Exploration & Development

 

 

Overview

We are committed to expanding our reserves and resources and production profile through exploration.

In 2011 we expect to invest US$55million in exploration and development, a figure twice that of 2010, in order to:

  • continue our organic growth through near-mine exploration and resource expansion
  • optimise our assets through identifying and delineating higher-grade satellite deposits
  • identify new opportunities throughout Africa, particularly through strategic joint ventures and opportunistic acquisitions.

Our plans are building on positive progress in 2010. ABG has consistently demonstrated its ability to recognise near-mine opportunities as well as additional opportunities across regional areas. This is strategically important, as it supports both our existing production platform and organic growth prospects.

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Organic growth

Organic growth has been our main focus, with ongoing feasibility studies at four key projects.

The studies to date have been positive at Golden Ridge and Bulyanhulu Upper East Zone. Both the North Mara Underground and the Tulawaka East Zone Underground studies are progressing in line with expectations, the latter leading to an initial mine life extension.

We also continue to see successes in the drill programmes at the Nyanzaga project.

Regional expansion

We are continuing to undertake evaluation work in a number of countries, assessing projects that can enhance growth and bring geographic diversification.

From a greenfield perspective, we acquired Tusker Gold Ltd in May 2010 for approximately US$63 million. This gives us 100% control of the Nyanzaga project which includes the Tusker deposit. This is one of the largest undeveloped gold deposits in Tanzania.

2010 highlights

  • Successful drill hole intercepts at the Nyanzaga project indicate the potential to locate additional resources at the Tusker deposit.
  • Exploration drilling at Tulawaka continued to demonstrate the potential to extend the mine life to 2012.
  • Announcement of initial underground indicated resource of 370,000 gold ounces at 8.29 g/t beneath the planned final Gokona and Nyabigena open pits.
  • Drilling along the Gokona Corridor to test for additional gold deposits has produced encouraging initial results.

2011 priorities

  • Continuation of drill programmes at the Nyanzaga project (Tusker and Kilimani resource areas) in combination with testing of additional targets on the property.
  • Expansion of the Tulawaka Deeps Underground drill programmes to further extend the life of mine.
  • Progress infill and expansion resource drilling for North Mara Underground project.
  • Testing of regional targets within the wider North Mara region for new stand-alone deposits.
  • Expansion of near mine exploration drill programmes at Bulyanhulu.