AngloGold Ashanti Ltd. (ANG.JO) said Thursday that its Australian Tropicana joint venture has approved Phase One of the Long Island strategy, which is designed to increase production from the mine in the medium term and extend mine life.
The full Long Island strategy adds 2.1 million ounces to Tropicana's business plan and extends the mine life by seven years to 2027, it said.
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AngloGold Ashanti Australia said the partners plan to start mining the Havana South and Boston Shaker pits before the next two major decisions are made. They plan to decide by 2020 whether to strip the Havana main pit, and then by 2022 whether to start the final stages of the Havana main pit.
This phased approach provides optionality, and the flexibility to adjust to prevailing economic conditions AngloGold said.
Grade streaming, which prioritizes the processing of higher-grade ore and stockpiling lower-grade material for processing at a later date, has resumed at Tropicana and will continue through 2018 and 2019, AngloGold said.
It added that gold production is forecast to be between 478,000 ounces and 492,000 ounces next year, and between 530,000 ounces and 548,000 ounces in 2019. Gold production over Tropicana's remaining life of mine is now forecast to be about 4 million ounces, the company said.
Tropicana lies about 330km east-northeast of the Western Australian town of Kalgoorlie. AngoGold Ashanti Australia, which manages the mine, owns a 70% stake and Independence Group NL (IGO.AU) has the remaining 30%.
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(END) Dow Jones Newswires
December 07, 2017 07:03 ET (12:03 GMT)