South Africa Obuasi Tender

AngloGold Ashanti is pleased to announce that the Obuasi Redevelopment Project has completed its first week of underground development blasting as the work to pour first gold by the end of the year gathers momentum. The first blast at about 7pm on Friday February 1 advanced development by around 4.2 metres on the 2700 level which is accessed through the Obuasi Deeps Decline from surface and is just over 700 metres vertically below the decline portal. Benching and a number of additional face blasts have taken place since then with more than 14m of advance recorded. The first blast was a significant milestone in transforming this important mine into a modern productive operation said AngloGold Ashanti Chief Executive Officer Kelvin Dushnisky. Our investment in Obuasi Gold mines redevelopment will ultimately make this a key asset forGhana and for AngloGold Ashantis portfolio for the long term.AngloGold Ashanti announced early last year it would invest 495m to 545m to recapitalise the iconic mine in Ghana to develop its six million ounces of high-grade reserve. The project will see Obuasi transformed into a modern mechanised mine that will produce an average 350000oz to 400000oz a year at all-in sustaining costs of 725oz to 825oz during the mines first decade of operation. Higher grades in the second decade of operation will see production improve further. The project remains on track to produce its first gold by the end of this year with ramp-up expected during 2020. AngloGold Ashanti has committed to ensuring significant local content in the mines development and operation through employment at all levels and procurement notably through the creation of a joint venture between Australias AUMS and Ghanas Rocksure to undertake Ghanas underground mining contract.Development of the project is progressing as planned and it is expected that capacity will ramp up to around a kilometre of linear advancement per month in the second half of the year. Stoping operations are expected to start in the fourth quarter of this year as new production areas are accessed.