.39
11.82
28.25
0.91
Vaal Reef – Middle mine
0.09
7.02
0.61
0.02
Vaal Reef – Top mine
0.01
13.73
0.19
0.01
Vaal Reef – Great Noligwa
0.00
12.98
0.00
0.00
Total
2.49
11.66
29.05
0.93
The Inferred Mineral Resource was used for optimisation purposes, but it was not included in the Ore Reserve.
Ore Reserve below infrastructure
Moab Khotsong
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Proved
–
–
–
–
Probable
10.65
9.76
103.91
3.34
Total
10.65
9.76
103.91
3.34
COMPETENT PERSONS
Moab Khotsong
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Francis Rebaone Gaelejwe
SACNASP
400207/14
14 years
BSc Hons (Geology)
Ore Reserve
Andre Johnson
SACNASP
400011/06
24 years
Government Certificate of
Competency in Mine Survey
HND (Mineral Resource
Management)
MEng (Mining Engineering)
0
2
1
4
3
6
5
7
9
11
13
8
10
12
14
15
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
22
21
20
19
18
17
16
15
14
13
45
40
35
30
25
20
15
10
Tonnes above cut-off
Ave grade above cut-off
Moab Khotsong
Grade tonnage curve – Underground (metric)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
SOUTH AFRICA
33
INTRODUCTION
Along with TauTona and Savuka, Mponeng comprises the West Wits operations. Situated south of the combined TauTona and Savuka
mines, Mponeng is near the town of Carletonville and approximately 65km west of Johannesburg. Mponeng was previously named
Western Deep Levels South.
The original twin shaft sinking from surface commenced in 1981 and was commissioned along with the gold plant complex in 1986
when production began. Through the use of two hoisting shafts, a sub-shaft and two service shafts, Mponeng exploits the VCR
between depths of 2,800m and 3,400m below surface.
South of the Mponeng lease area lies the Western Ultra Deep Levels (WUDLs) area. This area is currently being explored through a
surface drilling programme and from underground drilling platforms.
GEOLOGY
The VCR is the main reef horizon mined at Mponeng. The VCR forms the base of the Ventersdorp Supergroup which caps the
Witwatersrand Supergroup through an angular unconformity. The overlying Ventersdorp Lavas halted the deposition of the VCR
preserving it in its current state. The VCR consists of a quartz pebble conglomerate, which can be up to 3m thick in places. The
footwall stratigraphy, following a period of uplift and erosion, controlled the development and preservation of the VCR. The footwall
consists of series of sedimentary layers from the Central Rand Group of the Witwatersrand Supergroup which, due to its erosional
nature, exposes the VCR from the youngest layers in the west to the oldest in the east.
The relatively argillaceous protoquartzites of the Kimberley Formation are covered by the best-preserved VCR conglomerates.
The VCR is characterised by a series of channel terraces preserved at different relative elevations, and the highest gold values are
preserved in these channel deposits. The different channel terraces are divided by zones of thinner ‘slope’ reef, which is of lower value
and becomes more prevalent on the higher terraces and on the harder footwall units. The Elsburg Formation lies to the west and is
relatively more durable, while the eastern side of the mine is dominated by shales and siltstones of the Booysens Formation and due
to the erosional nature of the system, preserved both thick and thinner VCR conglomerates. No VCR is preserved on the Krugersdorp
Formation on the far eastern side of Mponeng.
The other gold-bearing reef with a reported Mineral Resource for Mponeng is the CLR. This reef has been mined at the adjacent
Savuka and TauTona mines, and plans are being made at Mponeng to mine the CLR in the future. The CLR at Mponeng consists of
(on average) a 20cm thick, tabular, auriferous quartz pebble conglomerate formed near the base of the Central Rand Group. The CLR
SOUTH AFRICA
continued
Mponeng
N
Kilometres
0
1
2
3
4
Carletonville
Fochville
Mponeng
WUDLs
TauTona
Savuka
Welverdiend
Sibanye Gold Limited
Driefontein Gold Mine
Blyvooruitzicht
Harmony
Kusasalethu
Gauteng Province
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
34
SOUTH AFRICA
35
SOUTH AFRICA
continued
Mponeng
is approximately 900m deeper than the VCR. In recent years extensive work has been done in refining the estimation model for CLR.
This has resulted in a decrease in value of the Mineral Resource and an improved confidence in the estimation.
Both the VCR and the CLR have been subjected to faulting and are intruded by a series of igneous dykes and sills of various ages that
cross-cut the reefs. There is an inherent risk in mining through these faults and intrusives and a key objective of AngloGold Ashanti
mine geologists is to identify these geological features ahead of the working face to assist with deciding on best practice when
approaching or mining through these structures.
Mining is focused currently on the eastern and western edges of the lease area above 120 level. Value in these areas is starting to
decrease and the selectivity at which blocks of ground are identified and mined has intensified over the last few months. The erratic
nature and poor preservation of the VCR on the Booysens Footwall zone in particular makes mining it challenging, and often affects
production advances. As new information becomes available through the extensive face sampling programme, modelling of the
higher-value pay shoots informs the planned gold production and is updated monthly.
The below 120 level mining area is currently negotiating the Fretted terrace area, a zone of poorly mineralised VCR, typified by a sandy
conglomerate that varies in thickness over relatively short distances and is often uneconomic. Results from extensive exploration
drilling from the 123 and 126 level development tunnels assists in delineating this area so as to enable optimise extraction. The below
120 level section has started mining and will be in full production in a year.
EXPLORATION
Underground exploration targets are located within the current mining lease and the adjacent WUDLs area, which is a natural extension
to the current mining fronts accessing the deeper portions of the VCR and CLR mineral deposits.
The majority of the Mineral Resource within the WUDLs lease area is classified as an Inferred Mineral Resource. Upgrading of this
ground was not possible in 2014 due to the poor drilling progress of the underground exploration holes. Surface drilling was partially
successful with the continuation of UD51, as well as UD59, UD60 and the start of UD58A. Additional VCR intersections as deep as
4,000m are expected in 2015.
Drilling programmes on the western side of Mponeng from underground platforms were concluded during 2014. Continuous
water and gas intersection resulted in the abandonment of efforts on the upper west side. An additional VCR intersection was
achieved on the lower west side. Drilling for VCR in 2015 will focus on the central southern areas covered by the phase 1 and
phase 3 project areas.
The CLR exploration programme started again late in 2014 from TauTona mine platforms. It is hoped that the drilling will intersect the
reef across the TauTona/Mponeng boundary further improving confidence in the Mineral Resource in the phase 2 area.
The planned extension of Mponeng through the phased deepening projects, will provide greater mining access to the CLR and the
VCR Mineral Resource.
PROJECTS
The planned project phases will extract that portion of the Mineral Resource currently below infrastructure. The phase 1 VCR project
has successfully accessed ground to 126 level. On-reef development continued from 123-42 line and 123-45 line in 2014. Production
is expected to increase up to a mined area of 20,000m² per month and will extend Mponeng’s life of mine to 2032.
The CLR phase 2 project will extract the CLR south of the TauTona and Savuka mines from 123 and 126 levels. The preparation for
the shaft infrastructure started in 2013 with the development of ramp design and the supporting on-level infrastructure.
Economic studies for future phases for the development of the VCR (phases 3 and 5) are being considered and are dependent on the
progress made from continued exploration work and design options.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
36
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Mponeng
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
5 x 5
–
–
–
X
–
Chip sampling
Stoping
Indicated
100 x 100
X
–
–
–
–
Underground
drilling
Inferred
1,000 x 1,000
X
–
–
–
–
Surface and
underground
drilling
Grade/Ore control
–
–
–
X
–
See Measured
Category
Inclusive Mineral Resource
Mponeng
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
TauTona Ventersdorp Contact Reef Shaft Pillar
Measured
0.49
17.40
8.47
0.27
Indicated
1.25
20.21
25.22
0.81
Inferred
–
–
–
–
Total
1.73
19.42
33.69
1.08
Ventersdorp Contact Reef Above 109 Level
Measured
4.06
13.79
55.93
1.80
Indicated
2.45
9.69
23.71
0.76
Inferred
–
–
–
–
Total
6.50
12.25
79.64
2.56
Ventersdorp Contact Reef 109 to 120 Level
Measured
3.84
19.36
74.42
2.39
Indicated
4.88
12.06
58.88
1.89
Inferred
0.23
3.84
0.87
0.03
Total
8.95
14.99
134.16
4.31
Ventersdorp Contact Reef Below 120 Level
Measured
0.27
21.59
5.84
0.19
Indicated
9.97
16.84
167.94
5.40
Inferred
0.09
3.93
0.35
0.01
Total
10.33
16.85
174.14
5.60
Ventersdorp Contact Reef WUDLs
Measured
–
–
–
–
Indicated
3.96
17.07
67.59
2.17
Inferred
9.71
17.43
169.27
5.44
Total
13.67
17.32
236.86
7.62
SOUTH AFRICA
37
SOUTH AFRICA
continued
Mponeng
Inclusive Mineral Resource
Mponeng
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Ventersdorp Contact Reef Block 3
Measured
0.03
10.31
0.34
0.01
Indicated
4.77
7.75
37.01
1.19
Inferred
–
–
–
–
Total
4.81
7.77
37.34
1.20
Ventersdorp Contact Reef 127.5 Level
Measured
–
–
–
–
Indicated
0.93
21.75
20.17
0.65
Inferred
0.10
21.11
2.21
0.07
Total
1.03
21.69
22.38
0.72
TauTona Carbon Leader Reef Shaft Pillar
Measured
0.50
42.00
21.21
0.68
Indicated
1.09
42.65
46.30
1.49
Inferred
–
–
–
–
Total
1.59
42.45
67.51
2.17
TauTona Carbon Leader Reef Eastern Block
Measured
–
–
–
–
Indicated
0.39
19.66
7.75
0.25
Inferred
–
–
–
–
Total
0.39
19.66
7.75
0.25
Carbon Leader Reef Below 120 Level
Measured
–
–
–
–
Phase 2
Indicated
12.45
20.42
254.35
8.18
Inferred
0.09
35.58
3.23
0.10
Total
12.54
20.53
257.58
8.28
Carbon Leader Reef Below 120 Level
Phase 4 and 6
Phase 4 and 6
Measured
–
–
–
–
Indicated
15.48
19.43
300.70
9.67
Inferred
7.86
17.67
138.86
4.46
Total
23.34
18.83
439.57
14.13
Carbon Leader Reef Savuka
Measured
0.01
12.93
0.09
0.00
Indicated
1.48
15.61
23.05
0.74
Inferred
–
–
–
–
Total
1.48
15.60
23.14
0.74
Mponeng
Total
86.38
17.52
1,513.76
48.67
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
38
Exclusive Mineral Resource
Mponeng
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
7.86
18.22
143.19
4.60
Indicated
31.96
16.74
534.96
17.20
Inferred
4.30
27.05
116.43
3.74
Total
44.12
18.01
794.59
25.55
Current mining practice at the West Wits operations is to leave behind 35% to 50% of the Mineral Resource as stability pillars. This
is done to minimise the effects of seismicity on underground workings. Bracket pillars are also placed around igneous intrusives and
other geological structures to improve stability and to minimise the risks associated with seismicity around these structures. All the
pillars and areas that mining cannot access are included in the Exclusive Mineral Resource.
Other areas of the Mineral Resource that do not form part of the life of mine fall under categories considered to be beyond infrastructure
and below the economic cut-off for the mine.
Mineral Resource below infrastructure
Mponeng
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
3.96
17.07
67.59
2.17
Indicated
37.65
19.24
724.33
23.29
Inferred
7.95
17.87
142.10
4.57
Total
49.56
18.85
934.01
30.03
The portion of the Mineral Resource below infrastructure includes those in the WUDLs and the CLR Mineral Resource areas.
Infrastructure has only been developed up to 126 level on the VCR orebody and 120 level on the CLR orebody.
