Page 1

6-K 1 anglogold_agm.htm Page 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated May 12, 2017

Commission File Number 1-14846

AngloGold Ashanti Limited

(Name of registrant)

76 Rahima Moosa Street

Newtown, 2001

(P.O. Box 62117, Marshalltown, 2107)

South Africa

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.

Form 20-F X

Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):

Yes

No X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):

Yes

No X

Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.

Yes

No X

Enclosure: Press release ANGLOGOLD ASHANTI LIMITED – MINERAL RESOURCE AND ORE
RESERVE REPORT FOR THE YEAR ENDED DECEMBER 31, 2016

M I N E R A L R E S O U R C E A N D

O R E R E S E R V E R E P O R T

2 0 1 6

RATE THIS REPORT

C O N T E N T S

H O W T O U S E T H I S R E P O RT

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To create value for
our shareholders, our
employees and our
business and social
partners through safely
and responsibly exploring,
mining and marketing
our products. Our
primary focus is gold,
but we will pursue value
creating opportunities
in other minerals where
we can leverage our
existing assets, skills and
experience to enhance the
delivery of value.

OUR

MISSION

OUR VALUES

CLICK TO REVEAL

1 About this report

3 Group proﬁle

4 Corporate

governance

5 The year in review

8 Group overview

REGIONAL OVERVIEW

22 Kopanang

28 Moab Khotsong

38 Mponeng

48 TauTona

56 Surface Operations

REGIONAL OVERVIEW

Democratic
Republic of
the Congo

74 Kibali

Ghana

85 Iduapriem

96 Obuasi

104

Guinea

106 Siguiri

118

Mali

125 Sadiola

137

Tanzania

138 Geita

153

REGIONAL OVERVIEW

156 Sunrise Dam

164 Tropicana

175

REGIONAL OVERVIEW

178

Argentina

179 Cerro Vanguardia

188

Brazil

190 AGA Mineração

193

Córrego do Sítio

202

Cuiabá

210

Lamego

217

Nova Lima Sul

220 Serra Grande

230

Colombia

232 Gramalote

237 La Colosa

244 Quebradona

251 Deﬁnitions

253 Glossary of terms

256 Abbreviations

257 Administrative

information for
professional
organisations

250 Administrative

information

INTRODUCTION

SECTION 1

SECTION 2

SOUTH
AFRICA

SECTION 3

CONTINENTAL
AFRICA

SECTION 4

AUSTRALASIA

SECTION 5

AMERICAS

SECTION 6

ADMINISTRATIVE

119 Morila

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

A B O U T T H I S R E P O R T

he reporting criteria as outlined in the reporting codes have been used in the preparation

of internal competent person reports (CPR) for each operation, from which the numbers

stated in this report have been drawn. Reporting is also in accordance with Section 12

of the Johannesburg Stock Exchange Listings Requirements

The Mineral Resource as reported is inclusive of the Ore Reserve component unless otherwise

stated. Note also that all Mineral Resource and Ore Reserve listed in this document are

attributable to AngloGold Ashanti unless otherwise stated.

Information is presented by operating region, country, mine and project. The following tables

and graphs are used to illustrate details across AngloGold Ashanti’s operations during 2016:

Infrastructure maps; legal aspects and tenure; inclusive Mineral Resource and Ore Reserve

comparison by region, country, mine and project; details of average drill hole/sampling

spacing and type; geological cross sections, Mineral Resource sensitivities; exclusive

Mineral Resource; Mineral Resource below infrastructure; inclusive Mineral Resource and

Ore Reserve by-products; year-on-year reconciliation of the Mineral Resource and Ore

Reserve; Inferred Mineral Resource in business plan; Ore Reserve modifying factors; grade

tonnage information on the Mineral Resource and details of appointed Competent Persons.

Topics for brief discussion include regional overview; country overview; introduction; geology;

exploration; projects and estimation.

G U I D E T O R E P O RT I N G

AngloGold Ashanti publishes a suite of reports to record its overall performance annually.

While the Integrated Report 2016 is our primary report, it should be read in conjunction with

this report, the Mineral Resource and Ore Reserve Report 2016, as well as the other reports

making up our full suite of reports for the year.

Our primary

platform for reporting is our

online reporting website

www.aga-reports.com

THE 2016

SUITE OF REPORTS
INCLUDES:

>IR

Integrated Report

>SDR

Sustainable
Development Report

>R&R

Mineral Resource and
Ore Reserve Report

>AFS

Annual Financial
Statements

>OPS

Operational Proﬁles

>NOM

Notice of Annual General
Meeting and Summarised
Financial Information
(Notice of Meeting)

T h e M i n e r a l R e s o u r c e a n d O r e R e s e r v e f o r A n g l o G o l d A s h a n t i L i m i t e d ( A n g l o G o l d A s h a n t i ) a r e

r e p o r t e d i n a c c o r d a n c e w i t h t h e m i n i m u m s t a n d a r d s d e s c r i b e d b y t h e S o u t h A f r i c a n C o d e f o r t h e

R e p o r t i n g o f E x p l o r a t i o n R e s u l t s , M i n e r a l R e s o u r c e s a n d M i n e r a l R e s e r v e s ( T h e S A M R E C C o d e ,

2 0 1 6 e d i t i o n ) , a n d a l s o c o n f o r m t o t h e s t a n d a r d s s e t o u t i n t h e A u s t r a l a s i a n C o d e f o r R e p o r t i n g

o f E x p l o r a t i o n R e s u l t s , M i n e r a l R e s o u r c e s a n d O r e R e s e r v e s ( J O R C C o d e , 2 0 1 2 E d i t i o n ) .

FOR NOTING:

The following key parameters should be noted in respect of our reports:

•

Production is expressed on an attributable basis unless otherwise indicated

•

Unless otherwise stated, $ or dollar refers to US dollars throughout this suite of reports

•

Locations on maps are for indication purposes only

•

Group and company are used interchangeably

•

Mine, operation and business unit are used interchangeably

•

Rounding off of numbers may result in computational discrepancies

•

To reﬂect that ﬁgures are not precise calculations and that there is uncertainty in

their estimation AngloGold Ashanti reports tonnage and content in terms of two

decimals: similarly by-products are reported to no decimals

•

Throughout this report the metric system of measurement is used

The full suite of reports is
available on our annual
report portal at www.aga-
reports.com and also on our
corporate website, www.
anglogoldashanti.com.

For terminology used in
this report, please refer to
the glossary of terms on
page 256.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

S E C T I O N 1

I N T R O D U C T I O N

AngloGold Ashanti strives to actively

create value by growing its major

asset – the Mineral Resource and

Ore Reserve.

Group proﬁle /

Corporate governance /

The year in review /

Group overview /

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

G R O U P P R O F I L E

AMERICAS

1 Argentina

Cerro Vanguardia (92.5%)

2 Brazil
Serra Grande

AGA Minera

ção

3 Colombia
Gramalote (51%)
La Colosa

Quebradona (92.72%)

SOUTH AFRICA

9 South Africa

Vaal River

Kopanang

Moab Khotsong

West Wits

Mponeng

TauTona

Surface Operations

(2)

AUSTRALASIA

10 Australia
Sunrise Dam

Tropicana (70%)

CONTINENTAL
AFRICA

4 Guinea
Siguiri (85%)

5 Mali
Morila

(40%)

(1)

Sadiola (41%)

6 Ghana
Iduapriem
Obuasi

(3)

7 DRC
Kibali

(45%)

(1)

8 Tanzania
Geita

LEGEND

Operations Advanced greenfield projects

Percentages indicate the ownership interest in AngloGold Ashanti, whether held directly or indirectly. All operations are 100%-owned
unless otherwise indicated

(1)

Both Morila and Kibali are managed and operated by Randgold Resources Limited

(2)

Surface Operations includes Mine Waste Solutions (MWS)

(3)

Obuasi is currently in care and maintenance

OUR OPERATIONS ARE GROUPED
REGIONALLY AS FOLLOWS:

South Africa

/ Vaal River, West Wits and Surface Operations

Continental Africa

/ Democratic Republic of the Congo,

Ghana, Guinea, Mali and Tanzania

Australasia

/ Australia

Americas

/ Argentina, Brazil and Colombia

LOCATION OF ANGLOGOLD ASHANTI’S

OPERATIONS AND

ADVANCED GREENFIELD
PROJECTS

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

T h e M i n e r a l R e s o u r c e a n d O r e R e s e r v e f o r A n g l o G o l d A s h a n t i a r e r e p o r t e d i n a c c o r d a n c e w i t h t h e
m i n i m u m s t a n d a r d s d e s c r i b e d b y t h e S o u t h A f r i c a n C o d e f o r t h e R e p o r t i n g o f E x p l o r a t i o n R e s u l t s ,
M i n e r a l R e s o u r c e s a n d M i n e r a l R e s e r v e s ( T h e S A M R E C C o d e , 2 0 1 6 e d i t i o n ) , a n d a l s o c o n f o r m
t o t h e s t a n d a r d s s e t o u t i n t h e A u s t r a l a s i a n C o d e f o r R e p o r t i n g o f E x p l o r a t i o n R e s u l t s , M i n e r a l
R e s o u r c e s a n d O r e R e s e r v e s ( J O R C C o d e , 2 0 1 2 E d i t i o n ) .

AngloGold Ashanti achieves this through ensuring the principles of integrity, transparency and materiality are central to the compilation
of this report and through using the reporting criteria and deﬁnitions as detailed in the SAMREC code. In complying with revisions to
the SAMREC code the changes to AngloGold Ashanti’s Mineral Resource and Ore Reserve have been reviewed and it was concluded
that none of the changes are material to the overall valuation of the company. AngloGold Ashanti has therefore once again resolved
not to provide the detailed reporting as deﬁned in Table 1 of the code. The company will however continue to provide the high level of
disclosure it has in previous years in order to comply with the transparency requirements of the code.

AngloGold Ashanti has established a Mineral Resource and Ore Reserve Steering Committee (RRSC), which is responsible for setting
and overseeing the company’s Mineral Resource and Ore Reserve governance framework and for ensuring that it meets the company’s
goals and objectives while complying with all relevant regularity codes. Its membership and terms of references are mandated under
a policy document signed off by the Chief Executive Ofﬁcer.

Over more than a decade, the company has developed and implemented a rigorous system of internal and external reviews aimed at
providing assurance in respect of Ore Reserve and Mineral Resource estimates. The following operations were subject to an external
review in line with the policy that each operation or project will be reviewed by an independent third party on average once every
three years:

•

Mineral Resource and Ore Reserve at South African Surface Operations

•

Mineral Resource and Ore Reserve at AGA Mineração – Córrego do Sítio

•

Mineral Resource and Ore Reserve at Sadiola

The external reviews were conducted by AMEC, Optiro and Snowden respectively. Certiﬁcates of sign-off have been received for the
ﬁrst two audits from the companies conducting the external reviews to state that the Mineral Resource and/or Ore Reserve comply
with the SAMREC and JORC Codes. A signed NI 43-101 report was provided in the case of Sadiola.

In addition, numerous internal Mineral Resource and Ore Reserve process reviews were completed by suitably qualiﬁed Competent
Persons from within AngloGold Ashanti and no signiﬁcant deﬁciencies were identiﬁed. The Mineral Resource and Ore Reserve are
underpinned by appropriate Mineral Resource Management processes and protocols that ensure adequate corporate governance.
These procedures have been developed to be compliant with the guiding principles of the Sarbanes-Oxley Act of 2002 (SOX).

AngloGold Ashanti makes use of a web based group reporting database called the Mineral Resource and Ore Reserve Reporting
System (R3) for the compilation and authorisation of Mineral Resource and Ore Reserve reporting. It is a fully integrated system for the
reporting and reconciliation of Mineral Resource and Ore Reserve that supports various regulatory reporting requirements including
the SEC and the JSE under SAMREC. AngloGold Ashanti uses R3 to ensure a documented chain of responsibility exists from the
Competent Persons at the operations to the company’s RRSC.

AngloGold Ashanti has also developed an enterprise-wide risk management tool that provides consistent and reliable data that
allows for visibility of risks and actions across the group. This tool is used to facilitate, control and monitor material risks to the Mineral
Resource and Ore Reserve, thus ensuring that the appropriate risk management and mitigation plans are in place.

C O M P E T E N T P E R S O N S

The information in this report relating to exploration results, Mineral Resources and Ore Reserves is based on information compiled by
or under the supervision of the Competent Persons as deﬁned in the SAMREC or JORC Codes. All Competent Persons are employed
by AngloGold Ashanti, except for Kibali and Morila, and have sufﬁcient experience relevant to the style of mineralisation and type
of deposit under consideration and to the activity which they are undertaking. The Competent Persons consent to the inclusion of
exploration results, Mineral Resource and Ore Reserve information in this report, in the form and context in which it appears. The legal
tenure of each operation and project has been veriﬁed to the satisfaction of the accountable competent person and all Ore Reserves
have been conﬁrmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be
issued. This is detailed within this report.

Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering),
BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Ore Reserve processes for AngloGold
Ashanti and is satisﬁed that the Competent Persons have fulﬁlled their responsibilities. VA Chamberlain has 29 years’ experience in
exploration and mining and is employed full-time by AngloGold Ashanti and can be contacted at the following address: 76 Rahima

Moosa Street, Newtown, 2001 South Africa.

C O R P O R A T E G O V E R N A N C E

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

T H E Y E A R I N R E V I E W

A n g l o G o l d A s h a n t i s t r i v e s t o a c t i v e l y c r e a t e v a l u e b y g r o w i n g i t s m a j o r a s s e t – t h e M i n e r a l
R e s o u r c e a n d O r e R e s e r v e . T h i s d r i v e i s b a s e d o n a c t i v e , w e l l - d e f i n e d b r o w n f i e l d s a n d
g r e e n f i e l d s e x p l o r a t i o n p r o g r a m m e s , i n n o v a t i o n i n b o t h g e o l o g i c a l m o d e l l i n g a n d m i n e p l a n n i n g
a n d c o n t i n u a l o p t i m i s a t i o n o f t h e a s s e t p o r t f o l i o .

G O L D P R I C E

The following local prices of gold were used as a basis for estimation in the December 2016 declaration:

Local prices of gold

Gold price

US$/oz

South Africa

ZAR/kg

Australia

AUD/oz

Brazil

BRL/oz

Argentina

ARS/oz

2016 Ore Reserve

1,100

530,000

1,500

4,041

14,969

2015 Ore Reserve

1,100

431,000

1,436

3,360

10,143

2016 Mineral Resource

1,400

663,819

1,817

4,414

21,531

2015 Mineral Resource

1,400

450,000

1,704

3,501

10,788

The SAMREC and JORC Codes require the use of reasonable economic assumptions. These include long-range commodity price
and exchange rate forecasts, these are reviewed annually and are prepared in-house using a range of techniques including historic
price averages.

The Mineral Resource sensitivities shown in the detail of this report use a base of $1,400/oz and a range of $200/oz, unless
stated otherwise.

M I N E R A L R E S O U R C E

The total Mineral Resource increased from 207.8 million ounces (Moz) in December 2015 to 214.7Moz in December 2016. A gross
annual increase of 11.3Moz occurred before depletion, while the net increase after allowing for depletion is 6.9Moz. Changes in
economic assumptions from December 2015 to December 2016 resulted in a 1.7Moz increase to the Mineral Resource, whilst
exploration and modelling resulted in an increase of 10.0Moz. Depletion from the Mineral Resource for the year totalled 4.4Moz.
The Mineral Resource has been estimated at a gold price of US$1,400/oz (2015: US$1,400/oz).

MINERAL RESOURCE

Moz

Mineral Resource as at 31 December 2015

207.8

Depletions

(4.4)

Sub-total

203.4

Additions

Obuasi

A new geological model, the revalidated database and a revised estimation methodology resulted
in the signiﬁcant increase

5.5

Mponeng

Surface and underground exploration of the VCR horizon added signiﬁcant Mineral Resource

2.2

Tropicana

Exploration additions in Havana South, Tropicana and Boston Shaker and additional increases
due to a drop in mining costs

1.5

Sunrise Dam

Increase due to successful exploration drilling, gold price increase and methodology changes

1.3

AGA Mineração

Mainly the result of open pit gains at Rosalino, some underground additions at Cuiabá and CdS,
positive results from surface drilling at Carvoaria and reduced costs at Lamego

1.2

Siguiri

Attributed to cost reduction, inﬁll drilling at Seguélén, Bidini, Tubani and Kami and the inclusion
of mineralised waste

0.9

Geita

Gains due to updates of the underground Mineral Resource models and a decrease in costs

0.9

Other

Additions less than 0.5Moz

0.9

Sub-total

217.8

Reductions

Moab Khotsong

Changes due to a Mineral Resource clean-up, a value drop and a revised structural interpretation

(1.0)

Kibali

Change due to a revised geological model and the constraining of the underground Mineral
Resource into optimised stope shapes

(0.8)

TauTona

Mainly due to value changes and transfers out of Mineral Resource

(0.6)

Kopanang

Resulting from movements out of Mineral Resource and a value drop resulting from a revised
estimation approach

(0.6)

Other

Reductions less than 0.5Moz

(0.1)

Mineral Resource as at 31 December 2016

214.7

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

O R E R E S E R V E

The AngloGold Ashanti Ore Reserve reduced from 51.7Moz in December 2015 to 50.1Moz in December 2016. This gross annual

decrease of 1.6Moz includes depletion of 3.9Moz. The balance of 2.3Moz additions in Ore Reserve, resulted from changes in

economic assumptions between 2015 and 2016 of 0.2Moz, whilst exploration and modelling changes resulted in further additions

of 2.3Moz. Other factors resulted in a 0.3Moz decrease. The Ore Reserve has been estimated using a gold price of US$1,100/oz

(2015: US$1,100/oz).

ORE RESERVE

Moz

Ore Reserve as at 31 December 2015

51.7

Depletions

(3.9)

Sub-total

47.8

Additions

Tropicana

Introduction of the Long Island project philosophy and costs and the HA04 pit

1.1

AGA Mineração

Ore Reserve variation due to change in costs and revenue factor as well as minor mining method

and revised estimation techniques changes

0.6

Siguiri

Mainly due to model changes

0.5

Sunrise Dam

Increase due to revised drill spacing requirements. Vogue orebody had large increase due to the

drill spacing change and additional diamond drilling

0.4

Other

Additions less than 0.3Moz

0.9

Sub-total

51.3

Reductions

Kibali

Decrease is the result of a new geological model

(0.3)

Other

Reductions less than 0.3Moz

(0.9)

Ore Reserve as at 31 December 2016

50.1

T H E Y E A R I N R E V I E W

( C O N T I N U E D )

MINERAL RESOURCE reconciliation 2015 vs. 2016

Total (attributable)

Ounces (millions)

216

214

212

210

208

206

204

202

200

2015

Depletion

-4.4

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

2016

4.4

5.6

0.1

1.6

0.1

0.0

Acquisitions

-0.5

207.8

214.7

ORE RESERVE reconciliation 2015 vs. 2016

Total (attributable)

Ounces (millions)

-2.9

1.3

1.0

0.1

0.2

-0.1

0.1

0.2

-0.5

51.7

50.1

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

2016

Revenue

factor

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

B Y- P R O D U C T S

Several by-products will be recovered as a result of processing of the gold Ore Reserve. These include 56.0kt of uranium oxide from

the South African operations, 0.42Mt of sulphur from Brazil and 18.2Moz of silver from Argentina.

Local prices were used as a basis for estimation of the by-products

Silver

US$/oz

Silver

ARS/oz

Uranium

ZAR/lb

Copper

US$/lb

Molybdenum

US$/lb

2016 Ore Reserve

13.82

188.09

422

2.16

5.00

2015 Ore Reserve

14.06

129.63

384

3.00

10.00

2016 Mineral Resource

22.94

352.82

620

2.90

9.25

2015 Mineral Resource

23.12

178.26

520

3.50

15.00

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

G R O U P O V E R V I E W

MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) INCLUSIVE OF ORE RESERVE

Gold

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

South Africa

Measured

151

1.99

301

Indicated

902

1.99

1,794

Inferred

15.04

436

Total

1,082

2.34

2,531

Democratic Republic of Congo

Measured

2.66

Indicated

3.25

172

Inferred

2.33

Total

2.96

241

Ghana Measured

0.82

Indicated

208

4.29

890

Inferred

5.99

322

Total

264

4.59

1,215

Guinea

Measured

0.64

Indicated

143

0.84

120

Inferred

0.95

Total

226

0.85

191

Mali

Measured

2.37

Indicated

1.58

Inferred

1.63

Total

1.58

109

Tanzania

Measured

–

Indicated

2.99

122

Inferred

4.87

106

Total

3.64

228

Australia Measured

1.08

Indicated

113

2.02

230

Inferred

1.92

Total

193

1.85

357

Argentina

Measured

1.80

Indicated

3.20

Inferred

2.78

Total

2.78

Brazil

Measured

5.88

139

Indicated

5.81

136

Inferred

5.89

270

Total

5.87

544

Colombia

Measured

0.79

Indicated

999

0.80

796

Inferred

859

0.42

359

Total

1,875

0.62

1,168

Total

Measured

267

2.03

542

Indicated

2,564

1.73

4,424

142

Inferred

1,148

1.49

1,713

Total

3,980

1.68

6,678

215

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVE

Gold

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

South Africa

Measured

14.24

204

Indicated

227

3.64

826

Inferred

14.58

175

Total

253

4.76

1,205

Democratic Republic of Congo

Measured

3.27

Indicated

2.17

Inferred

2.33

Total

2.27

107

Ghana Measured

3.91

Indicated

147

4.52

664

Inferred

5.99

322

Total

201

4.91

987

Guinea

Measured

–

Indicated

0.84

Inferred

0.95

Total

123

0.89

110

Mali

Measured

–

Indicated

1.69

Inferred

1.63

Total

1.67

Tanzania

Measured

–

Indicated

2.49

Inferred

4.87

106

Total

3.61

166

Australia Measured

0,67

Indicated

1.85

133

Inferred

1.92

Total

129

1.80

233

Argentina

Measured

2.10

Indicated

2.61

Inferred

1.69

Total

2.43

Brazil

Measured

6.51

100

Indicated

5.88

Inferred

5.91

267

Total

6.03

447

Colombia

Measured

0.79

Indicated

999

0.80

796

Inferred

859

0.42

359

Total

1,875

0.62

1,168

Total

Measured

5.64

335

Indicated

1,613

1.71

2,752

Inferred

1,130

1.28

1,444

Total

2,802

1.62

4,532

146

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

ORE RESERVE BY COUNTRY (ATTRIBUTABLE)

Gold

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

South Africa

Proved

139

0.57

Probable

689

1.02

703

Total

828

0.94

782

Democratic Republic of Congo

Proved

1.90

Probable

4.17

125

Total

4.03

128

Ghana

Proved

0.76

Probable

3.55

226

Total

3.43

228

Guinea

Proved

0.64

Probable

0.86

Total

0.80

Mali

Proved

2.37

Probable

1.57

Total

1.57

Tanzania

Proved

–

Probable

3.73

Total

3.73

Australia

Proved

1.23

Probable

2.32

Total

1.94

124

Argentina

Proved

1.47

Probable

4.85

Total

2.88

Brazil

Proved

3.85

Probable

4.41

Total

4.20

Total

Proved

204

0.79

161

Probable

962

1.45

1,396

Total

1,165

1.34

1,557

G R O U P O V E R V I E W

( C O N T I N U E D )

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

RECONCILIATION OF INCLUSIVE MINERAL RESOURCE (GOLD CONTENT MOZ)

Previous

year

Depletion Exploration

Metho-

dology

Gold

price

Cost

Geo-

technical

Metal-

lurgical

Other

South Africa Region

Kopanang

4.012

(0.154)

(0.125)

(0.195)

–

(0.272)

–

Moab Khotsong

18.870

(0.378)

(0.955)

–

(0.045)

–

Vaal River Surface

4.261

(0.297)

0.028

–

0.031

–

0.001

Mine Waste Solutions

2.280

(0.074)

0.118

–

0.002

0.004

Mponeng

48.086

(0.304)

3.064

(0.748)

–

(0.069)

TauTona

3.476

(0.224)

(0.213)

0.094

–

(0.128)

–

(0.335)

West Wits Surface

1.569

(0.042)

–

0.022

–

Total

82.555

(1.472)

1.917

(0.849)

–

(0.444)

0.053

0.002

(0.399)

Continental Africa Region

Kibali

8.894

(0.337)

0.092

(0.678)

–

(0.239)

Iduapriem

5.621

( 0.259)

0.278

(0.066)

–

(0.014)

–

0.001

Obuasi

28.017

–

5.472

–

Siguiri

5.501

(0.247)

(0.089)

(0.148)

–

0.791

–

0.067

0.273

Morila

0.174

(0.032)

0.012

–

0.016

Sadiola

3.238

(0.080)

0.013

–

0.173

–

(0.003)

(0.006)

Geita

6.879

(0.488)

0.006

0.630

–

0.303

–

(0.012)

Total

58.325

(1.443)

0.313

5.209

–

1.253

–

0.064

0.033

Australasia Region

Sunrise Dam

4.855

(0.250)

0.572

0.457

0.241

–

Tropicana

4.399

(0.240)

1.276

(0.419)

–

0.597

–

Total

9.254

(0.490)

1.848

0.038

0.241

0.597

–

Americas Region

Cerro Vanguardia

3.329

(0.303)

0.024

0.018

–

(0.008)

–

AGA Mineração

13.268

(0.490)

0.106

1.210

(0.150)

0.189

–

(0.190)

Serra Grande

3.429

(0.166)

0.251

–

0.036

Gramalote

3.475

–

La Colosa

28.464

–

Quebradona

5.661

–

(0.067)

–

Total

57.625

(0.958)

0.315

1.227

(0.150)

0.181

–

(0.153)

Grand Total

207.758

(4.363)

4.393

5.626

0.091

1.588

0.053

0.066

(0.519)

R E C O N C I L I A T I O N O F M I N E R A L R E S O U R C E

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

Acquisition/

disposal

Current

year

Net diff

% Comments

–

3.266

(0.75)

(19) Changes due to geological structure changes, movement of material out of

Mineral Resource and a value drop in the 460W ED

–

17.494

(1.38)

(7) Changes due to a Mineral Resource clean-up, a value drop based on new

sampling and a revised structural interpretation. Tonnage decrease further as a
result of changes in the stope width

–

4.024

(0.24)

(6) Normal depletions and additions from ongoing production. Revision to the

Kopanang Paydam Mineral Resource model

–

2.331

0.05

Normal depletions and Harties 1, Buffels 1 and MWS 5 Mineral Resource model
updates as a result of additional drill information

–

50.028

1.94

New VCR surface and underground exploration boreholes enabled the upgrading
of the Mineral Resource. Changes in the geological model resulted in lower grade
estimates on the Elsburg facies of the VCR and the Driefontein facies of the CLR

–

2.670

(0.81)

(23) Mainly due to depletions, value changes and transfers out of Mineral Resource

–

1.549

(0.02)

(1) Movement is mainly due to depletions. Additions are from plant residues as well

as low grade stockpiles from Mponeng mine

–

81.362

(1.19)

(1)

–

7.732

(1.16)

(13) Change due to a revised geological model and the constraining of the

underground Mineral Resource into optimised stope shapes

–

5.561

(0.06)

(1) Inﬁll drilling at Block 7&8 resulted in upgrades from Inferred to Indicated Mineral

Resource and resulted in a net gain due to wider ore zones

–

33.489

5.47

New geological models, the revalidated database and a revised estimation
methodology resulted in the signiﬁcant increase

–

6.148

0.65

Attributed to cost reduction, inﬁll drilling at Seguélén, Bidini, Tubani and Kami and
the inclusion of mineralised waste

–

0.171

(0.00)

(2) Mainly due to depletions

–

3.336

0.10

Reduced processing cost resulted in lower cut-off grades. These changes have
had signiﬁcant impact on the satellite pits. Inﬁll drilling at Tabakoto and FN satellite
pits resulted in exploration gains

–

7.318

0.44

Depletion offset by gains due to revisions of the underground Mineral Resource
model at Geita Hill and a decrease in costs

–

63.755

5.43

–

5.875

1.02

Increased due to successful exploration drilling, gold price increase and
methodology changes which offset depletion

–

5.613

1.21

Exploration additions in Havana South, Tropicana and Boston Shaker and mining
cost decrease due to in-pit dumping and lateral waste haulage

–

11.488

2.23

–

3.059

(0.27)

(8) Decrease primarily due to depletion

–

13.944

0.68

Mainly the result of open pit gains at Rosalino, some underground additions at
Cuiabá and CdS, positive results from surface drilling at Carvoaria and reduced
costs at Lamego

–

3.551

0.12

Exploration gains due to drilling at Inga and Minas III

–

3.475

–

No changes

–

28.464

–

No changes

0.018

5.613

(0.05)

(1) Minor changes due to ﬁve additional boreholes and the attributable percentage

increased from 92.42% to 92.72%

0.018

58.105

0.48

0.018

214.711

6.95

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

RECONCILIATION OF ORE RESERVE (GOLD CONTENT MOZ)

as at 31 December 2016

Previous

year

Depletion

Explo-

ration

Metho-

dology

Gold

price

Cost

Geo-

technical

Metal-

lurgical

Revenue

factor

Other

South Africa Region

Kopanang

0.757

(0.116)

(0.023)

(0.083)

–

(0.033)

–

(0.011)

Moab Khotsong

5.259

(0.303)

(0.087)

–

0.132

–

Vaal River Surface

4.053

(0.227)

0.028

–

0.027

0.045

–

0.007

Mine Waste Solutions

2.101

(0.073)

0.263

–

0.001

Mponeng

12.738

(0.253)

0.073

(0.080)

–

0.003

–

TauTona

1.052

(0.166)

(0.039)

–

(0.098)

–

0.013

West Wits Surface

0.176

(0.034)

–

0.005

0.023

–

0.001

Total

26.136

(1.170)

0.215

(0.162)

–

0.036

0.068

–

0.011

Continental Africa Region

Kibali

4.771

(0.317)

(0.295)

–

(0.032)

Iduapriem

2.265

(0.259)

–

0.041

–

(0.206)

0.001

Obuasi

5.744

–

0.127

–

(0.015)

–

(0.366)

Siguiri

2.091

(0.179)

0.391

(0.038)

–

0.111

–

0.052

0.131

(0.117)

Morila

0.111

(0.011)

–

0.008

Sadiola

1.686

(0.059)

–

0.141

–

0.029

Geita

2.596

(0.442)

(0.044)

(0.034)

–

(0.226)

–

0.168

(0.052)

Total

19.264

(1.267)

0.053

0.096

–

0.027

(0.015)

0.052

0.093

(0.528)

Australasia Region

Sunrise Dam

1.251

(0.269)

0.324

0.034

–

(0.009)

–

0.012

Tropicana

1.834

(0.318)

0.103

1.042

–

(0.001)

Total

3.085

(0.587)

0.426

1.076

–

(0.009)

–

0.011

Americas Region

Cerro Vanguardia

1.224

(0.303)

0.067

(0.028)

–

(0.015)

–

AGA Mineração

1.557

(0.452)

0.400

0.013

–

0.149

(0.032)

(0.007)

0.040

0.053

Serra Grande

0.424

(0.156)

0.182

–

0.075

0.014

(0.113)

–

0.054

(0.004)

Total

3.205

(0.910)

0.649

(0.015)

0.075

0.149

(0.144)

(0.007)

0.095

0.049

Grand Total

51.691

(3.934)

1.343

0.995

0.075

0.167

(0.124)

0.113

0.188

(0.456)

R E C O N C I L I A T I O N O F O R E R E S E R V E

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

Acquisition/

disposal

Current

year

Net diff

% Comments

–

0.493

(0.26)

( 35) The main changes are due to revisions to the geological model and the

application of a Mineral Resource discount factor based on the historical
reconciliation

–

5.001

(0.26)

(5) Normal depletions and minor changes due to exploration and mine design

modiﬁcations

–

3.934

(0.12)

(3) Due to depletion and additions as a result of model changes based on new drilling

information which increased gold grade

–

2.292

0.19

Due to depletion and additions as a result of model changes based on new drilling
information which increased gold grade

–

12.481

(0.26)

(2) Minor changes due to depletion

–

0.762

(0.29)

(28) Due to a change in the mining strategy at the Savuka section which resulted in a

large portion of its Ore Reserves being excluded

–

0.172

(0.00)

(2) Depletion and an increase from the tailing storage facilities

–

25.134

(1.00)

(4)

–

4.128

(0.64)

(13) Decrease is the result of depletion and a new geological model

–

1.843

(0.42)

(19) Depletion and revisions to conversion factors

–

5.489

(0.25)

(4) Revised mining method from underhand drift and ﬁll to longhole open stoping.

Reintroduction of sill pillars in Block 11 and 8L

–

2.443

0.35

Mainly due to model changes

–

0.108

(0.00)

(2) Mainly due to depletions

–

1.798

0.11

Increase primarily due to change in costs structure of the satellite pits to the SSP
project costs

–

1.967

(0.63)

(24) Changes in economic parameters and depletions had a signiﬁcant negative

impact. Star and Comet Cut 3 was reported as an underground Ore Reserve, a
ﬁrst for Geita

–

17.776

(1.49)

(8)

–

1.344

0.09

Increase due to revised drill spacing requirements. Vogue orebody had large
increase due to the drill spacing change and additional diamond drilling.

–

2.659

0.83

Introduction of the Long Island project and the HA04 pit

–

4.003

0.92

–

0.946

(0.28)

(23) Primarily due to depletion and changes in mining method which will reduce the

planned dilution

–

1.722

0.17

Ore Reserve variation due to change in costs and revenue factor as well as minor
mining method and revised estimation changes

–

0.478

0.05

Ore Reserve variation due to exploration changes mainly at Mina III, Pequizão and
Ingá, higher local gold prices and lower costs (exchange rate) which were offset
by revised dilution and recoveries at Mina III

–

3.146

(0.06)

(2)

–

50.060

(1.63)

(3)

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

S E C T I O N 2

S O U T H A F R I C A

The South Africa region comprises Vaal

River, West Wits and Surface Operations.

