[ Contents ]

Global exploration

AngloGold's global exploration strategy seeks to extend the life of existing operations and to find new, cost-effective ounces through in-house exploration, exploration joint ventures and the acquisition of late-stage exploration projects.

The strategy is funded on the basis that it will generate additional mineable ore reserves capable of providing double digit returns on investment.

Individual exploration programmes encompass a series of sequential stages (see diagram), involving increased expenditure commensurate with decreasing project risk. In areas where AngloGold does not have operations, a more significant discovery will be required in order to provide the returns than is the case in areas where AngloGold has existing operations. Political, geographical and infrastructural considerations are influencing factors.
 

Wearing her spectacles of gold, crafted through the lost wax-casting technique, this Adioukrou woman presides at a Generations Festival in Ivory Coast, West Africa.

During the year:
Expenditure on exploration was R441 million ($63 million) of which R238 million was spent on near and in-mine resource growth activity. Exploration expenditure is expected to be R359 million ($46 million) during 2001. The reduction in the exploration budget is due to a strategic decision to focus on near and in-mine resource growth under current market circumstances.

Exploration continued in 12 countries and on four continents, directed by the Johannesburg-based exploration team and supported by regional exploration offices in South America, Africa, USA and Australia.

A focused drilling programme was initiated in Peru on select AngloGold exploration licences after an intensive target generation, evaluation and ranking process.

The resources identified at Nyamulilima Hill in Tanzania contributed to the successful bid to acquire 50 per cent in the Geita operation from Ashanti Goldfields.

Additional ounces are required for the Amapari resource in Brazil to meet AngloGold's financial targets. Potential sites have been identified and will be drill-tested in 2001.

The Coyote project in the Tanami region of central Australia has been drilled intensively and promising results are expected in 2001.

Note: A review of resource generating exploration activities in each of the operating regions appears in the supplementary statistics document referred to on page 24.
 

[ Contents ]