SOUTH AFRICA
52.55
-0.46
0.00
-2.19
-0.33
0.00
-0.90
0.00
48.67
Ounces
(millions)
(millions)
53.0
52.5
52.0
51.5
51.0
50.5
50.0
49.5
49.0
48.5
48.0
–
–
–
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Mponeng
Mineral Resource reconciliation: 2013 – 2014
14.57
-0.36
-1.27
0.00
0.32
-0.33
0.00
0.00
12.93
Ounces
(millions)
(millions)
14.6
14.4
14.2
14.0
13.8
13.6
13.4
13.2
13.0
12.8
12.6
–
–
–
–
–
–
–
–
–
–
2013
Other
2014
Mponeng
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Change in
economics
New
ounces
from
projects
Scope
change
Acquisition/
disposal
39
SOUTH AFRICA
continued
Mponeng
ORE RESERVE
Ore Reserve
Mponeng
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
TauTona Ventersdorp Contact Reef Shaft Pillar
Proved
–
–
–
–
Probable
0.39
9.00
3.49
0.11
Total
0.39
9.00
3.49
0.11
Ventersdorp Contact Reef Above 109 Level
Proved
0.31
5.75
1.77
0.06
Probable
0.32
5.43
1.75
0.06
Total
0.63
5.59
3.52
0.11
Ventersdorp Contact Reef 109 to 120 Level
Proved
1.43
8.56
12.21
0.39
Probable
2.37
7.57
17.93
0.58
Total
3.80
7.94
30.14
0.97
Ventersdorp Contact Reef Below 120 Level
Proved
0.43
11.00
4.73
0.15
Probable
7.29
10.82
78.95
2.54
Total
7.72
10.83
83.68
2.69
TauTona Carbon Leader Reef Shaft Pillar
Proved
–
–
–
–
Probable
0.22
19.80
4.39
0.14
Total
0.22
19.80
4.39
0.14
TauTona Carbon Leader Reef Eastern Block
Proved
–
–
–
–
Probable
0.37
8.99
3.30
0.11
Total
0.37
8.99
3.30
0.11
Carbon Leader Reef Below 120 Level
Proved
–
–
–
–
Phase 2
Probable
10.09
10.89
109.85
3.53
Total
10.09
10.89
109.85
3.53
Carbon Leader Reef Below 120 Level
Phase 4 and 6
Proved
–
–
–
–
Probable
17.55
8.87
155.71
5.01
Total
17.55
8.87
155.71
5.01
Carbon Leader Reef Savuka
Proved
–
–
–
–
Probable
1.34
6.02
8.06
0.26
Total
1.34
6.02
8.06
0.26
Mponeng
Total
42.10
9.55
402.14
12.93
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
40
SOUTH AFRICA
41
SOUTH AFRICA
continued
Mponeng
Ore Reserve modifying factors
Mponeng
Gold
price
Cut-off
grade
Cut-off
value
Stoping
width
Dilution
Diluted
MCF MetRF
31 December 2014
ZAR/Kg
g/t Au
cm.g/t Au
cm
%
g/t
%
%
TauTona Ventersdorp Contact Reef
Shaft Pillar
398,452
4.17
750
180.0
45.1
7.40
84.5
97.8
Ventersdorp Contact Reef above 109 Level
398,452
5.87
750
127.7
47.4
5.04
81.0
97.7
Ventersdorp Contact Reef 109 to 120 Level
398,452
5.76
750
130.2
47.3
7.13
81.0
97.7
Ventersdorp Contact Reef Below 120 Level
398,452
5.73
750
130.9
47.2
9.70
81.0
97.9
TauTona Carbon Leader Reef Shaft Pillar
398,452
7.89
750
95.0
52.6
21.95
81.0
98.1
TauTona Carbon Leader Reef Eastern Block
398,452
7.14
750
105.0
49.8
8.92
78.0
97.9
Carbon Leader Reef Below 120 Level
Phase 2
398,452
7.14
750
105.0
45.1
8.96
81.0
97.9
Carbon Leader Reef Below 120 Level
Phase 4 and 6
398,452
7.14
750
105.0
49.3
8.63
81.0
97.7
Carbon Leader Savuka
398,452
6.25
750
120.0
50.4
6.12
81.0
97.7
Inferred Mineral Resource in business plan
Mponeng
Tonnes
Grade
Contained gold
as at 31 December 2014
million
g/t
Tonnes
Moz
Comments
Carbon Leader Reef
6.42
8.62
55.33
1.78
Below 120 Level Phase 4 and 6
Total
6.42
8.62
55.33
1.78
The Inferred Mineral Resource is used for optimisation purposes and forms part of the business plan but is not included in the Ore
Reserve. These portions of the deposit are located in the WUDLs area below the current infrastructure and makes up that part of the
CLR Mineral Resource that is to be included in the CLR phase 4 and 6 project.
Ore Reserve below infrastructure
Mponeng
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Proved
–
–
–
–
Probable
27.63
9.61
265.57
8.54
Total
27.63
9.61
265.57
8.54
These portions of the deposit include the CLR project areas (phases 2, 4 and 6).
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
42
COMPETENT PERSONS
Mponeng
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Gareth Flitton
SACNASP
400019/15
11 years
BSc Hons (Geology)
GDE (Mineral Economics)
Ore Reserve
Willie Olivier
PLATO
MS 0136
24 years
Government Certificate of
Competency in Mine Survey
–
–
–
–
–
–
–
–
–
–
–
0
2
4
6
8
10
12
14
16
18
20
22
24
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
34
32
30
28
26
24
22
20
18
16
14
90
80
70
60
50
40
30
20
10
0
Tonnes above cut-off
Ave grade above cut-off
Mponeng
Grade tonnage curve – Underground (metric)
SOUTH AFRICA
43
INTRODUCTION
TauTona (Savuka was included in the TauTona operations in 2013), lies on the West Wits Line, just south of Carletonville in North West
Province, about 70km south-west of Johannesburg. Mining at this operation takes place at depths ranging from 2,000m to 3,640m.
The mine has a three-shaft system.
GEOLOGY
The CLR is the principal economic horizon at TauTona and the VCR is the secondary economic horizon. The CLR is located near
the base of the Johannesburg Subgroup, which forms part of the Central Rand Group. The Central Rand Group sediments are
unconformably overlain by the Klipriviersberg lavas and the VCR is developed at the interface between the Central Rand Group
sediment and the overlying lavas. The CLR and the VCR at TauTona are vertically separated by about 900m of shales and quartzites.
The CLR is a thin, on average 20cm thick, tabular, auriferous quartz pebble conglomerate and consists of three sedimentary facies
or units. Economically, the most important is Unit 1, which is present as a sheet-like deposit over the whole mine, although reef
development and grades tend to decrease very rapidly where Unit 1 overlies Unit 2. Unit 2 is a complex channel deposit that is only
present along the eastern-most limit of current mining at TauTona. The Unit 2 CLR may be over 2m thick. Unit 3 is preserved below
Unit 1 in the southern parts of TauTona and is the oldest of the CLR conglomerates.
All production on the VCR at TauTona ceased in 2013, and no future mining has been planned on this reef horizon. The VCR is
comprised of a quartz pebble conglomerate (up to 2m thick) capping the top-most angular unconformity of the Witwatersrand
Supergroup. The topography of the VCR depositional area is uneven and the reef is draped over a series of slopes and forms terraces
at different elevations.
The CLR and VCR are cross-cut by faults and intrusive dykes that displace the reef horizons. The faulting, in conjunction with the
many intrusives that also intersect the deposit, is responsible for most of the risk inherent in deep-level gold mining, since seismicity
is associated with these geological features.
In recent years, extensive work has been done in refining the estimation model for CLR which utilised several methods including
geochemistry, spectral scanning and various geostatistical techniques. This has resulted in a slight decrease in the value of the Mineral
Resource, however it has improved the confidence in the estimation.
EXPLORATION
Savuka is a mature mine approaching the end of its productive life. No exploration is currently taking place at this operation and any
un-mined ground will be re-allocated to surrounding mines. No further exploration drilling has been planned for 2015 from Savuka.
Two LIBs have been planned at TauTona from 112 level to obtain additional structural and estimation domain information in 2015.
Drilling in the south-eastern block will upgrade the confidence in the area south of the Pretorius Fault Zone (PFZ). Drilling will also
confirm the estimation domain boundary line known as the Driefontein facies.
PROJECTS
A drilling programme was initiated late in 2012 to explore the ground south of the PFZ. Its aim was to create a greater understanding of the
lateral movement of the PFZ as well as the different intrusions south of the PFZ, their age relationships and their different characteristics.
This drilling programme will continue in 2015 when the final interpretation and modelling of the structures south of the PFZ will be
concluded. The LIB drilling is scheduled to drill through some of the structures further south of the PFZ, which will also assist with
interpretation and modelling of these structures.
New Technology Reef Boring Project
The project aims to increase productivity, improve gold recovery and enhance safety. Testing continues on 97 level to prove up
the prototype of the reef-boring machine. Initial results on mining all the gold, only the gold, all the time are encouraging, with three
reef-boring machines now deployed. This test work will continue. Future reef-boring sites have been identified and included in the
business plan.
SOUTH AFRICA
continued
TauTona
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
44
SOUTH AFRICA
45
New Technology Geological Drilling Project
In order to mine the different reef packages optimally, the accurate location of reef terraces, structural information and sufficient time
to analyse the geological information are essential to the success of mechanised mining. Two methods of drilling, reverse circulation
(RC) and rotary percussion, have been tested and continue to be tested. It is envisaged that these methods may be able to replace
the current DD methods being currently utilised to obtain geological and sampling information. Alterations and design modifications to
the drilling rigs are constantly being made to improve drilling efficiencies.
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
TauTona
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
5 x 5
–
–
–
X
–
Chip sampling
Stoping
Indicated
100 x 100
X
–
–
–
–
Underground
drilling
Inferred
1,000 x 1,000
X
–
–
–
–
Surface drilling
Grade/Ore control
–
–
–
X
–
See Measured
Category
Inclusive Mineral Resource
TauTona
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
East of the bank between 100 and 112 Levels
Measured
0.39
25.03
9.77
0.31
Indicated
1.31
18.91
24.87
0.80
Inferred
–
–
–
–
Total
1.71
20.31
34.63
1.11
Carbon Leader Reef – 1C11
Measured
0.13
24.16
3.15
0.10
Indicated
0.04
26.22
1.12
0.04
Inferred
–
–
–
–
Total
0.17
24.67
4.27
0.14
Carbon Leader Reef Base
Measured
0.47
27.02
12.83
0.41
Indicated
1.64
27.28
44.73
1.44
Inferred
–
–
–
–
Total
2.11
27.23
57.57
1.85
Savuka Carbon Leader Reef
Measured
0.37
16.02
5.94
0.19
Indicated
0.86
17.77
15.33
0.49
Inferred
–
–
–
–
Total
1.23
17.25
21.27
0.68
TauTona
Total
5.23
22.53
117.74
3.79
Exclusive Mineral Resource
TauTona
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
1.09
23.75
25.89
0.83
Indicated
1.64
23.33
38.36
1.23
Inferred
–
–
–
–
Total
2.73
23.49
64.25
2.07
At TauTona, the Exclusive Mineral Resource is defined by the mining strategy. The additional Mineral Resource is expected to be taken
up by safety, boundary and remnant pillars ahead of current mining.
SOUTH AFRICA
continued
TauTona
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
46
Mineral Resource below infrastructure
No Mineral Resource reported below infrastructure.
ORE RESERVE
The closure of Blyvooruitzicht in 2013, and subsequent suspension of groundwater pumping, presented a serious risk to the economic
viability of TauTona’s Ore Reserve. In order to mitigate this risk, the Covalent Water Company was established so as to assume
pumping at source at the Blyvooruitzicht No. 4 and No. 6 shafts. Although the Covalent Water Company will be responsible for
handling the bulk of the underground water from Blyvooruitzicht mine, around 8Ml/day of underground water will build up within the
workings of Blyvooruitzicht mine’s No. 5 shaft, after which it will flow through the workings to Savuka. Savuka currently does not have
the facilities to pump this water to surface and as a result an underground pipeline from Savuka to TauTona was established in order to
pump the water from Savuka to TauTona, from where it can be pumped to surface. Although all the necessary mitigating actions have
been taken, the water level at Blyvooruitzicht No. 5 shaft has not yet reached the point where the water will flow to Savuka.
Ore Reserve
TauTona
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
East of the bank between 100 and 112 Levels
Proved
0.11
9.25
0.98
0.03
Probable
1.54
6.63
10.23
0.33
Total
1.65
6.80
11.21
0.36
Carbon Leader Reef – 1C11
Proved
0.01
10.13
0.14
0.00
Probable
–
–
–
–
Total
0.01
10.13
0.14
0.00
Carbon Leader Reef Base
Proved
0.21
10.01
2.12
0.07
Probable
1.79
9.77
17.54
0.56
Total
2.01
9.80
19.66
0.63
Savuka Carbon Leader Reef
Proved
0.13
6.88
0.93
0.03
Probable
0.82
6.68
5.49
0.18
Total
0.96
6.71
6.42
0.21
TauTona
Total
4.63
8.09
37.42
1.20
4.46
-0.24
0.00
-0.44
-0.24
0.06
0.19
0.00
3.79
Ounces
(millions)
(millions)
4.5
4.4
4.3
4.2
4.1
4.0
3.9
3.8
3.7
3.6
3.5
3.4
4.4
4.3
4.2
4.1
4.0
3.9
3.8
3.7
3.6
3.5
3.4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
TauTona
Mineral Resource reconciliation: 2013 – 2014
1.39
-0.23
-0.17
0.00
0.00
0.21
0.00
0.00
1.20
Ounces
(millions)
(millions)
1.40
1.35
1.30
1.25
1.20
1.15
1.10
1.05
1.00
0.95
0.90
–
–
–
–
–
–
–
–
–
–
2013
Other
2014
TauTona
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Change in
economics
New
ounces
from
projects
Scope
change
Acquisition/
disposal
SOUTH AFRICA
47
SOUTH AFRICA
continued
TauTona
Ore Reserve modifying factors
TauTona
Gold
price
Cut-off
grade
Cut-off
value
Stoping
width
Dilution
Diluted
MCF MetRF
31 December 2014
ZAR/Kg
g/t Au
cm.g/t Au
cm
%
g/t
%
%
East of the bank between 100 and
112 Levels
398,452
8.57
900
105.0
64.4
6.80
74.1
96.9
Carbon Leader Reef – 1C11
398,452
7.50
900
120.0
57.3
10.13
74.1
96.9
Carbon Leader Reef Base
398,452
8.57
900
105.0
61.7
9.80
74.1
96.9
Savuka Carbon Leader Reef
398,452
7.83
900
115.0
57.5
6.71
71.0
96.8
Inferred Mineral Resource in business plan
No planning or scheduling took place in the material classified as Inferred Mineral Resource during the planning process.
