South African gold giant AngloGold (AU-N) has doubled to 92.5% its stake in the Cerro Vanguardia gold mine in Santa Cruz Province, Argentia, snapping up Perez Companc International’s 46.25% holding for US$90 million.
AngloGold says the acquisition will immediately add to its earnings and cash flow, and will reduce cash and total operating costs at the mine.
For the first six months of 2002, AngloGold’s 46.25% stake garnered it an operating profit, including realised non-hedge derivatives, of US$9 million, and 62,000 oz. of gold produced at a total cash cost of US$101 per oz.
Fomento Minero de Santa Cruz Sociedad del Estado (Formicruz), the Province’s state-owned mining promotion company, will retain its 7.5% free carried interest in the mine, and has said it will not exercise its pre-emptive rights to boost its stake.
At the end of 2001, Cerro Vanguardia’s reserves tallied to about 8.4 million tonnes grading 9.46 grams gold per tonne. Total resources stood at 14.5 million tonnes running 7.72 grams gold. Gold mineralization is hosted by a series of hydrothermal vein deposits that are targeted by several open-pits.
From 2004, Anglo plans to boost the operation’s throughput rate to 1 million tonnes per year from the current 900,000 tonnes annually. The company figures at that rate reserves should support the mine until 2012. The mine’s life could be extended via underground production.
Exploratory drilling has indicated that the hydrothermal vein mineralization extends at depth. Limited underground mining is planned below the current pits.
Additionally, ore from lower-grade veins extending out into the host rock is being stockpiled with an eye toward establishing a resource sufficient to support a heap leach operation.
AngloGold acquired its original interest in Cerro Vanguardia in 1999 when it bought all of the gold assets of Minorco Societe Anonyme, Anglo American’s international mining arm.
Be the first to comment on "AngloGold consolidates Cerro Vanguardia"