Regional overview /

Kopanang /

Moab Khotsong /

Mponeng /

TauTona /

Surface Operations /

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

S O U T H A F R I C A

R e g i o n a l o v e r v i e w

400km

Durban

Bloemfontein

Pretoria

Carletonville

Klerksdorp

East London

Port Elizabeth

(1)

Includes Mine Waste Solutions (MWS)

(1)

The Surface Operations are distributed

(1)

throughout the Vaal River and West Wits

(1)

operations

Cape Town

North West

Free State

1+3

2+3

(2)

Great Noligwa was included in the Moab Khotsong operation in 2014

(3)

Savuka was included in the TauTona operation in 2013

(4)

WUDLS is reported as part of Mponeng

North West province

Free State province

Border

Moab Khotsong

Kopanang

1 Vaal

River

Kopanang
Moab

Khotsong

(2)

4km

Great Noligwa

(2)

Orkney

1 Vaal

River

2 West

Wits

3 Surface

Operations

(1)

Operations

Fochville

Mponeng

WUDLs

(4)

TauTona

Savuka

(3)

Gauteng province

2 West

Wits

Mponeng

(4)

TauTona

(3)

4km

CONTRIBUTION TO
GROUP PRODUCTION 2016

•

South Africa

•

Rest of AngloGold Ashanti

CONTRIBUTION TO
REGIONAL PRODUCTION

•

West Wits

•

Vaal River

•

Surface Operations

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

A s a t D e c e m b e r 2 0 1 6 , A n g l o G o l d A s h a n t i ’s o p e r a t i o n s i n S o u t h A f r i c a h a d a t o t a l M i n e r a l

R e s o u r c e ( i n c l u s i v e o f t h e O r e R e s e r v e ) o f 8 1 . 4 M o z ( 2 0 1 5 : 8 2 . 6 M o z ) a n d a n O r e R e s e r v e o f

2 5 . 1 M o z ( 2 0 1 5 : 2 6 . 1 M o z ) .

This is equivalent to around 38% and 50% of the group’s Mineral Resource and Ore Reserve respectively. The South African operations

produced 967Moz of gold in 2016, or 27% of group production.

S O U T H A F R I C A

c o n t i n u e d

R e g i o n a l O v e r v i e w

CONTRIBUTION TO GROUP
TOTAL MINERAL RESOURCE

•

South Africa

•

Rest of AngloGold Ashanti

CONTRIBUTION TO GROUP
TOTAL ORE RESERVE

•

South Africa

•

Rest of AngloGold Ashanti

KEY STATISTICS

Units

2016

2015

2014

Operational performance

Tonnes treated/milled

39.6

36.8

38.4

Recovered grade

(1)

oz/t

0.219

0.225

0.239

g/t

7.51

7.70

8.19

Gold production

000oz

967

1,004

1,223

Total cash costs

$/oz

896

881

849

Total production costs

$/oz

1,089

1,091

1,087

All-in sustaining costs

(2)

$/oz

1,081

1,088

1,064

Capital expenditure

182

206

264

(1)

Refers to underground operations only.

(2)

Excludes stockpile write-offs.

AngloGold Ashanti’s South Africa operations comprise four deep level underground mines and three surface processing operations,
collectively referred to as Surface Operations.

All four underground mines are 100% owned by AngloGold Ashanti. The mining operations are all located within the Witwatersrand Basin
and are in two mining districts, the Vaal River and West Wits operations.

•

The Vaal River operations consist of the Kopanang and Moab Khotsong mines (Great Noligwa has been incorporated with Moab

Khotsong) and are situated near the town of Klerksdorp. The primary reefs mined by these operations are the Vaal Reef (VR) and the
secondary Crystalkop Reef (CR).

•

The West Wits operations consist of the Mponeng and TauTona mines (Savuka mine being part of TauTona) and are situated near the town

of Carletonville. The primary reefs mined by these operations are the Carbon Leader Reef (CLR) and the Ventersdorp Contact Reef (VCR).

At the South African underground operations a sequential and/or scattered grid mining method is employed to extract the gold from the
deep, narrow, tabular orebodies. The grid is pre-developed through a series of haulages and crosscuts. Stoping takes place by means of
breast mining using conventional drill and blast techniques. The smallest mining unit (SMU) is 100m x 100m.

The surface operations can be found in both districts and include the Vaal River Surface, Mine Waste Solutions (MWS) and the West Wits
Surface processing operations They rework and retreat the low grade stockpiles and tailings storage facilities (TSF) which result from the
mining and processing of the primary and secondary reef horizons.

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

S O U T H A F R I C A

c o n t i n u e d

R e g i o n a l O v e r v i e w

INCLUSIVE MINERAL RESOURCE

South Africa

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

151

1.99

301

Indicated

902

1.99

1,794

Inferred

15.04

436

Total

1,082

2.34

2,531

EXCLUSIVE MINERAL RESOURCE

South Africa

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

14.24

204

Indicated

227

3.64

826

Inferred

14.58

175

Total

253

4.76

1,205

ORE RESERVE

South Africa

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

139

0.57

Probable

689

1.02

703

Total

828

0.94

782

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

SOUTH AFRICA
MINERAL RESOURCE – ATTRIBUTABLE

(per operation/project)

1.6

1.5

2.3

3.5

2.7

4.0

3.3

4.3

4.0

Moz

West Wits

Surface

Mine Waste

Solutions

TauTona

Mponeng

Kopanang

Vaal River

Surface

Moab

Khotsong

2015

2016

SOUTH AFRICA
ORE RESERVE – ATTRIBUTABLE

(per operation/project)

0.2

0.8

0.5

1.1

0.8

2.1

2.3

4.1

3.9

5.3

5.0

Moz

West Wits

Surface

Kopanang

TauTona

Moponeng

Mine Waste

Solutions

Vaal River

Surface

Moab

Khotsong

2015

2016

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

S O U T H A F R I C A

c o n t i n u e d

K o p a n a n g

I N T R O D U C T I O N

Property description

Kopanang is a mature, deep level underground operation. The centre of mining has shifted over the last

few years to the west of the mine lease area.

Location

Kopanang is located in the Free State province, approximately 170km south-west of Johannesburg and

10km south-east of the town of Orkney.

History

Shaft sinking was initiated in 1977 and completed by 1981 with production beginning in 1984.

Legal aspects and

tenure

The current mining lease encompasses an area of 35km

. AngloGold Ashanti holds a number of mining

rights in the Klerksdorp area which have been successfully converted, executed and registered as new

order mining rights at the Mineral and Petroleum Resources Titles Ofﬁce (MPRTO).

•

NW30/5/1/2/2/04MR valid from 12 September 2007 to 11 September 2022

•

NW30/5/1/2/3/2/2/14MR valid from 18 February 2013 to 17 February 2043

•

NW30/5/1/1/2/16MR valid from 20 August 2008 to 19 August 2038

Mining method

Two gold-bearing horizons (VR and CR) are accessed via a single shaft system which descends to a

maximum depth of 2,334m, while the current working levels are situated between 1,300m and 2,064m

below surface. A sequential grid mining layout is used from which scattered mining takes place.

Operational

infrastructure

Kopanang’s surface and underground infrastructure as well as the power and water services exceed the

planned peak life of mine (LoM) production requirements. Broken rock handling is track-bound, transferred

to a number of inter-level sub-vertical transfer systems that gravity feeds to the main silos on 75 level. The

rock is hoisted to surface through the main shaft. From the shaft the rock is transported to the processing

plant by train.

Mineral processing

Stoping ore and development rock is hoisted and processed as one product. Moab Khotsong and

Kopanang mines share the Great Noligwa gold plant, and this plant’s design capacity exceeds the

maximum planned production from the two mines. Gold and uranium is recovered through gold cyanide

and acid uranium leaching. The reef is milled at the Great Noligwa gold plant and processed at the South

Uranium plant for uranium oxide extraction prior to gold extraction at the Great Noligwa gold plant.

Risks

Kopanang is mining on a declining grade proﬁle to the west, with bulk future mining in the low value 460W

geological domain.

Introduction

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COMPETENT PERSONS

Kopanang

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Rebaone Francis Gaelejwe

SACNASP

400207/14

15 years

BSc Hons (Geology)

Ore Reserve

Pieter Enslin

PLATO

PMS 0183

34 years

GDE (Mineral Economics),

HND (Mineral Resource

Management), MSCC

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

Kopanang is situated in a structurally complex area of the Witwatersrand Basin, which has been subjected to numerous tectonic

events. The VR is the principal economic horizon at Kopanang and the CR the secondary economic horizon. Both reefs are part of

the Witwatersrand Supergroup and are stratigraphically located near the middle of the Central Rand Group. The CR forms the top of

the Johannesburg Subgroup, while the VR lies approximately 255m below the CR. The two narrow tabular orebodies are both gold

and uranium bearing and currently only the VR is mined, with limited CR mining planned during the LoM. The CR is accessible through

the VR infrastructure. These conglomerate units dip at an average of 21° towards the south and occur in a 2,100m thick sedimentary

sequence comprising the Central Rand Group.

Mining is complicated by the presence of an assortment of steep (85°–50°) north-dipping and younger low-angle (50°–15°) south-

dipping faults. The interplay of these main fault regimes, along with abundant pre and post dating dykes, makes for a complex and

geologically challenging deposit.

MINERALISATION STYLE

Extensive research has conclusively shown that gold was precipitated in Witwatersrand conglomerates reefs through the actions

of hydrothermal ﬂuids. This conclusion has a solid scientiﬁc base and has been well documented in a series of reports by the Rock

Deformation Research Unit (RDR) at Leeds University in the United Kingdom, in conjunction with the AngloGold Ashanti Basin Analysis

team (BAT), who are credited with making many of the advances in understanding of the mineralising system.

The ﬂuids precipitated gold and other elements through reactions that took place at elevated temperatures (300°–350°C). Migrating

liquid and gaseous hydrocarbons precipitated as a solid hydrocarbon (carbon), which was then mesophased through metamorphism

and structural deformation. Carbon was preferentially precipitated in bedding parallel fractures that most commonly followed the base

of the VR package. Gold was precipitated very soon after the carbon, giving the critical gold-carbon association that characterises

many of the high-grade VR localities.

A geological model is employed to delineate variations in characteristics of the VR and CR. The current geological model thus

subdivides the VR and CR into homogeneous zones based on geological and grade characteristics.

MINERALISATION CHARACTERISTICS

The VR package varies from about 10cm or less in thickness to over 2.5m. It consists of a thin basal conglomerate (the C-Facies)

and a thicker sequence of upper conglomerates (the A-Facies). These two sedimentary facies are separated by the B-Facies, which

is barren interbedded orthoquartzite. The A-Facies is further subdivided into three sub-facies, known as the Bottom, Middle and Top

sub-facies or the tripartite. The C-Facies is well developed at Kopanang and is the principal economic horizon of the VR. The C-Facies

consists of a thin, basal pebble lag overlain by pebbly quartzites rather than clast-supported conglomerates. The overlying pebbly

quartzites generally have a low gold content. Elevated gold grades have been known to be associated with well developed and well

packed conglomerates; although at times these conglomerates may be thin in nature.

The CR is poorly developed with relatively small areas of economic interest. As with the VR, high uranium values are also often

associated with high gold values and the presence of a 5mm to 2cm thick carbon seam is found at the base of the conglomerate.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

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Administrative

-4000m

-3500m

-3000m

-2500m

-1500m

-1000m

-2000m

1km

Elevation

Witwatersrand Supergroup
West Rand Group

Transvaal Supergroup

Legend

Ventersdorp Lava

Witwatersrand Supergroup
Central Rand Group

Kopanang Shaft

Klipriviersberg

Black reef

Platberg

De Hoek fault

Dolomites

Jersey fault

Zuiping E fault

Zuiping fault

Diagonal dyke

Kimberly channel

Vaal Reef

Maraisburg Quartzite

Roodepoort Shales

Roodepoort Quartzite

Roodepoort Shales

Crown Lava

Babrosco

Rietkuil

S O U T H A F R I C A

c o n t i n u e d

K o p a n a n g

E X P L O R AT I O N

No exploration drilling was carried out at Kopanang during 2016.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Kopanang

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

5 x 5

–

Chip sampling stoping

Indicated

100 x 100

–

Underground drilling

Inferred

1,000 x 1,000

–

Surface drilling

Grade/ore control

–

See Measured category

INCLUSIVE MINERAL RESOURCE

Kopanang

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.10

11.57

1.21

0.04

Indicated

0.46

14.87

6.91

0.22

Inferred

0.20

18.05

3.63

0.12

Total

0.77

15.25

11.75

0.38

VR Base

Measured

2.27

13.09

29.73

0.96

Indicated

3.08

12.77

39.29

1.26

Inferred

0.80

21.82

17.52

0.56

Total

6.15

14.07

86.54

2.78

VR above infrastructure

Measured

–

Indicated

0.38

8.63

3.29

0.11

Inferred

0.00

7.69

0.02

0.00

Total

0.38

8.63

3.30

0.11

Kopanang

Total

7.31

13.91

101.60

3.27

GEOLOGICAL CROSS-SECTION THROUGH KOPANANG

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EXCLUSIVE MINERAL RESOURCE

Kopanang

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

1.23

13.99

17.20

0.55

Indicated

3.22

12.65

40.72

1.31

Inferred

0.97

21.11

20.47

0.66

Total

5.42

14.47

78.39

2.52

The exclusive Mineral Resource year-on-year has reduced due to the removal of material, which does not show reasonable and
realistic prospects for eventual economic extraction. The exclusive Mineral Resource consists of design and schedule losses, areas for
investigation for possible future inclusion in the Ore Reserve, stabilising pillars not scheduled, areas above infrastructure and marginal
gold mineralisation.

MINERAL RESOURCE BELOW INFRASTRUCTURE

No Mineral Resource is reported below infrastructure.

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: URANIUM (U

)

Kopanang

Tonnes

Grade

Contained

as at 31 December 2016

Category

million

kg/t

tonnes pounds million

Measured

–

Indicated

0.74

4,642

Inferred

0.61

611

Total

0.72

5,253

ESTIMATION

The sampling data used in Mineral Resource estimation includes underground chip samples, underground drill holes and surface drill
holes. All sample locations are reported as a composite over a mineralised width, resulting in a single channel width (cm) and metal
accumulation (cm.g/t) value.

AngloGold Ashanti makes use of a Bayesian geostatistical approach where, in the absence of dense sampling data, gold estimations
are based on a combination of the observed data and external knowledge relating to the data. A Bayesian geostatistical approach
asserts that the area to be evaluated forms part of a larger continuous entity, to which the observed data belongs.

Mixed support co-kriging is used in the estimation of the Mineral Resource for all South African underground operations. It is a
technique that enables the use of data of mixed support, allowing both drill hole and underground sampling data to be used together.
Estimation on the VR is performed into large block sizes, generally >210m x 210m, which fully capture the within-block variance,
allowing the co-kriging of data of different support sizes over long ranges. Estimation is done per geological homogeneous zone, in
logarithmic space, because of the highly skewed gold distribution. The ﬁnal gold estimates are then calculated by back transforming
the estimates, using lognormal four parameter distribution models. Simple kriging is used for grade control and Measured Mineral
Resource at a 30m x 30m block size and constrained by the weight of the mean value.

The Mineral Resource is initially reported as inclusive of the Ore Reserve as it forms the basis for the Ore Reserve conversion process.
Mineral Resource cut-off grades are computed for each operation by reef horizon. These cut-off grades incorporate a proﬁt margin
that is relevant to the business plan. Grade tonnage curves are produced for each operation, which show the potential of the deposit
at different cut-off grades.

KOPANANG

Grade tonnage curve underground (metric) (attributable)

T
onnes above cut-off (millions)

verage grade above cut-off (g/t)

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

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S O U T H A F R I C A

c o n t i n u e d

K o p a n a n g

KOPANANG year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

4.1
4.0
3.9
3.8
3.7
3.6
3.5
3.4
3.3
3.2
3.1

-0.15

-0.13

-0.19

0.00

-0.27

0.00

4.01

3.27

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Year on year changes in the Mineral Resource are mainly due to some write-off of uneconomic Mineral Resource as well as changes

related to an improved geological understanding as a result of ongoing sampling and mapping.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

KOPANANG

Inclusive Mineral Resource sensitivity

-10

-20

-30

-40

-50

Kopanang as a mature deep level gold mine is

very sensitive to changes in gold price as it is

mining with a declining gold grade profile.

O R E R E S E R V E

ORE RESERVE

Kopanang

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

0.04

3.98

0.14

0.00

Probable

0.04

3.83

0.15

0.00

Total

0.08

3.90

0.30

0.01

VR Base

Proved

1.71

5.39

9.22

0.30

Probable

1.03

5.64

5.81

0.19

Total

2.74

5.48

15.02

0.48

Kopanang

Total

2.82

5.44

15.32

0.49

ORE RESERVE BY-PRODUCT: URANIUM (U

)

Kopanang

Tonnes

Grade

Contained

as at 31 December 2016

Category

million

kg/t

tonnes

pounds million

Proved

0.33

570

Probable

0.33

350

Total

0.33

920

Introduction

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Uranium is produced as a by-product during the processing of gold-bearing material. The reef is milled at the Great Noligwa gold plant

and processed at the South Uranium plant for uranium oxide extraction prior to ﬁnal gold extraction at the Great Noligwa gold plant.

Ammonium diuranate (ADU or yellow cake) is the ﬁnal product of the South Uranium plant which is transported to the Nuclear

Fuels Corporation of South Africa (Pty) Ltd (Nufcor) located in Gauteng where the material is calcined and packed for shipment to

the converters.

ESTIMATION

Mine design delineates the mining areas and supporting development for each mining level and section, usually by extrapolating the

existing mining design based on the geological structure model, taking all relevant mine design recommendations into consideration.

The in situ Mineral Resource is scheduled monthly for the full LoM plan. The value estimates for these schedules are derived from the

Mineral Resource model.

Modifying factors are applied to the in situ Mineral Resource to arrive at an Ore Reserve estimate. These factors include a dilution

factor to accommodate the difference between the milling width and the stoping width, as well as the mine call factor (MCF).

ORE RESERVE MODIFYING FACTORS

Kopanang

Gold

price

Cut-off

grade

Cut-off

value

Stoping

width

Dilution

RMF

MCF

MetRF

as at 31 December 2016

ZAR/kg

g/t Au

cm.g/t Au

% (based

on g/t)

530,000

9.52

1,000

105.0

58.0

95.4

60.0

95.7

VR Base

530,000

9.52

1,000

105.0

55.7

94.6

68.3

95.6

Historical performance was used in the determination of the modifying factors.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Kopanang

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

VR Base

0.06

12.43

0.70

0.02

Total

0.06

12.43

0.70

0.02

With appropriate caution, a portion of the Inferred Mineral Resource was included in the business plan during the optimisation process.

This accounts for 4% of the business plan.

ORE RESERVE BELOW INFRASTRUCTURE

No Ore Reserve is reported below infrastructure.

KOPANANG year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

0.80

0.75

0.70

0.65

0.60

0.55

0.50

0.45

0.40

-0.12

-0.02

-0.08

0.00

-0.03

0.00

-0.01

0.00

0.76

0.49

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

The main changes are due to revisions to the geological model and the application of a Mineral Resource discount factor based on

the historical reconciliation.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

M o a b K h o t s o n g

I N T R O D U C T I O N

Property description

The Moab Khotsong mine is the youngest of the South African deep level gold mines, with three vertical

shaft systems being maintained to service the mine. The orebody is divided into three distinguishable

blocks through major faulting. These geographical areas are referred to as Top mine (Great Noligwa),

Middle mine and Lower mine (Zaaiplaats).

Location

Moab Khotsong is located near the towns of Orkney and Klerksdorp, about 180km south-west of

Johannesburg. The mining lease area lies just south of the Vaal River, which forms a natural boundary

between South Africa’s North West and Free State provinces.

History

Great Noligwa mine was merged with Moab Khotsong mine in 2014, and operations are now collectively

referred to as Moab Khotsong. Great Noligwa commenced production in 1968 and Moab Khotsong

started producing in 2003.

Legal aspects and

tenure

AngloGold Ashanti holds a number of mining rights in the Klerksdorp area which have been successfully

converted, executed and registered as new order mining rights at the MPRTO.

•

NW30/5/1/2/2/15MR valid from 12 September 2007 to 11 September 2022

•

NW30/5/1/1/2/16MR valid from 18 February 2013 to 17 February 2043

Mining method

The tabular nature, along with the depth and structural complexity of the orebody dictates the mining

method utilised at Moab Khotsong mine. Mining at Moab Khotsong is based on a scattered mining method

together with an integrated backﬁll support system that incorporates bracket pillars. The economic reef

horizons are exploited between 1,791m and 3,052m below surface.

Operational

infrastructure

Moab Khotsong and Great Noligwa’s surface and underground infrastructure as well as the power and

water services are designed to fully meet the planned LoM production and service capacity requirements.

Broken rock handling is track-bound, transferring the rock to a number of inter level sub-vertical transfer

systems that gravity feeds to the main silos on 101 level. Separate streams are used for waste rock

and gold bearing ore. The rock is hoisted to surface through the main shaft. From the shaft the ore is

transported to the processing plant via rail and the waste rock is deposited on the low grade stockpile

using a conveyor belt system.

Mineral processing

From December 2016 the decision was taken to hoist and process both stoping ore and development

waste rock as one product. Moab Khotsong and Kopanang mines share the Great Noligwa gold plant.

The design capacity of the Great Noligwa plant exceeds the maximum planned production volume from

the two mines. The Great Noligwa plant employs the reverse gold leach method, whereby gold and

uranium are recovered through gold cyanide and acid uranium leaching.

Risks

The risk as reported last year around Zaaiplaats has been reduced as a result of the completion of a

successful pre-feasibility study (PFS), however the ultimate outcome is still under consideration.

Geological structural complexity to the north of the Karel Dyke remains a risk until all inﬁll drilling and

development has been completed.

Seismicity remains a risk that can impact on Ore Reserve.

Introduction

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Administrative

COMPETENT PERSONS

Moab Khotsong

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Rebaone Francis Gaelejwe

SACNASP

400207/14

15 years

BSc Hons (Geology)

Ore Reserve

Leanne Brenda Freese

SACNASP

400294/14

19 years

BSc Hons (Geology)

GDE (Mineral Resource

Management)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this

report, in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The VR is the primary economic horizon at Moab Khotsong and the CR is the secondary economic horizon, which contributes less

than 2% of the total mining volume. Both reefs are narrow tabular deposits forming part of the Witwatersrand Supergroup and are

stratigraphically located near the middle of the Central Rand Group. The VR lies approximately 255m below the CR.

The geology at Moab Khotsong is structurally complex with large fault-loss areas between the three mining areas. The geological setting

is one of crustal extension, dominated by major south-dipping fault systems with north-dipping Zuiping faults wedged between the south-

dipping faults. The De Hoek and Buffels East faults structurally bound the reef blocks of the Middle mine to the north-west and south-

east respectively. The northern boundary of Moab Khotsong Middle mine is a north-dipping Zuiping fault. Extensive drilling is currently

underway on the extremities of Middle mine, targeting potential preserved blocks. Moab Khotsong (particularly Middle mine) requires a

reduced drill spacing pattern on the order of 50 X 50 m which allows for accurate delineation of the structurally bound mineable blocks,

whereby accurate and efﬁcient mine designs can be implemented insuring optimal extraction and maximum orebody utilisation.

VR UNDERGROUND WORKINGS

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

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S O U T H A F R I C A

c o n t i n u e d

M o a b K h o t s o n g

150m

Transvaal dolomites

Black reef

MB1 /

MBA / Ge8

Kimberly channel

Jersey fault

Denny’

-3500m

-3800m

Elevation

Zuiping H fault

Vaal Reef

Ventersdorp lavas

Zuiping G fault

De Hoek fault

MB2/3

MB5/6

MB7

sill

MB7

MB8/9

MB10

Florida Group

Crown lava

Roodepoort siltstone

Roodepoort quartzite

Roodepoort siltstone

Maraisburg

MB12

Adamay Reef

5 fault

Zuiping E fault

West Rand Group

Transvaal Supergroup

Legend

Ventersdorp Lava

Central Rand Group

Witwatersrand
Supergroup

fault

intrusive

MINERALISATION STYLE

The mineralisation model adopted for AngloGold Ashanti’s Witwatersrand deposits is that of gold precipitation in the Witwatersrand

conglomerates through the actions of hydrothermal ﬂuids. This is based on well documented scientiﬁc studies, in collaboration with

accredited international universities, spanning over a period from the early 1990s to present.

The ﬂuids precipitated gold and other elements through reactions that took place at elevated temperatures (300-350°C). Migrating

liquid and gaseous hydrocarbons precipitated as a solid hydrocarbon (carbon), which was then mesophased through metamorphism

and structural deformation. Carbon was preferentially precipitated in bedding–parallel fractures that most commonly followed the base

of the VR package (A-bottom sub-facies), however, gold and uranium mineralisation is also commonly observed within the A-middle

and A-top sub-facies of the VR. Gold was precipitated very soon after the carbon, giving the critical gold-carbon association that

characterises many of the high-grade VR localities.

A geological model is employed to delineate variations (either lateral or vertical) in characteristics of the VR and CR. The current

geological model thus subdivides the VR and CR into homogeneous zones based on geological and grade characteristics.

MINERALISATION CHARACTERISTICS

The VR consists of a thin basal conglomerate (the C-Facies) and a thicker sequence of upper conglomerates (A-Facies). These two

sedimentary facies are separated by the B-Facies, which is a layer of barren orthoquartzite. The A-Facies is the primary economic

horizon at Moab Khotsong, however remnants of the C-Facies are sporadically preserved below the A-Facies. High gold values in

the VR are often located at the base of this unit and are associated with high uranium values as well as with the presence of carbon.

Uranium is an important by-product which is also recovered from the VR.

The CR is mined on a limited scale in the central part of Top mine, where a high-grade, north-south trending sedimentary channel

containing two economic horizons has been exposed. To the east and the west of this channel, the CR is poorly developed with limited

areas containing economic concentrations of gold and uranium. As with the VR, high uranium values are also often associated with

high gold values. A 5mm to 20mm thick carbon seam commonly occurs at the base of the conglomerate. To the north of the mine, the

CR sub-crops against the Gold Estates Conglomerate Formation, and in the extreme south of the mine, the CR has been eliminated

by a deep Kimberley erosion channel and the Jersey fault. The CR that is preserved in the eastern parts of the Middle mine has not

been proven to be feasible for eventual economic extraction and has therefore not been included into the published Mineral Resource.

GEOLOGICAL CROSS-SECTION THROUGH MOAB KHOTSONG

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E X P L O R AT I O N

Brownﬁelds exploration is focused on improving conﬁdence in the geological model, as well as adding additional Mineral Resource

to the mine.

MZA10 surface drill hole was completed late in 2015 and the structural and reef intersection value information has now been

incorporated into the Zaaiplaats geological model. Reef intersection information had minimal impact on the estimates.

Underground exploration is done through diamond drilling (DD) and utilises a combination of hydraulic and pneumatic powered

machines. The exploration strategy adopted for Moab Khotsong to address the structural complexity involves:

•

Deﬁnition drilling aiming for a 100m x 100m drilling grid for optimal placement of primary haulage and cross-cut development

•

While inﬁll drilling aims for a minimum of 50m x 50m drilling spacing for placement of secondary development.

•

The drill spacing is reduced further in structurally complex areas to reduce the risk of stoping operations intersecting unexpected

faults greater than 3m.

Three underground hydraulic powered DD rigs were deployed to carry out drilling on the Top mine and Middle mine. This drilling

is primarily used to obtain structural and grade information aimed at upgrading the Mineral Resource and improving the structural

conﬁdence of Moab Khotsong. Two drill rigs are currently deployed in the Top mine to obtain structural information in the VR blocks

below 76 Level. One drill rig is deployed in the Middle mine to obtain structural information on the 95 and 98 Level VR blocks within

the Middle mine infrastructure in the eastern side of the mine. The Middle mine below 101 Level structural re-interpretation has been

completed and the geological model has been updated.

P R O J E C T S

The initial development of Moab Khotsong was taken with a view that the new mine would be well positioned to facilitate the

exploitation of additional ore blocks adjacent and contiguous to current mining areas. The most important of these blocks are the

Lower mine blocks (Zaaiplaats, Area A, B and C), positioned to the south-west of the current Moab Khotsong infrastructure and

extending below the existing mine.

Over the last few years, changes in key parameters and economic assumptions have reduced the economic viability of project

Zaaiplaats. While the project remains part of the LoM plan and Ore Reserve base, the project is currently subject to a PFS, which is

due to be completed in early 2017.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Moab Khotsong

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

5 x 5

–

Chip sampling stoping

Indicated

100 x 100,

800 x 800

–

Underground drilling

Inferred

1,000 x 1,000

–

Surface drilling

Grade/ore control

–

See Measured category

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

Introduction

South Africa

Continental Africa

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INCLUSIVE MINERAL RESOURCE

Moab Khotsong

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

VR Lower mine – Area A

Measured

–

Indicated

0.20

19.06

3.73

0.12

Inferred

1.54

14.06

21.67

0.70

Total

1.74

14.62

25.40

0.82

VR Lower mine – Area B

Measured

–

Indicated

4.55

9.04

41.13

1.32

Inferred

1.26

9.37

11.78

0.38

Total

5.81

9.11

52.92

1.70

VR Lower mine – Area C

Measured

–

Indicated

1.38

14.48

19.94

0.64

Inferred

2.04

13.31

27.18

0.87

Total

3.42

13.78

47.12

1.51

VR Lower mine – Zaaiplaats

Measured

–

Indicated

8.96

17.60

157.74

5.07

Inferred

3.32

16.21

53.85

1.73

Total

12.28

17.22

211.58

6.80

VR – Middle mine

Measured

2.08

20.99

43.57

1.40

Indicated

4.04

20.73

83.78

2.69

Inferred

0.33

16.16

5.30

0.17

Total

6.45

20.58

132.65

4.26

VR – Top mine

Measured

0.40

15.04

5.96

0.19

Indicated

0.85

13.52

11.51

0.37

Inferred

0.46

17.31

8.01

0.26

Total

1.71

14.90

25.48

0.82

VR – Great Noligwa

Measured

0.87

16.26

14.16

0.46

Indicated

0.30

16.53

4.99

0.16

Inferred

0.02

13.58

0.25

0.01

Total

1.19

16.28

19.41

0.62

VR – Great Noligwa shaft pillar

Measured

0.07

14.69

1.06

0.03

Indicated

1.15

14.94

17.16

0.55

Inferred

0.22

14.37

3.20

0.10

Total

1.44

14.84

21.42

0.69

CR – Great Noligwa

Measured

0.04

10.22

0.40

0.01

Indicated

0.31

16.26

5.01

0.16

Inferred

0.16

17.49

2.74

0.09

Total

0.50

16.18

8.15

0.26

Moab Khotsong

Total

34.54

15.75

544.11

17.49

S O U T H A F R I C A

c o n t i n u e d

M o a b K h o t s o n g

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MOAB KHOTSONG

Grade tonnage curve underground (metric) (attributable)

T
onnes above cut-off (millions)

verage grade above cut-off (g/t)

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: URANIUM (U

)

Moab Khotsong

Tonnes

Grade

Contained U

as at 31 December 2016

Category

million

kg/t

tonnes

pounds million

Measured

–

Indicated

0.80

20,203

Inferred

0.81

7,547

Total

0.80

27,750

ESTIMATION

Mixed support co-kriging is used in the estimation of the Mineral Resource for all South African underground operations. It is a

technique that enables the use of data of mixed support, allowing wide-spaced drill hole and dense underground sampling data

to be used together. Estimation on the VR is performed into large block sizes, generally >300m x 300m, which fully capture the

within-block variance, allowing the co-kriging of data of different support sizes over long ranges. Estimation is done per geological

homogeneous zone, in logarithmic space, because of the highly skewed gold distribution. The ﬁnal gold estimates are then calculated

by back transforming the estimates, using lognormal four parameter distribution models. Simple kriging is used for grade control and

Measured Mineral Resource at a 30m x 30m block size and constrained by the weight of the mean value.

EXCLUSIVE MINERAL RESOURCE

Moab Khotsong

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

1.75

18.78

32.78

1.05

Indicated

11.49

13.47

154.69

4.97

Inferred

5.58

13.30

74.26

2.39

Total

18.82

13.91

261.73

8.41

The bulk of the exclusive Mineral Resource is situated in Middle and Lower mines and consists primarily of designed bracket pillars

and dip pillars. The remaining areas are below the Ore Reserve cut-off and with an increase in gold price will be considered as possible

future Ore Reserve.

MINERAL RESOURCE BELOW INFRASTRUCTURE

Moab Khotsong

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.07

15.24

1.14

0.04

Indicated

17.53

15.24

267.17

8.59

Inferred

8.57

14.12

120.91

3.89

Total

26.17

14.87

389.22

12.51

The Mineral Resource below infrastructure is situated in Zaaiplaats, Area A, Area B Area C, Top mine below 76 Level and Middle

mine below 101 Level.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

M o a b K h o t s o n g

MOAB KHOTSONG year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

19.0

18.8

18.6

18.4

18.2

18.0

17.8

17.6

17.4

17.2

-0.38

-0.95

0.00

-0.04

0.00

18.87

17.49

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Changes due to a Mineral Resource clean-up, a value drop based on new sampling and a revised structural interpretation. Tonnage

decreased further as a result of changes in the stope width.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

Moab Khotsong

Inclusive Mineral Resource sensitivity

-5

-10

-15

-20

-25

-30

Moab Khotsong is not sensitive to increases in gold price due

to the structurally constrained nature of the orebody but is

very sensitive to a drop in gold price.

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O R E R E S E R V E

ORE RESERVE

Moab Khotsong

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

VR Lower mine – Zaaiplaats

Proved

–

Probable

10.79

9.59

103.41

3.32

Total

10.79

9.59

103.41

3.32

VR – Middle mine

Proved

1.53

9.92

15.22

0.49

Probable

2.39

9.89

23.64

0.76

Total

3.92

9.90

38.86

1.25

VR – Top mine

Proved

0.21

7.15

1.54

0.05

Probable

0.24

6.59

1.59

0.05

Total

0.46

6.85

3.12

0.10

VR – Great Noligwa

Proved

0.88

6.61

5.82

0.19

Probable

0.30

6.38

1.94

0.06

Total

1.19

6.55

7.77

0.25

CR – Great Noligwa

Proved

0.03

5.27

0.15

0.00

Probable

0.33

6.70

2.23

0.07

Total

0.36

6.59

2.38

0.08

Moab Khotsong

Total

16.72

9.31

155.54

5.00

ORE RESERVE BY-PRODUCT: URANIUM (U

)

Moab Khotsong

Tonnes

Grade

Contained U

as at 31 December 2016

Category

million

kg/t

tonnes

pounds million

Proved

0.35

923

Probable

0.51

7,208

Total

0.49

8,131

Uranium is produced as a by-product during the processing of reef material. The reef is milled at the Great Noligwa gold plant and

processed at the South Uranium plant for uranium oxide extraction prior to gold extraction back at the Great Noligwa gold plant.