Ore Reserve below infrastructure
There is no Ore Reserve reported below infrastructure.
COMPETENT PERSONS
TauTona
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Michelle Pienaar
SACNASP
400027/15
13 years
BSc Hons (Geology)
Ore Reserve
Joey Modise
PLATO
MS 0113
27 years
Government Certificate of
Competency in Mine Survey
HND (Mineral Resource
Management)
–
–
–
–
–
–
–
–
–
–
–
0
2
4
6
8
12
10
14
16
18
20
22
24
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
34
32
30
28
26
24
22
20
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
Tonnes above cut-off
Ave grade above cut-off
TauTona
Grade tonnage curve – Underground (metric)
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
48
SOUTH AFRICA
OVERVIEW
Surface operations in South Africa produce gold by processing lower-grade surface material such as waste rock dumps and by the
re-treatment of tailings storage facilities (TSF). Surface Operations comprise Vaal River Surface, West Wits Surface and Mine Waste
Solutions (MWS). Within the Vaal River area the Kopanang, West and Mispah Gold Plants are dedicated Surface Operations plants,
while the Noligwa Gold Plant and South Uranium Plant circuit process reef material for the extraction of gold and uranium. Within the
West Wits area, the Savuka Plant is processing mainly surface sources material in addition to the Savuka reef material while Mponeng
Plant is dedicated to processing reef material.
AngloGold Ashanti acquired the MWS tailings retreatment operation in the Vaal River region in July 2012. MWS comprises three
separate gold plants namely Stream 1, Stream 2 and Stream 3. Hydraulically-reclaimed material from several TSFs is delivered to the
three plants for gold extraction.
The MWS Uranium Plant and Flotation Plants were commissioned in 2014.
INTRODUCTION
The Vaal River Surface Operations are located immediately to the north and south of the Vaal River, close to the town of Orkney in the
North West Province. These operations extract gold from the waste rock dump material emanating from the mining and processing
of the VR and VCR mined by the Vaal River mines. Most of the surface gold produced is from the processing of waste rock dump
material, supplemented by a small portion of gold from the rehabilitation of surface areas. The rehabilitation is in line with AngloGold
Ashanti’s commitment to care for the environment.
The MWS operation is located approximately 8km from the town of Klerksdorp near Stilfontein within 20km of the Vaal River surface
operations. The MWS feed sources (redundant tailings storage facility dams) are scattered over an area that stretches approximately
13.5km north-south and 14km east-west.
The West Wits surface operations are located on the West Wits Line, near the town of Carletonville, across the border between the
North West and Gauteng Provinces. These operations process waste rock dump material sourced from the mining and processing of
the CLR and the VCR that are mined by the West Wits mines in the Carletonville/Fochville area.
GEOLOGY
The material contained in the TSF and waste rock dumps originates from the historic ore-bearing reefs mined by the West Wits, Vaal
River, Buffelsfontein, Hartebeestfontein and Stilfontein gold mines. The material contained in the TSFs is generally fine grained.
The data used in the Mineral Resource estimation for the TSFs includes drill-hole sampling and plant residue information. Drill-hole
sampling involves vertical drilling of the TSFs by means of a portable hydraulic auger drilling machine according to a predetermined
sampling grid. Each hole is drilled from the outer surface of the deposit to intersect the underlying sub-soil or bedrock using a 50mm
diameter nominal bore rotating core barrel extracting 1.5m sampling increments. The drill-hole sampling information is then utilised to
generate 3D grade models (block model) using the Ordinary Kriging estimation method.
WASTE ROCK DUMPS
The waste rock dumps consist of waste rock mined from underground workings; hoisted, transported and deposited via conveyor
belts. The gold contained within these dumps was sourced from three areas namely:
·
minor reef that emanated during the intitial mining stages to access the primary reef;
·
gold-bearing reef that was contained within small fault blocks that were exposed by off-reef development; and
·
cross-tramming of gold-bearing reef material to the waste tips.
SOUTH AFRICA
continued
Surface Operations
49
TAILINGS STORAGE FACILITIES
The tailings dams consist of tailings material which originated from the processing of the underground ore from the Orkney gold mines
(VR Surface) and Buffels, Hartebeestfontein and Stilfontein gold mines (MWS). These gold mines are deep-level gold mines, which
predominantly extract the tabular, conglomeritic VR. The VR has been predominantly mined for gold in the past although the reef also
contains uranium oxide.
The material contained in the tailings dams is generally fine in nature. The footprints of the MWS tailings dams and Vaal River Surface
Operations tailings dams cover an area of approximately 1,100ha.
The West Wits Old North Tailings are to be re-processed in the current business plan. The Savuka TSF remains an opportunity and
will be re-evaluated in future.
RECLAMATION METHODOLOGY
Waste rock dumps
Bulldozers are used to create furrows through the waste rock material in order to blend the rock and create safe loading faces. The
material is then loaded onto rail hoppers by means of a front-end loader and transported to the relevant gold plants for processing.
Tailings storage facilities
The tailings are reclaimed using a number of hydraulic (high-pressure water) monitoring guns to deliver water at pressure, typically
27-30 bar, to the face. The tailings material is reclaimed by blasting the TSF face with the high-pressure water, resulting in the slurry
gravitating towards pumping stations. These monitoring guns can be positioned to selectively reclaim required areas from the TSFs.
Bench heights are constrained by the force delivered from the monitoring gun nozzle and safety constraints. With sufficient pressure,
face lengths of up to 25m can be reclaimed.
The reclamation strategy is aimed at mining the higher-grade dams first. The pump stations are located at the lowest point of the dams to
ensure that the slurry from the dams will gravitate towards the pump station from where the slurry will be pumped to the processing plants.
ENVIRONMENTAL REHABILITATION
Rehabilitation work is ongoing and gold is produced from cleaning-up operations at Vaal River, this material is processed at the
Kopanang Gold Plant. During 2014, the floor/footprint clean-up of the Great Noligwa waste rock dump was concluded, in line with
the environmental rehabilitation strategy.
PROJECTS AND GROWTH
Construction of a new pump station for connecting the Vaal River East TSF to the MWS circuit is in progress. Commissioning of the
pump station will begin mid-2015. A satellite pump station for the South East Extension TSF will also be commissioned early in 2015.
Material from this TSF will be processed through MWS’s Stream 3 at a rate of 11,000 tonnes per day. The South East Extension TSF
has a higher grade than the current Harties 1 material.
Initiatives to sustain margins include projects to improve logistics and reduce costs. These projects will receive focus in early 2015.
SOUTH AFRICA
continued
Surface Operations
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
50
SOUTH AFRICA
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Vaal River Surface
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
50 x 50
–
–
–
–
X
Auger drilling
Indicated
100 x 100,
150 x 150
–
–
–
–
X
Auger drilling
Inferred
–
–
–
–
–
–
Grade/Ore control 50 x 50
–
–
–
–
X
Auger drilling
Inclusive Mineral Resource
Surface Operations
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Vaal River Surface
Tailings storage facilities
Measured
–
–
–
–
Indicated
456.63
0.27
122.46
3.94
Inferred
–
–
–
–
Total
456.63
0.27
122.46
3.94
Waste rock dump
Measured
–
–
–
–
Indicated
32.26
0.47
15.27
0.49
Inferred
2.61
0.69
1.80
0.06
Total
34.87
0.49
17.06
0.55
West Wits Surface
Tailings storage facilities
Measured
–
–
–
–
Indicated
181.68
0.24
44.07
1.42
Inferred
–
–
–
–
Total
181.68
0.24
44.07
1.42
Waste rock dump
Measured
–
–
–
–
Indicated
9.70
0.52
5.09
0.16
Inferred
–
–
–
–
Total
9.70
0.52
5.09
0.16
Mine Waste Solutions
Tailings storage facilities
Measured
129.79
0.22
28.10
0.90
Indicated
173.30
0.24
41.46
1.33
Inferred
15.17
0.30
4.52
0.15
Total
318.26
0.23
74.08
2.38
Surface Operations
Total
1,001.14
0.26
262.76
8.45
51
Exclusive Mineral Resource
Surface Operations
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Vaal River Surface
Measured
–
–
–
–
Indicated
25.36
0.14
3.56
0.11
Inferred
–
–
–
–
Total
25.36
0.14
3.56
0.11
West Wits Surface
Measured
–
–
–
–
Indicated
176.92
0.24
42.88
1.38
Inferred
–
–
–
–
Total
176.92
0.24
42.88
1.38
Mine Waste Solutions
Measured
3.45
0.35
1.21
0.04
Indicated
0.29
0.27
0.08
0.00
Inferred
–
–
–
–
Total
3.75
0.34
1.29
0.04
Surface Operations
Total
206.03
0.23
47.73
1.53
The Exclusive Mineral Resource includes a portion of the Mispah II TSF which is below cut-off grade. Mispah II will be the deposition
facility for the Noligwa Plant as soon as MWS starts reclaiming Mispah I.
SOUTH AFRICA
continued
Surface Operations
4.63
-0.19
0.00
0.00
-0.05
0.09
0.01
0.00
4.49
Ounces
(millions)
(millions)
4.65
4.60
4.55
4.50
4.45
4.40
4.35
4.30
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Vaal River Surface
Mineral Resource reconciliation: 2013 – 2014
1.59
-0.03
0.00
0.00
0.00
0.02
-0.01
0.00
1.58
Ounces
(millions)
(millions)
1.595
1.590
1.585
1.580
1.575
1.570
1.565
1.560
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
West Wits Surface
Mineral Resource reconciliation: 2013 – 2014
4.46
-0.17
0.01
-0.11
0.00
0.00
0.01
0.00
4.20
Ounces
(millions)
(millions)
4.50
4.45
4.40
4.35
4.30
4.25
4.20
4.15
4.10
–
–
–
–
–
–
–
–
2013
Other
2014
Vaal River Surface
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Change in
economics
New
ounces
from
projects
Scope
change
Acquisition/
disposal
0.18
-0.03
-0.02
0.00
0.06
0.00
-0.01
0.00
0.19
Ounces
(millions)
(millions)
0.21
0.20
0.19
0.18
0.17
0.16
0.15
0.14
0.13
0.12
–
–
–
–
–
–
–
–
–
2013
Other
2014
West Wits Surface
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Change in
economics
New
ounces
from
projects
Scope
change
Acquisition/
disposal
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
52
SOUTH AFRICA
ORE RESERVE
Ore Reserve
Surface Operations
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Vaal River Surface
Tailings storage facilities
Proved
–
–
–
–
Probable
431.27
0.28
118.85
3.82
Total
431.27
0.28
118.85
3.82
Waste rock dump
Proved
–
–
–
–
Probable
32.26
0.37
11.91
0.38
Total
32.26
0.37
11.91
0.38
West Wits Surface
Tailings storage facilities
Proved
–
–
–
–
Probable
6.84
0.29
1.96
0.06
Total
6.84
0.29
1.96
0.06
Waste rock dump
Proved
–
–
–
–
Probable
7.62
0.53
4.04
0.13
Total
7.62
0.53
4.04
0.13
Mine Waste Solutions
Tailings storage facilities
Proved
126.33
0.21
26.89
0.86
Probable
173.00
0.24
41.38
1.33
Total
299.34
0.23
68.27
2.19
Surface Operations
Total
777.33
0.26
205.02
6.59
2.41
-0.14
0.00
0.00
0.01
0.12
-0.01
0.00
2.38
Ounces
(millions)
(millions)
2.42
2.40
2.38
2.36
2.34
2.32
2.30
2.28
2.26
2.24
–
–
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Mine Waste Solutions
Mineral Resource reconciliation: 2013 – 2014
2.25
-0.12
0.07
0.00
0.00
0.00
-0.00
0.00
2.19
Ounces
(millions)
(millions)
2.26
2.24
2.22
2.20
2.18
2.16
2.14
2.12
2.10
–
–
–
–
–
–
–
–
2013
Other
2014
Mine Waste Solutions
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Change in
Economics
New
ounces
from
projects
Scope
change
Acquisition/
disposal
53
Ore Reserve modifying factors
Surface operations
Gold
price
Cut-off
grade
% RMF
% RMF
MCF
MetRF
as at 31 December 2014
ZAR/Kg
g/t Au
(based on
tonnes)
(based
on g/t)
%
%
Vaal River Surface
Tailings storage facilities
398,452
0.19
94.0
103.00
99.0
47.0
Waste rock dump
398,452
0.41
93.0
75.00
100.0
88.0
West Wits Surface
Tailings storage facilities
398,452
0.27
4.0
118.00
100.0
30.0
Waste rock dump
398,452
0.40
79.0
101.00
100.0
88.0
Mine Waste Solutions
Tailings storage facilities
398,452
0.19
94.0
98.00
99.0
47.0
Inferred Mineral Resource in business plan
Surface operations
Tonnes
Grade
Contained gold
as at 31 December 2014
million
g/t
Tonnes
Moz
Comments
Vaal River Surface
Waste rock dump
2.61
0.43
1.12
0.04
No. 3 Waste rock dump
Mine Waste Solutions
Tailings storage facilities
15.17
0.30
4.52
0.15
Portion of Mine Waste Solutions 5
Total
17.78
0.32
5.64
0.18
The No.3 waste rock dump is part of Vaal River Inferred Mineral Resource in the plan and 50% of this dump has already been
processed through the Vaal River plants and will be depleted by the end of 2016.
