Exploration & Development

Overview

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

In 2013 we expect to invest at least US$21million in exploration and development, in order to:

  • add new Greenfield gold discoveries
  • 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 2012. ABG has consistently demonstrated its ability to recognise near-mine opportunities as well as identifying additional opportunities across regional areas as demonstrated by our acquisition of the West Kenya JV properties in late 2012. 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 scoping, pre-feasibility and feasibility studies at four key projects.

We are currently completing feasibility studies at two key projects: Gokona Underground and Bulyanhulu Upper East Zone. Additionally we are undertaking a pre-feasibility study on the Nyanzaga Project and a  scoping level study to investigate the underground potential at Nyabirama (Rama) at North Mara. All four studies have progressed in line with expectations. Of particular note is the revised feasibility study of the Bulyanhulu Upper East area, which now incorporates both Reef 1 and Reef 2 ore bodies for a total of >2Moz at ~10g/t Au.

We are also seeing some initial success in the drill programmes at the Dett Project, where early results from 2011 and 2012 indicate the opportunity to delineate some higher grade gold zones (>1.5g/t au) within a very large. low-grade gold system.

Regional expansion

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

As part of our regional expansion, in late 2012 we completed the acquisition of Aviva Mining Kenya Ltd (AMKL) which holds various earn-in rights to various exploration properties in western Kenya.  The acquisition of the Kenyan exploration properties, collectively the West Kenya Project, provides an opportunity for ABG to enter an under explored region with multiple styles and types of gold prospects in a country with solid transport infrastructure and synergies with Tanzania.

The West Kenya Project has only seen limited previous exploration and contains multiple large-scale gold anomalies and covers five contiguous licenses over a land package in excess of approximately 2,800 square kilometres.  The land package covers the prospective Ndori Greenstone Belt in Kenya, which forms part of the Tanzanian Archaean Craton. Sporadic, historic and current exploration activities have identified a large number of targets that justify follow-up, and ABG intends to implement a systematic and focused gold exploration programme. These targets will represent a significant addition to the grassroots and target delineation segments of our exploration pipeline

2012 Highlights

  • Continued successful drilling intercepts at the Nyanzaga project have resulted in a significant uplift in the previously declared mineral resource estimate for the deposit. The updated in-pit resource (Tusker and Kilimani) is in excess of 4.6Moz consisting of 3.48Moz at 1.47g/t Au Indicated and 598Koz at 2.05g/t Au Inferred, representing a fourfold increase in the previously declared resource of 313Koz Indicated and 650Koz Inferred.
  • Advanced exploration and resource development drilling under the Gokona pit at North Mara has identified approximately 1Moz of underground grade material. An updated feasibility study is underway.
  • Advanced exploration drilling beneath the planned final Nyabirama open pit has identified high grade zones likely to be amenable to underground or expanded open-pit mining. A scoping study is currently underway to assess the trade-off between open-pit and underground to determine the project economics and decide on the way forward on this project.
  • Identified potential resource expansions through infill and step-out drilling on Reef 2 Upper East Zone. 
  • Continued to delineate higher grade zones extending from surface at the Dett prospect.

2013 Priorities

  • Surface and underground near-mine drilling programmes at Bulyanhulu to expand underground resources and reserves and to assist with medium to long term mine planning.
  • Investigation of near-surface satellite deposits around Bulyanhulu for additional satellite ore bodies.
  • Complete feasibility study for the Gokona Underground project at North Mara and investigate further upside potential.
  • Complete scoping study on Nyabirama gold deposit to determine future mining strategy and requirement of further exploration drilling.
  • Continued testing of Dett project to expand higher grade zones, and scope out size of the mineralised system.
  • Complete Nyanzaga pre-feasibility study (PFS) to determine “right-sized” project and make decision on advancing to feasibility study.
  • Continuation of deep drill programmes at the Nyanzaga project, subject to finding of PFS, to target further high-grade depth extensions to the current resource.
  • Further exploration of additional targets on the Nyanzaga property.