Gold miner AngloGold Ashanti has revised upward its capital expenditure guidance for the full-year to between $1.03-billion and $1.19-billion, from the previous guidance of $990-million to $1.14-billion.

The company, in its results presentation for the six months ended June 30, mentioned that more capital will be required in relation to the Obuasi Redevelopment Project – at last $35-million in sustaining capital and at least $70-million in nonsustaining capital expenditure – and an additional cost of $50-million required for its Brazil tailings compliance programme.

The Brazilian operations are transitioning to dry stacked tailings storage methods.

Phase 2 of the Obuasi Redevelopment Project has been substantially completed. The ramp up from 2 000 t/d to 4 000 t/d of ore mined and processed has been delayed by the suspension of underground mining activities following the sill pillar failure incident that resulted in a fatality on May 18, to allow for the investigation and third-party review of the mine plan, schedule and ground management plan.

Resumption of production will be determined following the completion and outcome of this review.

Phase 3 of the project, which relates principally to extended capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine as production areas progress deeper, has started and will continue. In addition, non-sustaining and sustaining capital expenditure development will also continue as we look to make up development delays caused by Covid-19, and the consequent lack of skilled personnel at site.

AngloGold assured of its undertaking to still extract Obuasi’s 8-million contained ounces.

AngloGold group planning and technical executive VP Graham Ehm said spending has been reduced as much as possible to limit the carrying cost of the project during this review period, without further impacting the project, capital development or the preparations for a resumption of mining.

SUNRISE DAM
AngloGold started ore mining in the Golden Delicious satellite openpit, at the Sunrise Dam project, in Australia, during the first half of this year, ahead of schedule, and commercial production is expected in the third quarter. Golden Delicious is expected to contribute three-million tonnes of ore over the next 18 months, displacing low-grade stockpiled ore in mill feed.

An accelerated underground exploration programme is yielding encouraging results, particularly from the newly-discovered Frankie zone, which is closer to the surface in the north of the mine, near existing infrastructure. Aggressive drilling at Frankie is focusing on extensions to the north and down dip, and on conversion of mineral resource to ore reserve.

The company reported that encouraging exploration results had highlighted the ongoing potential of the Vogue target, which remains open down plunge, the Flamingo target and the area where the Carey Upper, Carey Main and Vogue domains converge.

QUEBRADONA
At Quebradona, in Colombia, AngloGold has completed a feasibility study and applied for environmental-impact assessment approval, as well as a mining licence.

In the meantime, the company is finalising detailed engineering for early works and contract pricing for mine access and earthworks.

Quebradona remains one of the world’s preeminent copper projects and is expected to treat about 6.2-million tonnes of ore a year, to produce about three-billion pounds of copper and about 1.5-million ounces of gold over a potential 23-year life.

GRAMALOTE
At Gramalote, in Colombia, based on a review of the feasibility study results to date, the joint venture (JV) partners, AngloGold and B2Gold Corp, believe there is potential to improve the project by further drilling to improve confidence in the mineral resource model and further optimise the project design.

The project partners have recently agreed to a revised 2021 feasibility study budget (subject to final JV committee approval) of $69-million, which includes funding for additional drilling and represents an increase of $17-million, of which AngloGold’s share is $8.5-million.

Additional drilling is being carried out in the Trinidad deposit and drilling is planned in the Monjas West zone later this year.

The project partners are reviewing an additional budget of $17-million, of which AngloGold will contribute $8.5-million, for the first quarter of 2022. The capital will be used to complete a final feasibility study and updated mineral resource estimate.

The completion date of the final feasibility study is expected to be deferred to mid-2022.