Part of MWS 5 TSF is an Inferred Mineral Resource and has been included in planning for 2015. Drilling will be conducted on the
MWS 5 TSF early in 2015 so as to improve confidence in the Mineral Resource.
COMPETENT PERSONS
Surface operations
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Raymond Orton
PLATO
MS 0132
28 years
GDE (Mineral Economics)
Government Certificate of
Competency in Mine Survey
HND (Mineral Resource
Management)
ND (Survey)
Ore Reserve
Mariaan Gagiano
SAIMM
705 920
30 years
Government Certificate of
Competency in Assaying
SOUTH AFRICA
continued
Surface Operations
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
54
SOUTH AFRICA
55
OVERVIEW
Uranium is produced at the Vaal River operation during the processing of reef material from Moab Khotsong and Kopanang in the
Noligwa Gold Plant/South Uranium Plant circuit. The reef is milled at the Noligwa Gold Plant and processed at the South Uranium
Plant for uranium oxide extraction prior to gold extraction at Noligwa Gold Plant. Ammonium diuranate (ADU or ‘yellow cake’) is the
final product of both the South Uranium plant and MWS Uranium Plant which is transported to the Nuclear Fuels Corporation of South
Africa (Pty) Ltd (Nufcor) located in Gauteng where the material is calcined and packed for shipment to the converters.
PROJECTS AND GROWTH
AngloGold Ashanti acquired the MWS tailings retreatment operation in the Vaal River region in July 2012. The MWS Float and Uranium
Plants were commissioned during the fourth quarter of 2014.
Inclusive Mineral Resource by-product – Uranium (U
3
O
8
)
Tonnes
Grade
Contained uranium oxide
as at 31 December 2014
Category
million
kg/t
Tonnes Pounds million
Kopanang
Measured
–
–
–
–
Indicated
8.72
0.69
5,983
13.19
Inferred
1.19
0.63
745
1.64
Total
9.90
0.68
6,728
14.83
Moab Khotsong
Measured
–
–
–
–
Indicated
28.58
0.78
22,343
49.26
Inferred
10.28
0.70
7,203
15.88
Total
38.87
0.76
29,546
65.14
Mponeng
Measured
–
–
–
–
Indicated
40.44
0.29
11,650
25.68
Inferred
–
–
–
–
Total
40.44
0.29
11,650
25.68
TauTona
Measured
–
–
–
–
Indicated
5.23
0.28
1,452
3.20
Inferred
–
–
–
–
Total
5.23
0.28
1,452
3.20
Vaal River Surface
Measured
–
–
–
–
Indicated
456.63
0.09
41,769
92.08
Inferred
–
–
–
–
Total
456.63
0.09
41,769
92.08
Mine Waste Solutions
Measured
129.79
0.07
8,892
19.60
Indicated
173.57
0.08
13,592
29.97
Inferred
15.17
0.10
1,441
3.18
Total
318.52
0.08
23,926
52.75
West Wits Surface
Measured
–
–
–
–
Indicated
181.68
0.07
13,021
28.71
Inferred
–
–
–
–
Total
181.68
0.07
13,021
28.71
Uranium
Total
1,051.27
0.12
128,091
282.39
SOUTH AFRICA
continued
Uranium
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
56
Ore Reserve by-product – Uranium (U
3
O
8
)
Tonnes
Grade
Contained uranium oxide
as at 31 December 2014
Category
million
kg/t
Tonnes Pounds million
Kopanang
Proved
1.81
0.46
829
1.83
Probable
4.64
0.45
2,079
4.58
Total
6.45
0.45
2,909
6.41
Moab Khotsong
Proved
2.68
0.35
949
2.09
Probable
14.27
0.61
8,664
19.10
Total
16.94
0.57
9,613
21.19
Vaal River Surface
Proved
–
–
–
–
Probable
417.47
0.09
38,919
85.80
Total
417.47
0.09
38,919
85.80
Mine Waste Solutions
Proved
–
–
–
–
Probable
66.02
0.06
4,160
9.17
Total
66.02
0.06
4,160
9.17
Uranium
Total
506.88
0.11
55,600
122.58
SOUTH AFRICA
57
P58-111
58
Regional overview
61
Democratic Republic of
the Congo
the Congo
63
Kibali
68
Mongbwalu
70
Ghana
72
Iduapriem
77
Obuasi
82
Guinea
84
Siguiri
92
Mali
94
Morila
97
Sadiola
103
Tanzania
104
Geita
CAPTION:The Siguiri open pit operation in the
Continental Africa region
IS HOME TO
KIBALI, A NEW,
LOW-COST,
LONG LIFE
OPERATION
CONTINENTAL AFRICA
The Continental Africa
region comprises seven
mining operations and a
development project in
five countries.
region comprises seven
mining operations and a
development project in
five countries.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
58
Contribution to regional production
by country – 2014
by country – 2014
·
Tanzania
30
· Ghana
26
·
Guinea
18
·
DRC
15
·
Mali
9
·
Namibia
2
%
Contribution to group production – 2014
·
Continental Africa
36
· Rest of AngloGold Ashanti
64
%
CONTINENTAL AFRICA
Regional overview
As at 31 December 2014, the total attributable Mineral Resource (inclusive of the Ore Reserve) for the
Continental Africa region was 64.29Moz (2013: 69.06Moz) and the attributable Ore Reserve 18.93Moz
(2013: 24.41Moz).
Continental Africa region was 64.29Moz (2013: 69.06Moz) and the attributable Ore Reserve 18.93Moz
(2013: 24.41Moz).
This is equivalent to around 28% and 33% of the group’s Mineral Resource and Ore Reserve respectively. Combined production from
these operations totalled 1.6Moz of gold in 2014, equivalent to 36% of group production.
AngloGold Ashanti has seven mining operations within Continental Africa Region: Kibali in the Democratic Republic of the Congo
(DRC); Iduapriem and Obuasi in Ghana; Siguiri in Guinea; Morila and Sadiola in Mali and Geita in Tanzania.
During 2014 Navachab was sold and Yatela placed in closure mode. The region also has a development project, Mongbwalu in the
DRC which is currently on hold pending a decision on its future.
Inclusive Mineral Resource
Continental Africa
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
79.94
3.07
245.06
7.88
Indicated
419.68
2.59
1,086.73
34.94
Inferred
277.85
2.40
667.86
21.47
Total
777.47
2.57
1,999.66
64.29
Exclusive Mineral Resource
Continental Africa
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
36.80
4.89
179.78
5.78
Indicated
215.36
2.58
556.29
17.89
Inferred
276.82
2.39
661.34
21.26
Total
528.97
2.64
1,397.41
44.93
Ore Reserve
Continental Africa
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Continental Africa region
Proved
44.95
1.52
68.12
2.19
Probable
203.84
2.55
520.67
16.74
Total
248.78
2.37
588.79
18.93
CONTINENTAL AFRICA
Ytelaa
Navachab
Sadiola
Mongbwalu
Siguiri
Iduapriem
Geita
Kibali
Obuasi
Morila
Moz
December 2013
December 2014
0
5
10
15
20
25
30
Continental Africa Mineral Resource – attributable
Per operation/project
Navachab
Sadiola
Siguiri
Iduapriem
Geita
Kibali
Obuasi
Morila
Moz
December 2013
December 2014
0
1
2
3
4
5
6
7
8
9
Continental Africa Ore Reserve – attributable
Per operation/project
59
CONTINENTAL AFRICA
continued
Regional overview
Operations
Project
CONTINENTAL AFRICA
Kibali (45%)
Mongbwalu (86.2%)
Mongbwalu (86.2%)
DRC
Geita
Tanzania
Siguiri (85%)
Guinea
Morila (40%)
Sadiola (41%)
Sadiola (41%)
Mali
Iduapriem
Obuasi
Obuasi
Ghana
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
60
CONTINENTAL AFRICA
continued
Democratic Republic of the Congo
COUNTRY OVERVIEW
AngloGold Ashanti owns 45% of Kibali and 86.2% of the Mongbwalu development project in the DRC. Implementation of the
Mongbwalu project was suspended in 2013 while production began during the third quarter of 2013 at Kibali. Kibali produced 40Koz
in 2013 and 237Koz in 2014.
Kibali
On 15 October 2009, AngloGold Ashanti acquired a 50% indirect interest in Moto Goldmines Ltd through a joint-venture with Randgold
Resources Limited (Randgold). On 21 December 2009, Randgold and AngloGold Ashanti increased their joint-venture interest in Kibali
to 90%, while Société Minière de Kilo-Moto (SOKIMO) retained a 10% holding.
The operation is a joint development between three separate groups:
·
AngloGold Ashanti;
·
Randgold, which is the operator, an African-focused gold mining and exploration business with primary listings on the London Stock
Exchange and Nasdaq; and
·
SOKIMO, the state-owned gold mining company.
The consolidated lease is made up of 10 mining concessions.
DRC
300km
0
Kisangani
Kinshasa
Lubumbashi
Kibali
Mongbwalu
Operations
Project
Bunia
CONTINENTAL AFRICA
61
Mongbwalu
The Mongbwalu project is situated within the 5,033km
2
permit covered by Concession 40 in the Ituri Province of north-eastern DRC.
Concession 40 has a rich history of gold occurrences and covers the entire Kilo Archaean granite-greenstone belt that extends
approximately 850km west-northwest of Lake Albert. The concession is held by Ashanti Goldfields Kilo (AGK) in a joint-venture
between AngloGold Ashanti and SOKIMO, a government body which currently holds a 13.78% non-contributory share. A feasibility
study has been completed around the old Adidi mine as part of the agreement with the DRC government. During 2013 it was decided
to suspend the implementation of the project. The project currently remains on hold.
MINERAL RESOURCE ESTIMATION
Mineral Resource estimation is undertaken by in-house competent persons or by approved external consultants. The results both
of DD and of RC are used in the estimation process. 3D mineralised envelopes are established using grade and geology and these
are then statistically verified to confirm their validity for use in grade estimation. Appropriate domaining of homogeneous zones is
conducted whereby high-grade central core areas are modeled separately from the lower-grade surrounding halos. Volumes are then
filled with block model cells and these are then interpolated for density, rock type and grade, the latter using Ordinary Kriging. Grade
top cuts are applied to drill-hole data to prevent the spread of high grades during the estimation process. Drill-hole spacing is used to
guide the Mineral Resource classification according to requirements of the relevant reporting codes. The open pit Mineral Resource is
quoted within a limiting shell and the underground Mineral Resource is quoted above a specified cut-off.
CONTINENTAL AFRICA
continued
Democratic Republic of the Congo
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
62
ORE RESERVE ESTIMATION
The Ore Reserve for Kibali has been based on the latest Mineral Resource model using Ordinary Kriging. High-grade domains
(1.0 – 4.0g/t) are commonly surrounded by a low-grade (+0.3g/t) halo.
The open pit Ore Reserve shell optimisations were completed on the Mineral Resource model. This incorporated the mining layout,
operating factors, stripping ratio and relevant cut-off grade for the Ore Reserve. An open pit underground interface was determined as
optimal at 5,685 mRL between the Karagba, Chauffeur and Durba deposits (KCD) open pit and underground mine.
A cut-off grade analysis at $1,000/oz was used to determine a cut-off grade of 2.4g/t for the underground mine. Longitudinal and
transverse stoping methods with hydraulic and waste rock fill were chosen as the preferred mining method. Underground stope
designs were updated from the previously reported Ore Reserve using the Mineral Resource model. Modifying factors for planned and
unplanned rock dilution, backfill dilution and ore-loss were applied to obtain the reported Ore Reserve. Metallurgical, environmental,
social, legal, marketing and economic factors were adequately considered in the Kibali feasibility study and have been updated as the
project has developed for the Ore Reserve to remain viable.
CONTINENTAL AFRICA
63
CONTINENTAL AFRICA
continued
Kibali
INTRODUCTION
Kibali is located in the north-eastern part of the Democratic Republic of the Congo (DRC) near the international borders with Uganda
and Sudan. The mine is located adjacent to the village of Doko, which located in the west of the project area. Kibali is approximately
210km by road from Arua, on the Ugandan border and immediately north of the district capital of Watsa. The operations area falls
within the administrative district of Haut Uélé in Orientale Province.