Yellow cake is the ﬁnal product of the South Uranium plant which is transported to Nufcor located in Gauteng where the material is

calcined and packed for shipment to the converters.

ESTIMATION

Mine design delineates the mining areas and supporting development for each mining level and section, usually by extrapolating the

existing mining design based on the geological structure model taking all relevant mine design recommendations into consideration.

The in situ Mineral Resource is scheduled monthly for the full LoM plan. The value estimates for these schedules are derived from the

Mineral Resource model.

Modifying factors are applied to the in situ Mineral Resource to arrive at an Ore Reserve estimate. These factors include a dilution

factor to accommodate the difference between the milling width and the stoping width, as well as the MCF.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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ORE RESERVE MODIFYING FACTORS

Moab Khotsong

Gold

price

Cut-off

grade

Cut-off

value

Stoping

width

Dilution

MCF

MetRF

as at 31 December 2016

ZAR/kg

g/t Au

cm.g/t Au

VR Lower mine – Zaaiplaats

530,000

5.15

700

136.0

32.5

81.0

96.1

VR – Middle mine

530,000

4.07

700

172.0

62.7

77.9

96.1

VR – Top mine

530,000

4.09

700

171.0

54.3

77.8

96.4

VR – Great Noligwa

530,000

4.55

700

154.0

38.2

61.4

96.2

CR – Great Noligwa

530,000

5.83

700

120.0

53.9

61.9

95.6

Historical performance was used in the determination of the modifying factors used in the estimation of the Ore Reserve.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Moab Khotsong

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

VR Lower mine – Zaaiplaats

3.11

9.03

28.10

0.90

VR – Middle mine

0.10

5.30

0.56

0.02

VR – Top mine

0.02

13.16

0.20

0.01

VR – Great Noligwa

0.01

5.72

0.07

0.00

CR – Great Noligwa

0.12

6.40

0.79

0.03

Total

3.37

8.82

29.72

0.96

16% of the LoM production consists of Inferred Mineral Resource. This has not been published as part of the Ore Reserve. The Inferred

Mineral Resource was used for optimisation purposes only.

ORE RESERVE BELOW INFRASTRUCTURE

Moab Khotsong

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

–

Probable

10.79

9.59

103.41

3.32

Total

10.79

9.59

103.41

3.32

The Zaaiplaats project, which is currently under review, is the source of all of the Ore Reserve below infrastructure at Moab Khotsong.

S O U T H A F R I C A

c o n t i n u e d

M o a b K h o t s o n g

MOAB KHOTSONG year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

5.30
5.25
5.20
5.15
5.10
5.05
5.00
4.95
4.90
4.85
4.80

-0.30

-0.09

0.00

0.13

0.00

5.26

5.00

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Changes in Ore Reserve are due to depletion offset by technical design and scheduling changes.

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S O U T H A F R I C A

c o n t i n u e d

M p o n e n g

I N T R O D U C T I O N

Property description

Mponeng mine is a deep level gold mine operating between 3,160m and 3,740m below mine datum

(BMD)* and is currently the deepest mine in the world with development at 3,841m BMD. Future mining

is planned to deepen the shaft bottom to 4,227m BMD. All production is currently from VCR with future

expansion on both VCR and the CLR reef horizons.

Location

The combination of the TauTona and Mponeng mines form the West Wits operations. Situated south of the

TauTona mine, Mponeng is near the town of Carletonville and approximately 65km west of Johannesburg.

History

Formerly known as the Western Deep Levels South Shaft, or No. 1 Shaft, Mponeng mine is the most

recently sunk of the three mines in the West Wits operations. The original twin shaft sinking from surface

commenced in 1981 and was commissioned along with the gold plant complex in 1986 when mining

began. Production started through the use of two hoisting shafts, a sub-shaft and two service shafts. The

name changed to Mponeng mine in 1999.

Legal aspects and

tenure

AngloGold Ashanti holds the following mining right in the Mponeng area which has been successfully

converted, executed and registered as new order mining rights at the MPRTO.

•

GP30/5/3/2/2(01)MR valid from 14 February 2006 to 13 February 2036, covering 64.8km

Mining method

For the exploitation of the ever deepening Mineral Resource and the need for ﬂexibility on a mine of this

nature, the sequential grid mining method was adopted. This has been proven as the best method suited

to deep level gold mining often associated with seismicity.

Operational

infrastructure

Mponeng mine has its own processing plant situated adjacent to the mine. Ore and waste material is

hoisted separately with ore being delivered to the plant by means of a conveyor belt, and the waste rock

going to the low grade stockpile.

Mineral processing

Ore mined is treated and smelted at Mponeng’s gold plant, which also receives ore from TauTona

and Savuka mines. The ore is initially ground down by means of semi-autogenous milling after which

a conventional gold leach process incorporating liquid oxygen injection is applied. The gold is then

extracted by means of carbon-in-pulp (CIP) technology. The plant conducts electro-winning and smelting

(induction furnaces).

Risks

Upgrading of the Mineral Resource conﬁdence of the deeper parts of Mponeng continues to be

challenging. Surface exploration and underground exploration targets are slowly being completed but

access to ground ahead of the mining front is often limited. New information once obtained does have

the potential to affect the future of Mponeng mine. Exploration drilling on the VCR at depth is indicating

that there might be an evolution of the current Geological understanding, this will be further quantiﬁed and

understood as exploration work continues.

* BMD is 1,828.8m Above Mean Sea Level (AMSL). Mponeng’s collar elevation (surface) is 275.8m BMD

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COMPETENT PERSONS

Mponeng

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Gareth Flitton

SACNASP

400019/15

13 years

BSc Hons (Geology)

GDE (Mineral Economics)

Ore Reserve

Willie Olivier

PLATO

MS 0136

26 years

GDE (Mining Engineering)

Government Certiﬁcate of

Competency in Mine Survey

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

VCR WEST WITS UNDERGROUND WORKINGS

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

M p o n e n g

G E O L O G Y

DEPOSIT TYPE

The VCR is the main reef horizon mined at Mponeng mine. The VCR forms the base of the Ventersdorp Supergroup which caps the

Witwatersrand Supergroup through an angular unconformity. The overlying Ventersdorp Lavas halted the deposition of the VCR,

preserving it in its current state.

The VCR consists of a quartz pebble conglomerate, which can be up to 3m thick in places. The footwall stratigraphy, following periods

of uplift and erosion, controlled the development and preservation of the VCR. The VCR is characterised by a series of channel

terraces preserved at different relative elevations, and the highest gold values are preserved in these channel deposits.

The different channel terraces are divided by zones of thinner ‘slope’ reef, which are of lower value and become more prevalent on the

higher terraces and on the harder footwall units.

The relatively argillaceous protoquartzites of the Kimberley Formation in the central portion of Mponeng are covered by the best

preserved VCR conglomerates. The Elsburg formation in the west is relatively more durable, while the eastern side of the mine is

dominated by shales and siltstones of the Booysens Formation. No VCR is preserved on the Krugersdorp Formation on the far eastern

side of Mponeng.

The CLR is the other gold bearing reef reported as part of the Mineral Resource for Mponeng. This reef has been mined extensively at

Savuka and TauTona mines which are now entering the mature stage of their lives. At Mponeng the reef is planned to be mined in the

future. The CLR at Mponeng consists of (on average) a 20cm thick, tabular, auriferous quartz pebble conglomerate formed near the

base of the Central Rand Group. The CLR is approximately 900m deeper than the VCR. Continual updates of the CLR estimation are

done, as more information generated at TauTona has resulted in a decrease in the CLR Mineral Resource.

MINERALISATION STYLE

Similar to the Witwatersrand reefs, gold in the VCR was precipitated in the conglomerate reef through the actions of hydrothermal

ﬂuids. The ﬂuids precipitated gold and other elements through reactions that took place at elevated temperatures along the reef

horizon. The resulting gold grades are mostly uniformly distributed throughout the reef package.

MINERALISATION CHARACTERISTICS

The VCR displays strong alteration features which can be explained by the hydrothermal ﬂuids that inﬁltrated the reef at some stage

and have overprinted on the original mineral assemblage. Portions of the reef contain authigenic sulphides such as pyrite, pyrrhotite,

chalcopyrite, spahelerite and galena, incorporated in the conglomerate’s matrix. Gold associations with these mineral assemblages

indicate a strong correlation of gold mobilsation and redistribution at the time of the hydrothermal ﬂuid inﬂux. There is also a strong

association of gold with a chloritisation event focused along the reef horizon. The Cholrite alteration gives a dark coloration to the reef.

Both the VCR and the CLR have been subjected to faulting and are intruded by a series of igneous dykes and sills of various ages that

cross-cut the reefs. There is an inherent risk in mining through these faults and intrusives and a key objective of AngloGold Ashanti

mine geologists is to identify these geological features ahead of the working face to assist with deciding on the best way to approach

and mine through these structures.

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E X P L O R AT I O N

Underground exploration in 2016 targeted the VCR areas east and west ahead of current development fronts on 123 and 126 Levels as

well as areas deeper than 126 Level. A number of new intersections were achieved and have been used in evaluating the geological model.

The surface drill hole UD59 consisting of a mother hole and four deﬂections was completed in 2016. It conﬁrmed the existence of thick

well mineralised conglomerate package down-dip of the current working. UD60 and UD58A also intersected the VCR orebody late in

2016 conﬁrming the existence of a well developed VCR in the deeper reaches of the orebody.

Surface drilling into the central and southern portions of the Western Ultra-Deep Levels (WUDLs) lease area will continue in 2017 and

will explore the central portion of the WUDLs lease area. Results of which are expected in 2020 or 2021.

The CLR exploration planned from Savuka mine platforms in 2016 was only partially completed. Production and safety constraints

experienced at Savuka hampered the completion of the planned holes. Drilling will continue in 2017 from new exploration platforms at

TauTona for the CLR phase 2 Mineral Resource in the east.

GEOLOGICAL CROSS-SECTION THROUGH MPONENG – SS1 SHAFT SECTION, CLR DEEPENING PROJECT

Master bedding fault

SS2

SS1

120 Level

121 Level

123 Level

125 Level

128 Level

131 Level

133 Level

136 Level

Middlevlei Reef

Carbon Leader Reef

North Leader Reef

-3650m

Elevation

Randfontein Formation

Maraisburg Formation

Roodepoort Formation

-Roodepoort Shales

-Roodepoort Quartz

Main Formation

Blyvooruitzicht Formation

Planned development

(m BMD)

-3820m

-3900m

-4140m

-3980m

-4230m

80m

Legend

-3740m

-4060m

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

M p o n e n g

P R O J E C T S

Current mining is focused on the eastern and western edges of the lease area above 120 Level. Value in these areas is starting to

decrease. The mining below 120 Level is currently beginning to increase and will begin to replace the above 120 Level production

volumes by end of 2017 and start of 2018.

The Phase 1 VCR project is in production on 123 Level and is still accessing reef on 126 Level. On reef development continues east

and west where total production is expected to ramp up to 12,000m² per month.

A number of planned projects are being considered that will extract portions of the Mineral Resource currently below infrastructure.

The CLR Phase 2 project will extract the CLR south of the TauTona and Savuka mines from 123 and 126 Levels. The preparation for

the shaft infrastructure started in 2013. During 2015 the decision was taken to defer the Phase 2 project to allow time to look at a

possible footprint extension of the project. The CLR project extension and additional planned shaft design work is at PFS level and is

scheduled for completion in 2017.

A further four individual PFS studies have been completed to access VCR and the CLR in a phased approach below 126 Level,

covering phases 3 – 6. A more holistic PFS is currently underway to ascertain the possibility of concurrently accessing and mining the

full VCR and CLR Mineral Resource as one single project. Exploration into these areas continues to improve conﬁdence in the Mineral

Resource.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Mponeng

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

5 x 5

–

Chip sampling stoping

Indicated

100 x 100

–

Underground drilling

Inferred

1,000 x 1,000

–

Surface drilling

Grade/ore control

–

See Measured category

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INCLUSIVE MINERAL RESOURCE

Mponeng

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

TauTona VCR shaft pillar

Measured

0.49

17.40

8.47

0.27

Indicated

1.25

20.21

25.22

0.81

Inferred

–

Total

1.73

19.42

33.69

1.08

VCR above 109 Level

Measured

1.95

12.72

24.77

0.80

Indicated

1.27

7.93

10.05

0.32

Inferred

–

Total

3.21

10.83

34.82

1.12

VCR 109 to 120 Level

Measured

4.25

18.86

80.07

2.57

Indicated

3.58

10.57

37.87

1.22

Inferred

0.22

3.98

0.87

0.03

Total

8.04

14.77

118.80

3.82

VCR below 120 Level

Measured

0.51

18.50

9.50

0.31

Indicated

9.81

16.74

164.21

5.28

Inferred

0.74

4.97

3.69

0.12

Total

11.07

16.03

177.40

5.70

VCR WUDLs

Measured

–

Indicated

9.71

18.95

184.09

5.92

Inferred

9.08

15.16

137.56

4.42

Total

18.79

17.12

321.65

10.34

VCR Block 3

Measured

0.03

9.82

0.32

0.01

Indicated

3.43

5.54

19.01

0.61

Inferred

–

Total

3.46

5.58

19.33

0.62

VCR 129 Level

Measured

–

Indicated

2.24

19.39

43.49

1.40

Inferred

0.51

11.66

5.98

0.19

Total

2.76

17.95

49.47

1.59

TauTona CLR shaft pillar

Measured

0.56

40.81

22.94

0.74

Indicated

1.02

44.08

44.87

1.44

Inferred

–

Total

1.58

42.92

67.80

2.18

TauTona CLR Eastern Block

Measured

0.01

9.35

0.12

0.00

Indicated

0.38

19.44

7.43

0.24

Inferred

–

Total

0.39

19.12

7.55

0.24

CLR below 120 Level Phase 2

Measured

–

Indicated

12.45

21.12

262.87

8.45

Inferred

0.09

38.00

3.39

0.11

Total

12.54

21.24

266.25

8.56

CLR below 120 Level Phase 4 and 6

Measured

–

Indicated

15.97

19.33

308.75

9.93

Inferred

7.93

16.30

129.19

4.15

Total

23.90

18.33

437.94

14.08

CLR Savuka

Measured

0.03

13.42

0.41

0.01

Indicated

1.49

14.03

20.94

0.67

Inferred

–

Total

1.52

14.02

21.35

0.69

Mponeng

Total

89.00

17.48

1,556.06

50.03

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

M p o n e n g

EXCLUSIVE MINERAL RESOURCE

Mponeng

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

7.00

18.90

132.32

4.25

Indicated

33.12

16.90

559.59

17.99

Inferred

5.45

14.74

80.39

2.58

Total

45.57

16.95

772.30

24.83

Current mining practice at the West Wits operations leaves behind a large portion of the Mineral Resource as stability pillars. Rock

engineering design models require stability to minimise the effects of mining induced seismicity on the deep underground workings.

Bracket pillars are also placed around all major geological structures to improve regional stability and to minimise the structure

associated risks.

Other areas of the Mineral Resource that do not form part of the LoM include the areas below the economic cut-off of the mine.

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: URANIUM (U

)

Mponeng

Tonnes

Grade

Contained

as at 31 December 2016

Category

million

kg/t

tonnes

pounds million

Measured

–

Indicated

0.29

9,115

Inferred

0.29

2,362

Total

0.29

11,477

ESTIMATION

Gold values have been shown to be intimately related to conglomerate preservation on the VCR and forms an integral part of the

geological model, as does the footwall lithology.

Mixed support co-kriging is used in the estimation of the Mineral Resource for all South African underground operations. It is a

technique that enables the use of data of mixed support, allowing both drill hole and underground sampling data to be used together.

Estimation is performed on the VCR into large block sizes, generally >210mx 210m, which fully capture the within-block variance,

allowing the co-kriging of data of different support sizes over long ranges. Estimation is done per geological homogeneous zone, in

logarithmic space, because of the highly skewed gold distribution. The ﬁnal gold estimates are then calculated by back transforming

the estimates, using lognormal four parameter distribution models. Simple kriging is used for grade control and Measured Mineral

Resource at a 30m x 30m block size and constrained by the weight of the mean value.

MPONENG

Grade tonnage curve underground (metric) (attributable)

T
onnes above cut-off (millions)

verage grade above cut-off (g/t)

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

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MINERAL RESOURCE BELOW INFRASTRUCTURE

Mponeng

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

9.71

18.95

184.09

5.92

Indicated

37.50

18.91

709.18

22.80

Inferred

8.01

16.54

132.58

4.26

Total

55.22

18.58

1,025.84

32.98

The portion of the Mineral Resource below infrastructure includes those in the WUDLs and the CLR Mineral Resource areas.

Infrastructure has only been developed up to 126 Level on the VCR orebody and 120 Level on the CLR orebody.

MPONENG year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

51.0

50.5

50.0

49.5

49.0

48.5

48.0

47.5

47.0

-0.30

3.06

-0.75

0.00

-0.07

0.00

48.09

50.03

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Year-on-year there was an increase in the Mineral Resource as a result of VCR exploration targets being completed and improving

conﬁdence in the Mineral Resource in the WUDLs area. This was slightly offset by a value decrease on the CLR Mineral Resource due

to new geological information gained from mining on the eastern edge of TauTona.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

MPONENG

Inclusive Mineral Resource sensitivity

-5

The Mineral Resource at Mponeng is insensitive

to a change in gold price.

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M p o n e n g

O R E R E S E R V E

ORE RESERVE

Mponeng

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

TauTona VCR Shaft Pillar

Proved

–

Probable

0.39

8.58

3.35

0.11

Total

0.39

8.58

3.35

0.11

VCR above 109 Level

Proved

0.06

5.99

0.38

0.01

Probable

0.09

5.34

0.46

0.01

Total

0.15

5.62

0.84

0.03

VCR 109 to 120 Level

Proved

0.62

8.67

5.33

0.17

Probable

1.29

7.53

9.68

0.31

Total

1.90

7.90

15.01

0.48

VCR below 120 Level

Proved

0.53

10.98

5.86

0.19

Probable

6.91

12.11

83.60

2.69

Total

7.44

12.03

89.46

2.88

TauTona CLR shaft pillar

Proved

–

Probable

0.21

21.21

4.39

0.14

Total

0.21

21.21

4.39

0.14

TauTona CLR Eastern Block

Proved

–

Probable

0.33

8.70

2.89

0.09

Total

0.33

8.70

2.89

0.09

CLR below 120 Level Phase 2

Proved

–

Probable

10.50

10.46

109.85

3.53

Total

10.50

10.46

109.85

3.53

CLR below 120 Level Phase 4 and 6

Proved

–

Probable

17.03

9.18

156.36

5.03

Total

17.03

9.18

156.36

5.03

CLR Savuka

Proved

–

Probable

0.88

6.88

6.06

0.19

Total

0.88

6.88

6.06

0.19

Mponeng

Total

38.83

10.00

388.21

12.48

ESTIMATION

The mine design process delineates the mining areas and supporting development for each mining level and section, usually by

extrapolating the existing mining design using the latest geological structure models, taking all relevant mine design recommendations

into consideration. The in situ Mineral Resource is scheduled monthly for the full LoM plan. The value estimates for these schedules

are derived from the Mineral Resource model.

Modifying factors are applied to the in situ Mineral Resource to arrive at an Ore Reserve estimate. These factors include a dilution

factor to accommodate the difference between the milling width and the stoping width, as well as the MCF.

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O R E R E S E R V E

ORE RESERVE MODIFYING FACTORS

Mponeng

Gold

price

Cut-off

grade

Cut-off

value

Stoping

width

Dilution

MCF

MetRF

as at 31 December 2016

ZAR/kg

g/t Au

cm.g/t Au

TauTona VCR Shaft Pillar

530,000

4.17

750

180.0

47.7

81.0

97.7

VCR Above 109 Level

530,000

5.06

750

148.2

38.2

81.2

97.5

VCR 109 to 120 Level

530,000

4.99

750

150.2

39.0

81.2

97.5

VCR below 120 Level

530,000

5.73

750

131.0

41.6

81.0

97.9

TauTona CLR Shaft Pillar

530,000

7.14

750

105.0

43.8

81.0

98.0

TauTona CLR Eastern Block

530,000

6.54

750

114.7

44.4

78.0

97.8

CLR below 120 Level Phase 2

530,000

7.14

750

105.0

47.3

81.0

97.8

CLR below 120 Level Phase 4 and 6

530,000

7.14

750

105.0

47.5

81.0

97.6

CLR Savuka

530,000

7.14

750

105.0

52.9

81.0

97.4

MCF and MetRF are based on historic performance with consideration for current and future mining conditions.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Mponeng

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

CLR below 120 Level Phase 4 and 6

6.06

8.39

50.81

1.63

Total

6.06

8.39

50.81

1.63

The Inferred Mineral Resource is used for optimisation purposes and forms part of the business plan, but is not included in the Ore

Reserve. These portions of the deposit are located in the WUDLs area beyond current infrastructure on the VCR (Project Phases 3

and 5) and also make up part of the CLR Mineral Resource that is included in the CLR Phase 4 and 6 project.

The scheduled Inferred Mineral Resource included in the business plan comprises 14% of the total Inferred Mineral Resource and

12% of the LoM Schedule.

ORE RESERVE BELOW INFRASTRUCTURE

Mponeng

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

–

Probable

27.53

9.67

266.21

8.56

Total

27.53

9.67

266.21

8.56

MPONENG year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

12.75

12.70

12.60

12.55

12.50

12.45

12.40

-0.25

0.07

-0.08

0.00

12.48

12.74

2015

Depletion

Exploration

Methodolog

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Changes in the Ore Reserve are mainly due to depletion.

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S O U T H A F R I C A

c o n t i n u e d

Ta u To n a

I N T R O D U C T I O N

Property description

TauTona (including Savuka) is a mature, deep level underground gold mine with a limited LoM. Mining

takes place predominantly on the CLR horizon at depths ranging from 2,900m to 3,480m BMD* with

TauTona mining towards the boundary with Driefontein (Sibanye Gold).

Location

TauTona lies on the West Wits Line goldﬁeld, just south of Carletonville in the Gauteng province, about

70km south-west of Johannesburg.

History

Sinking operations began in 1957 and stoping operations on the VCR horizon in 1961. The mine has a

three-shaft system comprising a main, a sub-vertical and tertiary vertical shaft. In the past the longwall

mining method was the only mining method used but a decision was taken to move from longwall mining

to scattered grid mining due to the risk associated with mining through geological structures with longwall

panels. Savuka was included in the TauTona operations in 2013.

Legal aspects and

tenure

AngloGold Ashanti holds a number of mining rights in the TauTona area which have been successfully

converted, executed and registered as new order mining rights at the MPRTO.

•

GP30/5/3/2/2(01)MR valid from 14 February 2006 to 13 February 2036, covering 64.8km

•

GP30/5/3/2/2(11)MR valid from 11 July 2006 to 1 July 2016, covering 0.3km

, (application for extension

pending)

•

GP30/5/1/2/5/248SP valid from 16 October 2012 to 15 October 2022, covering 1.96km

The extension of the GP30/5/3/2/2(11)MR is currently underway, with submission having been done

within regulatory requirements and therefore there is a reasonable expectation that it will be renewed.

Mining method

The mine design at TauTona is somewhat ﬁxed with respect to the established infrastructure and its links

to future mine designs. TauTona (including Savuka) utilises the scattered grid mining method as a preferred

mining method to optimally extract the Ore Reserve.

Operational

infrastructure

The current shaft infrastructure is sufﬁcient for the mining operation being planned and undertaken. Tonnes

from Savuka mine are trammed through 120 Level to TauTona Shaft. Both ore and waste for TauTona and

Savuka are hoisted to surface as one product and are trucked to Mponeng plant. This plant is shared with

Mponeng mine. In the long term with a declining production proﬁle, the strategy is to equip the inter level

on 120 Level to Mponeng and hoist the tons utilising Mponeng shaft infrastructure.

Mineral processing

The ore is initially ground down by means of semi-autogenous milling after which a conventional gold-

leach process incorporating liquid oxygen injection is applied. The gold is then extracted by means of CIP

technology. The plant conducts electro-winning and smelting (induction furnaces).

Risks

As mining proceeds to new ground there is an inherent risk in mining through geological structures like

faults and intrusives. To mitigate these risks DD is done in order to gain as much upfront information as

possible. The other risk is seismicity which is associated with geological features exacerbated by the fact

that TauTona is an ultra deep level underground gold mine. This risk is managed through an on-going

seismic risk management system which then informs the mining strategy and execution schedule.

The closure of Blyvooruitzicht in 2013, and subsequent suspension of groundwater pumping, presented

a serious risk to the economic viability of TauTona. In order to mitigate this risk, the Covalent Water

Company was established to initiate pumping at source from Blyvooruitzicht No. 4 and No. 6 shafts.

Although the Covalent Water Company will be responsible for handling the bulk of the underground water

from Blyvooruitzicht mine, there has been a gradual buildup of underground water within the workings of

Blyvooruitzicht No. 5 shaft. The water level at Blyvooruitzicht No. 5 shaft reached the pumping level point

in September 2016 and as per our strategy pumping operations commenced and are continuing.

* BMD is 1,828.8m Above Mean Sea Level (AMSL). TauTona’s collar elevation (surface) is 176.2m BMD

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COMPETENT PERSONS

TauTona

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Michelle Pienaar

SACNASP

400027/15

14 years

BSc Hons (Geology)

Ore Reserve

Kabelo Dube

PLATO

PMS 0255

9 years

BTech, Government Certiﬁcate of

Competency in Mine Survey, MBA,

ND (Survey)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this

report, in the form and context in which it appears.

CLR WEST WITS UNDERGROUND WORKINGS

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S O U T H A F R I C A

c o n t i n u e d

Ta u To n a

G E O L O G Y

DEPOSIT TYPE

The CLR is the principal economic horizon at TauTona and the VCR is

the secondary economic horizon. The CLR is located near the base

of the Johannesburg Subgroup, which forms part of the Central Rand

Group. The Central Rand Group sediments are unconformably overlain

by the Klipriviersberg lavas and the VCR is developed at the interface

between the Central Rand Group sediments and the overlying lavas.

The CLR and the VCR at TauTona are vertically separated by about

900m of shales and quartzites.

The CLR is a thin, on average 20cm thick, tabular, auriferous quartz

pebble conglomerate and consists of three sedimentary facies or

units. Economically, the most important is Unit 1, which is present as

a sheet-like deposit over the whole mine, although reef development

and grades tend to decrease very rapidly where Unit 1 overlies Unit

2. Unit 2 is a complex channel deposit that is only present along the

eastern-most limit of current mining at TauTona. The Unit 2 CLR may

be over 2m thick. Unit 3 is preserved below Unit 1 in the southern

parts of TauTona and is the oldest of the CLR conglomerates.

All production on the VCR at TauTona ceased in 2013, and no future

mining has been planned on this reef horizon.

The CLR and VCR are cross-cut and displaced by faults and intrusive

dykes and sills of various ages. The faulting, in conjunction with the

many intrusives that displace and intersect these reefs, is responsible

for most of the risk inherent in deep level gold mining, since seismicity

is associated with these geological features.

MINERALISATION STYLE

Gold mineralisation followed an episode of deep burial, fracturing

and alteration. A variant of Archaean greenstone gold-bearing

hydrothermal ﬂuid was introduced into the reef environment and

was probably circulated in hydrothermal cells. The Carbon Leader

conglomerate system proved a suitable ﬂuid conduit and various

minerals were precipitated in the permeable, often structurally-

prepared host. Solid hydrocarbon precipitated in very thin, ﬂat veins,

which usually formed at the base of the Carbon Leader.

MINERALISATION CHARACTERISTICS

Gold was precipitated by cooling and reactions between the ﬂuid

and the wallrocks, in this case pyritic conglomerates. The regional

distribution of gold was strongly inﬂuenced by subtle changes in the

physical properties of the conglomerates and their footwall lithologies.

Gold mineralisation was enhanced in areas of high ﬂuid throughput,

which were often the sites of high carbon precipitation and strong

early alteration.

2400m

2800m

3200m

75 Level

81 Level

87 Level

106 Level

109 Level

112 Level

101 Level

100 Level

TV shaft

Ventersdorp Contact Reef

Carbon Leader Reef

2000m

Elevation
(m BMD)

3600m

116 Level

120 Level

Main shaft

Sub shaft 1

dyke

66 Level

Shaft bottom

200m

GEOLOGICAL CROSS-SECTION THROUGH TAUTONA

Kimberley Formation

Booysens Shales

Krugersdorp Quartzites

Bird Reef Formation

Randfontein Formation

Main Formation

Blyvooruitzicht Formation

Roodepoort Shales

Roodepoort Quartzites

Crown Formation

Florida Quartzites

Alberton Lavas

Legend

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E X P L O R AT I O N

Geological drilling and cover drilling forms an integral part of the mining strategy and a detailed DD plan with schedules is in place in

conjunction with mine designs to ensure a high conﬁdence in the business plan and a sound geological structure model.

Long inclined borehole (LIB) drilling commenced towards the most south-eastern block of TauTona mine in 2015 and was abandoned

in 2016. No reef was intersected, however structures were conﬁrmed which increase the conﬁdence in the structural model to

the South East. No further LIB drilling has been planned in this block. The required information will however be obtained from the

Geological and cover drilling which is planned for this area. Further drilling will upgrade the conﬁdence in the area south of the Pretorius

Fault Zone (PFZ). Drilling will also conﬁrm the eastern boundary line with the lower value Driefontein geological domain.

Savuka is a mature mine approaching the end of its productive life. No exploration is currently taking place at this operation. Exploration

drilling did however commence in 2016, in conjunction with Mponeng mine, south of the Savuka/Mponeng mine boundary to further

improve the conﬁdence in the Mineral Resource for Mponeng’s below 120 Level extension.

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P R O J E C T S

NEW TECHNOLOGY REEF BORING PROJECT

Technology is being developed to extract gold-bearing material using mechanical boring techniques, with the aim of creating an

explosive-free, and, therefore, continuous mining operation. At the core of this initiative is the need to remove people from risk while

creating a continuous-mining environment where only the reef is extracted.

After successfully working through the initial teething problems the MK IV reef-boring machine was commissioned at the test site.

Simultaneously work continues on the MK III reef-boring machines deployed in the VCR and CLR sites with the aim to improve the

machine performance (hours drilled per hole).

NEW TECHNOLOGY GEOLOGICAL DRILLING PROJECT

Uphole reverse circulation (RC) drilling is being developed as a potential method to replace conventional DD techniques used in the

South African operations. This method will assist in deﬁning the orebody geometry accurately and rapidly ahead of mining to facilitate

future planning and scheduling for automated reef boring.

The Bohrmeister ﬁt for purpose drill rig was designed and commissioned successfully during 2016. Trials will commence in 2017 with

the aim to continue to improve the drilling accuracy where the goal is to reach a geological target within the deﬁned accuracy and

time benchmarks.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

TauTona

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

5 x 5

–

Chip sampling stoping

Indicated

100 x 100,

800 x 800

–

Underground drilling

Inferred

1,000 x 1,000

–

Surface drilling

Grade/ore control

–

See Measured category

INCLUSIVE MINERAL RESOURCE

TauTona

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

TauTona CLR

Measured

0.98

23.74

23.35

0.75

Indicated

1.88

23.38

43.86

1.41

Inferred

–

Total

2.86

23.51

67.21

2.16

Savuka CLR

Measured

0.33

15.49

5.10

0.16

Indicated

0.63

16.95

10.74

0.35

Inferred

–

Total

0.96

16.45

15.84

0.51

TauTona

Total

3.82

21.73

83.06

2.67

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: URANIUM (U

)

TauTona

Tonnes

Grade

Contained

as at 31 December 2016

Category

million

kg/t

tonnes

pounds million

Measured

–

Indicated

0.34

1,300

Inferred

–

Total

0.34

1,300

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ESTIMATION

In recent years, extensive work has been done in reﬁning the geological model for the CLR which utilised several new methods

including geochemistry, spectral scanning and various geostatistical techniques.

This ﬁnal geological model subdivides the CLR into four areas of broad homogeneity which are used for estimation.

Mixed support co-kriging is used in the estimation of the Mineral Resource for all South African underground operations. It is a

technique that enables the use of data of mixed support, allowing both drill hole and underground sampling data to be used together.

Estimation on the CLR is performed into large block sizes, generally >420m x 420m, which fully capture the within-block variance,

allowing the co-kriging of data of different support sizes over long ranges. Estimation is done per geological homogeneous zone, in

logarithmic space, because of the highly skewed gold distribution. The ﬁnal gold estimates are then calculated by back transforming

the estimates, using lognormal four parameter distribution models. Simple kriging is used for grade control and Measured Mineral

Resource at a 30m x 30m block size and constrained by the weight of the mean value.

TAUTONA

Grade tonnage curve underground (metric) (attributable)

T
onnes above cut-off (millions)

verage grade above cut-off (g/t)

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

EXCLUSIVE MINERAL RESOURCE

TauTona

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.98

21.28

20.87

0.67

Indicated

1.23

23.22

28.64

0.92

Inferred

–

Total

2.21

22.36

49.51

1.59

At TauTona, the exclusive Mineral Resource is deﬁned by the mining strategy. Much of this Mineral Resource is expected to be taken

up by safety, boundary and remnant pillars ahead of current mining.

MINERAL RESOURCE BELOW INFRASTRUCTURE

No Mineral Resource reported below infrastructure.

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S O U T H A F R I C A

c o n t i n u e d

Ta u To n a

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

TAUTONA

Inclusive Mineral Resource sensitivity

-1

-6

The Mineral Resource at TauTona is insensitive

to changes in gold price due to it being a mature

operation with limited flexibility.

O R E R E S E R V E

ORE RESERVE

TauTona

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

TauTona CLR

Proved

0.49

11.19

5.45

0.18

Probable

2.06

8.31

17.08

0.55

Total

2.54

8.86

22.52

0.72

Savuka CLR

Proved

0.14

6.29

0.89

0.03

Probable

0.04

7.59

0.28

0.01

Total

0.18

6.56

1.17

0.04

TauTona

Total

2.72

8.71

23.70

0.76

ESTIMATION

The mine design process delineates the mining areas and supporting development for each mining level and section, usually by

extrapolating the existing mining design using the latest geological structure models, taking all relevant mine design recommendations

into consideration. The in situ Mineral Resource is scheduled monthly for the full LoM plan. The value estimates for these schedules

are derived from the Mineral Resource model.

