GEITA GOLD MINE EXPERIENCES PARTIAL SLOPE FAILURE IN NYANKANGA PITadmin
AngloGold Ashanti wishes to inform the market that a partial slope failure occurred in an intermediate footwall of the Nyankanga pit at Geita Gold Mine on Saturday, 3 February 2007. The pit had been monitored by slope stability radar and was safely evacuated in advance of the failure. No injury to employees or contractors occurred and there was no damage to equipment. The part of the slope that failed had been planned to be removed in future cutbacks, with the south-west side of the pit being redesigned, so as to address several fault planes that have been intersected during current mining activity in cutback 4.
The effects of the partial slope failure on future gold production are still being investigated and the company will provide detailed guidance to the market during its fourth quarter earnings presentation on 13 February 2007. In the interim, it should be noted that mining at Geita is currently primarily taking place in three other pits ”“ the Geita Hill, Lone Cone and Matandani pits. This mining activity and associated gold production from these three pits is unaffected by this event. It is therefore the company’s expectation that Geita will continue to produce gold at similar rates seen through much of 2006. The partial slope failure does, however, delay access to high grade ore bodies in the Nyankanga pit, which had just started to be uncovered through mining activity on cutback 4. It is the mining of these high grades that will enable a potential doubling of production at Geita in 2007, as compared to 2006, and it is this scheduling that is currently being re-planned.
In addition to ongoing mining at Geita Hill, Lone Cone and Matandani, immediate activity at Nyankanga pit includes regaining access to cutback 4 by cleaning up a haulage truck switchback and repositioning the related safety berm. This remedial activity should take approximately one week. This will then enable access to the north-east side of the pit, where mining on cutback 4 can continue, whilst work begins on the redesign of mining activity on the south-west side of the pit .
South Africa Tel: Mobile: E-mail:
Charles Carter +27 (0) 11 637 6385 +27 (0) 82 330 5373 cecarter@AngloGoldAshanti.com
Steve Lenahan +27 (0) 11 637 6248 +27 (0) 83 308 2200 slenahan@AngloGoldAshanti.com
Except for historical information contained herein, there are matters discussed in this news release that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For discussion of important factors including, but not limited to development of the Company’s business the economic outlook in the gold mining industry, expectations regarding gold prices and production, and other factors, which could cause actual results to differ materially from such forward-looking statements, refer to the Company’s annual report on the Form 20-F for the year ended 31 December 2005, dated 17 March 2006 and which was filed with the Securities and Exchange Commission (SEC) on 20 March 2006. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.