GEOLOGY
Kibali is located within the Moto Greenstone Belt, which consists of Archaean Kibalian volcano-sedimentary rocks and ironstone-
chert horizons that have been metamorphosed to greenschist facies. It is cut by regional scale north, east, north-east and north-west
trending faults and is bounded to the north by the Middle Archaean West Nile granite-gneiss complex and the south by the Upper
Zaire granitic complex.
The local geology consists of a volcano-sedimentary sequence comprising fine-grained sedimentary rocks, several varieties of pyroclastic
rocks, basaltic flow rocks, mafic-intermediate intrusions (dykes and sills) and intermediate-felsic intrusive rocks (stocks, dykes and sills).
This sequence is variably altered from slight to intense, such that in some cases the original lithology of the rock is unrecognisable.
Several major mineralised trends have been outlined by soil geochemistry data and by the distribution of known gold mineralisation.
The Kibali-Durba-Karagba Trend and the Gorumbwa-Kombokolo Splay are anomalous with respect to gold endowment and together,
define a mineralised, north-east-striking ‘mineralised corridor’, 1.5km wide and 8km long. These corridors host the deposits, of Kibali,
Sessenge, Gorumbwa, Karagba, Chauffeur and Durba and Pakaka.
The main Kibali deposit, which comprises the combination of Karagba, Chauffeur and Durba, is colloquially termed the KCD deposit
and hosts 79% of the grant’s Mineral Resource and 81% of the Ore Reserve (both for open pit and underground mining options). The
next largest deposit is Pakaka, which hosts some 6% of the Mineral Resource and 7% of the Ore Reserve. Currently only the KCD
deposit hosts an underground Ore Reserve and this constitutes 74% of the total KCD Ore Reserve.
Gold mineralisation is generally associated with structural features, resulting in tightly constrained zones which often host pods or lenses of
plunging mineralisation. Alteration is closely associated with the mineralisation and is typically carbonate-silica-albite with minor sulphide.
EXPLORATION
A large amount of exploration was undertaken by the previous owners of the Kibali project, Moto Goldmines Ltd, and this was focused
primarily on the KCD deposit. Since the acquisition of the concession area by AngloGold Ashanti and Randgold, the dominant
exploration targets have been the KCD underground area and upgrading the confidence in the proposed KCD open pit. Kibali’s
2014 exploration focused on Mineral Resource conversion drilling at Gorumbwa and Mofu satellite definition. A review of the down-
plunge 3000 and 5000 lode drilling at KDC was completed during the year, and indicated that only the 5000 lode had potential for
further exploration.
Regional work during the year took place at several targets, comprising mapping, soil, pit and trench sampling. RC drilling was
completed at Memekazi, 2km south-east of KCD, and at the Marakeke-Megi-Gekamine target area, 5km north of KCD. The Rhino-
Agbarabo IP survey completed in Q2 2014 generated several targets for follow-up work, with some positive results subsequently
returned and further work planned. Trenching at Aindi Watsa, 6km south-west of KCD, continued to confirm continuity of mineralisation,
which is still open to the west and down plunge. Recent field mapping at the Ikamva north-west and Kalimva targets has identified
previously unknown adits and ironstone units and the area, which is approximately 15km north of KCD, is considered to have good
potential.
At the regional target of Biriki-Belengo, 30km ENE of KCD, a programme of mapping, pitting, trenching and soil and stream sampling
identified four target areas for investigation. Additional targets such as Dri and Ndala were assessed and rejected for further work.
A thorough data review and development of a 3D lithological model was also completed at Mofu, 10km north-west of KCD. The
geological, mineralisation and weathering surface wireframes developed at Mofu were used in the updated Mineral Resource model
estimation of combined oxide, transitional and fresh material.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
64
PROJECTS
Additional oxide sources from Aerodrome, Rhino, Gorumbwa and Mofu were investigated for inclusion in the mine plan. Updated
Mineral Resource models were produced for Gorumbwa and Mofu. Various iterations were run on the mine plan to optimally incorporate
the various ore sources.
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Kibali
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
5 x 10
–
–
–
–
–
–
Indicated
40 x 40
X
X
–
–
–
–
Inferred
80 x 80
X
X
–
–
–
–
Grade/Ore control 5 x 10,
X
X
20 x 20
–
–
–
–
Inclusive Mineral Resource
Kibali
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Open pit
Measured
3.66
1.92
7.02
0.23
Indicated
28.19
2.12
59.67
1.92
Inferred
9.52
1.82
17.31
0.56
Total
41.37
2.03
84.00
2.70
Underground
Measured
–
–
–
–
Indicated
30.52
5.35
163.29
5.25
Inferred
14.19
3.13
44.41
1.43
Total
44.71
4.65
207.70
6.68
Kibali
Total
86.08
3.39
291.69
9.38
Exclusive Mineral Resource
Kibali
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
1.99
1.37
2.72
0.09
Indicated
21.55
3.20
68.88
2.21
Inferred
23.71
2.60
61.72
1.98
Total
47.26
2.82
133.33
4.29
The Exclusive Mineral Resource is primarily due to the gold price differential between the Mineral Resource and Ore Reserve. At the
KCD deposit it is also partially due to the selection of a fixed interface between the open pit and the underground mining areas.
The Exclusive Mineral Resource makes up 46% of the total Mineral Resource. The Inferred Mineral Resource and the low-grade
material below the underground mining cut-off forms a significant part of this material.
CONTINENTAL AFRICA
65
Mineral Resource below Infrastructure
Kibali
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
–
–
–
–
Indicated
22.33
5.66
126.41
4.06
Inferred
10.14
3.29
33.37
1.07
Total
32.48
4.92
159.78
5.14
ORE RESERVE
Ore Reserve
Kibali
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Open pit
Proved
2.41
1.76
4.25
0.14
Probable
14.90
2.36
35.16
1.13
Total
17.31
2.28
39.41
1.27
Underground
Proved
–
–
–
–
Probable
19.99
5.72
114.28
3.67
Total
19.99
5.72
114.28
3.67
Kibali
Total
37.31
4.12
153.69
4.94
Ore Reserve modifying factors
Kibali
Gold price
Cut-off
grade
Stoping
width
Dilution
MCF
MetRF
31 December 2014
US$/oz
g/t Au
cm
%
%
%
Open pit
1,000
0.90
–
10.0
100.0
84.5
Underground
1,000
2.40
2,000
2.7
100.0
88.9
$1,000/oz Ore Reserve price used by Randgold Resources Limited (operating partner).
Inferred Mineral Resource in business plan
There is no Inferred Mineral Resource included in the reported Ore Reserve for Kibali. The current mine plan does not have any reliance
on the Inferred Mineral Resource to support the economic viability of the project for the main KCD deposit.
CONTINENTAL AFRICA
continued
Kibali
9.97
-0.46
0.00
-0.14
0.48
-0.53
0.06
0.00
9.38
Ounces
(millions)
(millions)
10.0
9.9
9.8
9.7
9.6
9.5
9.4
9.3
9.2
–
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Kibali
Mineral Resource reconciliation: 2013 – 2014
–
–
–
–
–
–
–
–
–
5.17
-0.30
-0.00
-0.02
0.10
0.00
0.00
0.00
4.94
Ounces
(millions)
(millions)
5.20
5.15
5.10
5.05
5.00
4.95
4.90
4.85
4.80
4.75
2013
Other
2014
Kibali
Deple-
tion
Model
change
Economics
New
ounces
from
Projects
Scope
Change
Acquisition/
Disposal
Ore Reserve reconciliation: 2013 – 2014
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
66
Ore Reserve below infrastructure
Kibali
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Proved
–
–
–
–
Probable
16.92
5.79
97.98
3.15
Total
16.92
5.79
97.98
3.15
COMPETENT PERSONS
Kibali
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
and Ore Reserve
Rodney Quick*
SACNASP
400014/05
21 years
BSc Hons (Geology)
MSc (Geology)
* Employed by Randgold Resources Limited at 3rd Floor, Unity Chambers, 28 Halkett Street, St Helier, Jersey, OJE2.
0
2
1
4
3
5
7
8
9
10
6
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
14
12
10
8
6
4
2
0
45
40
35
30
25
20
15
10
5
0
Tonnes above cut-off
Ave grade above cut-off
Kibali
Grade tonnage curve – Surface (metric)
–
–
–
–
–
–
–
–
–
0
1
2
3
4
5
6
7
8
9
10
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
14
12
10
8
6
4
2
0
100
90
80
70
60
50
40
30
20
10
0
Tonnes above cut-off
Ave grade above cut-off
Kibali
Grade tonnage curve – Underground (metric)
–
–
–
–
–
–
–
–
–
CONTINENTAL AFRICA
67
CONTINENTAL AFRICA
continued
Mongbwalu
INTRODUCTION
The Mongbwalu project covers an area of 396km
2
which forms part of the larger Ashanti Goldfields Kilo (AGK) concession of exploitation
licences, totalling 5,033km
2
in the Ituri province of the north-eastern DRC. In 2013, after a careful review of the company’s portfolio, the
decision was taken to suspend the development of the Mongbwalu project. The project remains in care and maintainence. The district
capital of Bunia lies to the south-east of the concession area, some three hours by road from the project site. Bunia is approximately
one hour’s flight from the nearest international airport at Kampala in Uganda.
GEOLOGY
The Mongbwalu project is located in the Kilo Archaean granite-greenstone belt, approximately 3,000km
2
in area and situated 850km
west-northwest of Lake Albert. The Kibalian rocks have been divided into an upper and lower unit. The lower unit is dominated
by magnesium-rich tholeiitic basalts whilst the upper unit is dominated by schists, quartzites and banded ironstone formations.
The relationship between the upper and lower units appears to be conformable.
The oldest known rocks at Mongbwalu are basement gneisses which have been dated at more than 3,400 Ma. Granitoid rocks
comprise more than 80% of the area, which includes rafts of Kibalian rocks, intruded by diorites of variable mineralogy, dated at
2,651 Ma.
The Kilo Archaean granite-greenstone belt was part of the Tanzania shield but was separated by Late Proterozoic crustal mobilisation
and then by later rifting along the eastern Rift Valley system. The rocks have undergone regional metamorphism, ranging from upper
greenschist to lower amphibolite facies. During the formation of the East African rift system over the past 100 – 200Ma, north-south
faults formed, along which dolerite-lamprophyre dykes were intruded. There is also evidence of some younger faulting in the region.
The area has undergone weak lateritic weathering to shallow depths. Cover sequences are thin and are generally no greater than
1m thick.
The mineralisation at Mongbwalu is hosted in anastomosing mylonite bodies of around 10 – 15m in width. These mylonite bodies have
been subdivided into three main blocks separated by the late north-south trending Nzebi and Adidi faults, which offset mineralisation
by up to 200m. The fault blocks are termed the Western, Central and Eastern blocks – hosting the Nzebi, Adidi and Kanga mylonites
respectively.
EXPLORATION
All major exploration activities were suspended in August 2013. No exploration activities were conducted during 2014.
PROJECTS
The project is currently on hold.
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Mongbwalu
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
–
–
–
–
–
–
Indicated
50 x 25
X
X
–
–
–
–
Inferred
100 x 100
X
X
–
–
–
–
Grade/Ore control
–
–
–
–
–
–
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
68
Inclusive Mineral Resource
Mongbwalu
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Underground
Measured
–
–
–
–
Indicated
4.68
7.64
35.74
1.15
Inferred
5.56
7.65
42.58
1.37
Total
10.24
7.65
78.32
2.52
The Mongbwalu Mineral Resource is reported at a cut-off grade of 2.8g/t Au. The mineralisation has been classified into Inferred Mineral
Resource and Indicated Mineral Resource and these represent a drill-hole spacing of 100m x 100m and 25m x 50m respectively. Due
to the fact that the development project has not advanced, all the Mineral Resource is exclusive and below infrastructure.
COMPETENT PERSONS
Mongbwalu
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Vasu Govindsammy
SACNASP
400086/04
18 years
BSc (Stats)
HND (Economic Geology)
MEng (Mineral Economics and
Geostatics)
2.52
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.52
Ounces
(millions)
(millions)
2.52
2.50
2.48
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Mongbwalu
Mineral Resource reconciliation: 2013 – 2014
–
–
–
–
–
–
–
0
1
2
3
4
5
6
7
8
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
14
12
10
8
6
4
2
30
25
20
15
10
5
0
Tonnes above cut-off
Ave grade above cut-off
Mongbwalu
Grade tonnage curve – Underground (metric)
CONTINENTAL AFRICA
69
CONTINENTAL AFRICA
continued
Ghana
0
300km
Operations
Obuasi
Bolgatanga
GHANA
Tamale
Kumasi
Lake
Volta
Volta
Accra
Iduapriem
Tarkwa
Skondi Takoradi
COUNTRY OVERVIEW
AngloGold Ashanti has two mines in Ghana: Obuasi, which has surface and underground operations, and Iduapriem, an
open pit mine. Obuasi and Iduapriem are both wholly owned by AngloGold Ashanti. Obuasi is located in the Ashanti region of
southern Ghana, approximately 80km south of Kumasi. It is primarily an underground mine operating at depths of up to 1,500m with
a continuous history of mining dating back to the 1890s. Iduapriem is located in western Ghana, some 85km from the coast and is
currently an open pit operation.