Modifying factors are applied to the in situ Mineral Resource to arrive at an Ore Reserve estimate. These factors include a dilution

factor to accommodate the difference between the milling width and the stoping width, as well as the MCF.

TAUTONA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

3.5
3.4
3.3
3.2
3.1
3.0
2.9
2.8
2.7
2.6
2.5

-0.22

-0.21

0.09

0.00

-0.13

0.00

-0.33

0.00

3.48

2.67

2015

Depletion

Exploration

Methodolog

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

The decrease is mainly due to transfers out of Mineral Resource due to cleanup and rock engineering pillars, intershaft transfers,

structure changes, decrease in face values mainly in the Driefontein geological domain as well as mining depletion.

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TAUTONA year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

1.10

1.05

1.00

0.95

0.90

0.85

0.80

0.75

0.70

0.65

-0.17

-0.04

0.00

-0.10

0.00

0.01

0.00

0.76

1.05

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Ore Reserve changes are due to depletions, geotechnical changes especially in Savuka with the impact of the BV 78 seismic event

and revisions to the mining strategy that have resulted in mine design changes.

ORE RESERVE MODIFYING FACTORS

TauTona

Gold Price

Cut-off

grade

Cut-off

value

Stoping

width

Dilution

MCF

MetRF

as at 31 December 2016

ZAR/kg

g/t Au

cm.g/t Au

TauTona CLR

530,000

8.18

900

110.0

52.1

75.5

97.0

Savuka CLR

530,000

7.50

900

120.0

47.2

71.0

96.7

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

No Inferred Mineral Resource in the business plan.

ORE RESERVE BELOW INFRASTRUCTURE

There is no Ore Reserve reported below infrastructure.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

S u r f a c e O p e r a t i o n s

I N T R O D U C T I O N

Property description

Surface Operations in South Africa produce gold by processing surface material such as low grade

stockpiles and the re-treatment of tailings storage facility (TSF) dams. Surface Operations comprise Vaal

River Surface, West Wits Surface and Mine Waste Solutions (MWS).

Location

The Vaal River Surface Operations are located immediately to the north and south of the Vaal River, close

to the town of Orkney in the North West province. These operations extract gold from the low grade

stockpile material emanating as a byproduct of the reef mining activities within the Vaal River mines. The

MWS Operations are located approximately 8km from the town of Klerksdorp near Stilfontein within 20km

of the Vaal River Surface Operations. The MWS feed sources (TSF dams) are scattered over an area that

stretches approximately 13.5km north-south and 14km east-west. The West Wits Surface Operations are

located near the town of Carletonville, across the border between the North West and Gauteng provinces.

History

Gold from surface material has been produced routinely since 2002. AngloGold Ashanti acquired the

MWS Mineral Resource and tailings retreatment operations in the Vaal River region in July 2012. The MWS

Uranium plant and ﬂotation plants were commissioned in 2014. Changes were made in the conﬁguration

of the ﬂotation and uranium processes after which the ﬂoat plant was recommissioned in July 2016 and

the uranium plant in October 2016. These plants were reconﬁgured into a more efﬁcient conﬁguration

during 2016.

Legal aspects and

tenure

MWS licence to mine is covered by the environmental authorisation under the National Environmental

management Act. In terms of the current legislation, Mineral and Petroleum Resources Development Act

(MPRDA), it is not required to have a mining right to reclaim tailings dams and MWS can prove ownership

and tenure of the operations. As it is likely that pending legislation, once passed, will require a mining right

to be obtained in order to mine tailings dams, AngloGold Ashanti applied in May 2013, in terms of S102

of the MPRDA to extend its main Vaal River Mining Right (16MR) to incorporate the entire MWS operation.

The S102 consent was granted under the main VR mining right (16MR).

The New Order Mining Rights for the South African Operations cover multiple horizons, i.e. both underground

and surface for Vaal River and West Wits Regions. The TSF dams falling outside the Mining Right are

accommodated under historical Surface Rights Permits for Vaal River and West Wits, which are still valid.

Mining method

Low grade stockpiles:

Bulldozers are used to create furrows through the stockpile in order to blend the rock and create safe

loading faces. The material is then loaded onto rail hoppers or trucks by means of a front-end loader and

transported to the relevant gold plants for processing.

Tailings storage facilities:

The tailings are reclaimed using a number of hydraulic (high-pressure water) monitoring guns to deliver

water at pressure, typically 27-30 bar, to the face. The tailings material is reclaimed by blasting the TSF

face with the high-pressure water, resulting in the slurry gravitating towards pumping stations. These

monitoring guns can be positioned to selectively reclaim required areas from the TSF dams. Bench

heights are constrained by the force delivered from the monitoring gun nozzle and safety constraints. With

sufﬁcient pressure, face lengths of up to 25m can be reclaimed.

The pump stations are located at the lowest point of the dams to ensure that the slurry from the dams

will gravitate towards the pump station from where the slurry will be pumped to the processing plants.

Operational

infrastructure

Low grade stockpiles in Vaal River and West Wits are processed through dedicated surface sources

metallurgical plants and MWS processes tailings material in the Vaal River area. Adequate deposition

capacity for the Surface Operations exists in all areas. Operational infrastructure – road, rail, ofﬁces,

security services, water and power supply – is adequate and is shared with the AngloGold Ashanti mines

in the relevant areas.

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Mineral processing

The mineral process is dependent on the source material, tailings material is pumped directly to a

conventional carbon-in-leach (CIL) plant while hard rock material will go through comminution ﬁrst, and

then be processed through leach followed by CIP.

Sulphur separation takes place where required and in the case of MWS, uranium is extracted using acid

leach. MWS comprises three separate gold plants namely Stream 1, Stream 2 and Stream 3. Hydraulically-

reclaimed material from several TSF dams is delivered to the three plants for gold extraction.

The West Wits Surface Operations process low grade stockpile material sourced from the mining of the

CLR and the VCR that are mined by the West Wits mines in the Carletonville/Fochville area, as well as

hydraulically-reclaimed material from the Old North TSF.

Within the Vaal River area, the Kopanang, West and Mispah Gold plants are dedicated surface operations

plants. In the West Wits area the Savuka Gold plant processes surface sources material.

Risks

There are no known unmanaged risks that may affect reclamation activities. An independent, external

Mineral Resource and Ore Reserve audit was undertaken in 2016 and found no fatal ﬂaws, in process

or output. A potential tonnage reconciliation issue was however noted during the external audit and will

be investigated further in 2017.

VAAL RIVER SURFACE SOURCES INFRASTRUCTURE

Great Noligwa

plant centroid co-ordinates

26°46'44"E, 26°57'44"S

Stilfontein

Moab Khotsong

Mine waste solutions

Kopanang

Orkney

Khuma

Township

Great Noligwa

Klerksdorp

West

Complex

Harties 5&6

MWS5

Kareerand

Buffels
1,2,3,4

Sulphur

Paydam

East

South

East

Buffels 5

MWS2

MWS4

West Ext

Harties 1&2

Mispah

Kopanang

Paydam

9km

Licences

Mining Rights

AGA Property

Mine Infrastructure

Mine area

Plant

Stockpiles

TSF

Underground workings

Settlement

Towns

Villages

Roads

Main

Secondary

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

S u r f a c e O p e r a t i o n s

COMPETENT PERSONS

Surface Operations

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Raymond Orton

PLATO

MS 0132 30

30 years

GDE (Mineral Economics),

Government Certiﬁcate of

Competency in Mine Survey, HND

(Mineral Resource Management)

Ore Reserve

Mariaan Gagiano

SAIMM

705 920

32 years

Government Certiﬁcate of

Competency in Assaying

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

WEST WITS SURFACE SOURCES INFRASTRUCTURE

Mponeng

plant centroid c o-ordinates

27°26'06"E, 26°26'11"S

Fochville

Mponeng

New North TSF

TauTona

Savuka

Old North TSF

Licences

Mining

Surface Property

Mine Infrastructure

Mine area

Plant

Stockpiles

TSF

Underground workings

Settlement

Towns

Villages

Roads

Main

Secondary

Mponeng TSF

1.5

3 k m

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G E O L O G Y

The material contained in the TSF and low grade stockpiles originates from the historic ore-bearing reefs mined by the West Wits, Vaal

River, Buffelsfontein, Hartebeestfontein and Stilfontein Gold Mines. The material contained in the TSF dams is ﬁne grained.

LOW GRADE STOCKPILES

The low grade stockpiles consist of waste rock mined from underground workings, hoisted, transported and deposited via conveyor

belts. The gold contained within these dumps was sourced from three areas namely:

•

Minor reef that are intersected while accessing the primary reef

•

Gold-bearing reef that was contained within small fault blocks that were exposed by off-reef development

•

Cross-tramming of gold-bearing reef material to the waste tips

TAILINGS STORAGE FACILITIES

The tailings dams consist of tailings material which originated from the processing of the underground ore from the Vaal River

Operations (VR Surface), the West Wits Operations (WW Surface) and Buffels, Hartebeestfontein and Stilfontein Gold Mines (MWS).

These Gold Mines are deep level gold mines, which predominantly extract the tabular, conglomeratic VR, CLR and VCR. The VR has

been predominantly mined for gold in the past although the reef also contains uranium oxide, the same is true, but to a lesser extent

with the CLR and VCR.

The material contained in the tailings dams is ﬁne in nature. The footprints of the MWS tailings dams and Vaal River Surface Operations

tailings dams cover an area of approximately 1,100ha.

P R O J E C T S

The upgrade of the Sulphur Pay Dam (SPD) Pump Station was completed in 2016. The upgrade of the SPD Pump Station increased

its ﬂexibility and reclamation capacity for the MWS Operations.

Rehabilitation work is ongoing and gold is produced from cleaning-up operations at Vaal River and West Wits, this material is processed

through the West Gold plant, Kopanang Gold plant and Savuka Gold plant respectively.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

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M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

(1)

Surface Operations

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other Comments

Vaal River Surface

Measured

50 x 50,

100 x 100

–

Auger drilling

Indicated

100 x 100,

150 x 150

–

Auger drilling

Inferred

–

Grade/ore control

50 x 50,

100 x 100

–

Auger drilling

Mine Waste Solutions

Measured

50 x 50 to

320 x 250

–

Auger drilling

Indicated

100 x 100 to

300 x 375

–

Auger drilling

Inferred

–

Grade/ore control

50 x 50,

100 x 100

–

West Wits Surface

Measured

–

– –

Indicated

150 x 150

–

Auger drilling

Inferred

–

– –

Grade/ore control

–

– –

(1)

In the case of TSF dams, additional sampling information is available in the form of residue sampling collected during deposition on the

TSF dams

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INCLUSIVE MINERAL RESOURCE

Surface Operations

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Vaal River Surface

Tailings storage facility

Measured

10.83

0.20

2.19

0.07

Indicated

421.73

0.27

112.96

3.63

Inferred

–

Total

432.56

0.27

115.15

3.70

Low grade stockpile

Measured

–

Indicated

23.03

0.43

9.98

0.32

Inferred

0.05

0.69

0.04

0.00

Total

23.08

0.43

10.01

0.32

Mine Waste Solutions

Tailings storage facility

Measured

125.20

0.22

27.53

0.89

Indicated

172.64

0.26

44.96

1.45

Inferred

–

Total

297.84

0.24

72.49

2.33

West Wits Surface

Tailings storage facility

Measured

–

Indicated

187.29

0.24

44.56

1.43

Inferred

–

Total

187.29

0.24

44.56

1.43

Low grade stockpile

Measured

–

Indicated

7.05

0.51

3.61

0.12

Inferred

–

Total

7.05

0.51

3.61

0.12

Surface Operations

Total

947.81

0.26

245.82

7.90

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: URANIUM (U

)

Surface Operations

Tonnes

Grade

Contained U

as at 31 December 2016

Category

million

kg/t

tonnes

pounds million

Vaal River Surface

Measured

–

Indicated

433

0.09

38,863

Inferred

–

Total

433

0.09

38,863

Mine Waste Solutions

Measured

125

0.07

8,523

Indicated

173

0.08

13,898

Inferred

–

Total

298

0.08

22,421

West Wits Surface

Measured

–

Indicated

187

0.07

13,402

Inferred

–

Total

187

0.07

13,402

Surface Operations

Total

918

0.08

74,686

165

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S O U T H A F R I C A

c o n t i n u e d

S u r f a c e O p e r a t i o n s

ESTIMATION

Tailings storage facilities

Prior to 2011 for the Vaal River Operations, the grade estimations for the TSF dams were based on the residue grades obtained from

the different process plants, as well as various ad hoc sampling projects in selected areas. All the TSF dams in Vaal River and MWS

have since been re-sampled by means of an extensive drilling exercise which commenced in 2011. A stringent QA/QC process was

applied to the sampling and assay processes to ensure a high level of conﬁdence in the results. The auger drilling typically took place

on a 150 x 150m grid (Mineral Resource model) as well as a 50 x 50m grid (Grade control model). The vertical sampling interval of

1.5m was implemented and where possible all holes were drilled into the native underlying strata to allow the estimation of the base

of the TSF. The estimation technique being used is 3D ordinary kriging. The variograms used for the grade estimation consist of both

horizontal and downhole variograms. The model used for the construction of the grade model constitutes well deﬁned 3D wireframes

which are constructed using the drill holes and the results from monthly surveys on currently reclaimed TSF dams and aerial surveys

carried out on an annual basis for TSF dams which are planned to be reclaimed. These models are regularly updated during the grade

control process.

In the West Wits Surface Sources area, all the grade estimations for the TSF dams were based on the residue grades obtained from

the different process plants as well as various ad hoc sampling projects in selected areas. For one of these areas, the Old North

Complex, a drilling programme with the standard QA/QC programme was implemented in 2015 and in 2016 a 3D estimate was

completed as per the MWS estimation process.

Low grade stockpiles

In the West Wits and Vaal River Operations the grade estimation is based on grades obtained from reclaimed tonnages from the

different stockpiles, grades obtained from rock deposited on these facilities and grades from various other sampling projects carried

out on some of the stockpiles. These sampling exercises involved a pit being dug on a pre-determined grid on the low grade stockpiles

from which grab samples were taken. These samples were then split into different size fractions and assayed to determine the gold

distribution for the different size fractions. The proﬁles of the stockpiles are also updated by means of aerial surveys carried out on an

annual basis. Sampling is done by means of mechanical stop belt samplers on the feed belts at the Metallurgical plants

EXCLUSIVE MINERAL RESOURCE

Surface Operations

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Vaal River Surface

Measured

–

Indicated

–

Inferred

0.05

0.69

0.04

0.00

Total

0.05

0.69

0.04

0.00

Mine Waste Solutions

Measured

3.39

0.34

1.14

0.04

Indicated

0.29

0.26

0.07

0.00

Inferred

–

Total

3.68

0.33

1.22

0.04

West Wits Surface

Measured

–

Indicated

177.54

0.24

41.82

1.34

Inferred

–

Total

177.54

0.24

41.82

1.34

Surface Operations

Total

181.27

0.24

43.08

1.38

The exclusive Mineral Resource includes a portion of the Mispah II TSF, which is below cut-off grade.

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MINE WASTE SOLUTIONS year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

2.34

2.32

2.30

2.28

2.26

2.24

2.22

2.20

2.18

-0.07

0.12

0.00

2.28

2.33

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Normal depletions and Harties 1, Buffels 1 and MWS 5 Mineral Resource model updates as a result of additional drill information.

WEST WITS SURFACE year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

1.57

1.56

1.55

1.54

1.53

1.52

-0.04

0.00

0.02

0.00

1.57

1.55

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Movement is mainly due to depletions. Additions are from plant residues as well as low grade stockpiles from Mponeng mine.

VAAL RIVER SURFACE year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

4.30

4.25

4.20

4.15

4.10

4.05

4.00

3.95

3.90

-0.30

0.03

0.00

0.03

0.00

4.26

4.02

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Changes in the Mineral Resource are mainly due to normal depletions from tailing storage facilities and low grade stockpiles as well

as Mineral Resource changes at Kopanang Paydam due to new to drilling information.

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S O U T H A F R I C A

c o n t i n u e d

S u r f a c e O p e r a t i o n s

O R E R E S E R V E

ORE RESERVE

Surface Operations

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Vaal River Surface

Tailings storage facility

Proved

10.83

0.20

2.19

0.07

Probable

421.73

0.27

112.96

3.63

Total

432.56

0.27

115.15

3.70

Low grade stockpile

Proved

–

Probable

22.91

0.32

7.22

0.23

Total

22.91

0.32

7.22

0.23

Mine Waste Solutions

Tailings storage facility

Proved

121.81

0.22

26.39

0.85

Probable

172.35

0.26

44.89

1.44

Total

294.16

0.24

71.27

2.29

West Wits Surface

Tailings storage facility

Proved

–

Probable

9.75

0.27

2.64

0.08

Total

9.75

0.27

2.64

0.08

Low grade stockpile

Proved

–

Probable

7.05

0.39

2.72

0.09

Total

7.05

0.39

2.72

0.09

Surface Operations

Total

766.42

0.26

199.00

6.40

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

SURFACE OPERATIONS

Inclusive Mineral Resource sensitivity

-5

-10

-15

-20

-25

Surface Operations are very sensitive to a gold

price reduction due to the marginal nature of

the business.

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ORE RESERVE BY-PRODUCT: URANIUM (U

)

Surface Operations

Tonnes

Grade

Contained U

as at 31 December 2016

Category

million

kg/t

tonnes

pounds million

Vaal River Surface

Proved

0.13

1,408

Probable

334

0.09

30,922

Total

344

0.09

32,330

Mine Waste Solutions

Proved

0.06

776

Probable

172

0.08

13,852

Total

186

0.08

14,628

Surface Operations

Total

531

0.09

46,959

104

Uranium is produced at the Vaal River Operations during the processing of reef material from Moab Khotsong and Kopanang in the

Noligwa Gold plant/South Uranium plant circuit. The reef is milled at the Noligwa Gold Plant and processed at the South Uranium plant

for uranium oxide extraction prior to gold extraction at Noligwa Gold plant. The MWS and Vaal River Surface TSF material is processed

for extraction of gold and uranium through the MWS gold and uranium circuits.

Yellow cake is the ﬁnal product of both the South Uranium plant and MWS Uranium plant which is transported to the NUFCOR located

in Gauteng where the material is calcined and packed for shipment to the converters.

ESTIMATION

Tailings storage facilities

Mine design models delineate the areas to be reclaimed over the life of the operations, taking all relevant mine design recommendations

into consideration. The in situ Mineral Resource is scheduled for the full LoM plan. The value estimates for these schedules are derived

from the Mineral Resource block models where they exist.

Tailings are evaluated as inclusive complexes, in addition, the individual compartments making up the TSF complexes are evaluated to

facilitate the composition of optimised mining plans. The beneﬁt of the reclamation of the surface sources and subsequent rehabilitation

of the relevant areas is included in the evaluation of the feasibility of the project.

Low grade stockpiles

Planned reclamation from the low grade stockpiles is scheduled out to ensure an average blend. The in situ Mineral Resource is

scheduled for the full LoM plan. The value estimates for these schedules are derived from the Mineral Resource estimate with an 18

month reconciliation factor applied to the Mineral Resource estimate.

ORE RESERVE MODIFYING FACTORS

Surface Operations

Gold

price

Cut-off

grade

% RMF

MCF

MetRF

as at 31 December 2016

ZAR/kg

g/t Au

(based on

tonnes)

(based on

g/t)

Vaal River Surface

Tailings storage facility

530,000

0.24

100.0

46.2

Low grade stockpile

530,000

0.34

99.8

72.8

100.0

88.0

Mine Waste Solutions

Tailings storage facility

530,000

0.24

100.0

46.2

West Wits Surface

Tailings storage facility

530,000

0.28

100.0

96.3

100.0

42.0

Low grade stockpile

530,000

0.38

100.0

75.3

100.0

92.0

10% margin applied for cut-off grade calculations

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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S O U T H A F R I C A

c o n t i n u e d

S u r f a c e O p e r a t i o n s

VAAL RIVER SURFACE year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

4.10

4.05

4.00

3.95

3.90

3.85

3.80

3.75

-0.23

0.03

0.00

0.03

0.05

0.01

0.00

3.93

4.05

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Normal depletions offset by model changes based on new drilling information at Kopanang Paydam.

MINE WASTE SOLUTIONS year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

2.30

2.25

2.20

2.15

2.10

2.05

2.00

1.95

-0.07

0.26

0.00

2.10

2.29

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Changes in the Ore Reserve are mainly due to changes in the Mineral Resource classiﬁcation speciﬁcally the upgrading of MWS 5 to

Indicated Mineral Resource as a result of drilling and modelling, which resulted in additional Ore Reserve.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Surface Operations

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Vaal River Surface – low grade stockpile

0.07

0.34

0.02

0.00

Total

0.07

0.34

0.02

0.00

The No.3 low grade stockpile is part of Vaal River Inferred Mineral Resource in the plan and 74% of this dump has already been

processed through the Vaal River plants and will be depleted by the end of 2016.

Part of MWS 5 TSF was reported as an Inferred Mineral Resource but has been included to be processed during LoM. Drilling was

conducted in 2015 on the MWS 5 TSF to improve the conﬁdence in the Mineral Resource. The block model for MWS 5 has been

updated in 2016 with the information from the drilling and the classiﬁcation has been reviewed. The Mineral Resource was re-classiﬁed

and has been included as Indicated Mineral Resource and Probable Ore Reserve.

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WEST WITS year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

0.18

0.17

0.16

0.15

0.14

-0.03

0.00

0.01

0.02

0.00

0.18

0.17

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Year-on-year changes due to depletion and an increase from the TSF dams.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

2 0 1 6

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S E C T I O N 3

C O N T I N E N T A L A F R I C A

Mining in the Continental Africa region

takes place in five countries,

Democratic Republic of Congo, Ghana,

Guinea, Mali and Tanzania.

Regional overview /

Ghana /

Mali /

118

DRC /

Guinea /

104

Tanzania /

137

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C O N T I N E N TA L A F R I C A

C O N T I N E N T A L A F R I C A

R e g i o n a l o v e r v i e w

Guinea

Siguiri (85%)

Mali

Morila (40%)

Sadiola (41%)

Ghana

Iduapriem
Obuasi

DRC

Kibali (45%)

Tanzania

Geita

Operations

CONTRIBUTION TO
GROUP PRODUCTION

•

Continental Africa

•

Rest of AngloGold Ashanti

CONTRIBUTION TO
REGIONAL PRODUCTION

•

Tanzania

•

DRC

•

Ghana

•

Guinea

•

Mali

KEY STATISTICS

Units

2016

2015

2014

Operational performance

Tonnes treated/milled

28.2

27.2

29.9

Recovered grade

oz/t

0.047

0.053

0.054

g/t

1.46

1.64

1.66

Gold production (attributable)

000oz

1,321

1,435

1,597

Total cash costs

$/oz

717

678

783

Total production costs

$/oz

1,005

900

977

All-in sustaining costs

(1)

$/oz

904

815

968

Capital expenditure

(2)

291

315

454

(1)

Excludes stockpile write-offs.

(2)

Includes equity-accounted investments.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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A s a t D e c e m b e r 2 0 1 6 , t h e t o t a l a t t r i b u t a b l e M i n e r a l R e s o u r c e ( i n c l u s i v e o f t h e O r e R e s e r v e ) f o r

t h e C o n t i n e n t a l A f r i c a r e g i o n w a s 6 3 . 8 M o z ( 2 0 1 5 : 5 8 . 3 M o z ) a n d t h e a t t r i b u t a b l e O r e R e s e r v e

1 7 . 8 M o z ( 2 0 1 5 : 1 9 . 3 M o z ) .

This is equivalent to around 30% and 36% of the group’s Mineral Resource and Ore Reserve respectively. Combined production from

these operations totalled 1.321Moz of gold in 2016, or 36% of group production.

AngloGold Ashanti has seven mining operations within Continental Africa Region: Kibali in the Democratic Republic of the Congo

(DRC); Iduapriem and Obuasi in Ghana; Siguiri in Guinea; Morila and Sadiola in Mali and Geita in Tanzania. Mining is from both open

pit and underground, with Iduapriem, Siguiri and Sadiola being open pit mines, Kibali, Obuasi and Geita being a combination of open

pit and underground mines and Morila being primarily a tailings retreatment operation.

Yatela is in closure mode and there is no Mineral Resource or Ore Reserve attributable to Yatela.

INCLUSIVE MINERAL RESOURCE

Continental Africa

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

1.09

Indicated

504

2.77

1,399

Inferred

162

3.36

544

Total

702

2.82

1,983

EXCLUSIVE MINERAL RESOURCE

Continental Africa

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

3.29

Indicated

283

3.07

869

Inferred

161

3.37

544

Total

446

3.18

1,417

ORE RESERVE

Continental Africa

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

0.73

Probable

217

2.45

531

Total

247

2.24

553

C O N T I N E N T A L A F R I C A

c o n t i n u e d

R e g i o n a l O v e r v i e w

CONTRIBUTION TO GROUP
TOTAL MINERAL RESOURCE

•

Continental Africa

•

Rest of AngloGold Ashanti

CONTRIBUTION TO GROUP
TOTAL ORE RESERVE

•

Continental Africa

•

Rest of AngloGold Ashanti

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CONTINENTAL AFRICA
MINERAL RESOURCE – ATTRIBUTABLE

(per operation/project)

Morila

Sadiola

Iduapriem

Obuasi

Siguiri

Geita

Kibali

2016

2015

Moz

0.2

3.2

3.3

5.6

5.5

6.1

6.9

7.3

8.9

7.7

Morila

Sadiola

Geita

Obuasi

Iduapriem

Siguri

Kibali

CONTINENTAL AFRICA
ORE RESERVE – ATTRIBUTABLE

(per operation/project)

0.1

1.7

1.8

2.3

1.8

2.6

2.0

2.1

2.4

5.7

5.5

4.8

4.1

2016

2015

Moz

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

D e m o c r a t i c R e p u b l i c o f t h e C o n g o

C O U N T RY O V E R V I E W

AngloGold Ashanti owns 45%

of Kibali in the DRC. Kibali

produced 586koz in 2016 of which

AngloGold Ashanti’s portion was

264oz.

The operation is a joint

development between three

separate groups:

•

AngloGold Ashanti

•

Randgold Resources Limited

(Randgold), the operator, an

African-focused gold mining

and exploration business with

primary listings on the London

Stock Exchange and Nasdaq

•

Société Minière de kilo-Moto

(SOKIMO), the state-owned gold

mining company

The consolidated lease is made up

of 10 mining concessions.

DRC

Kisangani

Kinshasa

Lubumbashi

Operations
1 Kibali

(45%)

300km

Bunia

INCLUSIVE MINERAL RESOURCE

Democratic Republic of Congo

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

2.66

Indicated

3.25

172

Inferred

2.33

Total

2.96

241

EXCLUSIVE MINERAL RESOURCE

Democratic Republic of Congo

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

3.27

Indicated

2.17

Inferred

2.33

Total

2.27

107

ORE RESERVE

Democratic Republic of Congo

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

1.90

Probable

4.17

125

Total

4.03

128

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

K i b a l i

I N T R O D U C T I O N

Property description

Operations presently focus on open pit and underground mining, with underground development on twin

declines and a vertical shaft. Gold production began in September 2013.

Location

Kibali is located in the north-eastern part of the DRC near the international borders with Uganda and

South Sudan. The mine is located adjacent to the village of Doko, which is located in the west of the lease

area. Kibali is approximately 210km by road from Arua, and immediately north of the district capital of

Watsa. The operations area falls within the administrative district of Haut Uélé in Orientale province.

History

On 15 October 2009, AngloGold Ashanti acquired a 50% indirect interest in Moto Goldmines Ltd through

a joint venture (JV) with Randgold, with Moto holding a 70% stake in Kiabli and the balance (30%) being

held by the DRC parastatal, SOKIMO. On 21 December 2009, Randgold and AngloGold Ashanti increased

their JV interest in Kibali to 90%, while SOKIMO retained a 10% holding.

First gold was poured in September 2013 from the open pit operations. Underground mining commenced

in 2014.

Legal aspects and

tenure

The total Ore Reserve is covered by exploitation permits (11447, 11467, 11468, 11469, 11470, 11471,

11472, 5052, 5073, 5088) totalling 1,836km

. Kibali Gold Mine has also been granted 10 exploitation

permits under the DRC mining code, seven of which are valid until 2029 and three are valid until 2030.

Mining method

The mine comprises both open pit and underground mining. The open pit Ore Reserve shell optimisations

are conducted on the Mineral Resource models. Detailed mine designs are then completed for open

pit mining. This incorporated the mining layout, operating factors, stripping ratio and relevant cut-off

grade for the Ore Reserve. Mining operations are conducted by a contractor. Longitudinal and transverse

longitudinal stoping methods with paste backﬁll were chosen as the preferred underground mining

methods. The mine site is located within 160km of the border with Uganda and all transport links take

place through Uganda to Kenya or Tanzania.

Operational

infrastructure

The mine site is located within 160km of the border with Uganda and all transport links take place through

Uganda to Kenya or Tanzania. Surface infrastructure associated with the overall Kibali operation includes

a processing plant, tailings storage facility, camp, hydro and thermal power stations, airstrip, workshops

and ofﬁces. All necessary governmental agreements and approvals critical to the viability of the mine are

in place.

Mineral processing

The current processing plant can treat both oxide and fresh sulphide material and is conﬁgured for ﬂotation

and ultra-ﬁne-grind of the ﬂotation concentrate; a treatment that is required for the refractory sulphide ore

type before leaching.

Risks

There are no material risks that will impact on the Mineral Resource and Ore Reserve.

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3 km

Licences

Mining

Mine infrastructure

Pits

Plant

Stockpiles

TSF

Waste Dumps

Underground portal

Settlements

Villages

Roads

Main

Secondary

Airfield

mine village

KCD u/g portal

Mofu

Memekazi

Mandungu

Mengu

Ndala

Gimbia

Pakaka

Kombokolo

Rhino

KCD

Mengu Hill

Pamao

Sessenge

Plant centroid co-ordinates
29°35'31"E, 3°6'50"N

Gorumbwa

Full Mining Lease area

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

K i b a l i

G E O L O G Y

DEPOSIT TYPE

Deposits of the Kibali district are located in the Archaean Moto Greenstone Belt bounded to the north by the West Nile Gneiss and

to the south by plutonic rocks of the Watsa district. The belt comprises three lithostratigraphically distinct blocks. Psammopelitic

schists, amphibolite, banded iron formations, and gneissic granitoid sills metamorphosed under upper greenschist to low-mid-

amphibolite facies conditions form the eastern part of the belt. Relatively weakly foliated basalts, cherts, siliciclastic rocks, dacitic

volcaniclastic rocks, and carbonaceous argillite metamorphosed under mid to upper greenschist facies conditions comprise the

central and western-most parts of the belt. Granitoid plutons as old as ca. 2,640Ma intrude these rocks. A thick package of immature

sandstone, gritstone, conglomerate, and probably acid tuffs forms much of the western part of the belt, including the host rocks to

KCD, the largest deposit discovered to date within the belt. Radiometric dating indicates these siliclastic rocks were deposited during

a belt-wide basin extension event between ca. 2,629-2,626Ma, with much of the detritus derived from adjacent older parts of the belt.

Boundaries between these lithostratigraphic blocks represent important exploration targets. The richly mineralised KZ Trend appears

to have initiated as an extensional fault system along the boundary between the relatively young basin in the western part of the belt

and older rocks to the east. Mineralisation occurred during the later stages of subsequent regional contractional deformation which

resulted in inversion of the basin, development of reverse faults, and folds.

The main Kibali deposit consists of the combination of Karagba, Chauffeur and Durba (KCD) deposit. Currently only the KCD deposit

hosts an underground Ore Reserve and this constitutes 74% of the total KCD Ore Reserve.

MINERALISATION STYLE

Gold mineralisation of the Kibali district are classiﬁed as Archaean orogenic gold deposits. At Kibali the gold deposits are largely hosted

in siliciclastic rocks, banded iron formations, and chert that were metamorphosed under greenschist facies conditions. Ore-forming

O-CO

-rich ﬂuids migrated along a linked network of gently northeast-dipping shears and northeast to NNE-plunging fold axes that

is commonly referred to as the KZ Trend. On-going deformation during hydrothermal activity resulted in development of lodes in a

variety of related structural settings within the KZ Trend. The source(s) of metal and ﬂuids which formed the deposits remain unknown,

but metamorphic devolatilisation reactions within the supracrustal rocks of the Moto Greenstone Belt and/or deeper ﬂuid and metal

sources may have contributed.

MINERALISATION CHARACTERISTICS

Gold deposits of the Kibali district are associated with haloes of quartz, ankerite, sericite, ± albite (ACSA-A) alteration that extend for

10s to 100s of metres into the adjacent rocks. This widespread ACSA-A alteration assemblage is superimposed on older greenschist

facies metamorphic assemblages. Locally in the vicinity of the main mineralised zones ACSA-A alteration is overprinted by ankerite-

siderite, pyrite alteration (ACSA-B) that hosts the ore. Gold is directly associated with the ACSA-B alteration assemblage. In smaller

peripheral deposits a late chlorite, carbonate, pyrite assemblage is associated with the ore rather than the ACSA-B assemblage,

implying a district-wide zonation of mineral assemblages along and across the mineralised KZ Trend. Zones of auriferous ACSA-B

alteration are commonly developed along the margins of banded iron formations, or contacts between chert, carbonaceous phyllite,

and banded iron formations. Mineralised rocks in the Kibali district typically lack signiﬁcant inﬁll quartz-rich veins, unlike many other

orogenic gold deposits. Gold is instead associated with pyrite in zones of alteration that replaced the earlier mineralogy of the host

rocks. Local remobilisation and upgrading of ACSA-B related ore occurred adjacent to the margins of some post-ore crosscutting

chlorite, carbonate, ± pyrite, ± magnetite-altered diorite dikes.

COMPETENT PERSONS

Kibali

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

and Ore Reserve

Rodney Quick*

SACNASP

400014/05

23 years

BSc Hons (Geology)

MSc (Geology)

* Employed by Randgold at 3rd Floor, Unity Chambers, 28 Halkett Street, St Helier, Jersey, OJE2

The Competent Person consents to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

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100m

5500

5700

5300

5100

Axial plane

Fault

Elevation

Mafic dyke

BIF

Carbonaceous phyllite

Chert

Clastic rocks with
Carbonate-Quartz alt.
(ACSA A alt.)

Carbonate-Quartz alt.
with Py (ACSA B alt.)

