South African giant
AngloGold says the acquisition will immediately add to its earnings and cash flow, as well as 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 realized non-hedge derivatives) of US$9 million, and 62,000 oz. 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 says it will not exercise its pre-emptive rights to boost its stake.
At the end of 2001, Cerro Vanguardia’s reserves amounted to 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, which are targeted by several open pits.
By the end of 2004, Anglo plans to boost the operation’s throughput rate to 1 million tonnes per year from the current 900,000 tonnes. At that rate, reserves are expected to support the mine until 2012.
The mine life could be extended via underground production. Exploratory drilling indicates 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 Socit Anonyme, Anglo American’s international mining arm.
Be the first to comment on "Anglo ups Vanguardia stake"