MINERAL RESOURCE ESTIMATION
For the Obuasi Underground the latest geological mapping, sampling and drilling Information, is used to update the relevant
underground mineralisation wireframes on a monthly basis. Block models are estimated within the delineated mineralised ore zones
using Ordinary Kriging. The geological interpretation is based on diamond drill and cross-cut sampling information. Estimates at
Obuasi are based on a block model comprised of 20m x 5m x 15m blocks, which approximate the minimum selective mining unit
(SMU) for underground mining.
The open pit Mineral Resource at both Obuasi and Iduapriem were estimated by geostatistical techniques within 3D wireframe
models of the mineralisation. These models are based on geological information and cut-off boundaries defined by sampling results.
Geological interpretation is based on trench and reverse RC and/or DD drilling. Estimation is by Ordinary Kriging into 30m x 30m x 10m
blocks for Obuasi open pit and into 10m x 25m x 12m for Idupariem open pit.
Surface stockpiles volumes are based on surveys and grades based on historical sampling. Tailings are part of the Mineral Resource
with estimated tonnes and grades based on combinations of 3D block models and historical metallurgical discharge data.
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
70
ORE RESERVE ESTIMATION
The 3D Mineral Resource models are used as the basis for the Ore Reserve. A mineralisation envelope is developed using the Mineral
Resource block model, geological information and the relevant cut-off grade, which is then used for mine design. An appropriate
mining layout is designed that incorporates mining extraction losses and dilution factors.
Obuasi underground:
All mine designs are done to delineate stopes by taking into consideration cut-off grade, geotechnical design parameters for each
mining block, mining level and section, usually leading to an extension to the existing mining sequence, and corresponding development
layouts. The underground operationally runs to a depth of 1,500m from surface. Mining levels lie between 15 and 20m intervals with
major levels between 30-60m intervals. Underground production is made up of open-stope mining (both longitudinal and transverse),
and sub-level caving methods.
Iduapriem open pit:
The Ore Reserve is estimated within mine designs based on modifying factors based on actual mining and detailed analysis of
cut-off grade, geotechnical, environmental, productivity considerations and the requirements of the mining fleet. The upper portions
of the Ajopa deposit have been discounted for the estimated depletion by artisanal miners. This discount factor has been derived
from observation and estimates based on the Mineral Resource model.
CONTINENTAL AFRICA
71
CONTINENTAL AFRICA
continued
Iduapriem
INTRODUCTION
Iduapriem is located in the western region of Ghana, some 85km north of the coastal city of Takoradi and approximately 8km south-
west of the town of Tarkwa. Iduapriem is an open pit mine which commenced mining operations in 1992. Its processing facilities
include a 4.7 million tonnes per annum (Mtpa) carbon-in-pulp (CIP) plant with a gravity circuit. The gravity feed recovers about 30% of
the gold and the CIP plant recovers most of the remainder.
Iduapriem is bordered to the north by Gold Fields (Ghana) Ltd’s Tarkwa mine and to the east by Ghana Manganese Company (GMC)
– a manganese mine which has existed since the 1920s.
GEOLOGY
Iduapriem is located within the Tarkwaian Group of rocks that form part of the West Africa Craton which is covered to a large extent
by metavolcanics and metasediments of the Birimian Supergroup. In Ghana, the Birimian terrane consists of north-east/south-west
trending volcanic belts separated by sedimentary basins. The Tarkwaian Group was deposited in these basins as shallow water deltaic
sediments. The gold mineralisation at Iduapriem is hosted in the Proterozoic Banket Series conglomerates that were developed within
these sediments.
The Banket Reef Zone (BRZ) comprises a sequence of individual beds of quartz pebble conglomerate, breccia conglomerate, quartzite
and grit. The outcropping Banket Series in the mine lease area forms prominent curved ridges that extend southwards from Tarkwa,
westwards through Iduapriem and northwards towards Teberebie.
All known gold mineralisation within the Banket Series is associated with the conglomerates and is found within the matrix that binds
the pebbles together. The gold content is a function of the size and amount of packing of the quartz pebbles within the conglomeratic
units. At Iduapriem, the gold mineralisation is unrelated to metamorphic or hydrothermal alteration events and the gold is coarse-
grained, particulate and free-milling. Mineralogical studies indicate that the grain size of native gold particles ranges between 2μm
and 500μm and averages 130μm. Sulphides are present only at trace levels and are not associated with the gold. Haematite is often
extremely well developed on cross-bed foresets and the conglomerates often show strong haematite development in the matrix.
EXPLORATION
In 2014, core logging and processing of back logged Block 7&8 surface exploration holes was completed. Mapping of Block 7
south-west continued with face and final-wall mapping. The mapping revealed the coalescence of individual reefs to form a single
conglomerate unit, with evidence of duplication of the reef sequence.
Outcrop mapping around the northern extensions of Block 5 and Block 4 was carried out.
The Main Basin 3D geological model, has been completed by the site and regional evaluation team.
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Iduapriem
Type of drilling
Category
Spacing m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
50 x 50,
X
X
50 x 75,
100 x 50
–
–
–
–
Indicated
50 x 75,
X
X
50 x 100,
100 x 75
–
–
–
–
Inferred
100 x 100
X
X
–
–
–
–
Grade/Ore control 10 x 12,
10 x 15
–
X
–
–
–
–
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
72
Inclusive Mineral Resource
Iduapriem
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Ajopa
Measured
–
–
–
–
Indicated
6.69
1.77
11.80
0.38
Inferred
2.51
1.98
4.95
0.16
Total
9.19
1.82
16.76
0.54
Block 3W
Measured
–
–
–
–
Indicated
5.43
1.20
6.49
0.21
Inferred
8.64
1.19
10.26
0.33
Total
14.07
1.19
16.76
0.54
Block 5
Measured
–
–
–
–
Indicated
0.02
1.08
0.02
0.00
Inferred
1.69
1.07
1.80
0.06
Total
1.71
1.07
1.82
0.06
Block 7 and 8 west cutback
Measured
5.00
1.39
6.96
0.22
Indicated
4.84
1.44
6.98
0.22
Inferred
2.13
1.48
3.16
0.10
Total
11.96
1.43
17.10
0.55
Block 7 and 8 east cutback
Measured
1.77
1.44
2.55
0.08
Indicated
18.47
1.72
31.77
1.02
Inferred
2.56
1.43
3.65
0.12
Total
22.80
1.67
37.97
1.22
Block 7 and 8 other
Measured
3.03
1.26
3.82
0.12
Indicated
25.65
1.64
42.02
1.35
Inferred
34.59
1.61
55.64
1.79
Total
63.26
1.60
101.48
3.26
Stockpile (full grade ore)
Measured
3.63
0.89
3.23
0.10
Indicated
–
–
–
–
Inferred
–
–
–
–
Total
3.63
0.89
3.23
0.10
Stockpile (other)
Measured
–
–
–
–
Indicated
–
–
–
–
Inferred
21.00
0.49
10.35
0.33
Total
21.00
0.49
10.35
0.33
Stockpile (marginal ore)
Measured
0.27
0.62
0.17
0.01
Indicated
–
–
–
–
Inferred
–
–
–
–
Total
0.27
0.62
0.17
0.01
Iduapriem
Total
147.90
1.39
205.64
6.61
CONTINENTAL AFRICA
73
Exclusive Mineral Resource
Iduapriem
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
3.51
1.42
4.99
0.16
Indicated
36.50
1.59
57.98
1.86
Inferred
73.12
1.23
89.82
2.89
Total
113.13
1.35
152.79
4.91
The Exclusive Mineral Resource listed above is derived mainly from the following:
•
Inferred Mineral Resource and lower-grade material that does not make the Ore Reserve cut-off grade located within the optimised
Ore Reserve pit shell; and
•
Mineral Resource located outside the Ore Reserve shell but within the optimised Mineral Resource shell. This consists mainly of
down-dip extensions of the ore zones, most of which may be mineable at a higher gold price and are largely categeorised as Inferred
Mineral Resource.
CONTINENTAL AFRICA
continued
Iduapriem
6.34
-0.19
0.00
0.00
0.31
0.10
0.05
0.00
6.61
Ounces
(millions)
(millions)
6.65
6.60
6.55
6.50
6.45
6.40
6.35
6.30
6.25
6.20
6.15
6.10
6.60
6.55
6.50
6.45
6.40
6.35
6.30
6.25
6.20
6.15
6.10
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Iduapriem
Mineral Resource reconciliation: 2013 – 2014
1.97
-0.17
-0.01
-0.15
0.00
0.05
0.01
0.00
1.70
Ounces
(millions)
(millions)
2.00
1.95
1.90
1.85
1.80
1.75
1.70
1.65
1.60
1.55
–
–
–
–
–
–
–
–
–
2013
Other
2014
Iduapriem
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Change in
economics
New
ounces
from
projects
Scope
change
Acquisition/
disposal
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
74
ORE RESERVE
Ore Reserve
Iduapriem
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Ajopa
Proved
–
–
–
–
Probable
2.83
1.93
5.46
0.18
Total
2.83
1.93
5.46
0.18
Block 3W
Proved
–
–
–
–
Probable
0.12
1.04
0.13
0.00
Total
0.12
1.04
0.13
0.00
Block 7 and 8 west cutback
Proved
4.86
1.31
6.38
0.21
Probable
4.18
1.43
5.95
0.19
Total
9.03
1.36
12.33
0.40
Block 7 and 8 east cutback
Proved
1.43
1.37
1.96
0.06
Probable
17.45
1.69
29.57
0.95
Total
18.88
1.67
31.53
1.01
Stockpile (full grade ore)
Proved
3.63
0.89
3.23
0.10
Probable
–
–
–
–
Total
3.63
0.89
3.23
0.10
Stockpile (marginal ore)
Proved
0.27
0.62
0.17
0.01
Probable
–
–
–
–
Total
0.27
0.62
0.17
0.01
Iduapriem
Total
34.77
1.52
52.85
1.70
Ore Reserve modifying factors
Iduapriem
Gold
price
Cut-off
grade
% MRF
MCF
MetRF
31 December 2014
US$/oz
g/t Au
(based on g/t)
%
%
Ajopa
1,100
0.77
94.0
100.0
95.0
Block 3W
1,100
0.75
94.0
100.0
95.0
Block 7 and 8
east cutback
1,100
0.77
94.0
100.0
95.0
Block 7 and 8
west cutback
1,100
0.77
94.0
100.0
95.0
Stockpile (full grade ore)
1,100
0.58
94.0
100.0
95.0
Stockpile (marginal ore)
1,100
0.58
100.0
100.0
92.0
CONTINENTAL AFRICA
75
Inferred Mineral Resource in business plan
Iduapriem
Tonnes
Grade
Contained gold
as at 31 December 2014
million
g/t
Tonnes
Moz
Comments
Ajopa
0.24
2.03
0.49
0.02
Block 3W
0.10
0.98
0.10
0.00
Block 7 and 8
west cutback
1.13
1.38
1.56
0.05
Block 7 and 8
east cutback
1.62
1.52
2.46
0.08
Total
3.09
1.49
4.60
0.15
The Inferred Mineral Resource within the Ore Reserve design is 9% of the total ore scheduled and exists as pockets of Inferred Mineral
Resource material located within the models of all the deposits.
COMPETENT PERSONS
Iduapriem
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Tebogo Mushi
SAIMM
702 438
13 years
BSc (Hons) Mining Engineering
GDE (Mineral Economics)
Ore Reserve
Stephen Asante Yamoah
MAusIMM
304 095
10 years
BSc (Hons) Mining Engineering
MSc (Mining Engineering)
CONTINENTAL AFRICA
continued
Iduapriem
0.15
0.65
0.40
1.15
0.90
1.40
1.90
1.65
T
onnes above cut-off (millions)
onnes above cut-off (millions)
A
verage grade above cut-off (g/t)
Cut-off grade (g/t)
2.5
2.3
2.1
1.9
1.7
1.5
1.3
140
120
100
80
60
40
20
0
Tonnes above cut-off
Ave grade above cut-off
Iduapriem
Grade tonnage curve – Surface (metric)
–
–
–
–
–
–
–
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
76
CONTINENTAL AFRICA
Obuasi
INTRODUCTION
Obuasi mine is located in the Ashanti Region of Ghana some 320km north-west of the capital Accra. The mine is situated in a largely
forested region, with surrounding land occupied by subsistence farmers. The mining concession covers an area of 47.5ha. Eighty
communities lie within a 30km radius of the mine. Underground production was suspended in late 2014 awaiting the outcome of a
feasability study for the mine.
GEOLOGY
The mine is located within the Obuasi concession area in south-western Ghana along the north-easterly-striking Ashanti volcanic
belt. The deposit is one of the most significant Proterozoic gold belts discovered to date. The Ashanti belt predominantly comprises
sedimentary and mafic volcanic rocks, and is the most prominent of the five Birimian Supergroup gold belts found in Ghana. The belt
is a 300km wrench-fault system that propagated from Dixcove in the south-west to beyond Konongo in the north-east.