Mineralised zone

Legend

SIMPLIFIED CROSS-SECTION THROUGH KCD

The location of the individual lodes within the KCD deposit are intimately controlled by the position, shape, and orientation of a series

of gently northeast-plunging tight to isoclinal folds. The ACSA-A alteration developed during the formation of these folds, and the

sericite foliation which is an integral part of the ACSA-A assemblage formed parallel to their axial planes. Zones of later auriferous

ACSA-B alteration developed along the axes, limbs, and more rarely the axial planes of these folds, locally wrapping around the

hinges of the folds to form elongate northeast-plunging concave-shaped rods. ACSA-B alteration is also commonly focused along

the margins of more extensive banded iron formations, indicating a stratigraphic as well as structural control on the distribution of ore,

both within KCD, and other parts of the wider KZ Trend. Shear zones that were active during folding are a third key structural control

on the location of ore within KCD and the wider KZ Trend. At KCD a folded carbonaceous shear in the core of the deposit juxtaposes

stratigraphically distinct blocks. The 3,000 lodes above this shear are hosted by locally ferruginous cherts, carbonaceous argillites,

and minor greywacke, whereas the 5,000 and 9,000 lodes below are hosted by siliciclastic rocks and banded iron formation. Fold

shapes and wavelength differ between the two blocks reﬂecting their different rheologies during folding, and this is reﬂected in the

scale, shape, and continuity of lodes in each block. At Pakaka and Kalimva chlorite, carbonate, pyrrhotite, ± pyrite-altered shear zones

rather than folds are the principal controls on gold distribution.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

K i b a l i

E X P L O R AT I O N

Total exploration drilling in 2016 at Kibali was 28,111m, of which 19,434m was mine based drilling and 8,677m was on regional

targets. DD comprised 6,660m of the total drilling, the remaining being RC drilling. The exploration aimed to fulﬁl three main objectives:

Mineral Resource-Ore Reserve replacement, potential oxide displacement ounces, and identify and develop new targets.

Mine based exploration took place at the Rhino-Agbarabo-Kombokolo area, Pakaka, Pamao, Tete Bakangwe, Kanga Sud, Ndala

Village, Aerodrome and Sessenge Southwest, regional exploration was focused on the Kalimva-Ikamva targets in the north, Memekazi

Ridge, and the Aindi Watsa-Dilolo-Zambula targets in the south.

An analysis of historic data and ﬁeld validation work was completed on the 3.2km long Agbarabo-Pakaka corridor, resulting in the

identiﬁcation of priority targets for exploration. Three trenches completed in the Rhino-Agbarabo Gap area support the potential

within this area and towards the Agbarabo pit. A 793 hole auger sterilisation/upside potential programme was conducted over the

Rhino-Agbarabo area and positive results were recorded towards the northeast of Rhino, with follow-up work planned. A 20-hole,

1,020m RC drill programme at the Agbarabo East target was conducted with the holes drilled over four fences to follow-up results

from trenching and sampling of historical and artisanal pits. The results conﬁrmed continuity of mineralisation and follow-up drilling is

planned.

The main Rhino target was re-assessed and a new mineralised wireframe built indicating upside to the previous model. Eight trenches

were subsequently completed with seven returning encouraging intersections, and a close-spaced RC drilling programme undertaken,

with 5,311m drilled across 123 RC holes. The primary aim was to bring additional ounces into the mine plan from extension of the

high grade shoot, with further down-plunge continuity conﬁrmed by a diamond hole drilled 130m down plunge from surface. Bottle

Roll tests were completed on trench and drill hole material at Rhino and indicate good recoveries (95%) in oxide with lower recoveries

in fresh rock, averaging 75%.

The Kombokolo target has been tested as a potential higher-grade oxide Mineral Resource, with three phases of drilling completed.

The results have been generally positive with one main ore lens and two thinner and lower grade lenses delineated. Bottle Roll Tests

from individual and composite samples indicate average recoveries of 75 to 79%. In addition, ﬁve trenches were completed to test

continuity between Rhino-Kombokolo, with positive results to be followed-up with a planned RC drilling programme.

Scout-drilling, targeting mineralised trench intercepts at Tete Bakangwe, conﬁrmed the presence of high grade mineralised shoots

plunging to the northeast along the main shear. However, the ore shoots are narrow and the target has been downgraded as a near-

term Ore Reserve replacement.

Positive results were received from a single drill hole at Durba Hill, which was completed to in-ﬁll the 230m gap between Sessenge

and the KCD pit. The results indicate a possible link between the 9001 domain (up-plunge) at Sessenge and 9003 domain

(down-plunge) at KCD.

At Sessenge Gap, the ﬁrst phase of the RC drill campaign was completed, consisting of 10 holes for 875m. Results received indicate

an increase in thickness and grade from Gorumbwa towards the Sessenge pit.

At KCD, a new geological model was completed. Results from the revised optimisation of the KCD super-pit, comprising KCD,

Sessenge, Gorumbwa, Sessenge Gap and Durba Hill deposits, based on lithological and conceptual mineralised wireframes indicated

a potential increase in ounces, reduction in strip ratio and a reduction in grade.

Two programmes of RC drilling were completed at Sessenge SW, targeting positive trench and auger results. Three mineralised lenses

have been identiﬁed and a fourth lens may also be present in the northwest. Further drilling is planned. 17 composite Bottle Roll tests

were also completed and indicated an average recovery of 83% for oxide composites, with fresh material returning low recoveries

averaging 65%.

At the Pamao deposit, six diamond holes and four trenches were completed. Most results have been returned, which were positive

and show continuity of two mineralised lenses along 700m strike, with mineralisation open towards the northwest and southeast.

At Zone 1 of the Kanga Sud target a fence of 6 RC holes was completed, testing the down plunge continuation of potential

mineralisation. Results conﬁrmed the mineralised lenses; however, the target shows reduced potential due to the shallow weathering

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and low overall grade.

12 RC holes were completed at the Ndala target to follow up on trenching results. Lower than predicted overall tenor and continuity

of grade argue against further work at this time.

P R O J E C T S

The shaft sinking has reached the shaft bottom at a ﬁnal depth of 751.2m and the equipping of the shaft was completed in 2016 with

ﬁrst ore from the shaft expected towards Q3 2017.

At the Ambarau hydro power plant, construction continued during the year, with ﬁrst power scheduled for early 2017. Construction

on the Azambi hydro power plant (the third hydro power plant to be constructed), started during 2016 and is on plan to be completed

in 2018.

The project to expand the mine’s ultra-ﬁne grinding capacity, to improve full sulphide feed recoveries, continued according to schedule,

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

K i b a l i

with commissioning planned for Q1 2017.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Kibali

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

5 x 10,

15 x 20

–

Indicated

40 x 40

–

Inferred

80 x 80

–

Grade/ore control

5 x 10,

15 x 20

–

INCLUSIVE MINERAL RESOURCE

Kibali

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Open pit

Measured

4.40

2.09

9.21

0.30

Indicated

22.19

2.07

45.84

1.47

Inferred

9.33

1.89

17.59

0.57

Total

35.91

2.02

72.64

2.34

Underground

Measured

3.40

11.55

0.37

Indicated

30.72

4.10

125.97

4.05

Inferred

11.25

2.70

30.34

0.98

Total

45.36

3.70

167.86

5.40

Kibali

Total

81.28

2.96

240.50

7.73

$1,500/oz Mineral Resource price used by Randgold (operating partner)

ESTIMATION

Mineral Resource estimation is undertaken by Randgold in-house Competent Persons or by approved external consultants. The
results both of DD and of RC drilling are used in the estimation process. 3D mineralised envelopes are established using grade
and geology and these are then statistically veriﬁed to conﬁrm their validity for use in grade estimation. Appropriate domaining of
homogeneous zones is conducted whereby high-grade central core areas are modeled separately from the lower-grade surrounding
halos. Volumes are then ﬁlled with block model cells and these are then interpolated for density, rock type and grade, the latter using
ordinary kriging. Grade top cuts are applied to drill hole data to prevent the spread of high grades during the estimation process. Drill-
hole spacing is used to guide the Mineral Resource classiﬁcation according to guidelines of the relevant reporting codes. The open pit
Mineral Resource is quoted within a limiting shell.

In 2016, the underground Mineral Resource was constrained for the ﬁrst time by the application of optimised mineable Mineral
Resource shapes, which applies reasonable mineability constraints including a minimum mining width, a reasonable distance from

KIBALI

Grade tonnage curve surface (metric) (attributable)

T
onnes above cut-off (millions)

verage grade above cut-off (g/t)

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

KIBALI

Grade tonnage curve underground (metric) (attributable)

T
onnes above cut-off (millions)

verage grade above cut-off (g/t)

50
45
40
35
30
25
20
15
10

5
0

14
13
12
11
10

9
8
7
6
5
4
3
2

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

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2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

KIBALI year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

9.0

8.8

8.6

8.4

8.2

8.0

7.8

7.6

7.4

-0.34

0.09

-0.68

0.00

-0.24

0.00

8.89

7.73

1,200

1,500

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

KIBALI

Inclusive Mineral Resource sensitivity

-10

-20

-30

-40

current or planned development, and a measure of assumed proﬁtability at the related Mineral Resource cut-off grade.

EXCLUSIVE MINERAL RESOURCE

Kibali

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

1.35

3.27

4.42

0.14

Indicated

25.21

2.17

54.61

1.76

Inferred

20.58

2.33

47.93

1.54

Total

47.14

2.27

106.96

3.44

The exclusive Mineral Resource for the open pits largely comprise of Inferred Mineral Resource and tonnages that occur below the
Ore Reserve cut-off grade (due to gold price difference). At the KCD deposit it is also partially due to the selection of a ﬁxed interface
between the open pit and the underground mining areas. Both the in-pit Mineral Resource and underground material below the Ore

Reserve mining cut-off form a signiﬁcant part of this material.

Change due to a revised geological model and the constraining of the underground Mineral Resource into optimised stope shapes.

Kibali is very sensitive to a decrease in gold
price due to the nature of the underground
mineralisation.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

K i b a l i

This constraining has removed isolated areas of mineralisation and constrained the Mineral Resource to potentially mineable areas.

O R E R E S E R V E

ORE RESERVE

Kibali

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Open pit

Proved

1.94

1.90

3.67

0.12

Probable

11.09

2.15

23.82

0.77

Total

13.02

2.11

27.49

0.88

Underground

Proved

–

Probable

18.83

5.36

100.91

3.24

Total

18.83

5.36

100.91

3.24

Kibali

Total

31.85

4.03

128.40

4.13

$1,000/oz Ore Reserve price used by Randgold (operating partner)

ESTIMATION

The open pit Ore Reserve shell optimisations were completed on the Mineral Resource models. This incorporated the mining layout,

operating factors, stripping ratio and relevant cut-off grade for the Ore Reserve. An open pit underground interface was determined

as optimal at 5,685mRL between the KCD open pit and underground mine.

A cut-off grade analysis at $1,000/oz was used to determine a cut-off grade of 2.5g/t for the underground mine. Longitudinal and

transverse longhole open stoping methods with paste backﬁll were chosen as the preferred mining method. Underground stope

designs were updated from the previously reported Ore Reserve using the latest Mineral Resource models. Modifying factors for

planned and unplanned rock dilution, backﬁll dilution and ore-loss were applied to obtain the reported Ore Reserve. Metallurgical,

environmental, social, legal, marketing and economic factors were adequately considered in the Kibali feasibility study (FS) and have

been updated as the project has developed for the Ore Reserve to remain viable.

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KIBALI year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

4.8

4.7

4.6

4.5

4.4

4.3

4.2

4.1

4.0

-0.32

-0.30

0.00

-0.03

0.00

4.77

4.13

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

ORE RESERVE MODIFYING FACTORS

Kibali

Gold

price

Cut-off

grade

Stoping

width

Dilution

MCF

MetRF

as at 31 December 2016

US$/oz

g/t Au

g/t

Open pit

1,000

1.52

–

10.0

–

100.0

84.5

Underground

1,000

2.40

2,000.0

2.7

1.0

100.0

88.9

$1000/oz Ore Reserve price used by Randgold (operating partner)

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

There is no Inferred Mineral Resource included in the reported Ore Reserve for Kibali. The current mine plan does not have any

reliance on the Inferred Mineral Resource to support the economic viability of the project for the main KCD deposit.

Decrease is the result from depletion and a new geological model.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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INCLUSIVE MINERAL RESOURCE

Ghana

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.82

Indicated

208

4.29

890

Inferred

5.99

322

Total

264

4.59

1,215

EXCLUSIVE MINERAL RESOURCE

Ghana

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

3.91

Indicated

147

4.52

664

Inferred

5.99

322

Total

201

4.91

987

ORE RESERVE

Ghana

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

0.76

Probable

3.55

226

Total

3.43

228

C O N T I N E N T A L A F R I C A

c o n t i n u e d

G h a n a

Bolgatanga

GHANA

Tamale

Kumasi

Accra

Tarkwa

Skondi Takoradi

Operations
1 Obuasi
2 Iduapriem

150km

AngloGold Ashanti has two mines

in Ghana. Obuasi, currently in care

and maintenance, is primarily an

underground mine operating at depths

of up to 1,500m with a continuous

history of mining dating back to the

1890s and Iduapriem, an open pit

mine. Obuasi and Iduapriem are both

wholly owned by AngloGold Ashanti.

Obuasi is located in the Ashanti region

of southern Ghana, approximately

80km south of Kumasi. Mining was

temporarily suspended at the end

of 2014 whilst a series of economic

studies progressed. Iduapriem is

located in western Ghana, some 85km

from the coast and south of Obuasi.

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I N T R O D U C T I O N

Property description

Iduapriem is wholly owned by AngloGold Ashanti. Mining currently occurs at Ajopa, Block 7 and Block 8

(also known as Teberebie pit), with potential expansion to Block 5 and Block 1 extensions.

Location

Iduapriem is located in the western region of Ghana, some 70km north of the coastal city of Takoradi and

approximately 10km south-west of the town of Tarkwa. Iduapriem is bordered to the north by Gold Fields

(Ghana) Ltd’s Tarkwa mine and to the east by Ghana Manganese Company (GMC) – a manganese mine

in existence since the 1920s.

History

A draft FS was completed in June 1989 and revised in 1990. In October 1991, Golden Shamrock began

construction of a 1.36mtpa semi-autogenous milling circuit and CIP plant.

Iduapriem commenced mining operations in early August 1992, with the ﬁrst gold pour achieved in

September of that year. In April 1995, Golden Shamrock approved a proposed expansion of the milling

capacity to 2.8mtpa and in May 1997, Golden Shamrock completed the new heap-leach plant and

the upgrade of the CIL plant. On 23 August 2000, the Teberebie lease was acquired from the defunct

Teberebie Goldﬁelds Limited.

In 2002, Ashanti upgraded the plant capacity further to 4mtpa. In mid-April 2004, the merger of AngloGold

Ltd and Ashanti Goldﬁelds Co Ltd was completed. AngloGold Ashanti extended the capacity of the plant

again in 2009 post the merger with the plant currently doing 5mtpa.

Legal aspects and

tenure

Iduapriem comprises the following mining leases;

•

Iduapriem – LVB1539/89 covering 31km

and expiring on the 18 April 2019

•

Ajopa North – LVB/WR326/09 covering 48.34km

and expiring on the 5 January 2019

•

Teberebie properties – LVB3722H/92 covering 25.83km

. One area of the lease was issued on

2 February 1988 and will expire in 1 February 2018, while the other was issued on 18 June 1992 and will

expire in 17 June 2018, the registration of the transfer of the lease is still in process

A new environmental management plan (EMP) has been submitted for extension of the mining leases.

Mining method

Iduapriem is an open pit mine, making use of contract miners. The mine ﬂeet consists of two – Lieb 9250

and one – Lieb 984 excavators and 26 – CAT 777s for Block 7 and 8 mining. An additional ﬂeet of one –

CAT 390D and one – Volvo EC 750D and 14 – Volvo ADT for Ajopa mining. A further 12 articulated haul

trucks are used to haul ore from the Ajopa pit to the plant.

Operational

infrastructure

Surface infrastructure associated with Iduapriem’s operation includes a primary crusher, overland

conveyor, CIP processing plant next to the main ofﬁces building, tailings storage facility and two camp

areas for contractors and company employees. Tarkwa town is also adjacent to the tenement. Power is

obtained from the grid. Current government agreements seek to ensure constant power to site.

Mineral processing

The current processing plant treats free-milling material from open-cast mining, by a conventional crush-

semi-autogenous ball milling circuit and leaching.

Risks

Power reliability and stability, slope/high wall stability (rockfall potential) and inrush/inundation (ﬂooding of

pits, tailings dam and infrastructure) all are potential risks.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

I d u a p r i e m

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

I d u a p r i e m

Plant centroid co-ordinates
2°02'38"W, 5°14'44"N

Teberebie

Tarkwa

to Adiawso

Tamso

Efuenta

Badukrom

Wangarakrom

Pepesa

Licences

Mining

Mine Infrastructure

Pits

Plant

ROM Pad

Stockpiles

Leach Pad

TSF

Waste Dumps

Roads

Main

Secondary

Settlements

Towns

Villages

to Aniantintem

Ajopa

Block 5

Block 7&8

Block 4

1.5

4.5km

Block 3

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COMPETENT PERSONS

Iduapriem

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Tebogo Mushi

SAIMM

702 438

15 years

BSc (Hons) Mining Engineering

GDE (Mineral Economics)

Ore Reserve

Stephen Asante Yamoah

MAusIMM

304 095

12 years

BSc (Hons) Mining Engineering

MSc (Mining Engineering)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The Banket Series in the mine lease areas form prominent, arcuate ridges extending southwards from Tarkwa, westwards through

Iduapriem and northwards through Teberebie to Mantraim. The ridge segments are supported by a massive lithological unit known as

the Footwall Quartzite, which is a strongly-bedded rock of blue-grey colour exhibiting a sub-parallel haematitic/black sand banding

and which locally forms the basal stratigraphic unit to the Banket Reef Zone (BRZ).

The BRZ comprises a sequence of individual beds of quartz pebble conglomerates (Banket beds), breccia conglomerates, meta-

sandstones (also called quartzites and grits). All known gold mineralisation within the Banket Formation is associated with the

conglomerates and is found within the matrix that binds the pebbles together. Gold content is presumably a function of the size and

amount (packing) of quartz pebbles present within a conglomeratic unit- more pebbles present suggest more gold.

MINERALISATION STYLE

Gold mineralisation is hosted by conglomeratic sedimentary packages referred to as zones or reefs and is considered to be of

primary palaeoplacer origin. There are four recognized reefs, namely A, B, C and D and which are equivalent to the Tarkwaian

Sub-Basal, Basal (or Main), Middle (or West) and Breccia Reefs respectively. The B and C reefs are oligomictic, and consist of well

sorted conglomerates and have been mined underground in some areas for over a century. The A and D reefs have a lower gold

tenor and are polymictic containing both well rounded and angular fragments. The gold is ﬁne-grained, free and not associated with

sulphides. The main ancillary mineral is magnetite.

MINERALISATION CHARACTERISTICS

At Iduapriem, the entire Tarkwaian Group has been folded into a broad syncline, locally referred to as the Tarkwa Syncline. The reefs

are stratigraphically located within the Banket Formation and are the locus of the mine towards the southern closure of the Tarkwa

Syncline. With the gold mineralisation being stratabound, the characteristics of the mineralisation are deﬁned by the reefs. The Tarkwa

Syncline covers the eastern portion of the lease (Blocks 1-8), with the Ajopa deposit located in the north-western lease on the western

limb of the Ajopa anticline.

For blocks 1 to 8, the pits are numbered sequentially from east to west across both limbs of the Tarkwa Syncline. These limbs, which

outcrop and express themselves as topographic ridges, trend NE on the easterly limb and NNE on the westerly limb. The closure of

the syncline results in an east-west cuspate shape to the reefs at the southern limits of the Banket formation. Reef dips are variable

and reﬂect the structural complexity of the basin. The eastern limb of syncline dips steeply 70-80 degrees towards the west, however

this changes to the south where the dips become steeper, eventually becoming overturned and southerly dipping at the southern

margin of the basin in the vicinity of blocks 1 and 2. Moving westwards to block 3, the dips again dip into the syncline and ﬂattening

to approximately 50 degrees by Block 3 east. At Blocks 7 and 8, which are the dominant constituents of the Ore Reserve, the reefs

dip 35 to 30 degrees to the west. Reef packages vary in thickness, with those in Blocks 7 and 8 being between 3 and 10m thick, but

in the vicinity of Block 1 reefs thin, onlap and thicken due to thrusting.

At Ajopa, where the reefs are expressed as a topographic ridge striking NE-SW, dips are generally 50 to 60 degrees to the west.

All four reefs are present, however the B and C reefs are more dominant and thicknesses vary between 3m and 8m.

Faulting is common and major faults are believed to be contemporaneous with the folding. Within the Tarkwa Syncline, faults form

bounding structures to the blocks and separate the individual pits from each other.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

I d u a p r i e m

GEOLOGICAL CROSS-SECTION THROUGH BLOCKS 7 AND 8

1200m

Elevation

100m

1100m

1300m

1400m

1500m

Legend

Huni sandstone

Tarkwa phylite

Quartzite

D Reef

C Reef

B Reef

A Reef

Kawere conglomerate

E X P L O R AT I O N

Exploration during 2016 focused on inﬁll drilling at Block 7 and 8, Mineral Resource delineation drilling at Block 4S and reconnaissance

drilling at the Bankyem (Block 1 East), Block 1 West, Mile 5 and Nueng targets. A total of 11,316m was drilled, comprising 8,275m

DD and 3,041m RC. Soil geochemical surveys were also completed over various target areas as part of a lease-scale programme.

The drilling at Block 7 and 8 was completed to convert Inferred Mineral Resource to Indicated Mineral Resource, with a total of 3,541m

drilled, comprising 712m RC and 2,829m DD. Structural reef duplications in the area were reﬁned and particularly impact the A and B

reefs. The results generally correlate well with the Mineral Resource model.

Drilling at Block 4S achieved 2,456m, 501m being RC and 1,955m being DD. This drilling closes up the strike gap between Block 3W

and Block 4. All eleven holes drilled intersected mineralised conglomerate; however, the full conglomerate reef sequence is disrupted

to the north, and often truncated, by a series of structures and associated maﬁc and felsic intrusives. The drilling was preceded by a

detailed mapping exercise in the Block 3W/Block 4S area, which highlighted the major fault that displaces Block 4 relative to Block 3W.

At the Bankyem (Block 1 East) target, 1,597m was drilled (421m RC and 1,176m DD) to complete the programme initiated in

2015. Although some signiﬁcant intercepts were reported, these do not materially impact the evaluation of the target area, which is

uneconomic under current conditions.

A geochemical soil survey was carried out during Q3 over the Nueng target, between Block 1 and Block 2. This was followed up with

a drilling programme initiated in Q4: a total of four holes for 1,087m were drilled (282m RC and 805m DD) and drilling will continue

into Q1 2017. To date there has been no intersection of conglomerate reef, with the drilled lithologies mainly quartzite with some maﬁc

intrusive. Several shear zones, associated with strong siliciﬁcation and pyrite, have also been noted.

Immediately east of the Nueng target, a total of 1,523m drilling, comprising 406m RC and 1,117m DD, was completed at Block

1 West, west of the historic Block 1 pit. The programme aimed to verify historic drill hole results and establish the extension of

conglomerate reefs west towards the Nueng target area. Signiﬁcant intersections were reported showing conglomerate reef packages

extending from the Block 1 pit to Nueng about 300m along strike.

At Ajopa, two holes were drilled for a total of 357m (75m RC and 282m DD) to investigate spatial discrepancies between grade control

and Mineral Resource models for the pit.

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Ten (590m RC) holes were completed in the Mile 5 area as a follow up on gold-in-soil anomalies. Assay results which were generally

poor show gold occurrences mainly in the south east of the target area. Further mapping after the initial drilling shows two main vein

trends, north-south and east-west. Limited further drilling will be undertaken on a southwest azimuth to further aid modelling and

assessment of mineralised veins in the area.

A geochemical soil sampling programme was completed, focusing on the western lease area and including Mile 5 West, Badukrom,

Ajopa NW and Ajopa NNW. Data validation is ongoing and only partial results have been returned to date.

Interpretation of the airborne geophysical surveys ﬂown in late 2015 was completed and further work, including development of a

revised lease-scale geological map and target generation. Several additional targets were identiﬁed as a result, several of which are

covered by the soil survey programme.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Iduapriem

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

25 x 25, ✔ ✔

50 x 50,

50 x 75,

100 x 50

–

Indicated

50 x 50, ✔ ✔

50 x 75,

50 x 100,

100 x 75

–

Inferred

100 x 100 ✔ ✔

–

Grade/ore control

10 x 12,

10 x 15,

20 x 15,

20 x 20

– ✔

–

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INCLUSIVE MINERAL RESOURCE

Iduapriem

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Ajopa

Measured

–

Indicated

5.00

1.79

8.94

0.29

Inferred

1.66

1.98

3.29

0.11

Total

6.66

1.84

12.23

0.39

Block 3W

Measured

–

Indicated

5.26

1.26

6.62

0.21

Inferred

2.85

1.31

3.74

0.12

Total

8.11

1.28

10.36

0.33

Block 5

Measured

–

Indicated

5.34

1.13

6.01

0.19

Inferred

1.79

1.13

2.02

0.06

Total

7.13

1.13

8.03

0.26

Block 3 and 4

Measured

–

Indicated

0.70

1.37

0.95

0.03

Inferred

0.58

1.68

0.98

0.03

Total

1.28

1.51

1.93

0.06

Block 7 and 8 West cutback

Measured

–

Indicated

21.53

1.72

37.09

1.19

Inferred

0.21

1.34

0.28

0.01

Total

21.74

1.72

37.37

1.20

Block 7 and 8 other

Measured

–

Indicated

25.87

1.60

41.29

1.33

Inferred

14.15

1.65

23.29

0.75

Total

40.02

1.61

64.58

2.08

Block 7 and 8 East cutback

Measured

–

Indicated

15.19

1.56

23.63

0.76

Inferred

0.31

1.37

0.42

0.01

Total

15.50

1.55

24.06

0.77

Stockpile (full grade ore)

Measured

2.59

0.77

2.00

0.06

Indicated

–

Inferred

–

Total

2.59

0.77

2.00

0.06

Stockpile (other)

Measured

–

Indicated

10.80

0.57

6.16

0.20

Inferred

2.76

0.68

1.88

0.06

Total

13.56

0.59

8.03

0.26

Stockpile (marginal ore)

Measured

0.32

0.62

0.19

0.01

Indicated

6.23

0.67

4.17

0.13

Inferred

–

Total

6.55

0.67

4.37

0.14

Iduapriem

Total

123.14

1.40

172.97

5.56

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ESTIMATION

Geostatistical techniques are employed in the estimation of the Mineral Resource. 3D wireframes are built from all geological information

obtained from drill hole data, mapping of pits and geophysical data interpretations and where appropriate these wireframes are

subdivided into the individual reef units that occur within a broad conglomerate package. Estimation is by ordinary kriging into block

sizes that range from 5m to 25m in the X and Y directions and between 6m and 12m in the Z direction depending on the reef widths

and data spacing. Densities are allocated from appropriate test work conducted on drill hole samples. Grade and tonnages are

computed from these block models that are constrained within an optimised pit shell at the Mineral Resource reporting gold price.

Full grade and marginal stockpiles (run-of-mine material) are surveyed on a monthly basis to validate tonnage measurements. Grade

measurements on these stockpiles are based on RC grade control drilling from the individual pits mined. During recent years, historical

stockpiles were drilled and estimated using geostatistical techniques. These stockpiles were reported as part of the Mineral Resource

if material occurred above the economic cut-off grade at the Mineral Resource reporting gold price.

IDUAPRIEM

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

verage grade above cut-off (g/t)

120

100

3.2

2.8

2.4

2.0

1.6

1.2

0.00 0.25 0.50 0.75

1.25 1.50 1.75 2.00

2.50 2.75 2.80

1.00

2.25

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

The grade tonnage curve does not include stockpiles.

EXCLUSIVE MINERAL RESOURCE

Iduapriem

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

53.59

1.49

79.76

2.56

Inferred

24.31

1.48

35.89

1.15

Total

77.90

1.48

115.66

3.72

The exclusive Mineral Resource is derived mainly from the following:

•

Inferred Mineral Resource and lower-grade material that does not make the Ore Reserve cut-off grade located within the optimised

Ore Reserve pit shell

•

Mineral Resource located outside the Ore Reserve shell, but within the optimised Mineral Resource shell. This consists mainly of

down-dip extensions of the ore zones, most of which may be mineable at a higher gold price and are largely categorised as Inferred

Mineral Resource.

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c o n t i n u e d

I d u a p r i e m

Changes in the Mineral Resource are mainly due to Mineral Resource conversion drilling at Ajopa, Block 7 and 8, Block 3 and Block 4

and depletion.

IDUAPRIEM year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

5.65

5.60

5.55

5.50

5.45

5.40

5.35

5.30

-0.26

0.28

-0.07

0.00

-0.01

0.00

5.62

5.56

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

IDUAPRIEM

Inclusive Mineral Resource sensitivity

-5

-10

-15

-20

Iduapriem’s Mineral Resource is very sensitive to

a drop in gold price, due to the high stripping

cost and capital intensive cutbacks required to

access the deeper portions of the orebody.

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O R E R E S E R V E

ORE RESERVE

Iduapriem

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Ajopa

Proved

–

Probable

2.41

1.66

4.00

0.13

Total

2.41

1.66

4.00

0.13

Block 5

Proved

–

Probable

3.75

1.12

4.20

0.14

Total

3.75

1.12

4.20

0.14

Block 7 and 8 West cutback

Proved

–

Probable

15.43

1.42

21.90

0.70

Total

15.43

1.42

21.90

0.70

Block 7 and 8 East cutback

Proved

–

Probable

12.02

1.57

18.83

0.61

Total

12.02

1.57

18.83

0.61

Stockpile (full grade ore)

Proved

2.59

0.77

2.00

0.06

Probable

–

Total

2.59

0.77

2.00

0.06

Stockpile (other)

Proved

–

Probable

2.50

0.80

2.00

0.06

Total

2.50

0.80

2.00

0.06

Stockpile (marginal ore)

Proved

0.32

0.62

0.19

0.01

Probable

6.23

0.67

4.17

0.13

Total

6.55

0.67

4.37

0.14

Iduapriem

Total

45.25

1.27

57.31

1.84

ESTIMATION

The 3D Mineral Resource models are used as the basis for the Ore Reserve. A mineralisation envelope is developed using the Mineral

Resource block model, geological information and the relevant cut-off grade, which is then used for mine design. An appropriate

mining layout is designed that incorporates mining extraction losses and dilution factors.

The Ore Reserve is estimated within mine designs, based on modifying factors, based on actual mining and detailed analysis of cut-

off grade, geotechnical, environmental, productivity considerations and the requirements of the mining ﬂeet. The upper portions of

the Ajopa deposit have been discounted for the estimated depletion by artisanal miners. This discount factor has been derived from

observation and estimates based on the Mineral Resource model.

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

I d u a p r i e m

ORE RESERVE MODIFYING FACTORS

Iduapriem

Gold price

Cut-off

grade

RMF

MRF

MCF

MetRF

as at 31 December 2016

US$/oz

g/t Au

% (based

on tonnes)

% (based

on g/t)

% (based

on tonnes)

% (based

on g/t)

Ajopa

1,100

0.90

100.0

94.0

100.0

96.0

Block 3 and 4, Block 5

1,100

0.80

100.0

94.0

100.0

96.0

Block 7 and 8 East and

West cutback

1,100

0.77

100.0

94.0

100.0

96.0

Stockpile (full grade ore)

1,100

0.60

–

100.0

92.0

Stockpile (other)

1,100

0.55

–

100.0

92.0

Stockpile (marginal ore)

1,100

0.50

–

100.0

92.0

A mining recovery factor (MRF) of 94.0% was applied to the standard orebody models by reducing all block grades by 6.0% and 100%

mining tonnage factor, which are based on reconciliation over a three-year period.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Iduapriem

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Ajopa

0.46

1.40

0.65

0.02*

Block 5

0.74

1.06

0.79

0.03*

Block 7 and 8 West cutback

0.19

1.40

0.27

0.01*

Block 7 and 8 East cutback

0.04

1.75

0.07

0.00*

Stockpile (other)

2.76

0.68

1.88

0.06**

Total

4.20

0.87

3.65

0.12

* Pockets of Inferred Mineral Resource within pit design to be converted by grade control
** 45% of Inferred Mineral Resource of NW stockpile included in 2027

Inferred Mineral Resource included in the business plan is 16% for Block 5, 8% for Ajopa and 11% for Block 7 and Block 8 west

cutback and 2% for the eastern cutback, while 45% Inferred Mineral Resource is included from the NW stockpile from 2027. The

overall Inferred Mineral Resource allowed for in the plan is 8.9%, however, only Measured and Indicated Mineral Resource within the

design of the selected pit shells are converted to Ore Reserve.

IDUAPRIEM year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

2.30
2.25
2.20
2.15
2.10
2.05
2.00
1.95
1.90
1.85
1.80
1.75

-0.26

0.00

0.04

0.00

-0.21

0.00

2.27

1.84

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Changes in the Ore Reserve are mainly due to depletion and revisions to slope angles as a result of inﬁll drilling at Block 7 and 8.

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I N T R O D U C T I O N

Property description

Obuasi Gold Mine is owned and operated by AngloGold Ashanti (Ghana) Limited (AGAG). AGAG was

established following the merger of the former AngloGold Limited of South Africa and Ashanti Goldﬁelds

Company Limited of Ghana in April 2004.

Production started in 1897 and stopped in the last quarter of 2014, whilst the rest of the mine continued

under limited operations, which included the development of the underground decline. In February 2016,

the entire mine was placed into care and maintenance.

In June 2016, a FS to deﬁne and design the requirements for the operational transformation and assess the

potential viability of the mine was completed. The outcome indicated a strong technical and economical

case with an anticipated 20-year mine life.

Location

Obuasi Gold Mine is located in the municipality of Obuasi, in the Ashanti region of Ghana, some 260km

northwest of the capital Accra and 60km south of Kumasi. The mine is owned and operated by AGAG, a

subsidiary of AngloGold Ashanti Limited.

History

Underground production has been continuous from 1897 to 2014. A phase of open pit mining was

conducted from 1988 to 2000, with small intermittent open pit mining beyond that period. Total historic

production is ~33Moz gold, including ~5Moz gold from open pits.

