AngloGold Ashanti and Independence Group NL have approved the Tropicana Gold Project Development. AngloGold owns 70% stake in the project and Independence Group holds the remaining 30%.
Approval to develop the Western Australia project is likely to help the joint venture produce around 3.45 million ounces of gold over a 10 year period. The mine will see gold production of about 470,000 to 490,000 ounces annually for the first three years at a cost of Australian $580 per ounce.
CEO Mark Cutifani said that Tropicana was the first of AngloGold Ashanti’s major gold discoveries to move into production. They were delighted to give the green light to its development. He said that it was a clear demonstration of the impact an innovative, results driven exploration program can have on organics growth.
Construction on the most significant gold discovery in Australia in over a decade will start in June quarter of 2011. The mineral deposit was found in a remote and previously unexplored region. Production of the first gold is expected in the time frame of a couple of years in the December quarter of 2013.