The Birimian was deformed, metamorphosed and intruded by syn- and post-tectonic granitoids during the Eburnean tectonothermal
event around two billion years ago. Folding trends are dominantly north-northeast to north-east. Elongate syn-Birimian basins
developed between the ridges of the Birimian system and these were filled with the Tarkwaian molasse sediments made up primarily
of conglomerates, quartzose and arkosic sandstones and minor shale units. Major faulting has taken place along the same trends.
Gold mineralisation is associated with, and occurs within, graphite-chlorite-sericite fault zones. These shear zones are commonly
associated with pervasive silica, carbonate and sulphide hydrothermal alteration and occur in tightly-folded Lower Birimian schists,
phyllites meta-greywackes, and tuffs, along the eastern limb of the Kumasi anticlinorium.
Mineralised shears are found in close proximity to the ‘contact’ with harder metamorphosed and metasomatically-altered intermediate
to basic Upper Birimian volcanics. The competency contrast between the harder metavolcanic rocks to the east and the more
argillaceous rocks to the west is thought to have formed a plane of weakness. During crustal movement, this plane became a zone of
shearing and thrusting coeval with the compressional phases.
The Lower Birimian metasediments and metavolcanics are characterised and defined by argillaceous and fine to intermediate
arenaceous rocks. These rocks are represented by phyllites, meta siltstones, meta greywackes, tuffaceous sediments, ash tuffs
and hornstones in order of decreasing importance. Adjacent to the shear zones, these rocks are replaced by sericitic, chloritic and
carbonaceous schists, which may be graphitic in places. Multiple lodes are a common feature in the mine.
Granites outcrop in the west and north-west of the concession area and intrude the Birimian rocks only. Two types of granite are
present, one is more resistant to weathering than the other, with less-resistant granite being prospective for gold mineralisation.
Two main ore types are mined, namely quartz vein and sulphide ore. The quartz vein type consists mainly of quartz with free gold
in association with lesser amounts of various metal sulphides containing iron, zinc, lead and copper. This ore type is generally non-
refractory. Sulphide ore is characterised by the inclusion of gold in the crystal structure of arsenopyrite minerals. Higher gold grades
tend to be associated with finer grain arsenopyrite crystals. Sulphide ore is generally refractory.
EXPLORATION
Exploration in 2014 focused on part of Red Zone 6 (Block 9) project area above 50 level. The objective of the drilling programme was
to upgrade the Inferred Mineral Resource. Twenty Four (24) holes with total depth of 4,115m were completed.
PROJECTS
Underground production was suspended in late 2014; with activities restricted to production from developed stopes and the
processing of surface mining tailings. A detailed feasibility study using input from international consultants began, following on from
an earlier in-house study.
The feasibility study is considering the optimum mining methodology and schedule for the underground mine, based on modern
mechanised mining methods and refurbishment of underground, surface and process plant infrastructure. A significant rationalisation
and/or replacement of current infrastructure will enable the delivery of high utilisation and productivity metrics.
During the limited operating phase, underground activities will essentially be limited to continued development of the Obuasi Deeps’
Decline and underground infill drilling.
CONTINENTAL AFRICA
77
CONTINENTAL AFRICA
continued
Obuasi
The feasibility study will be finalised during 2015, when the schedule for potential re-start of underground production can be determined.
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Obuasi
Type of drilling
Category
Spacing
m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
20 x 20,
X
X
X
40 x 20,
50 x 50
–
X
Percussion drilling for
open pits
Indicated
30 x 30,
X
X
50 x 50,
60 x 60
–
–
X
Percussion drilling for open
pits and discharge sampling
for tailings
Inferred
90 x 90,
X
X
100 x 100,
120 x 120
–
X
Percussion drilling for
open pits and discharge
sampling for tailings
Grade/Ore
control
10 x 10
X
X
–
X
–
Channel sampling for cross
cuts and definition drilling
Inclusive Mineral Resource
Obuasi
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Anyankyirem
Measured
–
–
–
–
Indicated
5.53
2.37
13.14
0.42
Inferred
0.11
2.50
0.27
0.01
Total
5.64
2.38
13.41
0.43
Anyinam
Measured
0.00
2.50
0.01
0.00
Indicated
0.45
3.54
1.59
0.05
Inferred
1.02
4.24
4.33
0.14
Total
1.47
4.02
5.93
0.19
Gyabunsu-Sibi
Measured
0.05
4.00
0.21
0.01
Indicated
0.05
3.48
0.16
0.01
Inferred
0.28
3.97
1.13
0.04
Total
0.38
3.92
1.50
0.05
Tailings (Kokoteasua)
Measured
3.22
1.97
6.33
0.20
Indicated
1.65
1.96
3.24
0.10
Inferred
–
–
–
–
Total
4.87
1.96
9.57
0.31
Tailings (Pompora)
Measured
–
–
–
–
Indicated
–
–
–
–
Inferred
33.61
1.57
52.89
1.70
Total
33.61
1.57
52.89
1.70
Other surface resources
Measured
–
–
–
–
Indicated
0.88
2.40
2.11
0.07
Inferred
–
–
–
–
Total
0.88
2.40
2.11
0.07
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
78
Inclusive Mineral Resource
Obuasi
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Upper mine
Measured
2.19
10.10
22.12
0.71
Indicated
2.49
7.67
19.09
0.61
Inferred
0.94
6.00
5.63
0.18
Total
5.62
8.34
46.85
1.51
Above 50 base
Measured
23.47
6.87
161.23
5.18
Indicated
37.05
5.81
215.18
6.92
Inferred
25.61
6.10
156.18
5.02
Total
86.12
6.18
532.59
17.12
Adansi 50-60
Measured
2.16
5.28
11.38
0.37
Indicated
1.83
4.46
8.15
0.26
Inferred
6.54
5.03
32.89
1.06
Total
10.52
4.98
52.42
1.69
Stockpile (heap leach)
Measured
1.08
0.58
0.63
0.02
Indicated
–
–
–
–
Inferred
–
–
–
–
Total
1.08
0.58
0.63
0.02
Stockpile (surface oxides)
Measured
0.02
1.70
0.04
0.00
Indicated
–
–
–
–
Inferred
–
–
–
–
Total
0.02
1.70
0.04
0.00
KMS 50-60
Measured
–
–
–
–
Indicated
3.53
18.67
65.96
2.12
Inferred
6.08
11.01
66.94
2.15
Total
9.61
13.82
132.90
4.27
Stockpile (surface sulphides)
Measured
0.05
2.58
0.13
0.00
Indicated
–
–
–
–
Inferred
–
–
–
–
Total
0.05
2.58
0.13
0.00
Obuasi
Total
159.89
5.32
850.96
27.36
Exclusive Mineral Resource
Obuasi
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
26.13
6.44
168.28
5.41
Indicated
38.85
5.08
197.49
6.35
Inferred
73.16
4.29
313.74
10.09
Total
138.13
4.92
679.51
21.85
The Obuasi Exclusive Mineral Resource is made up of Mineral Resource from underground, open pit and tailings. The bulk of the
Exclusive Mineral Resource is from underground.
CONTINENTAL AFRICA
79
Mineral Resource below infrastructure
Obuasi
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured
2.16
5.28
11.38
0.37
Indicated
5.36
13.82
74.11
2.38
Inferred
12.62
7.91
99.83
3.21
Total
20.13
9.20
185.32
5.96
ORE RESERVE
Ore Reserve
Obuasi
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Tailings (Kokoteasua)
Proved
3.22
1.97
6.33
0.20
Probable
1.65
1.96
3.24
0.10
Total
4.87
1.96
9.57
0.31
Other surface resources
Proved
–
–
–
–
Probable
0.88
2.40
2.11
0.07
Total
0.88
2.40
2.11
0.07
Above 50 base
Proved
4.10
7.47
30.65
0.99
Probable
13.09
6.70
87.66
2.82
Total
17.19
6.88
118.31
3.80
KMS 50-60
Proved
–
–
–
–
Probable
1.59
21.65
34.43
1.11
Total
1.59
21.65
34.43
1.11
Obuasi
Total
24.53
6.70
164.42
5.29
CONTINENTAL AFRICA
continued
Obuasi
27.39
-0.36
0.00
0.00
0.05
0.27
0.00
0.00
27.36
Ounces
(millions)
(millions)
27.40
27.35
27.30
27.25
27.20
27.15
27.10
27.05
27.00
26.95
–
–
–
–
–
–
–
–
–
2013
Deple-
tion
Gold
price
Cost
Explo-
ration
Metho-
dology
Other
Acquisition/
disposal
2014
Obuasi
Mineral Resource reconciliation: 2013 – 2014
8.14
-0.23
0.00
-2.38
0.00
-0.26
0.02
0.00
5.29
Ounces
(millions)
(millions)
8.5
8.0
7.5
7.0
6.5
6.0
5.5
5.0
4.5
–
–
–
–
–
–
–
–
2013
Other
2014
Obuasi
Ore Reserve reconciliation: 2013 – 2014
Deple-
tion
Model
change
Economics
New
ounces
from
Projects
Scope
Change
Acquisition/
Disposal
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
80
Inferred Mineral Resource in business plan
Obuasi
Tonnes
Grade
Contained gold
as at 31 December 2014
million
g/t
Tonnes
Moz
Comments
Above 50 Base
2.44
6.68
16.29
0.52
KMS 50-60
0.98
15.24
14.87
0.48
Total
3.41
9.13
31.16
1.00
Ore Reserve modifying factors
Obuasi
Gold price Cut-off grade
Dilution
MCF
MetRF
31 December 2014
US$/oz
g/t Au
%
%
%
Above 50 base
1,100
4.30
23.0
100.0
87.0
KMS 50-60
1,100
5.20
29.0
100.0
87.0
Tailings (Kokoteasua)
1,100
1.00
–
–
41.0
Obuasi other surface Resources
1,100
1.00
–
–
41.0
Longitudinal and longitudinal retreat longhole stopes have dilution factors between 16 – 29%, transverse open-stopes between 10 – 12%.
All mining blocks for feasibility study have their own cutt-off value, ranging from 4.00g/t – 5.20 g/t.
All mining blocks for feasibility study have their own cutt-off value, ranging from 4.00g/t – 5.20 g/t.
Ore Reserve below infrastructure
Obuasi
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Proved
–
–
–
–
Probable
1.59
21.65
34.43
1.11
Total
1.59
21.65
34.43
1.11
COMPETENT PERSONS
Obuasi
Category
Competent person
Professional
organisation
Membership
number
Relevant
experience
Qualification
Mineral Resource
Clement Asamoah-Owusu
MAusIMM
210 145
30 years
BSc (Hons) Geological Engineering
MSc (Mineral Exploration)
Ore Reserve
Christian Boafo
MAusIMM
312 532
17 years
Graduate Dipl. (Mining)
0.0
1.5
0.5
1.0
3.0
2.0
2.5
3.5
4.5
5.0
4.0
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
6.0
5.0
4.0
3.0
2.0
1.0
16
14
12
10
8
6
4
2
0
Tonnes above cut-off
Ave grade above cut-off
Obuasi
Grade tonnage curve – Surface (metric)
–
–
–
–
–
–
–
–
–
0
2
4
6
8
10
12
14
16
18
20
Tonnes
above
cut-off
(millions)
above
cut-off
(millions)
Average
grade
above
cut-off
(g/t)
grade
above
cut-off
(g/t)
Cut-off grade (g/t)
40
35
30
25
20
15
10
5
0
120
100
80
60
40
20
0
Tonnes above cut-off
Ave grade above cut-off
Obuasi
Grade tonnage curve – Underground (metric)
–
–
–
–
–
–
–
–
–
CONTINENTAL AFRICA
81
COUNTRY OVERVIEW
The Siguiri mine is AngloGold Ashanti’s only operation in the Republic of Guinea. The mine is 85% owned by AngloGold Ashanti and
15% by the government of Guinea. The mine is a conventional open pit operation situated in the Siguiri-district in the north-east of
Guinea. It lies about 850km from the capital city of Conakry and 109km from the border with Mali. Gold-bearing ore is mined from
several pits and sent to a CIP plant.
MINERAL RESOURCE ESTIMATION
Mineral Resource definition drilling is done with aircore (AC), RC and DD. All available geological drill-hole information is validated for
usage in the models and together with the local geology of the deposit an understanding of grade variability is used to classify the
drill-hole information into appropriate estimation domains. Detailed statistical analyses are conducted on each of these domains and
this allows for the identification of high-grade outlier values. If these values are anomalous to the general population characteristics
they may be cut, that is reduced back to the appropriate upper limit of the population.
The Mineral Resource model is estimated using Ordinary Kriging into a 3D block model. Geological interpretation is based on geological
drill-hole data. The dimensions of these Mineral Resource blocks range from 10m x 10m x 2.5m to 50m x 25m x 6m block sizes,
guided by the shape of the deposit and the drilling density. The Mineral Resource is declared within an optimised limiting Mineral
Resource pit shell using a gold price, of $1,600/oz.
ORE RESERVE ESTIMATION
The Mineral Resource models for each pit are depleted to the current mined-out surface. Costs are assigned on a pit-by-pit basis,
reflecting the existing cost structure of the operation. The relevant dilution and ore-loss factors are applied and pit optimisation is then
performed. The relevant modifying factors such as metallurgical recoveries, geotechnical parameters, cut-off grades and economics
are applied to generate the mine designs that are used to estimate the final Ore Reserve.