Legal aspects and

tenure

Obuasi Gold Mine concession previously covered an area of approximately 475km

, had eighty communities

within a 30km radius of the mine, but has been reduced to 201.46km

through an application to surrender

part of the lease to government which was approved on 3rd March 2016.

Majority of the reduced concession area falls in the Obuasi Municipality. Minor portions of the new

concession fall in the Adansi North, Adansi South and Amansie Central districts

Obuasi Gold Mine’s Mineral Resource and Ore Reserve is covered by a number of mining leases, namely:

•

Obuasi Concession comprising 152.6km

•

Part Binsere Concession 1, 2 and 3 comprising 48.86km

The duration of the Mining Concessions are covered by a stability agreement with the Ghana government.

Mining method

Mine designs are done to delineate development layouts and production stopes by taking into consideration

economic cut-off grade and geotechnical design parameters for each mining block, mining level and

section. The underground development system extends to a depth of 1,500m from surface. Mining

levels lie between 15m and 20m intervals with major levels between 30m-60m intervals. Underground

production was by open-stope mining (both longitudinal and transverse), and sub-level caving method;

with future designed production by longhole open stope mining methods with paste ﬁll.

Operational

infrastructure

Existing infrastructure includes a 2.4Mtpa processing plant with ﬂotation and bacterial oxidation (BIOX);

underground development, hoisting shafts and associated infrastructure; power and water reticulation,

ofﬁce complexes, workshops, and company housing estates. The current tailings storage facility is close

to closure and plans for a new dam have been prepared for submitted to government authorities.

Mineral processing

The current processing plants can treat both oxide and fresh material. The main plant is conﬁgured for

ﬂotation and BIOX treatment that is required for the underground refractory sulphide ore type.

Risks

The FS considered alternative mine plans, including possible potential JV arrangements. The company is

currently negotiating with the Ghana government on a range of issues from environmental requirements

to community issues to taxation, the outcomes of which may affect the future economics and the Mineral

Resource and Ore Reserve statement.

The current Ore Reserve has been estimated based on the 2014/2015 Mineral Resource, the signiﬁcant

changes to the Mineral Resource, resulting from the revised geological model and extensive data validation

has not yet rolled through to the Ore Reserve as the Mineral Resource was only ﬁnalised late in 2016. This

work will take place in 2017.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

O b u a s i

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(

Plant centroid co-ordinates
1°41'16"W, 6°10'11"N

Odumasi

Nyankumaso

Kwapia

Wawasi

Licences

Mining

Pits

Plant

TSF

Waste dumps

Underground workings

Ponds and dams

Consolidated operations footprint

Towns

Villages

Main

Secondary

Airfield

Mine Infrastructure

Settlements

Roads

Mangoase

Anyinam

6 km

Domiabra

Obuasi

Sansu

Dankwa

Boete

Anyankyirem

to Kumasi

to Atekyem

Kokoteasua

Pompora

Adansi

KMS

Obuasi Deeps

Decline

Gyabunsu-Sibi

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

O b u a s i

COMPETENT PERSONS

Obuasi

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Shaun Crisp

SACNASP

400076/09

14 years

BSc Hons (Geology)

Ore Reserve

Christian Boafo

MAusIMM

312 532

19 years

Graduate Dipl. (Mining)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The mine is located within the Obuasi concession area in south-western Ghana along the north-easterly-striking Ashanti volcanic

belt. The deposit is one of the most signiﬁcant Proterozoic gold belts discovered to date. The Ashanti belt predominantly comprises

sedimentary and maﬁc volcanic rocks, and is the most prominent of the ﬁve Birimian Supergroup gold belts found in Ghana. The belt

is a 300km wrench-fault system that propagated from Dixcove in the south-west to beyond Konongo in the north-east.

The Birimian was deformed, metamorphosed and intruded by syn- and post-tectonic granitoids during the Eburnean tectonothermal

event around two billion years ago. Folding trends are dominantly north-northeast to north-east. Elongate syn-Birimian basins

developed between the ridges of the Birimian system and these were ﬁlled with the Tarkwaian molasse sediments made up primarily

of conglomerates, quartzose and arkosic sandstones and minor shale units. Major faulting has taken place along the same trends.

The Lower Birimian meta-sediments and meta-volcanics are characterised and deﬁned by argillaceous and ﬁne to intermediate

arenaceous rocks. These rocks are represented by phyllites, meta-siltstones, meta-greywackes, tuffaceous sediments, ash tuffs

and hornstones in order of decreasing importance. Adjacent to the shear zones, these rocks are replaced by sericitic, chloritic and

carbonaceous schists, which may be graphitic in places. Multiple lodes are a common feature in the mine.

Granites outcrop in the west and north-west of the concession area and intrude the Birimian rocks only. Two types of granite are

present; one is more resistant to weathering than the other, with less-resistant granite being prospective for gold mineralisation.

Mineralised shears are found in close proximity to the ‘contact’ with harder metamorphosed and metasomatically-altered intermediate

to basic Upper Birimian volcanics. The competency contrast between the harder meta-volcanic rocks to the east and the more

argillaceous rocks to the west is thought to have formed a plane of weakness. During crustal movement, this plane became a zone of

shearing and thrusting coeval with the compressional phases.

MINERALISATION STYLE

Gold mineralisation is associated with, and occurs within, graphite-chlorite-sericite fault zones. These shear zones are commonly

associated with pervasive silica, carbonate and sulphide hydrothermal alteration and occur in tightly-folded Lower Birimian schists,

phyllites meta-greywackes, and tuffs, along the eastern limb of the Kumasi anticlinorium.

MINERALISATION CHARACTERISTICS

Two main ore types are present, namely quartz vein and sulphide ore. The quartz vein type consists mainly of quartz with free gold

in association with lesser amounts of various metal sulphides containing iron, zinc, lead and copper. This ore type is generally non-

refractory. Sulphide ore is characterised by the inclusion of gold in the crystal structure of arsenopyrite minerals. Higher gold grades

tend to be associated with ﬁner grain arsenopyrite crystals. Sulphide ore is generally refractory

E X P L O R AT I O N

No exploration was done during the year.

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P R O J E C T S

In 2014 a detailed FS using input from international consultants began, following on from earlier in-house studies.

The FS considered the optimum mining methodology and schedules for the underground mine, based on modern mechanised mining

methods and refurbishment of underground, surface and process plant infrastructure. A signiﬁcant rationalisation and/or replacement

of current infrastructure will enable the delivery of high utilisation and productivity metrics.

An updated FS led to the re-introduction of longhole open stoping, after considering the economic implication of underhand drifts and

ﬁll for narrow lodes. The updated FS included Côte d’Or as an underhand drift and ﬁll mining block, in the Ore Reserve.

During this time Obuasi operated in a limited operating phase with underground activities essentially limited to continued

development of the Obuasi Deeps Decline and underground inﬁll drilling. The limited operating phase was brought to a halt after

an incursion by illegal miners on Obuasi mines concession in February 2016. The mine has been under care and maintenance

ever since.

The optimised FS ﬁnalised in March 2016, with a schedule for the potential re-start of underground production.

GEOLOGICAL CROSS-SECTION THROUGH OBUASI

Legend

Fault (with movement)

Foliation – shear (Schist)

Arsenopyrite (Sulphide ore)

Graphite shear (Schist)

Shear-Vein Quartz (Main Lode)

Meta-Volcanic rock

Meta-Sedimentary rock

800m

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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C O N T I N E N T A L A F R I C A

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M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Obuasi

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

20 x 20,

40 x 20,

50 x 50

–

Indicated

30 x 30,

50 x 50,

60 x 60

–

Inferred

90 x 90,

100 x 100,

120 x 120

–

Grade/ore control

10 x 10

–

Channel sampling of cross-cuts

INCLUSIVE MINERAL RESOURCE

Obuasi

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Anyakyirem

(1)

Measured

–

Indicated

5.52

2.38

13.10

0.42

Inferred

0.09

2.71

0.24

0.01

Total

5.61

2.38

13.35

0.43

Anyinam

(1)

Measured

0.00

2.50

0.01

0.00

Indicated

0.45

3.54

1.59

0.05

Inferred

1.02

4.23

4.32

0.14

Total

1.47

4.02

5.92

0.19

Gyabunsu-Sibi

(1)

Measured

0.05

4.00

0.21

0.01

Indicated

0.05

3.48

0.16

0.01

Inferred

0.28

3.97

1.13

0.04

Total

0.38

3.92

1.50

0.05

Above 50 Level

Measured

–

Indicated

101.40

6.52

661.49

21.27

Inferred

14.06

9.07

127.51

4.10

Total

115.46

6.83

789.00

25.37

Below 50 Level

Measured

–

Indicated

4.31

18.31

78.85

2.53

Inferred

13.99

10.94

153.02

4.92

Total

18.30

12.67

231.87

7.45

Obuasi

Total

141.22

7.38

1,041.63

33.49

(1)

$1,600/oz Mineral Resource gold price used

100

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ESTIMATION

During 2016 an exhaustive process of data review and validation took place which considerably increased the conﬁdence of the input

data and supported a reﬁnement of the Mineral Resource models. The geological interpretation is based on DD, cross-cut sampling

and underground mapping information. Block models are estimated within the delineated mineralised ore zones using ordinary kriging.

Estimates at Obuasi are based on a block model comprised of 20m x 5m x 15m blocks, which approximate the minimum SMU for

underground mining.

The open pit Mineral Resource at Obuasi was estimated by geostatistical techniques within 3D wireframe models of the mineralisation.

These models are based on geological information and cut-off boundaries deﬁned by sampling results. Geological interpretation is

based on trench sampling and reverse RC and/or DD drilling. Estimation is by ordinary kriging into 30m x 30m x 10m blocks for Obuasi

open pits.

EXCLUSIVE MINERAL RESOURCE

Obuasi

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.06

3.91

0.22

0.01

Indicated

93.52

6.25

584.45

18.79

Inferred

29.45

9.72

286.22

9.20

Total

123.02

7.08

870.89

28.00

The exclusive Mineral Resource is made up of Mineral Resource from underground and open pit. The bulk of the exclusive Mineral

Resource is from underground, and is spread across the entire deposit; where further study and design, change in costs and/or gold

price is required to develop economic extraction plans.

37% of the exclusive Mineral Resource is Inferred Mineral Resource and will require upgrading of its conﬁdence to be able to report

as an Ore Reserve.

MINERAL RESOURCE BELOW INFRASTRUCTURE

Obuasi

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

4.31

18.31

78.85

2.53

Inferred

13.99

10.94

153.02

4.92

Total

18.30

12.67

231.87

7.45

Mineral Resource below infrastructure is primarily from below 50 Level.

OBUASI

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

verage grade above cut-off (g/t)

6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0

0.5

1.0

2.0

1.5

2.5

3.0

3.5

4.0

4.5

5.0

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

OBUASI

Grade tonnage curve underground (metric) (attributable)

Tonnes above cut-off (millions)

verage grade above cut-off (g/t)

140

120

100

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

101

M I N E R A L R E S O U R C E A N D O R E R E S E R V E R E P O RT

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Changes in the Mineral Resource are mainly due to a new geological model, the revalidated database and a revised estimation methodology

which when combined resulted in a signiﬁcant increase.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

O b u a s i

O R E R E S E R V E

ORE RESERVE

Obuasi

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Above 50 Level

Proved

–

Probable

19.56

6.67

130.48

4.20

Total

19.56

6.67

130.48

4.20

Below 50 Level

Proved

–

Probable

1.74

23.11

40.26

1.29

Total

1.74

23.11

40.26

1.29

Obuasi

Total

21.31

8.01

170.74

5.49

ESTIMATION

The 3D Mineral Resource models are used as the basis for the Ore Reserve evaluation. Using the Mineral Resource block model,

a mineralisation envelope is developed by applying the relevant cut-off grade, which is then used for a mine design. An appropriate

mining layout is designed that incorporates mining extraction losses and dilution factors.

All mine designs are done to delineate stopes by taking into consideration cut-off grade, geotechnical design parameters for

each mining block, ventilation and backﬁll requirement, mining level and section, usually leading to an optimisation of the existing

infrastructure, mining sequence, and corresponding development layouts. The underground operationally runs to a depth of 1,500m

from surface. Mining levels are between 15m and 20m intervals with major levels between 30-60m intervals. Underground production

is made up of open-stope mining (both longitudinal and transverse), and sub-level caving methods.

OBUASI year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

5.47

0.00

28.02

33.49

0.00

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

OBUASI

Inclusive Mineral Resource sensitivity

-5

-10

-15

-20

-25

Obuasi is sensitive to changes in gold price,

specifically on the downside because of the lower

grade sulphide mineralisation on the flanks of the

high grade quartz.

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OBUASI year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

5.90
5.85
5.80
5.75
5.70
5.65
5.60
5.55
5.50
5.45
5.40

0.00

0.13

0.00

-0.02

0.00

-0.37

0.00

5.49

5.74

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

The current Ore Reserve has been estimated based on the 2014/2015 Mineral Resource. The signiﬁcant changes to the Mineral

Resource, resulting from the revised geological model and extensive data validation has not yet rolled through to the Ore Reserve as

the Mineral Resource was only ﬁnalised late in 2016. This work will take place in 2017.

ORE RESERVE MODIFYING FACTORS

Obuasi

Gold Price

Cut-off

grade

Dilution

MRF

MCF

MetRF

as at 31 December 2016

US$/oz

g/t Au

% (based

on g/t)

Above 50 Level

1,100

4.40

16.0

94.0

100.0

89.0

Below 50 Level

1,100

5.20

20.0

95.0

100.0

89.0

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Obuasi

Tonnes

Grade

Contained

gold

as at 31 December 2016

million

g/t

tonnes

Moz

Above 50 Level

2.80

6.52

18.29

0.59

Below 50 Level

0.73

12.18

8.94

0.29

Total

3.54

7.70

27.23

0.88

The Ore Reserve is exclusive of Inferred Mineral Resource. Inferred Mineral Resource in business plan consists of 1Moz and is 15% of

the total business plan. Only Inferred Mineral Resource within economic and geotechnical limits of Proved and Probable Ore Reserve

was included in the business plan.

ORE RESERVE BELOW INFRASTRUCTURE

Obuasi

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

–

Probable

1.74

23.11

40.26

1.29

Total

1.74

23.11

40.26

1.29

Ore Reserve below infrastructure is restricted to the ground below 50 Level that requires a decline to access and is located between

50 and 60 Level below the KMS shaft.

Revised mining method from underhand drift and ﬁll to longhole open stoping. Reintroduction of sill pillars in Block 11 and 8 Lower.

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INCLUSIVE MINERAL RESOURCE

Guinea

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.64

Indicated

143

0.84

120

Inferred

0.95

Total

226

0.85

191

EXCLUSIVE MINERAL RESOURCE

Guinea

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

0.84

Inferred

0.95

Total

123

0.89

110

ORE RESERVE

Guinea

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

0.64

Probable

0.86

Total

0.80

C O N T I N E N T A L A F R I C A

c o n t i n u e d

G u i n e a

GUINEA

Kankan

Dabola

Labe

Conakry

Operations
1 Siguiri

(85%)

200km

Siguiri gold mine is AngloGold

Ashanti’s only operation in the

Republic of Guinea. The mine is

85% owned by AngloGold Ashanti

and 15% by the Government of

Guinea. The mine is a conventional

open pit operation situated in the

Siguiri-district in the north-east of

Guinea. It lies about 850km north-

northeast from the capital city of

Conakry and 109km west from the

border with Mali by road.

Gold-bearing ore is mined from

several pits (generally three pits at

any one time) and sent to a CIP

processing plant.

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I N T R O D U C T I O N

Property description

Siguiri in Guinea is 85% owned by AngloGold Ashanti and 15% by the Government of Guinea. It is an

ongoing open pit operation.

Location

The mine is located approximately 520km north-northeast of Conakry, 25km northwest of the town of

Siguiri and 190km southeast of the Malian capital Bamako, near the Mali border.

History

Gold mining in the district can be traced back for centuries, but there are no reliable records of pre-

western production. The French became involved in the area in the late-19th and early-20th centuries.

Between 1931 and 1951, the French reported gold coming out of Siguiri, with ﬁgures varying between

1 and 3.8t annually, however, little exploration work was completed.

There was a phase of Russian exploration in the area between 1960 and 1963. The Russian work focused

on the placer deposits along the major river channels in the area.

In 1980, SOMIQ (Société Minière Internationale du Quebec) gained the exploration rights for Siguiri and

Mandiana. SOMIQ focused its work on the Koron and Didi areas. The Chevaning Mining Company Ltd.

was then created to undertake a detailed economic evaluation of the prospect, with more intensive work

beginning in the late 1980s.

Société Aurifère de Guinea took over from its predecessors and continued work on the placer deposits.

Production on the Koron placer reached a peak in 1992 with 1.1t gold being produced, although due to

a number of difﬁculties, the mine was shut down later that year.

Golden Shamrock started a FS in 1995 after which Ashanti Goldﬁelds invested in the deposit and Siguiri

mine started production in 1998 as Société Ashanti Goldﬁelds de Guinea (SAG).

In 2004, the merger of AngloGold and Ashanti resulted in the operation being run by AngloGold Ashanti.

Legal aspects and

tenure

Siguiri mine is mined under licence from the government of Guinea. The Mineral Resource and Ore Reserve

are covered by SAG mining concession D/97/171/PRG/SGG, totalling 1,494.5km

, which expires on

10 November 2018.

There is also a convention which deﬁnes the operating conditions of the mine and the rights and duties

of the mine under the convention are applicable to AngloGold Ashanti as the current owners of the

company SAG.

The SAG concession was granted under the Convention de Base between the République de Guinea, the

Chevening mining company and Golden Shamrock Mines signed on 11 November 1993. The concession

is to be explored and mined exclusively for gold, silver and diamonds by SAG for 25 years from the date

of the agreement to the year 2018.

Discussions have been held with the government over the past year regarding the extension of the

Convention de Base. These discussions reached a favourable conclusion in 2016 and is expected to be

approved by parliament in 2017. The Convention de Base will guide the renewal of the mining concession

in 2018.

Mining method

Siguiri is currently a multi-pit oxide gold mining operation, operated with a contract miner. The mining

method is selective conventional techniques using excavators and trucks on 3m high ﬂitches. Liebherr

994s and 984s excavators are the main loading equipment matched with CAT 777 dump trucks.

A minimum mining unit (MMU) suitable for selective mining and nominated mining equipment of

5m x 5m x 3m based on historical grade control areas are used to simulate the expected mining dilution

and ore losses.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

S i g u i r i

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Administrative

Operational

infrastructure

Access is typically poor although the main secondary roads around the mine and to Siguiri are easily

passable through most of the year, other secondary roads are inaccessible during the wet season. Siguiri

can also be accessed via a small airﬁeld and a well-paved road connects Siguiri to Bamako in the north

and Kouroussa in the south.

The Siguiri gold mine includes a processing plant, a tailings storage facility and other infrastructure such

as a mine village, water supply system, roads, power supply by on site generators and communications

systems. Additional infrastructure includes on site ofﬁces, accommodation and workshops to support

remote mining.

Mineral processing

Processing of the ore is done by a CIP processing plant that has been successfully optimised to reach an

average throughput of 11.8Mt per annum. Ore has historically been derived from a number of oxide pits

in the Block 1 concession area, with the primary future ore supply provided by Seguélén (oxide ore), Kami

and Bidini (both fresh rock ore).

The existing processing facility was designed for the processing of soft ore only and can only introduce

a small percentage of fresh rock ore in the mill feed. A project is currently at implementation stage to

upgrade the processing plant to treat up to 50% fresh rock ore by quarter 4 of 2018.

Risks

The favourable conclusion of the Convention de Base negotiation during 2016 and its expected ratiﬁcation

in 2017 by parliament has signiﬁcantly reduced the risk of the remaining Mineral Resource and Ore Reserve

not being covered by a valid mining concession.

(

Plant centroid co-ordinates
9°23'27"W, 11°33'54"N

Block 1

Siguiri

Koron

Block 2

Block 3

Block 4

Foulata

Kounkoun

Kouremale

Saraya

Doko

Licences

Mining

Exploration

Exploration application

Pits

Plant

ROM pad

Stockpiles

Leach pad

TSF

Towns

Villages

Deposit

Sec

Main

Waste dumps

Mine infrastructure

Settlements

Roads

30km

Silakoro

Gontoron

Didi

Saraya West

Villages

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COMPETENT PERSONS

Siguiri

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Steven Robins

MAusIMM

222 533

21 years

BSc Hons (Geology), MBA, MSc

(Mineral Resource Evaluation)

Ore Reserve

Desiderius Kamugisha

MAusIMM

227 181

15 years

BSc (Mining Engineering)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The Siguiri orebodies are early Proterozoic (Birimian) orogenic quartz-vein hosted deposits located in the Siguiri Basin of West Africa.

Generally poorly exposed, the basin sediments have been subject to greenschist facies metamorphism and consist of a well-bedded

turbiditic sedimentary sequence, with some brecciated and possibly volcanic members. Mineralisation also occurs as secondary gold

in alluvial and colluvial gravels in laterite cover.

Three main sedimentary packages are recognised in the Siguiri district, the Balato, Fatoya and Kintinian Formations. The Balato

Formation is dominated by centimetre scale alternations of shale-siltstone and greywacke. The overlying Fatoya Formation consists

of metre scale beds of greywacke ﬁning towards the west. The Kintinian Formation is a thick package of shale and sandstone with a

basal clast-supported conglomerate.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

S i g u i r i

Plant centroid co-ordinates
9°23'27"W, 11°33'54"N

Block 1

Siguiri

Gontoron

Koron

Kintinian

Balato

Setiguia

Komatiguia

Koufoulani

Fatoya

Fenserekolen

Boukaria

Kofilani

Kourouda

Tubani

Seguélén

Bidini

Kami

Sokunu

Sintroko

9km

Silakoro

Licences

Mining

Exploration

Exploration application

Pits

Plant

ROM Pad

Stockpiles

Leach Pad

TSF

Towns

Villages

Sec

Main

Waste Dumps

Mine infrastructure

Settlements

Roads

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Legend

Orebody

Fatoya Formation –

Coarse/medium grained greywackes dominated

Fine grained siltstones dominated
Balato Formation –
Fine grained siltstones, shales, blackshales

Kami Pit

200m

Fault

Oxide

Fresh rock

Fold axis

Elevation

200m

400m

Pit shell

The orebodies are structurally controlled and the area has undergone at least three distinct phases of deformation, with initial

N-S compression developing minor folds, the second and largest deformation event is associated with E-W to ENE-WSW

directed compression leading to N-S structural architecture, and the third event was a NW-SE compression that led to refolding of

existing structures.

A deep oxidation (weathering) proﬁle is developed in the region, varying between 50m to 150m. The mineralised saprolite currently

provides the main oxide feedstock for the CIP processing plant, although a new treatment option has been approved to mine the fresh

rock extensions of the ore deposits.

MINERALISATION STYLE

Primary gold mineralisation occurs in all three lithostratigraphic units of the Siguiri region although the majority of known mineralisation

is found in the central and more competent Fatoya Formation. In some deposits the mineralisation shows strong lithological control

and is preferentially developed in coarser-grained units that have higher fracture/vein densities relative to ﬁne-grained rocks.

The mineralisation dominantly follows sub-vertical N-S thrusts, NE-SW dextral shear zones, and WNW-ESE sinistral faults associated

with the main (D2) deformation event. The mineralised veins are remarkable for the relative consistency of their orientation (NE), despite

the highly variable orientation of bedding and major structures.

Mineralised veins are more intensely developed along major structural trends, with quartz-carbonate-sulphide veining developed along

structures. Some of these structures have developed as incipient faults and are represented by discrete stockworks of mineralised

quartz-carbonate veins occurring along a trend, instead of being clearly deﬁned continuous structures.

MINERALISATION CHARACTERISTICS

Two styles of primary mineralisation have been recognised at Siguiri. The ﬁrst is characterised by precipitation of gold-bearing pyrite

associated with proximal albite and distal carbon alteration, and opening of carbonate-pyrite veins. The second style corresponds

to ENE-WSW trending native gold bearing quartz veins with carbonate selvages which crosscut carbonate-pyrite veins and show

arsenopyrite (±pyrite) halos.

GEOLOGICAL CROSS-SECTION THROUGH KAMI PIT

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

S i g u i r i

E X P L O R AT I O N

Exploration at Siguiri was historically focused on ﬁnding a new oxide Mineral Resource in the saprolite, and upgrading the conﬁdence

in the existing oxide Mineral Resource. This was achieved using geophysics, soil geochemistry and drill hole sampling in the context

of the regional and pit-scale geological models.

Following the completion of an asset strategy optimisation project in 2012, which indicated the potential economic viability of the

fresh rock material, the aim of the exploration has expanded and the objectives are two-fold. Firstly, to explore for replacement and

additional oxide material for short-term mining requirements. Secondly, to increase the level of conﬁdence in the ﬁve major fresh rock

targets below the existing oxide pits at Kami, Bidini, Tubani, Seguélén and Sintroko.

In 2016, a total of 57,974m of drilling was completed by the exploration team, with primary focus on increasing conﬁdence in the Bidini

and Seguélén Mineral Resource for conversion to Indicated Mineral Resource thereby allowing estimation of Ore Reserve.

OXIDE

Four oxide targets were investigated in Block 1, namely Balato NE, Boukaria West, Seguélén NW and Silakoro. Only Silakoro provided

potential for follow up and an initial open-ended Inferred Mineral Resource of 14,000 ounces was published in 2016.

The primary oxide exploration target for 2016 was the Mineral Resource conversion drilling at Seguélén, which commenced in

mid-2016 when community agreements were ﬁnalised to access ‘Area 1’. Approximately 22,000m were drilled between May and October

2016, with a signiﬁcant number of these holes drilled into fresh rock.

FRESH

Approximately 2,000m of reconnaissance holes were drilled to investigate the extension of fresh rock potential below Seguélén. This

potential is signiﬁcant and remains open at depth and along strike.

Fresh rock inﬁll drilling programmes were completed at Seguélén, Kami, Tubani, and Bidini to increase the Mineral Resource conﬁdence

level. The Seguélén inﬁll drilling was completed as part of the oxide drilling, when drill holes were extended to depth in the down-dip

portions of the deposit and achieved an effective 25m x 25m sample grid. Kami pit inﬁll drilling was completed on a tight spacing

(between 6.25m and 12.5m) to test the short range variability in the gold mineralisation. Further, approximately 2,000m were drilled to

inﬁll the eastern portion of the Kami starter pit. Approximately 4,000m of Mineral Resource conversion drilling was completed at Tubani

towards the end of 2016 to conﬁrm the conﬁdence in this material to allow it to be considered potential Ore Reserve. Finally, around

3,000m Mineral Resource conversion drilling was completed at Bidini to achieve a spacing of 50m x 25m, thus completing the work

that commenced in 2015 to provide fresh rock Ore Reserve for the Combination plant project.

REGIONAL

At the end of 2015 Siguiri was granted the Saraya West exploration license (immediately adjacent to the northwest corner of Block 2) in

addition to the previous applications for the Corridor North and South, and TSF exploration licences adjoining Block 1. A signiﬁcant soil

sampling campaign was completed on Saraya West during quarter two 2016, and an airborn magnetic survey commenced in 2016.

P R O J E C T S

A FS to consider the exploitation of the fresh rock material was completed in December 2015. The Combination plant project will

upgrade the current plant and enable processing a combination of oxides and fresh rock material. The plant throughput will remain

at 12Mtpa with a ﬂexible design allowing up to 6Mtpa fresh rock material to be processed. Targeted fresh rock pits include Kami,

Bidini, Tubani, Sintroko, Seguélén and Sokuno. The FS has been approved by the board of AngloGold Ashanti following successful

negotiations with the Government of Guinea regarding the Convention de Base and having obtained access to Seguélén Area 1.

Conceptual studies have been initiated to evaluate the potential of mining in Block 2 and Block 3.

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M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Siguiri

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

–

Indicated

20 x 40, ✔ ✔

25 x 25,

50 x 25

–

Inferred

20 x 40, ✔ ✔

50 x 25,

50 x 50

–

– –

Grade/ore control

5 x 10,

5 x 12,

10k symbol html x 5,

10 x 10,

12.5 x 7.5,

12.5 x 6.25

– ✔

–

INCLUSIVE MINERAL RESOURCE

Siguiri

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Bidini (fresh rock)

Measured

–

Indicated

6.89

1.37

9.45

0.30

Inferred

1.34

1.35

1.81

0.06

Total

8.22

1.37

11.26

0.36

Bidini (oxide)

Measured

–

Indicated

2.66

0.97

2.58

0.08

Inferred

6.01

0.86

5.16

0.17

Total

8.67

0.89

7.73

0.25

Bidini (transitional)

Measured

–

Indicated

3.69

1.41

5.20

0.17

Inferred

0.71

1.40

0.99

0.03

Total

4.40

1.41

6.19

0.20

Eureka East

Measured

–

Indicated

0.09

1.09

0.10

0.00

Inferred

0.07

1.01

0.07

0.00

Total

0.16

1.05

0.16

0.01

Kalamagna

Measured

–

Indicated

4.00

0.69

2.76

0.09

Inferred

0.92

0.73

0.67

0.02

Total

4.92

0.70

3.43

0.11

Kami (fresh rock)

Measured

–

Indicated

25.81

1.03

26.54

0.85

Inferred

0.74

1.03

0.76

0.02

Total

26.55

1.03

27.30

0.88

Kami (oxide)

Measured

–

Indicated

10.53

0.67

7.04

0.23

Inferred

1.86

0.70

1.31

0.04

Total

12.38

0.67

8.35

0.27

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

S i g u i r i

Siguiri

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Kami (transitional)

Measured

–

Indicated

2.27

1.03

2.35

0.08

Inferred

0.15

0.88

0.13

0.00

Total

2.42

1.02

2.48

0.08

Kosise

Measured

–

Indicated

3.29

0.73

2.42

0.08

Inferred

2.94

0.69

2.02

0.06

Total

6.23

0.71

4.44

0.14

Kozan North

Measured

–

Indicated

8.90

0.68

6.06

0.19

Inferred

0.73

0.68

0.50

0.02

Total

9.63

0.68

6.56

0.21

Kozan South

Measured

–

Indicated

8.18

0.64

5.20

0.17

Inferred

0.30

0.82

0.24

0.01

Total

8.47

0.64

5.44

0.18

Seguélén

Measured

–

Indicated

16.41

1.06

17.46

0.56

Inferred

2.02

1.09

2.20

0.07

Total

18.42

1.07

19.66

0.63

Sokunu

Measured

–

Indicated

7.91

0.75

5.95

0.19

Inferred

5.87

0.87

5.13

0.16

Total

13.79

0.80

11.08

0.36

Soloni

Measured

–

Indicated

2.21

0.63

1.39

0.04

Inferred

2.19

0.74

1.61

0.05

Total

4.40

0.68

3.00

0.10

Sorofe (fresh rock)

Measured

–

Indicated

0.67

1.16

0.77

0.02

Inferred

0.60

1.20

0.72

0.02

Total

1.27

1.18

1.49

0.05

Sorofe (oxide)

Measured

–

Indicated

2.98

0.88

2.61

0.08

Inferred

2.08

1.05

2.19

0.07

Total

5.06

0.95

4.80

0.15

Sorofe (transitional)

Measured

–

Indicated

2.09

1.19

2.48

0.08

Inferred

1.00

1.46

0.05

Total

3.09

1.27

3.93

0.13

Kounkoun

Measured

–

Indicated

–

Inferred

9.53

1.28

12.19

0.39

Total

9.53

1.28

12.19

0.39

INCLUSIVE MINERAL RESOURCE

continued

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INCLUSIVE MINERAL RESOURCE

continued

Siguiri

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Saraya (oxide)

Measured

–

Indicated

–

Inferred

0.88

2.10

1.84

0.06

Total

0.88

2.10

1.84

0.06

Saraya (transitional)

Measured

–

Indicated

–

Inferred

0.57

2.57

1.47

0.05

Total

0.57

2.57

1.47

0.05

Sintroko South

Measured

–

Indicated

2.12

1.21

2.57

0.08

Inferred

0.19

1.65

0.31

0.01

Total

2.31

1.25

2.88

0.09

Foulata

Measured

–

Indicated

–

Inferred

2.88

1.33

3.82

0.12

Total

2.88

1.33

3.82

0.12

Silakoro

Measured

–

Indicated

–

Inferred

0.46

0.83

0.38

0.01

Total

0.46

0.83

0.38

0.01

Stockpile (full grade ore)

Measured

8.14

0.94

7.67

0.25

Indicated

–

Inferred

–

Total

8.14

0.94

7.67

0.25

Stockpile (marginal ore)

Measured

17.36

0.50

8.75

0.28

Indicated

–

Inferred

–

Total

17.36

0.50

8.75

0.28

Stockpile (spent heap leach)

Measured

–

Indicated

31.95

0.54

17.29

0.56

Inferred

13.40

0.57

7.61

0.24

Total

45.35

0.55

24.90

0.80

Siguiri

Total

225.55

0.85

191.22

6.15

ESTIMATION

Mineral Resource deﬁnition drilling is done with aircore drilling (AC), RC and DD. All available geological drill hole information is validated

for usage in the Mineral Resource models and together with the local geology of the deposit, an understanding of grade variability

is used to categorise the drill hole information into appropriate estimation domains. Detailed statistical analyses are conducted on

each of these domains and this allows for the identiﬁcation of high-grade outlier values. If these values are anomalous to the general

population characteristics they may be cut, that is, reduced back to the appropriate upper limit of the population.

The Mineral Resource model is estimated using ordinary kriging into a 3D block model. Geological interpretation is based on geological

drill hole data. The dimensions of these Mineral Resource blocks range from 10m x 10m x 2.5m to 50m x 25m x 6m block sizes,

guided by the shape of the deposit and the drilling density. The Mineral Resource is declared within an optimised Mineral Resource

pit shell using a gold price of $1,400/oz.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

S i g u i r i

Changes in the Mineral Resource are mainly attributed to cost reduction, inﬁll drilling at Seguélén, Bidini, Tubani and Kami and the

inclusion of mineralised waste as a result of changes to the stockpiling strategy.

SIGUIRI year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

6.2

6.0

5.8

5.6

5.4

5.2

5.0

4.8

-0.25

-0.09

-0.15

0.00

0.79

0.00

0.07

0.27

0.00

5.50

6.15

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

The grade tonnage curve does not include stockpiles.

