Massive discovery by AngloGold

The world's second largest gold producer, AngloGold Ashanti, is sitting on one of the world's 10 largest gold reserves after a massive discovery recently in Colombia.

It was reported that the deposit lied about 40 minutes from Ibague in Toliba's central Province and it had the capability of doubling Colombia's gold production by 2001.

Despite little detail about the discovery, it is known from Colombia's President, Alvaro Uribe, that the site would need an investment that exceeds ¢2 billion and would in turn generate about 1,200 jobs.

AngloGold started exploitation works from the village of La Luisa some four years ago for which 350 locals were recruited.

The Benefits: Strong Potential

This discovery is seen as the key to reviving Colombia's dwindling gold industry (gold production falling from 37.7 tons in 2004 to 15.7 tonnes in 2006 plus a 49,000 ounce production of gold in 2006 as compared to 25,000 ounces in 2007), placing it among the world's top-producing countries.

The Company's primary focus

AngloGold's primary focus areas for last year included Colombia, Western Australia and the Democratic Republic of Congo.

The replacement of production ounces through near-mine (brown fields) exploration and new discoveries (green fields) continues to be the company's top priority, as it is for many of the gold majors.

During 2006, total expenditure for the group was $103 million, out of which $52 million was spent on exploring brown fields.

The remaining $51 million was invested in the three key green field areas of Western Australia, DRC and Colombia.

From an expected $163 million in 2007 as exploration expenditure however, $77 million will be allocated to brown fields exploration whiles green fields exploration will receive $86 million.