CONTINENTAL AFRICA
continued
Guinea
0
200km
Operations
Siguiri
GUINEA
Kankan
Dabola
Labe
Conakry
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
82
CONTINENTAL AFRICA
83
INTRODUCTION
Siguiri is located in the Siguiri district of north-eastern Guinea, West Africa, and is about 850km from the capital city of Conakry. The
Société Ashanti Goldfields de Guinée (SAG) mining concession consists of four blocks totaling 1,495km
2
.
Gold mining in the district can be traced back for centuries, but there are no reliable records of pre-Western production. The French
became involved in the area in the late-19th and early-20th centuries. Between 1931 and 1951 the French reported gold coming out
of Siguiri, with figures varying between 1 and 3.8 tonnes annually, however little exploration work was completed. There was a phase
of Russian exploration in the area between 1960 and 1963. The Russian work focused on the placer deposits along the major river
channels in the area. In 1980 SOMIQ (Société Minière Internationale du Quebec) gained the exploration rights for Siguiri and Mandiana.
SOMIQ focused its work on the Koron and Didi areas. The Chevaning Mining Company Ltd. was then created to undertake a detailed
economic evaluation of the prospect, with more intensive work beginning in the late 1980s. AuG (Société Aurifère de Guinée) took
over from its predecessors and continued work on the placer deposits. Production on the Koron placer reached a peak in 1992 with
1.1t gold being produced, although due to a number of difficulties the mine was shut down later that year.
Golden Shamrock started a pre-feasibility study in 1995 after which Ashanti Goldfields became interested in the deposit and Siguiri
mine started production in 1998 as Société Ashanti Goldfields de Guinée (SAG). In 2004 the merger of AngloGold and Ashanti resulted
in the operation being run by AngloGold Ashanti. Siguiri is currently a multi-pit oxide gold mining operation. All ore and waste is mined
by a mining contractor utilising backhoe excavators and trucks. Most material is free dig with very limited “paddock blasting” in soft
laterites and saprolite and hard-rock blasting in Duricrust. Processing of the ore is done by a CIP plant which has been successfully
optimised to reach throughput of 11.5Mt per annum.
GEOLOGY
The gold mineralisation at Siguiri occurs in Paleoproterozoic Birimian rocks consisting of turbidites and lesser volcaniclastic sequences.
It is situated in an arcuate zone of a larger anastomosing shear zone system. These zones form part of the northerly trending,
continental scale shear zone system that transects the West African Craton and bordering areas.
There are two types of oxide mineralisation in the Siguiri basin:
·
eluvial or alluvial hosted laterite mineralisation; and
·
primary quartz vein and associated shear hosted mineralisation.
The laterite mineralisation occurs as alluvial lateritic gravel adjacent to and immediately above the in-situ vein-related mineralisation.
The vein-related mineralisation is hosted in metasediments and areas of economic gold mineralisation are formed where these veins
are closely spaced.
The main vein-related mineralisation at Siguiri is structurally controlled and associated with a major, east-northeast trending and steep
south-dipping sheeted quartz vein sets that generally occur in the coarser, brittle siltstone and sandstone lithologies. The regional
development and consistent orientation of this main vein set, irrespective of the nature of wall rocks or wall-rock structures, indicates
the control of these veins by regional strains.
A deep oxidation (weathering) profile is developed in the region, varying between 50m to 150m. The mineralised saprolite provides the
main oxide feedstock for the CIP plant. The previous practice at Siguiri was to blend the laterite and saprolite ore types and to process
these using the heap leach method. With the percentage of available laterite ore decreasing, a CIP plant was brought on stream during
2005 to treat predominantly saprolite oxide ore. With continued exploration into deeper fresh-rock extensions of the ore deposit, new
treatment options are again under consideration.
CONTINENTAL AFRICA
continued
Siguiri
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
84
EXPLORATION
Exploration at Siguiri was historically focused on finding a new oxide Mineral Resource in the saprolite, and upgrading the confidence
in the existing oxide Mineral Resource. This is achieved using geophysics, soil geochemistry and drill-hole sampling in the context
of the regional and pit-scale geological models. Following the completion of an Asset Strategy Optimisation project in 2012, which
indicated the potential economic viability of the fresh-rock material, the aim of the exploration has expanded and the objectives are
twofold. Firstly, there is an aim to explore for replacement and additional oxide material for short-term mining requirements. The second
objective of the exploration programme is to increase the level of confidence in the five major fresh-rock targets below the oxide pits
at Bidini, Kami, Kalamagna, Seguélén and Sintroko. In 2014, a total of 21,097m of drilling was completed by the exploration team.
As part of the oxide exploration programme, 2,538m of RC and AC drilling was conducted on two of the reconnaissance targets.
1,583m of infill RC drilling was conducted at Seguélén to better understand the occurrence of carbonaceous layers in the lower
saprolite and transition zone towards the base of the current pit designs. 2,181m of RC infill drilling was completed to upgrade
the Mineral Resource on the south western extension of Sokunu Pit. An intensive field re-mapping programme was conducted
in the first half of the year to ground-truth 19 reconnaissance exploration targets which will be used to prioritize follow up drilling
work in 2015. This was followed up with an intensive pit mapping exercise in the second half of the year to provide further detailed
information for the update of the Siguiri geological model and map that was developed in 2013.
The fresh-rock exploration programme focused on infill drilling below the Kami Pit to upgrade the material within a $1,600/oz fresh-
rock pit shell to Inferred and Indicated Mineral Resource classification. This pit shell equates to approximately 200m to 250m below
the base of the current oxide pit shell. 3,085m of RC drilling, 7,685m of RC-DD and 1,874m of DD drilling was completed during this
programme. In addition, 737m of DD drilling was completed specifically for the purpose of obtaining ore intersections for metallurgical
test work. Two smaller RC programmes were completed to provide reconnaissance information on the down dip extensions at
Kalamagna Pushback 3 (804m) and Sokunu (610m) after mining in these two oxide pits was completed during the year. During 2015
the focus will be to complete infill drilling on the Bidini fresh-rock orebody to bring a significant portion of the Mineral Resource to
Indicated Mineral Resource.
PROJECTS
The University of Western Australia – Centre for Exploration Targeting, research project was concluded in 2014. The project culminated
in a targeting workshop for Block 1 which confirmed previous targets, introduced several new targets and provided valuable information
that will assist with ranking and prioritization of 2015 and 2016 work programmes.
The Greenfields exploration programme in Blocks 2, 3 and 4 was concluded in 2014 and the projects have been handed over to
the Brownfields exploration team. The 2015 work programme will focus on detailed geological investigations and grade engineering
projects for the three advanced stage deposits with the aim of identifying options for these to add increased value to the current life of
mine plan. Follow up drilling on extensions to one of these deposits as well as reconnaissance exploration work on several subsidiary
targets is also planned.
During 2014 significant progress was made on the prefeasibility study for the Siguiri combination plant. The combination plant would
see the addition of the capability to process a combination of oxide and fresh-rock. The encouraging results of the prefeasibility study
resulted in the declaration of the maiden fresh-rock Mineral Resource at Kami, Bidini, Tubani pits and the maiden fresh-rock Ore
Reserve at Kami. The project is planned to advance to feasibility study stage in 2015.
Core samples from drill-holes in Bidini and Kami were selected and submitted for preliminary metallurgical testing.
CONTINENTAL AFRICA
85
MINERAL RESOURCE
Details of average drill-hole spacing and type in relation to Mineral Resource classification
Siguiri
Type of drilling
Category
Spacing
m (-x-)
Diamond
RC
Blasthole
Channel
Other
Comments
Measured
–
–
–
–
–
–
Indicated
20 x 40,
X
X
25 x 25,
50 x 25
–
–
–
Based on a drill spacing
study , Mineral Resource
classification was changed
from 25 x 25 to 50 x 25
Inferred
20 x 40,
X
X
50 x 25,
50 x 50
–
–
–
–
Grade/Ore
control
5 x 10,
5 x 12,
10 x 5,
10 x 10
–
X
–
–
–
–
Inclusive Mineral Resource
Siguiri
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Bidini sulphide
Measured
–
–
–
–
Indicated
0.20
1.53
0.31
0.01
Inferred
6.71
1.51
10.14
0.33
Total
6.91
1.51
10.44
0.34
Bidini oxide
Measured
–
–
–
–
Indicated
1.95
0.75
1.47
0.05
Inferred
5.57
0.76
4.22
0.14
Total
7.52
0.76
5.69
0.18
Bidini transitional
Measured
–
–
–
–
Indicated
2.20
1.23
2.71
0.09
Inferred
3.59
1.12
4.04
0.13
Total
5.79
1.16
6.75
0.22
Eureka east
Measured
–
–
–
–
Indicated
1.83
1.06
1.93
0.06
Inferred
0.31
0.78
0.24
0.01
Total
2.14
1.02
2.17
0.07
Kalamagna
Measured
–
–
–
–
Indicated
3.97
0.70
2.79
0.09
Inferred
0.74
0.72
0.53
0.02
Total
4.71
0.70
3.32
0.11
Kami sulphide
Measured
–
–
–
–
Indicated
21.07
1.05
22.06
0.71
Inferred
8.24
0.93
7.69
0.25
Total
29.31
1.01
29.74
0.96
CONTINENTAL AFRICA
continued
Siguiri
MINERAL RESOURCE AND ORE RESERVE REPORT
2014
86
Inclusive Mineral Resource
Siguiri
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Kami oxide
Measured
–
–
–
–
Indicated
11.57
0.63
7.25
0.23
Inferred
0.69
0.76
0.52
0.02
Total
12.25
0.63
7.77
0.25
Kami transitional
Measured
–
–
–
–
Indicated
2.68
0.90
2.42
0.08
Inferred
0.18
0.84
0.15
0.00
Total
2.86
0.90
2.57
0.08
Kosise
Measured
–
–
–
–
Indicated
2.02
0.76
1.53
0.05
Inferred
2.39
0.72
1.73
0.06
Total
4.40
0.74
3.25
0.10
Kozan north
Measured
–
–
–
–
Indicated
8.65
0.72
6.18
0.20
Inferred
0.59
0.72
0.43
0.01
Total
9.23
0.72
6.61
0.21
Kozan south
Measured
–
–
–
–
Indicated
6.76
0.72
4.89
0.16
Inferred
0.03
0.66
0.02
0.00
Total
6.78
0.72
4.90
0.16
Seguélén
Measured
–
–
–
–
Indicated
15.52
1.01
15.75
0.51
Inferred
4.11
0.96
3.94
0.13
Total
19.64
1.00
19.68
0.63
Sokunu
Measured
–
–
–
–
Indicated
3.82
0.86
3.28
0.11
Inferred
3.77
1.01
3.82
0.12
Total
7.59
0.93
7.10
0.23
Soloni
Measured
–
–
–
–
Indicated
4.84
0.78
3.76
0.12
Inferred
2.02
0.78
1.59
0.05
Total
6.87
0.78
5.34
0.17
Sorofe sulphide
Measured
–
–
–
–
Indicated
–
–
–
–
Inferred
2.33
1.14
2.66
0.09
Total
2.33
1.14
2.66
0.09
Sorofe oxide
Measured
–
–
–
–
Indicated
2.94
0.80
2.36
0.08
Inferred
2.49
1.14
2.83
0.09
Total
5.42
0.96
5.19
0.17
Sorofe transitional
Measured
–
–
–
–
Indicated
1.27
1.09
1.39
0.04
Inferred
0.21
1.40
0.30
0.01
Total
1.48
1.14
1.68
0.05
CONTINENTAL AFRICA
87
Inclusive Mineral Resource
Siguiri
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Kounkoun
Measured
–
–
–
–
Indicated
–
–
–
–
Inferred
15.38
1.28
19.65
0.63
Total
15.38
1.28
19.65
0.63
Sintroko south
Measured
–
–
–
–
Indicated
1.97
1.42
2.79
0.09
Inferred
0.27
2.07
0.57
0.02
Total
2.25
1.50
3.36
0.11
Foulata
Measured
–
–
–
–
Indicated
–
–
–
–
Inferred
1.92
1.64
3.13
0.10
Total
1.92
1.64
3.13
0.10
Stockpile (marginal ore)
Measured
19.53
0.50
9.69
0.31
Indicated
–
–
–
–
Inferred
–
–
–
–
Total
19.53
0.50
9.69
0.31
Stockpile (full grade ore)
Measured
5.49
1.00
5.47
0.18
Indicated
–
–
–
–
Inferred
–
–
–
–
Total
5.49
1.00
5.47
0.18
Stockpile (spent heap leach)
Measured
–
–
–
–
Indicated
31.95
0.54
17.29
0.56
Inferred
13.40
0.57
7.61
0.24
Total
45.35
0.55
24.90
0.80
Siguiri
Total
225.17
0.85
191.06
6.14
Exclusive Mineral Resource
Siguiri
Tonnes
Grade
Contained gold
as at 31 December 2014
Category
million
g/t
Tonnes
Moz
Measured