EXCLUSIVE MINERAL RESOURCE

Siguiri

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

66.09

0.84

55.80

1.79

Inferred

57.12

0.95

54.33

1.75

Total

123.21

0.89

110.14

3.54

The exclusive Mineral Resource at Siguiri includes:

•

Indicated Mineral Resource that is economic at the Mineral Resource gold price of US$1,400/oz, but not at the Ore Reserve price.

This material forms approximately one third of the exclusive Mineral Resource

•

Inferred Mineral Resource not included in the current pit designs. Selected parts of these areas will be included in inﬁll drilling

programmes during 2017 and 2018 to meet LoM planning requirements.

•

Inferred Mineral Resource located within the Ore Reserve optimised pit shell. This material forms an insigniﬁcant proportion of the

exclusive Mineral Resource

SIGUIRI

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

verage grade above cut-off (g/t)

350

300

250

200

150

100

2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

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O R E R E S E R V E

ORE RESERVE

Siguiri

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Bidini (fresh rock)

Proved

–

Probable

2.75

1.48

4.08

0.13

Total

2.75

1.48

4.08

0.13

Bidini (oxide)

Proved

–

Probable

1.77

0.98

1.74

0.06

Total

1.77

0.98

1.74

0.06

Bidini (transitional)

Proved

–

Probable

1.91

1.45

2.78

0.09

Total

1.91

1.45

2.78

0.09

Kami (fresh rock)

Proved

–

Probable

14.82

1.16

17.25

0.55

Total

14.82

1.16

17.25

0.55

Kami (oxide)

Proved

–

Probable

0.60

0.86

0.52

0.02

Total

0.60

0.86

0.52

0.02

Kami (transitional)

Proved

–

Probable

1.53

1.13

1.73

0.06

Total

1.53

1.13

1.73

0.06

Kozan North

Proved

–

Probable

1.79

0.69

1.25

0.04

Total

1.79

0.69

1.25

0.04

Seguélén

Proved

–

Probable

11.88

1.09

12.94

0.42

Total

11.88

1.09

12.94

0.42

Stockpile (full grade ore)

Proved

8.14

0.94

7.67

0.25

Probable

–

Total

8.14

0.94

7.67

0.25

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

Siguiri

Inclusive Mineral Resource sensitivity

-5

-10

-15

-20

-25

As a low grade deposit, Siguiri is very sensitive to gold price changes.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

S i g u i r i

Siguiri

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Stockpile (marginal ore)

Proved

17.36

0.50

8.75

0.28

Probable

–

Total

17.36

0.50

8.75

0.28

Stockpile (spent heap leach)

Proved

–

Probable

31.95

0.54

17.29

0.56

Total

31.95

0.54

17.29

0.56

Siguiri

Total

94.51

0.80

75.99

2.44

ESTIMATION

The Mineral Resource models for each pit are depleted to the current mined-out surface. Costs are assigned on a pit-by-pit basis,

reﬂecting the existing cost structure of the operation. The relevant dilution and ore-loss factors are applied and pit optimisation is then

performed. The relevant modifying factors such as metallurgical recoveries, geotechnical parameters, cut-off grades and economics

are applied to generate the mine designs that are used to estimate the ﬁnal Ore Reserve.

ORE RESERVE MODIFYING FACTORS

Siguiri

Gold

price

Cut-off

grade

Dilution

MRF

MCF

MetRF

as at 31 December 2016

US$/oz

g/t Au

g/t

% (based

on tonnes)

% (based

on g/t)

Bidini (fresh rock),

Bidini (transitional)

1,100

0.75

12.2

0.2

80.8

78.4

100.0

93.0

Bidini (oxide)

1,100

0.60

12.2

0.2

80.8

78.4

100.0

93.0

Kami (fresh rock)

1,100

0.75

3.1

0.4

99.0

99.3

100.0

93.0

Kami (oxide)

1,100

0.60

0.8

0.4

78.7

77.4

100.0

93.0

Kami (transitional)

1,100

0.75

5.4

0.4

89.5

90.4

100.0

93.0

Kozan North

1,100

0.53

9.2

0.3

96.6

97.1

100.0

91.0

Seguélén

1,100

0.60

5.2

0.3

96.2

96.4

100.0

91.0

Stockpile (full grade ore)

1,100

–

100.0

88.0

Stockpile (marginal ore)

1,100

–

100.0

91.0

Stockpile (spent heap leach)

1,100

–

100.0

90.0

The Mineral Resource models were modiﬁed to include the expected mining dilution and ore losses. These are built into the Mineral

Resource block model prior to pit optimisation. Additional modifying factors based on historical information were also applied prior to

estimation of Ore Reserve.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Siguiri

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Bidini (fresh rock)

0.14

1.28

0.19

0.01

Bidini (oxide)

0.54

0.86

0.47

0.01

Bidini (transitional)

0.10

1.27

0.13

0.00

Kami (fresh rock)

0.15

1.00

0.15

0.00

Kami (oxide)

0.00

0.46

0.00

Kami (transitional)

0.00

0.56

0.00

Seguélén

0.56

0.97

0.54

0.02

Total

1.50

0.98

1.47

0.05

ORE RESERVE

continued

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Changes in the Ore Reserve are mainly due to conversion from Inferred Mineral Resource in Bidini and Seguélén pits, inclusion of

Seguélén fresh rock Ore Reserve, overall drop in cost and maximise utilisation of the Mineral Resource for oxide deposits by selecting

a higher revenue factor shell.

Ore Reserve does not include Inferred Mineral Resource, but within the pit design Inferred Mineral Resource is included. For the

optimisation the impact of excluding Inferred Mineral Resource is tested to determine if the pit sizes will still generate a positive cash

ﬂow at $1,100/oz gold price.

SIGUIRI year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

2.6

2.5

2.4

2.3

2.2

2.1

2.0

1.9

1.8

-0.18

0.39

-0.04

0.00

0.11

0.00

0.05

-0.12

0.13

0.00

2.09

2.44

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

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INCLUSIVE MINERAL RESOURCE

Mali

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

2.37

Indicated

1.58

Inferred

1.63

Total

1.58

109

EXCLUSIVE MINERAL RESOURCE

Mali

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

1.69

Inferred

1.63

Total

1.67

ORE

RESERVE

Mali

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

2.37

Probable

1.57

Total

1.57

C O N T I N E N T A L A F R I C A

c o n t i n u e d

M a l i

MALI

Tombouctou

Gao

Sgou

Nioro

Bamako

Sikasso

Kayes

Operations
1 Sadiola

(41%)

2 Morila

(40%)

3 Yatela

(1)

(40%)

400km

(1)

Yatela is currently in closure mode.

AngloGold Ashanti has interests

in three mines in the West

African country of Mali, with two

mines (Sadiola and Morila) being

operational and one (Yatela)

undergoing closure. Sadiola and

Yatela are JV operations with

IAMGOLD and the Government

of Mali, while Morila is a JV with

Randgold and the Government

of Mali. Sadiola is currently

considering a major pushback

to access hard rock, Morila is

a mature operation focusing on

tailings reclamation and Yatela is

currently undergoing closure.

The Sadiola operation is managed

by AngloGold Ashanti, while

Randgold manages Morila. There

is no Mineral Resource or Ore

Reserve reported for Yatela.

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I N T R O D U C T I O N

Property description

The mine is operated by Morila SA, a JV company incorporating Randgold (40%), AngloGold Ashanti

(40%) and the Government of Mali (20%). Randgold took over the operation of Morila mine from AngloGold

Ashanti in February 2008. In 2009, Morila was converted to a stockpile treatment operation. Closure of

the operation was originally scheduled for 2013, but a pit pushback and tailings treatment project has

extended its life to 2019.

Location

The Morila mine is situated some 280km south-east of Bamako, the capital city of Mali.

History

In 1996 Morila was discovered by Randgold. A PFS in 1998 supported the fast tracking of the mine,

and by August 1998, a bankable FS was under way. In 2000, a JV partner was sought and AngloGold

purchased 40% of the mine, and also became the operator of the mine. In February 2001, the Malian

president ofﬁcially opened the mine.

During 2003, a capital expansion programme was completed and increased the production level to

350,000mt per month by year-end. In 2008 AngloGold Ashanti considered Morila to be non-strategic and

Randgold took over the operational responsibility for Morila.

In 2009 Morila had started its transition to a stockpile and tailings retreatment operation.

Legal aspects and

tenure

Morila’s exploitation permit PE 99/15 (Decree No 99-217/PM-RM) covers 199.8km

and was issued on

4 August 1999 for 30 years.

Mining method

The main pit has been mined via open pit. Currently no active open pit mining occurs, production is

primarily retreatment of tailings and dumps.

Operational

infrastructure

All operational infrastructures are in place to support a mining operation including a processing plant,

power generation, village and tailing storage facility.

Mineral processing

Currently no open pit mining occurs. Stockpile and tailing materials are being processed. The metallurgical

plant utilises a conventional CIL process with an upfront gravity section to extract the free gold and has

annual throughput capacity of 4.3Mt.

Risks

No material risks have been identiﬁed.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

M o r i l a

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(

Plant centroid Co-ordinates

06°50'23"W, 11°40'43"N

Sanso

Morila

1.5

3 Km

Domba

Planned
Waste Dump and Pit

Ntiola project

Viper project

ssi

to Koumantou

to Zantiebougou

Licences

Mine Infrastructure

Settlements

Roads

Mining

Villages

Pits

Plant

ROM Pad

TSF

Waste Dumps

Prospects

Main

Secondary

Airfield

C O N T I N E N T A L A F R I C A

c o n t i n u e d

M o r i l a

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COMPETENT PERSONS

Morila

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

and Ore Reserve

Rodney Quick*

SACNASP

400014/05

23 years

BSc Hons (Geology)

MSc (Geology)

* Employed by Randgold Resources Limited at 3rd Floor, Unity Chambers, 28 Halkett Street, St Helier, Jersey, OJE2

The Competent Person consents to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

The Morila deposit occurs within a sequence of amphibolite facies Birimian meta-sediments. The economic mineralisation is located

in these meta-sediments within a broad north-northwest trending corridor of shearing. This shear zone has near-vertical and ﬂat-

lying components and is interpreted as being a second-order shear off the main Banaﬁn shear, approximately 25km to the east. The

Doubalakoro granite pluton borders the meta-sediments to the west and the Massigui granites lie to the east. Gold mineralisation is

associated with silica-feldspar alteration and the sulphide minerals arsenopyrite, pyrrhotite, and pyrite (with minor chalcopyrite).

E X P L O R AT I O N

Exploration at Morila has been limited to reviews of potential targets, including the Samacline area and drilling at the Domba Pit in

support of the evaluation of Domba as a potential short-term ore source.

P R O J E C T S

DOMBA

The feasibility report for the Domba project has been submitted to the government, and the mine is expecting to obtain the necessary

authorisation. Mining the Domba pit is expected to add an additional three months of higher grade ore to the operation.

BIRIMIAN OPTION AGREEMENT

In 2016 Morila signed an option agreement with Birimian Gold Mali SARL (Birimian), which provides Morila access to Birimian’s Ntiola

and Viper projects which are adjacent to the existing Morila permit.

In terms of the arrangements, Morila has an option to acquire the Ntiola and Viper projects after conducting exploration work and

a PFS.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Morila

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

10 x 10

– ✔

–

Indicated

30 x 30,

50 x 100

– ✔

–

– ✔

Auger drilling

Inferred

100 x 100

–

– ✔

Auger drilling

Grade/ore control

10 x 10

– ✔

–

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C O N T I N E N T A L A F R I C A

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INCLUSIVE MINERAL RESOURCE

Morila

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Satelite pit

Measured

–

Indicated

0.21

3.23

0.67

0.02

Inferred

–

Total

0.21

3.23

0.67

0.02

Tailings storage facilities

Measured

–

Indicated

8.49

0.53

4.46

0.14

Inferred

0.38

0.45

0.17

0.01

Total

8.87

0.52

4.63

0.15

Morila

Total

9.08

0.58

5.30

0.17

$1,500/oz Mineral Resource price used by Randgold (operating partner).

ESTIMATION

The Mineral Resource consists of material from TSF and Domba pit as marginal and mineralised waste stockpiles are depleted.

The TSF forms the bulk of the Mineral Resource and was drilled on a spacing of 50m x 50m and estimated using ordinary kriging

methods into a 50m x 50m block size.

MORILA

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0

0.0

0.5

1.0

1.5

2.5

3.0

3.5

4.0

5.0

2.0

4.5

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

EXCLUSIVE MINERAL RESOURCE

Morila

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

–

Inferred

0.38

0.45

0.17

0.01

Total

0.38

0.45

0.17

0.01

The exclusive Mineral Resource comprise largely of Inferred Mineral Resource from the tailings storage facility and the Domba satellite

pit which is still the focus of an economic study.

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Changes in the Mineral Resource are mainly due to the TSF Mineral Resource update and the inclusion of the Domba satellite pit.

MORILA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

0.175

0.170

0.165

0.160

0.155

0.150

0.145

0.140

0.135

-0.03

0.01

0.00

0.02

0.00

0.17

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

1,200

1,500

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

MORILA

Inclusive Mineral Resource sensitivity

-5

-10

-15

-20

Morila is insensitive to changes in gold price as

it is a mature operation at the end of its life with

very little additional opportunity.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

M o r i l a

Changes in the Ore Reserve are mainly due to the TSF Ore Reserve being updated as a consequence of a change in the Mineral

Resource.

MORILA year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

0.112

0.110

0.108

0.106

0.104

0.102

0.100

0.098

-0.01

0.00

0.01

0.00

0.11

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

O R E R E S E R V E

ORE RESERVE

Morila

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Tailings storage facilities

Proved

–

Probable

6.18

0.55

3.37

0.11

Morila

Total

6.18

0.55

3.37

0.11

$1,000/oz Ore Reserve prices used by Randgold (operating partner)

ESTIMATION

The Mineral Resource models are used as the basis for the Ore Reserve. All appropriate costs, metallurgical recovery factors and

geotechnical parameters are applied to generate the mine designs that are used to estimate the ﬁnal Ore Reserve.

ORE RESERVE MODIFYING FACTORS

Morila

Gold

price

Cut-off

grade

Dilution

MCF

MetRF

as at 31 December 2016

US$/oz

g/t Au

Tailings storage facilities

1,000

0.47

5.00

100.0

57.0

$1,000/oz Ore Reserve prices used by Randgold (operating partner)

Only 5% dilution has been encountered for with reporting of tonnages from the tailings storage facility.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

There is no Inferred Mineral Resource included in the business plan.

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I N T R O D U C T I O N

Property description

The Sadiola gold deposit is mined by the Société d’Exploitation des Mines d’Or de Sadiola S.A. (SEMOS),

that consist of a JV agreement between AngloGold Ashanti (41%), IAMGOLD Corporation (41%) and the

government of Mali (18%).

Location

Sadiola is situated in western Mali, 77km to the south of the regional capital of Kayes and about 440km

north-west of the capital city of Bamako. The property lies within the Galam Bambouk gold area,

which straddles the Mali-Senegal border close to the border with Guinea. It is underlain by the Kenieba

greenstone belt.

History

The Sadiola area has a history of alluvial gold working dating back to the 11th Century. In 1991-92

IAMGOLD acquired the rights to the concession and explored the area, and in 1993 Anglo American

entered into an earn-in option to the property. In 1994 a FS was completed on this property, and accepted

by the Mali government.

In 1995 construction started and in 20 December 1996 the ﬁrst gold was poured.

In November 2009, IAMGOLD and AngloGold Ashanti announced that it was acquiring the International

Finance Corporation’s 6% interest for a total of $14.5 million.

In 2011 a FS to expand the processing facility to treat hard rock at Sadiola was completed. Long lead

items were purchased before the mining industry downturn that put the project into care and maintenance.

Continuous attempts were made to optimise the FS since 2011 with the latest study, Sadiola Sulphide

Project (SSP) being completed in 2016. The SSP project remains on hold and will be presented to

respective boards of both AngloGold Ashanti and IAMGOLD in 2017. While awaiting this decision the

operation continues to mine and process oxide material.

Legal aspects and

tenure

SEMOS is bound by the original prospecting and exploitation agreement (including its subsequent legal

modiﬁcations) entered into on April 5th, 1990 between AGEM and the Mali government. The identity

number of the current exploitation area is “DECRET No 00-080/PM-RM DU 06 MARS 2000” and is a

modiﬁcation of all previous exploitation areas. Sadiola is operated under the licence DECRET N°94-257/

PM-RM valid from 1 August 1994 to 1 August 2024 covering a total area of 303km

. In the current FS

update, the SSP project extends operations beyond 2024 and therefore an amended ESIA and associated

permits are currently going through the approvals process. Dialog with the Government of Mali has been

ongoing throughout the project study phase and as such the amended ESIA and associated approvals

are expected to be approved.

Mining method

Current operations are focused on mining of oxide material from the FN pits, north of the Sadiola main pit,

which is supplemented with low/marginal grade ore from stockpiles. Mining from the Sadiola main pit has

stopped as the oxide Ore Reserve is depleted although this pit remains a key project in the extension of

the LoM plan with the SSP awaiting board approval.

Mining is carried out by a contractor, Aveng Moolmans, and monitored by Wenco Fleet Management

System 24/7.

Operational

infrastructure

The Sadiola gold mine includes a main pit, and several smaller satellite pits, a processing plant, a tailings

storage facility and other infrastructure such as a mine village, water supply system, roads, airstrip and

communications systems.

Since the beginning of the operation mining activities have been outsourced.

All mining occurs within the mining licence boundaries.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

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Mineral processing

Ore is treated in a 4.9Mtpa CIP processing plant. The plant was originally designed to treat only soft oxide

ore, but has been progressively adapted to include a blend of hard oxides as well as batch feeding of a

sulphide ore blend. Any hard material making up the blend currently undergoes preconditioning through

separate primary crushers.

The SSP aims to mine the underlying sulphide material in the Sadiola main pit and modify the existing

oxide plant to process the sulphide ore. The modiﬁed plant will treat both sulphide stockpiles and the

run-of-mine sulphide material. This project will extend the life of Sadiola and leverage any further sulphide

exploration successes in the region.

Risks

With the current LoM schedule the oxide ore from pits will ﬁnish in 2018. After this only low grade stockpiles

are available and can feed the processing plant until the second quarter 2019. The site brownﬁelds

exploration continues to look for opportunities that could extend the LoM until the sulphide project is

commissioned.

The SSP project has been re-evaluated based on the current economic climate. Timing is sensitive due

to the short mine life that exists when one excludes SSP. The project approval is dependent on approvals

from the Government of Mali. There has been ongoing dialog with the Government of Mali throughout the

project study phase on outstanding agreements. There is no foreseeable reason that the approvals will

not be granted.

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Plant centroid co-ordinates
11°40'09"W, 13°53'27"N

Sekokoto

Tabakoto

Sirimana

Borokone

Sadiola

Licences

Mining

Mine Infrastructure

Pits

Plant

ROM Pad

TSF

Waste Dumps

Settlements

Towns

Villages

Roads

Main

Secondary

Airfield

FE4

FE3 South

to Sangafara

FE3 North

6 Km

Mine village

FE2

Tambali

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

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COMPETENT PERSONS

Sadiola

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Geoffrey H. Gushee

MAusIMM

207 957

28 years

BA (Geology), GDE (Mining

Engineering), MDP, MEng (Mineral

Resource Management)

Ore Reserve

Andrew Bridges

MAusIMM

300 976

19 years

BSc (Hons) Mining Engineering

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

The Sadiola gold deposits are located within the Malian portion of the Keniéba-Kedougou Inlier, a major early Paleoproterozoic-

Birimian window along the north-east margin of the Kenema-Man shield. The deposits are in the north of the inlier and positioned in

the Koﬁ formation, just east of the Senegalo-Malian Shear Zone terrane boundary. Regional metamorphism is to greenschist facies

with amphibolite facies metamorphism observed in the contact aureoles around major intrusions.

DEPOSIT TYPE

The Sadiola deposit is considered a mesothermal shear-hosted gold deposit and can be correlated with an Ashanti-type orogenic

gold model.

MINERALISATION STYLE

The Sadiola gold system displays the Sadiola Hill-style Au-As-Sb mineralisation. Within the Sadiola Main Pit the bulk of the ore is

hosted within the brittle-ductile Sadiola Fracture Zone (SFZ) and impure footwall carbonates. Mineralisation also occurs along the array

of NNE-trending shears although gold grade decreases with increasing distance from the SFZ.

Mineralisation is shear-hosted and associated with a polyphase hydrothermal alteration history comprising an early calc-silicate phase

followed by a potassic alteration stage. The metal associations of the ore typically comprise As-Au-Sb and minor to trace amounts of

Cu-W-Mo-Ag-Bi-Zn-Pb-Te-Fe-bearing mineral species.

Structural controls on primary mineralisation in the FE satellite pits are similar to that of Sadiola but later karstiﬁcation and protracted

weathering resulted in the formation of a gold residuum. Lithostratigraphic contacts also appear to have been an efﬁcient interface for

channeling ﬂuids.

Oxide mineralisation

The geometry of the extensive, soft, oxide deposit and its supergene enrichment of gold relates almost exclusively to the weathering

history of the primary mineralisation. Intense tropical weathering has produced deep troughs of white to grey, decarbonated, kaolin-

rich saprolite, locally abundant nontronite and relative gold enrichment. Penetration of groundwater has caused oxidation of the

primary sulphides and the formation of acidic groundwaters, further promoting deeper argillisation of the bedrock.

Sulphide mineralisation

Drilling of the (unweathered) primary mineralisation has allowed detailed investigation of major and minor hydrothermal alteration

processes that were active during the formation of the deposit. Primary gold is ﬁne grained, dominantly less than 15μm, with rare

grains approaching 50μm. Visible gold is rare. Gold mineralisation is associated with both arsenic and antimony dominated sulphide

assemblages of arsenopyrite, pyrrhotite, pyrite, stibnite and gudmuntite as well as potassic, calc-silicate, propylitic alteration and

siliciﬁcation. Much of the mineralisation appears to be related to deformation of the host rocks.

MINERALISATION CHARACTERISTICS

The gold mineralisation in the Sadiola main pit is related to the interaction of the north-striking SFZ and a north-northeast-striking

fault array. The SFZ follows the competency contrast between the brittle hangingwall greywacke and the ductile footwall marbles and

is mineralised over a drilled strike length of approximately 2,500m. The stratigraphy is intruded by discontinuous diorite and quartz-

feldspar porphyry dykes. Mineralisation occurs in all four rock types although most of the mineralisation is hosted in the footwall

carbonates adjacent to the SFZ. The deposit has been intensely weathered to a maximum depth of 200m.

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At the FE pits, located about 7km to the southeast of the Sadiola Main pit, mineralisation is hosted in marbles adjacent to the upper

contact with carbon-rich pelites. Gold is associated with northeast-east-striking faults and lens-shaped breccia zones that are broadly

parallel to the north-west-trending stratigraphy. The FE4 deposit is located in an interbedded sandstone and pelite sequence with

mineralisation predominantly hosted in breccia along a north-east-striking regional shear and several subsidiary north-northeast-

trending faults.

At Tambali, located 2km to the south of the Sadiola main pit, the mineralisation is associated with two sets of structures, orientated

north-northeasterly (dipping steeply south-east) and north-westerly (dipping south-west). These structures are often related to thin

tourmaline-quartz-rich shears/veins or zones of (mostly north-northeast trending) quartz-feldspar porphyry intrusions that have

undergone later shearing. A north-west trending graphite-rich brecciated boundary between south-westerly-dipping sandstones (in

the east) and meta-pelites (in the west) is also evident. Bedding parallel shearing is also indicated in some areas, possibly accounting

for some of the westerly-dipping mineralised structures. Tambali mineralisation is a subset of the one observed at Sadiola and was

subjected to similar structural controls.

GEOLOGICAL CROSS-SECTION THROUGH SADIOLA PIT

-100m

-300m

-400m

-200m

Elevation

100m

Footwall impure meta-limestone

Hangingwall meta-greywacke

Meta-diorite

Quartz-feldspar-phyric felsic metadyke

Brittle shear zone – carbonate breccia

Ductile shear zone with mixed protolith

Legend:

Orebody – Sadiola Fracture zone ( SF Z)

open pit

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C O N T I N E N T A L A F R I C A

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E X P L O R AT I O N

The objective of the 2016 exploration programme was ﬁrstly to explore for additional oxide material along the known mineralised

trends and to inﬁll lower conﬁdence Mineral Resource. And secondly, to locate satellite ore with the focus on transitional and fresh rock

potential. Exploration also targeted deep mineralised extensions.

A total of 20,671m of RC drilling was completed and targeted ﬁve projects.

OXIDE

Four oxide targets were prospected. At the Sadiola Far North target additional oxide inﬁll targets were generated from the drilling.

Follow up drilling at FE2S identiﬁed further shallow low grade material but optimisation show limited Ore Reserve potential and it is not

considered economically viable. Reconnaissance drilling over prominent geochemical anomalies at FE1W and Voyager East did not

return any oxide potential.

SULPHIDE

Inﬁll drilling was concluded at the Sadiola North pit to upgrade the Inferred oxide and sulphide Mineral Resource. Some of the drill

holes were extended to target the deeper fresh rock potential below the pit. Reconnaissance drilling was done at Tambali to deﬁne

sulphide mineralisation potential along the north east shear extensions. Signiﬁcant shallow and deep sulphide intersections were

achieved which will be followed up.

Core drilling in the later part of the year was conducted to follow up on selected targets. The inﬁll drilling was done to collect additional

information on lithology, alteration, main gold bearing structures, and geo-metallurgical samples to update the geological model.

Other exploration activities during 2016, focused on geochemical analysis of the historical termite mound samples. Multi element

results from X-ray Fluorescence (XRF) indicates a prominent arsenic anomaly along the Voyager East target. The XRF analyses were

also employed to assist geo-metallurgical characterisation and lithological differentiation in the deep Sadiola core drilling and in the RC

drill chips from Sadiola Far North.

P R O J E C T S

The SSP remains the only major AngloGold Ashanti project in Mali and is the focus for extension of the LoM plan. The project is being

re-evaluated and optimised in light of the current economic and political climate. The project consists of a new pushback in the Sadiola

main pit in order to mine the underlying sulphide ore and the modiﬁcation of the processing plant to be able to treat the sulphide ore.

The investment case is inﬂuenced by the supply of grid power and the ﬁscal provisions being negotiated with the government of Mali.

The project extends the life of Sadiola by approximately 10 years at an average production of 330Koz pa (100%) and leverages any

further sulphide exploration successes in the region.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Sadiola

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

25 x 25

–

Indicated

25 x 25,

50 x 25

–

Inferred

50 x 50

–

Grade/ore control

5 x 10, 6 x 13

–

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INCLUSIVE MINERAL RESOURCE

Sadiola

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

FE2

Measured

–

Indicated

0.11

1.48

0.17

0.01

Inferred

0.00

1.16

0.00

Total

0.12

1.48

0.17

0.01

FE3

Measured

–

Indicated

1.17

2.07

2.43

0.08

Inferred

0.02

2.63

0.06

0.00

Total

1.20

2.08

2.49

0.08

FE4

Measured

–

Indicated

0.08

2.22

0.18

0.01

Inferred

0.01

2.77

0.04

0.00

Total

0.10

2.30

0.22

0.01

Tabakoto (Sekokoto)

Measured

–

Indicated

0.66

1.36

0.90

0.03

Inferred

0.05

1.13

0.06

0.00

Total

0.71

1.34

0.96

0.03

Tambali

Measured

–

Indicated

0.96

1.21

1.16

0.04

Inferred

0.15

1.16

0.18

0.01

Total

1.11

1.21

1.33

0.04

SSP (oxides)

Measured

–

Indicated

2.09

1.13

2.36

0.08

Inferred

0.27

1.01

0.27

0.01

Total

2.37

1.11

2.63

0.08

SSP (transitional)

Measured

–

Indicated

1.12

1.83

2.06

0.07

Inferred

0.20

1.82

0.36

0.01

Total

1.32

1.83

2.41

0.08

SSP (sulphides)

Measured

–

Indicated

38.40

1.87

71.97

2.31

Inferred

6.47

1.71

11.06

0.36

Total

44.88

1.85

83.03

2.67

Measured

–

Indicated

2.07

1.63

3.38

0.11

Inferred

0.64

1.86

1.19

0.04

Total

2.71

1.69

4.57

0.15

Total stockpiles

Measured

0.01

2.37

0.02

0.00

Indicated

5.25

1.13

5.92

0.19

Inferred

–

Total

5.26

1.13

5.94

0.19

Sadiola

Total

59.76

1.74

103.76

3.34

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ESTIMATION

The Mineral Resource is taken as the material that falls within the $1,400/oz economic shell optimised for each individual deposit.

A 3D surface is generated to create the outline of the geological model within which grades are estimated. Block sizes are between

25m x 25m x 10m and 30m x 30m x 10m and where appropriate, selective sub-celling is used for deﬁnition on the geological and

mineralisation boundaries. All the deposits are estimated by ordinary kriging. Where deemed appropriate, a geostatistical technique

called uniform conditioning (UC) is used to estimate the proportion of material that occurs above the cut-off, hence forming a

recoverable Mineral Resource model at a speciﬁc SMU.

SADIOLA

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

200

160

120

3.0

2.5

2.0

1.5

1.0

0.5

0.0

0.0 0.1 0.2 0.3

0.6 0.7 0.8 0.9

1.2

1.4 1.5

0.4 0.5

1.0 1.1

1.3

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

The grade tonnage curve does not include stockpiles.

EXCLUSIVE MINERAL RESOURCE

Sadiola

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

20.09

1.69

33.93

1.09

Inferred

7.82

1.69

13.22

0.42

Total

27.91

1.69

47.14

1.52

The exclusive Mineral Resource is the part of the Mineral Resource that was not converted to Ore Reserve. It is deﬁned as the Mineral

Resource that is outside the current Ore Reserve designs but inside the Mineral Resource shells and includes the Inferred Mineral

Resource within the Ore Reserve design.

The exclusive Mineral Resource gives an indication of the future potential of the deposit. This material could be converted to Ore

Reserve with an increase in the gold price and favourable costs. The Inferred Mineral Resource portion of the Mineral Resource within

the Ore Reserve pit design will be converted to the Ore Reserve through grade control drilling.

The exclusive Mineral Resource includes material from FE2 deposits, where the Ore Reserve is mined-out, but some Mineral

Resource remains.

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SADIOLA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

3.36

3.32

3.28

3.24

3.20

3.16

3.12

-0.08

0.01

0.00

0.17

0.00

-0.00

-0.01

0.00

3.24

3.34

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Reduced processing cost resulted in lower cut-off grades. These changes have had signiﬁcant impact on the satellite pits (costs have

reduced by 20-30%). Inﬁll drilling at Tabakoto and FN satellite pits resulted in exploration gains.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

SADIOLA

Inclusive Mineral Resource sensitivity

-5

-10

-15

Sadiola is sensitive to gold price changes due to
the marginal nature of the satellite pits.

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O R E R E S E R V E

ORE RESERVE

Sadiola

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

FE3

Proved

–

Probable

0.68

2.02

1.37

0.04

Total

0.68

2.02

1.37

0.04

FE4

Proved

–

Probable

0.08

2.27

0.18

0.01

Total

0.08

2.27

0.18

0.01

Tabakoto (Sekokoto)

Proved

–

Probable

0.18

1.88

0.34

0.01

Total

0.18

1.88

0.34

0.01

Tambali

Proved

–

Probable

0.19

1.19

0.23

0.01

Total

0.19

1.19

0.23

0.01

SSP (oxides)

Proved

–

Probable

0.73

1.43

1.04

0.03

Total

0.73

1.43

1.04

0.03

SSP (transitional)

Proved

–

Probable

0.70

2.10

1.48

0.05

Total

0.70

2.10

1.48

0.05

SSP (sulphides)

Proved

–

Probable

22.77

1.92

43.73

1.41

Total

22.77

1.92

43.73

1.41

Proved

–

Probable

1.04

1.56

1.62

0.05

Total

1.04

1.56

1.62

0.05

Total stockpiles

Proved

0.01

2.37

0.02

0.00

Probable

5.25

1.13

5.92

0.19

Total

5.26

1.13

5.94

0.19

Sadiola

Total

31.63

1.77

55.92

1.80

ESTIMATION

The Mineral Resource models are used as the basis for the Ore Reserve. Optimisations are run on the Measured and Indicated

Mineral Resource and the Measured, Indicated and Inferred Mineral Resource. All appropriate costs, metallurgical recovery factors and

geotechnical parameters are applied to generate the mine designs that are used to estimate the ﬁnal Ore Reserve.

ORE RESERVE MODIFYING FACTORS

Sadiola

Gold

price

Cut-off

grade

Dilution

RMF

MCF

MetRF

as at 31 December 2016

US$/oz

g/t Au

% (based

on tonnes)

FE3, FN, Tambali

1,200

0.45

17.6

85.0

100.0

75.0 - 94.0

FE4

1,100

0.80

9.0

97.0

100.0

75.0 - 94.0

Tabakoto (Sekokoto)

1,100

0.80

–

100.0

75.0 - 94.0

SSP (oxides)

1,200

0.45

5.0

95.0

100.0

85.0 - 94.0

SSP (transitional)

1,200

0.66

5.0

95.0

100.0

75.0

SSP (sulphides)

1,200

0.65

5.0

95.0

100.0

76.0 - 80.0

Total stockpiles

1,200

0.45

–

100.0

–

Recovery factor varies according to ore type (Laterite, Saprolite, Siliceous Oxide, Saprolitic Sulphide, Hard Sulphide, Intermediate Oxide, intermediate
Sulphide, Transitional, Graphitic). $1,200/oz Ore Reserve price used by IAMGold for the SSP Project

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

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The modifying factors applied to the Ore Reserve for Sadiola are ore loss and dilution. For the satellite pits, due to the nature of the

mineralisation, the ore loss and dilution is different to the SSP main pit. These modifying factors have been applied to reﬂect current

mining practices.

The SSP main pit utilises ore loss incorporated into the modelling process. The other satellite pits have variable ore loss and dilution

applied dependent on mining method. The pits that are to be mined as part of the current operation have between 0% and 9%

applied, while those that are to be mined as part of the SSP have 15% ore loss and 17.6% dilution applied. The latter is to allow for

mining by a face shovel rather than an excavator.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Sadiola

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

FE3

0.00

1.80

0.01

0.00

FE4

0.01

2.77

0.04

0.00

Tabakoto (Sekokoto)

0.10

0.63

0.06

0.00

Tambali

0.02

1.30

0.02

0.00

SSP (oxides)

0.04

1.35

0.05

0.00

SSP (transitional)

0.05

1.69

0.09

0.00

SSP (sulphides)

0.65

1.56

1.01

0.03

0.25

1.73

0.43

0.01

Total

1.12

1.53

1.72

0.06

Inferred Mineral Resource material has been included in the business plan as incidental material when the pit is mined. Several of

the small oxide pits that are included in the bridging period until the main SSP pit is mined, have a high percentage (14% of the total

satellite pit ounces), with the overall Inferred Mineral Resource included in the total business plan equalling approximately 3%.

