AngloGold Conducting Fortitude Gold Mine Study

Australian junior Midas Resources reported that AngloGold Ashanti has agreed to carry out a pit optimization and mining study on Midas’s Fortitude gold deposit, located 35 km south of AngloGold Ashanti’s Sunrise Dam gold operation and about 220 km north-northeast of Kalgoorlie, Western Australia. The study will incorporate a review of the current resource estimate, pit optimization work and a mining study based on trucking ore 35 km via an existing haul road to the Sunrise Dam operation. In parallel with the pit optimization and mining study, AngloGold Ashanti will review area exploration targets to determine if participation in exploration is justified.

The study is expected to be completed in June 2009. Pending results of the study, AngloGold Ashanti and Midas have not entered into any commercial agreement concerning a possible relationship or future development.

The Fortitude gold deposit and adjacent satellite deposits have JORC compliant contained mineral resources totaling 5.327 million mt, grading 2.3 g/mt, for 388,000 oz of contained gold at a 1 g/mt gold cutoff. The deposit has a strike length of more than 1,000 m, with a relatively highergrade core area of 600 m. The deposit is completely oxidized to a depth of 30 m and partially oxidized to 70 m. The mineralized material is amenable to conventional CIL processing, with 94% recovery.

As featured in Womp 09 Vol 01 -