Year on year increase is related to changes in economics related to the historical mineralised waste stockpile being re-classiﬁed to

marginal ore as a result of improved processing costs and therefore cut-offs and the satellite pits (FE3 pit, Tambali, SSP North) being

evaluated using the SSP process plant costs.

SADIOLA year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

1.80
1.78
1.76
1.74
1.72
1.70
1.68
1.66
1.64
1.62
1.60

-0.06

0.00

0.14

0.00

0.03

0.00

1.80

1.69

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

Ta n z a n i a

INCLUSIVE MINERAL RESOURCE

Tanzania

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

2.99

122

Inferred

4.87

106

Total

3.64

228

EXCLUSIVE MINERAL RESOURCE

Tanzania

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

2.49

Inferred

4.87

106

Total

3.61

166

ORE RESERVE

Tanzania

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

–

Probable

3.73

Total

3.73

Lake

Victoria

TANZANIA

Arusha

Mwanza

Tabora

Tanga

Dodoma

Dar-es-Salaam

Kigoma

Lake

Tanganyika

Operations
1 Geita

200km

Geita is AngloGold Ashanti’s

only operation in Tanzania

and one of the larger open

pit gold mines in Africa.

Prior to April 2004, Geita

was managed under a joint-

venture agreement between

Ashanti and AngloGold.

Since the merger of the

two companies, Geita is a

wholly-owned subsidiary of

AngloGold Ashanti.

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I N T R O D U C T I O N

Property description

Geita is wholly owned by AngloGold Ashanti. It is an on-going multiple open pit operation that currently

sources ore from two open pits (Nyankanga and Geita Hill). In 2016 underground mining commenced at

Star and Comet.

Location

The Geita Gold Mine (GGM) is located approximately 910km from the Tanzanian capital city of Dar es

Salaam. GGM falls within the Lake Zone of northern-western Tanzania, approximately 120km west of

Mwanza and 4km away from the town of Geita. The mining lease area falls within the Archaean Sukumaland

Greenstone Belt of the Lake Victoria goldﬁelds.

History

In 1936 the Geita deposits were ﬁrst discovered and by 1966 three mines had produced almost 1Moz.

In 1996 Ashanti acquired the project through acquisition of Cluff Resources.

In early December 2000, Ashanti reached an agreement to sell AngloGold a 50% interest in Geita for $324

million. AngloGold Ashanti added its neighbouring Nyamulilima Hill deposits into the JV company.

In 2004, the merger of AngloGold and Ashanti resulted in the operation being run by AngloGold Ashanti.

In 2015, the decision was taken to go underground at Star and Comet.

Legal aspects and

tenure

The special mining licence (SML45/99) covers approximately 196.17km

which expires on the 26th August

2024. There is a further 120km

of prospecting licences in the immediate vicinity to the SML, however,

these do not contain any Ore Reserve.

Mining method

Mining at Geita is currently undertaken by conventional truck-and-shovel open pit mining method on two

active pits (Nyankanga and Geita Hill). The open pit mining is conducted using GGM owned, operated

and maintained ﬂeet. A contractor provides drilling and blasting services. The open pit portion of Star

and Comet was completed in the second quarter of 2014. Underground mining commenced at Star and

Comet in 2016 using the services of an underground mining contractor. Ore is hauled from the Star and

Comet operation to the central ROM pad by the GGM surface mining ﬂeet.

Operational

infrastructure

As an on-going operation GGM currently has an established 5.2Mtpa CIL processing plant capable of

processing hard ore. It also has an established TSF with sufﬁcient area to construct wall raises every

three years to accommodate planned future production. A full workshop facility is in place to support

the maintenance of heavy mining equipment and all light support equipment. Contractor infrastructure

supported on the mine site includes workshops for the production and exploration drilling contractor,

workshops for the underground mining contractor, as well as a plant for the explosives supplier. GGM has

further support infrastructure in place including a mine village, medical clinic, mine store, administration

buildings and an airstrip.

Mineral processing

GGM ore processing method is via conventional CIL process. The CIL plant has a throughput capacity

of 5.2Mtpa, The circuit contains a primary gyratory crusher, secondary and tertiary crushers, a semi-

autogenous mill, ball mill and 12 leach tanks. This is coupled with a gravity circuit through two knelson

concentrators. In planning the plant feed blend material hardness, grade and sulphide content are

considered in order to optimise throughput and recovery.

Risks

The primary risk remains the declining Ore Reserve proﬁle. The mitigating actions put in place focus on

optimising the exploration and project plans to convert both surface and underground Mineral Resource

in the near term and with appropriate cost efﬁciencies for the current economic climate.

There are regular artisanal and small scale miners activities and illegal intrusions into the mine, but there is

a holistic mitigation plan in process to manage this.

C O N T I N E N T A L A F R I C A

c o n t i n u e d

G e i t a

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Plant centroid co-ordinates
32°11'12"W, 2°51'53"N

Star &

Comet

Nyankanga

Geita Hill

Mugusu

Mpomvu

Samina

Mchauru

Geita

Matandani

Kukuluma

6 km

planned

Roberts

Ridge 8

Chipaka

Licences

Mining

Exploration

Pits

Plant

ROM pad

Stockpiles

TSF

Waste dumps

Underground workings

Deposit

Towns

Villages

Main

Secondary

Airfield

Mine infrastructure

Settlements

Roads

COMPETENT PERSONS

Geita

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Craig Duvel

SACNASP

400007/98

22 years

BSc Hons (Geology)

GDE (Mining Engineering)

Ore Reserve

Janardhan Reddy

MAusIMM

991 581

12 years

BTech

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The Geita Greenstone Belt (GGB) hosts several world-class shear-hosted Archaean lode gold deposits and forms the northern portion

of the regional Sukumaland Greenstone Belt, itself one of several belts that comprise the Lake Victoria Goldﬁelds. Other gold mines

hosted in the Lake Victoria Goldﬁelds include Golden Pride, Bulyanhulu, Tulawaka, Buzwagi and North Mara.

The east-west oriented GGB is 60km in length, up to 15km wide. The Geita terrain is comprised of upper- to mid-Nyanzian greenschist

facies units, made up of clastic sediments, black shales, banded iron formation (BIF), volcaniclastics and meta-basalts. These have

been intruded by a variety of felsic to maﬁc intrusive bodies, dykes and sills. Gabbro dykes accommodated by regional north-

northeasterly structures are also prominent geological features in the area.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

G e i t a

North-west trending deformation corridors divide the GGB into three distinct sub-terrains, namely the Nyamulilima Terrain in the west

(hosting the Star and Comet, Ridge 8 and Roberts deposits), the Central Terrain in the central part (hosting the Nyankanga, Geita

Hill, Lone Cone and Chipaka deposits) and the Kukuluma Terrain to the north-east (hosting the Matandani, Kukuluma and Area 3

West deposits).

MINERALISATION STYLE

Geita’s gold mineralisation is preferentially hosted in BIF, cherts and ironstones that have been affected by both ductile and dominant

brittle deformation associated with shear zones. The shears preferentially exploit fold axial planes as well as the contacts between the

supracrustal and intrusive rocks.

The GGB has been through a protracted history of deformation, which resulted in a large-scale synformal conﬁguration in the Central

Terrain, with west-northwest trending limbs connected by a north-east trending hinge zone. The deposits of the Central Terrain are

mainly located within the relatively low-strain hinge zone. The Nyankanga deposit is hosted in a BIF-dominated supracrustal package

that is extensively intruded by, and locally form a roof-pendant within the dioritic Nyankanga Intrusive Complex. At Geita Hill, dioritic

rocks are present as sills and dykes intruded into a supracrustal sequence that has been subject to extensive polyphase folding.

To the west, the Nyamulilima Terrain comprises a semi-circular structure surrounding intrusive centers, which internally encompasses

structural systems of variable scale that locally control gold mineralisation. At Star and Comet, a folded sedimentary package of BIF

intercalated with clastic and tuffaceous meta-sediments is intruded by a tonalitic complex.

The Kukuluma Terrain trends west-northwesterly, with sub-vertical limbs being dominant over compressed, multiphase folded zones.

The three major deposits in the area (Kukuluma, Matandani and Area 3) are located along a 5km long east-southeast mineralisation

trend. The geology of the deposits is dominated by volcano-sedimentary rocks that are polydeformed and intruded by syn- to late-

folding diorite bodies. Host rocks for mineralisation are ﬁne-grained iron-rich clastic sediments, cherts, BIF and tuffaceous rocks, with

local intercalated carbonaceous shales.

MINERALISATION CHARACTERISTICS

Gold mineralisation at Nyankanga occurs within a northeast-trending and northwest-dipping anastomosing shear system, typically

along the lowermost shears, with higher grade mineralisation mainly proximal to the basal contact of BIF packages. Mineralisation is

associated with chlorite-carbonate-silica alteration and pyrite-dominant sulphide in the damage zones surrounding the shear surfaces

as veins, veinlets, local breccias and sulphide replacement of magnetite layers. At Geita Hill, mineralisation at the deposit scale is

controlled by a narrow NE-trending and NW-dipping shear zone that exploits the axial surfaces of F3 folds. The bulk of the ore is also

carried by damage zones adjacent to the main shear.

At Star and Comet, a major mineralised shear zone runs NNW-SSE through the deposit where it is localised along the contact of

BIF and tonalite. An envelope of mostly brittle deformation up to 10m thick affecting both lithologies occurs either side of the shear

zone and controls distribution of mineralisation. Most of the gold mineralisation is hosted in pyrrhotite patches associated with strong

siliciﬁcation together with carbonate alteration.

Within the Kukuluma Terrain, steeply dipping ductile/brittle gold-fertile shear zones are developed along, or close to, the edges of

an elongate diorite body, hosted in iron-rich host rocks and locally exploiting axial surfaces of tight folds. Gold mineralisation in the

Kukuluma terrain is strongly associated with pyrrhotite, pyrite and arsenopyrite concentrations, accompanied by strong carbonate and

silica alteration of host rocks. Gold is present in gold minerals and sulphides, dominantly in arsenopyrite.

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1,300m

1,500m

100m

Star and Comet pit

Elevation

Legend

Mineralised zone

Pit outline

Tonalite

Dolerite (Mafic dyke)

Clastic sediments

Banded Iron Formation

E X P L O R AT I O N

Inﬁll drilling concentrated on Nyankanga underground, Star and Comet Cut 2 underground and Star and Comet Cut 3 underground.

The aim of the inﬁll drilling was to upgrade the conﬁdence in the Mineral Resource to bring material within the underground mine design

to Inferred and Indicated classiﬁcation.

Delineation drilling was completed at several deposits to test for extensions to mineralisation that can be exploited by both open pit

and shallow underground methods. At Nyamulilima the drilling focused on testing the down-plunge extensions of the Star and Comet

Cut 2 and Cut 3 orebodies. At Prospect 30 the drilling aimed to conﬁrm the updated geological and mineralisation models on this

satellite target. At Geita Hill East the drilling conﬁrmed continuation of mineralisation approximately 100m down-dip of previous drilling.

At Matandani pit drilling aimed to test the downdip extension of high grade mineralisation below the pit.

Following the successful completion of a 2D Seismic survey in 2015, a major 3D Seismic survey project was completed over a 20km

area covering the Nyankanga and Geita Hill deposits. The survey will produce high resolution results to a depth of 1,500m below these

deposits. The data processing was completed in late 2016 and modelling and targeting will commence in early 2017.

Geological mapping focused on two target areas, one in the Central terrain and the other in the Nymulilima terrain, detailed mapping

in Nyankanga and Geita Hill pits for the purposes of updating the geological models to be used in underground mine planning and

exploration, as well as on the new exposures created by the Seismic survey road network over the Central terrain.

GEOLOGICAL CROSS-SECTION THROUGH STAR AND COMET

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P R O J E C T S

GGM’s exploration strategy will be focused on three areas. The ﬁrst is the upgrading and extension of surface and underground

Mineral Resource on the core producing deposits. The second is the aggressive exploration of Satellite targets within the lease area

which have potential to produce satellite deposit ore sources. The third is exploration to support major projects.

In the core areas underground mining was successfully started at Star and Comet Cut 2 in 2016. Development to Star and Comet

Cut 3 was initiated from the Cut 2 platform and the underground ore mining at Star and Comet Cut 3 is planned to ramp up in

2017. Underground exploration drilling and mapping has been successfully implemented and ramped up on these two deposits.

Detailed mine design, planning and permitting for Nyankanga underground was completed in 2016 and underground development

will commence in 2017. Inﬁll drilling from surface was completed for Block 5 at Nyankanga underground, while detailed planning

and preparation for the exploration drilling of the remaining blocks from underground platforms was completed in 2016. Following

the successful implementation of underground operations at Star and Comet and Nyankanga the underground exploration and

development will be expanded to include Geita Hill and Ridge 8 deposits post 2017.

There are approximately 50 Satellite targets within GGM’s leases. Resourcing of the Satellite target exploration programme has lagged

behind the core areas following the gold price decline in 2013 and the development of these targets has not kept pace with the core

areas. The Satellite target exploration programme has been re-planned and dedicated resources are being put in place to support a

more aggressive exploration programme on the Satellite targets in 2017. Consistent with previous years, the ten targets ranked as

Priority 1 will remain ﬁrst on the schedule as they have potential to provide near term value in the mine plan.

The other major project on GGM is the Refractory Ore project which encompasses the four deposits on Kukuluma terrain and their

potential extensions: Matandani, Kukuluma, Area 3W and Area 3CS. Drilling was completed in 2015 within Matandani pit, which

contains the largest sulphide Mineral Resource potential, in order to obtain samples for further metallurgical test work. Metallurgical

scoping test work was successfully concluded in 2016. A PFS will commence in 2017 on the back of these test work results.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Geita

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

–

Indicated

10 x10, ✔ ✔

20 x 20,

25 x 25,

40 x 20,

40 x 40

–

Classiﬁcation studies were undertaken

and revealed optimal spacing for the

project areas

Inferred

40 x 40, ✔ ✔

50 x 50,

80 x 40

–

Grade/ore control

5 x 10,

10 x 5,

25 x 15

– ✔

–

Depths vary from 10m to 30m for

routine grade control drilling

C O N T I N E N T A L A F R I C A

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INCLUSIVE MINERAL RESOURCE

Geita

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Area 3 West (oxide)

Measured

–

Indicated

0.22

2.61

0.58

0.02

Inferred

0.00

2.27

0.00

Total

0.22

2.60

0.58

0.02

Chipaka

Measured

–

Indicated

0.42

2.18

0.91

0.03

Inferred

1.02

2.35

2.40

0.08

Total

1.44

2.30

3.30

0.11

Geita Hill (open pit)

Measured

–

Indicated

6.28

2.83

17.75

0.57

Inferred

1.06

3.09

3.27

0.11

Total

7.34

2.86

21.02

0.68

Geita Hill (underground)

Measured

–

Indicated

–

Inferred

9.12

4.42

40.34

1.30

Total

9.12

4.42

40.34

1.30

Kalondwa Hill

Measured

–

Indicated

–

Inferred

0.39

4.14

1.62

0.05

Total

0.39

4.14

1.62

0.05

Kukuluma (oxides)

Measured

–

Indicated

0.02

3.79

0.08

0.00

Inferred

0.01

2.42

0.02

0.00

Total

0.03

3.37

0.10

0.00

Kukuluma (transitional)

Measured

–

Indicated

0.12

4.33

0.52

0.02

Inferred

0.03

5.06

0.15

0.00

Total

0.15

4.47

0.67

0.02

Kukuluma (sulphides)

Measured

–

Indicated

0.03

4.85

0.12

0.00

Inferred

0.40

4.07

1.63

0.05

Total

0.43

4.11

1.75

0.06

Lone Cone

Measured

–

Indicated

2.37

2.67

6.32

0.20

Inferred

1.04

3.12

3.25

0.10

Total

3.41

2.81

9.58

0.31

Matandani (oxides)

Measured

–

Indicated

0.63

2.73

1.71

0.05

Inferred

0.19

3.20

0.61

0.02

Total

0.82

2.84

2.31

0.07

Matandani (transitional)

Measured

–

Indicated

0.05

4.01

0.20

0.01

Inferred

0.08

4.65

0.38

0.01

Total

0.13

4.41

0.58

0.02

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Geita

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Matandani (sulphides)

Measured

–

Indicated

0.04

4.59

0.20

0.01

Inferred

1.61

4.86

7.84

0.25

Total

1.66

4.85

8.04

0.26

Nyankanga (open pit) cut 7

Measured

–

Indicated

3.34

3.56

11.89

0.38

Inferred

0.02

3.59

0.09

0.00

Total

3.37

3.56

11.98

0.39

Nyankanga (open pit) cut 8

Measured

–

Indicated

8.06

5.24

42.28

1.36

Inferred

0.92

2.45

2.26

0.07

Total

8.99

4.96

44.54

1.43

Nyankanga (underground)

Measured

–

Indicated

0.80

7.50

6.03

0.19

Inferred

4.15

7.18

29.80

0.96

Total

4.96

7.23

35.83

1.15

Ridge 8 (open pit)

Measured

–

Indicated

0.93

2.27

2.11

0.07

Inferred

0.00

1.20

0.00

Total

0.93

2.26

2.11

0.07

Ridge 8 (underground)

Measured

–

Indicated

0.32

7.34

2.36

0.08

Inferred

1.03

7.45

7.66

0.25

Total

1.35

7.42

10.02

0.32

Roberts

Measured

–

Indicated

3.15

1.82

5.74

0.18

Inferred

0.09

3.97

0.37

0.01

Total

3.25

1.88

6.12

0.20

Star and Comet (open pit)

Measured

–

Indicated

0.27

3.25

0.87

0.03

Inferred

0.11

5.89

0.68

0.02

Total

0.38

4.04

1.54

0.05

Star and Comet (underground) cut 2

Measured

–

Indicated

0.11

9.26

1.02

0.03

Inferred

0.09

7.41

0.65

0.02

Total

0.20

8.44

1.67

0.05

Star and Comet (underground) cut 3

Measured

–

Indicated

0.90

7.73

6.98

0.22

Inferred

0.42

7.44

3.10

0.10

Total

1.32

7.64

10.07

0.32

Stockpile (full grade ore)

Measured

–

Indicated

0.47

3.25

1.53

0.05

Inferred

–

Total

0.47

3.25

1.53

0.05

INCLUSIVE MINERAL RESOURCE

continued

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INCLUSIVE MINERAL RESOURCE

continued

Geita

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Stockpile (marginal ore)

Measured

–

Indicated

11.55

0.93

10.73

0.35

Inferred

–

Total

11.55

0.93

10.73

0.35

Stockpile (refractory ore)

Measured

–

Indicated

0.56

2.80

1.57

0.05

Inferred

–

Total

0.56

2.80

1.57

0.05

Geita

Total

62.46

3.64

227.62

7.32

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

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GEITA

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

7.5

6.5

5.5

4.5

3.5

2.5

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

GEITA

Grade tonnage curve underground (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

7.5

7.0

6.5

6.0

5.5

5.0

4.5

4.0

0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

ESTIMATION

For the open pits the mineralisation boundaries for the individual deposits are deﬁned from the detailed logging of all geological drill

holes. This information is validated and then used to create a 3D model. The geological model is subsequently populated with an

appropriately dimensioned block model. Ordinary kriging is used to interpolate values into the blocks. A geostatistical technique called

UC is used to estimate the proportion of ore that occurs above the Mineral Resource cut-off and this is then reported assuming a

speciﬁed SMU. The Mineral Resource is reported within a $1,400/oz optimised pit shell and above the calculated mineralised waste

cut-off grade per pit. Stockpiled material above mineralised waste cut-off grade is included in the Mineral Resource.

For the underground Mineral Resource at Star and Comet, Nyankanga and Geita Hill the geological model and the mineralised

boundary as explained for the open pits remains the same. A high grade wireframe is delineated within the broader lower grade

mineralised envelope. In this instance all geological controls are adhered to when determining this domain. Ordinary kriging models are

then constructed within the low and high grade domains and numerous validation exercises are completed to ensure robust estimates

are achieved. The ultimate open pit designs are used as the limiting boundaries between open pit and underground during the model

compilation. The underground stopes and development are evaluated using the ordinary krig models while the open pit designs are

evaluated using the UC models.

The grade tonnage curve does not include stockpiles.

EXCLUSIVE MINERAL RESOURCE

Geita

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

24.24

2.49

60.34

1.94

Inferred

21.81

4.87

106.12

3.41

Total

46.05

3.61

166.45

5.35

The exclusive Mineral Resource at Geita consists of:

•

the underground Mineral Resource (with the exception of Star and Comet Cut 3 Underground where a maiden underground Ore

Reserve has been declared)

•

all Mineral Resource that is located between the Ore Reserve pit shell (at a gold price of $1,100/oz) and the Mineral Resource pit

shell (at a gold price of $1,400/oz)

•

material within the Ore Reserve pit shell and Star and Comet Cut 3 mine design that is at Inferred classiﬁcation or falls below the Ore

Reserve cut-off grade and above the Mineral Resource cut-off grade

This material forms potential extensions to the current LoM if it is converted to Ore Reserve. A signiﬁcant portion of this material is in

the Inferred Mineral Resource category and inﬁll drilling programmes are planned to upgrade potentially economic areas to Indicated

Mineral Resource.

In instances where the mineralisation extends down-dip, below the current LoM design pit shell and where it could potentially be

economically exploited by underground mining methods, a 35m crown pillar forms part of the exclusive Mineral Resource below the

open pit limits.

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MINERAL RESOURCE BELOW INFRASTRUCTURE

Geita

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

2.14

7.66

16.39

0.53

Inferred

14.81

5.51

81.55

2.62

Total

16.95

5.78

97.94

3.15

Star and Comet Cut 2, Geita Hill and Nyankanga deposits all have depth extensions and are potential underground projects. Scoping

studies performed on these projects show them to be economically viable at the Mineral Resource gold price of $1,400/oz. Currently

no infrastructure is in place to access this Mineral Resource and they have been separately categorised as Mineral Resource below

infrastructure.

GEITA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

7.4
7.3
7.2
7.1
7.0
6.9
6.8
6.7
6.6
6.4
6.3
6.2

-0.49

0.01

0.63

0.00

0.30

0.00

-0.01

0.00

6.88

7.32

2015

Depletion

Exploration

Methodolog

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

GEITA

Inclusive Mineral Resource sensitivity

-5

-10

-15

-20

-25

-30

Geita is very sensitive to a drop in gold price as it
is transitioning from an open pit to an underground
operation.

As at 31st December 2016 there is an increase of approximately 0.44Moz (6.4%) in comparison to the previous year’s declaration.

The signiﬁcant movements are depletion of 0.49Moz which has been off set by a gain of 0.30Moz due to a decrease in costs and a

gain of 0.63Moz on the updated underground Mineral Resource models.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

G e i t a

O R E R E S E R V E

ORE RESERVE

Geita

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Geita Hill (open pit)

Proved

–

Probable

2.94

2.90

8.53

0.27

Total

2.94

2.90

8.53

0.27

Nyankanga (open pit) cut 7

Proved

–

Probable

3.01

3.40

10.23

0.33

Total

3.01

3.40

10.23

0.33

Nyankanga (open pit) cut 8

Proved

–

Probable

5.80

5.63

32.62

1.05

Total

5.80

5.63

32.62

1.05

Star and Comet (underground) cut 3

Proved

–

Probable

0.71

6.31

4.46

0.14

Total

0.71

6.31

4.46

0.14

Stockpile (full grade ore)

Proved

–

Probable

0.47

3.18

1.50

0.05

Total

0.47

3.18

1.50

0.05

Stockpile (marginal ore)

Proved

–

Probable

3.48

1.10

3.84

0.12

Total

3.48

1.10

3.84

0.12

Geita

Total

16.41

3.73

61.17

1.97

ESTIMATION

The Mineral Resource models are used as the basis for Ore Reserve estimation. Input parameters consider for estimation include the

Ore Reserve gold price, mining dilution and recovery, geotechnical, stay in business capital, operating costs, metallurgical recovery,

processing capacity, and mining equipment capacities. Appropriate Ore Reserve cut-off grades are applied and optimised pit shells

are generated for the open pit sources. Pit designs are then done on selected shells and signed off by all relevant parties to ensure

compliance to speciﬁcations. Underground designs are completed, evaluated and signed off. These designs are incorporated into

the production and treatment scheduling stages to yield ore tonnes and grades. Financial evaluations completed for production and

treatment schedules to check cash ﬂow analysis from the estimated Ore Reserve.

The Ore Reserve for GGM operating, prospective pits and underground mine areas were estimated using updated economic factors,

latest Mineral Resource models, geological, geotechnical, mining engineering and metallurgical parameters. The environmental, socio-

political, legal and regulatory factors were also considered.

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C O N T I N E N T A L A F R I C A

c o n t i n u e d

G e i t a

ORE RESERVE MODIFYING FACTORS

Geita

Gold

price

Cut-off

grade

RMF

MRF

MCF

MetRF

as at 31 December 2016

US$/oz

g/t Au

% (based

on tonnes)

% (based

on tonnes)

% (based

on g/t)

Geita Hill (open pit)

1,100

1.50

90.0

108.0

92.0

98.0

89.3

Nyankanga (open pit) cut 7 and 8

1,100

1.40

95.0

105.0

95.0

98.0

92.7

Star and Comet (open pit)

1,100

1.60

90.0

108.0

92.0

98.0

90.5

Star and Comet (underground) cut 3

1,100

4.50

–

98.0

90.5

Stockpile (full grade ore)

1,100

1.45

–

98.0

91.0

Stockpile (marginal ore)

1,100

0.95

–

98.0

91.0

Dilution included in MRF and considered MCF of 98%

Modifying factors are applied during the production scheduling stage with the aim of closely estimating the tonnes, grade and metal

that would be delivered to the ROM pad (i.e. Ore Reserve). The aim is to be able to fully account for all variance along the chain from

the Mineral Resource model to process plant received and gold produced.

During the year, Geita continued to implement various elements of mine to mill improvements supported with blast movement tracking

technology. The modifying factors considered are based on reconciliation, which is ongoing between Mineral Resource models, grade

control models, mine design perimeters, actual mining and plant feed, speciﬁcally on the open pits. Limited historical data is available

for the underground mine and the factors are based on recent drilling results from geology and from similar type underground deposits

and mining methods as suggested by underground planning experts in the group.

For the open pits the MRF is applied during the production scheduling stage. Dilution included in MRF. These factors are also applied

in the optimisation process, in the software package, to ensure the optimal selected shell reﬂects the impact of these factors.

The underground mines have the dilution and mining recovery losses separately applied during the production scheduling stage.

Mining recovery factor is estimated to cater for recovery losses from pillars and a further factor might be applied to cater for these

pillars, depending on if they are mined-out at a later stage or not during detailed pit designs and scheduling process.

The MCF is applied after the production scheduling stage for both open pit and underground in the treatment schedule. The aim is to

be able to fully account for all variance along the chain from the Mineral Resource model to process plant received and gold produced

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Geita

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Geita Hill (open pit)

0.44

3.72

1.65

0.05

Nyankanga (open pit) cut 8

0.23

1.73

0.39

0.01

Total

0.67

3.04

2.04

0.07

No Inferred Mineral Resource is included in the ﬁnal Ore Reserve reporting however, Inferred Mineral Resource within the Ore Reserve

pit shell is included in the business plan. This material forms potential extensions to the current LoM if it is converted to Ore Reserve

and inﬁll drilling programmes are planned to upgrade potentially economic areas to Indicated Mineral Resource.

For Nyankanga, the Inferred Mineral Resource is not included in the pit optimisation and therefore does not contribute to the economic

assessment of the optimised pit. Although the selected Geita Hill East shells included around 16.2% of Inferred Mineral Resource,

the Indicated Mineral Resource component on its own, is still able to yield favourable economic results for the ﬁnal designed pit. The

Inferred Mineral Resource in business plan is present within the ﬁnal pit shell as exclusive Mineral Resource.

Inferred Mineral Resource is not included in the Star and Comet underground mine design and Ore Reserve estimation process and

therefore it does not contribute to the economic assessment of the underground Ore Reserve.

ORE RESERVE BELOW INFRASTRUCTURE

There is no Ore Reserve reported below infrastructure.

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GEITA year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

2.6

2.5

2.4

2.3

2.2

2.1

2.0

1.9

1.8

1.7

-0.04

-0.03

0.00

-0.23

0.00

-0.05

0.17

0.00

-0.44

0.00

2.60

1.97

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Year on year the Ore Reserve declined by 32% and 24%, in ore tonnes and metal content respectively. Driven primarily by changes

in the overall economic parameters, speciﬁcally in Geita Hill East and depletions. Other areas contributing negatively to the Ore

Reserve include model changes at Nyankanga and Geita Hill and mining methodology change (from open pit to underground) at Star

and Comet.

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S E C T I O N 4

A U S T R A L A S I A

The Australasia region

comprises two mines,

Sunrise Dam and Tropicana.

Regional overview /

153

Sunrise Dam /

156

Tropicana /

164

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A U S T R A L A S I A

R e g i o n a l o v e r v i e w

Western

Australia

Darwin

Brisbane

Sydney

Melbourne

Adelaide

Perth

Kalgoorlie

Canberra

Operations
1 Sunrise

Dam

2 Tropicana

(70%)

1,000km

CONTRIBUTION TO
REGIONAL PRODUCTION

•

Sunrise Dam

•

Tropicana

CONTRIBUTION TO
GROUP PRODUCTION

•

Australasia

•

Rest of AngloGold Ashanti

KEY STATISTICS

Units

2016

2015

2014

Operational performance

Tonnes treated/milled

8.9

8.2

7.8

Recovered grade

oz/t

0.058

0.068

0.078

g/t

1.82

2.12

2.43

Gold production (attributable)

000oz

520

560

620

Total cash costs

$/oz

793

702

804

Total production costs

$/oz

1,056

919

1,070

All-in sustaining costs

(1)

$/oz

1,067

875

986

Capital expenditure (attributable)

109

(1)

Excludes stockpile write-offs.

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A s a t 3 1 D e c e m b e r 2 0 1 6 , t h e t o t a l a t t r i b u t a b l e M i n e r a l R e s o u r c e ( i n c l u s i v e o f t h e O r e R e s e r v e )

f o r t h e A u s t r a l a s i a r e g i o n w a s 1 1 . 5 M o z ( 2 0 1 5 : 9 . 3 M o z ) a n d t h e a t t r i b u t a b l e O r e R e s e r v e , 4 . 0 M o z

( 2 0 1 5 : 3 . 1 M o z ) .

This is equivalent to around 5% and 8% of the group’s Mineral Resource and Ore Reserve. Production from Australasia was steady at

520koz in 2016, equivalent to 14% of group production.

AngloGold Ashanti operates two mines in Western Australia: Sunrise Dam, which is wholly-owned, and Tropicana gold mine, a joint-

venture with Independence Group NL, who holds a 30% stake.

INCLUSIVE MINERAL RESOURCE

Australasia

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

1.08

Indicated

113

2.02

230

Inferred

1.92

Total

193

1.85

357

EXCLUSIVE MINERAL RESOURCE

Australasia

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.67

Indicated

1.85

133

Inferred

1.92

Total

129

1.80

233

ORE RESERVE

Australasia

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

Tonnes

Moz

Proved

1.23

Probable

2.32

Total

1.94

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CONTRIBUTION TO GROUP
TOTAL MINERAL RESOURCE

•

Australasia

•

Rest of AngloGold Ashanti

CONTRIBUTION TO GROUP
TOTAL ORE RESERVE

•

Australasia

•

Rest of AngloGold Ashanti

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AUSTRALASIA
MINERAL RESOURCE – ATTRIBUTABLE

(per operation/project)

4.4

5.6

4.9

5.9

Moz

Tropicana Sunrise Dam

2016

2015

AUSTRALASIA
ORE RESERVE – ATTRIBUTABLE

(per operation/project)

1.3

1.8

2.7

Moz

3.0

2.5

2.0

1.5

1.0

0.5

0.0

2016

2015

Tropicana

Sunrise Dam

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I N T R O D U C T I O N

Property description

Sunrise Dam is an underground mine that is wholly owned by AngloGold Ashanti.

Location

Sunrise Dam is approximately 220km north-northeast of Kalgoorlie and 55km south of Laverton in

Western Australia.

History

Open pit production began in 1997 and has now been completed at a ﬁnal depth of 500m below surface.

Underground mining commenced in 2003 with a number of different mining methods being applied,

depending on the style of mineralisation and grade of the geological domain. By 2014 the mine was wholly

an underground mining operation supplemented with stockpile processing.

Legal aspects and

tenure

The Sunrise Dam Ore deposit is contained within a package of mining leases covering over 7,800Ha,

which are in good standing with expiry dates ranging from 2029 to 2032. The Mineral Resource for

the Sunrise Dam underground mine is contained within M39/217 (490.05ha) and M39/347 (939.2ha).

M39/347 contains the primary Ore Reserve and will be mined into the foreseeable future. The Golden

Delicious Mineral Resource is contained within the M38/426 mining lease (666.4ha). The remaining mining

leases contain mine infrastructure, tailings stage facilities, and stockpiles.

Mining method

Mining is carried out by contractors. The underground mine is undergoing a signiﬁcant growth phase with

production expected to reach 3.6mt of ore by 2020. The primary mining method is bulk mechanised sub-

level open stoping using stabilising pillars and waste back ﬁll where possible.

Operational

infrastructure

All required surface infrastructure is in place including a fully functional camp, plant, power plant and

reticulation, ofﬁces and road system. The third electrical feeder to the underground mine has been

completed during the year which will provide sufﬁcient electrical capacity for the underground mine to

continue to ramp up to 3.6Mtpa.

Mineral processing

Ore is treated in a conventional gravity and CIL process plant.

Risks

None.

A U S T R A L A S I A

c o n t i n u e d

S u n r i s e D a m

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Plant centroid co-ordinates
122°26'18"E, 29°05'35"S

Daniel portal

Licences

Mining

Exploration

Exploration application

Underground workings

Mine Infrastructure

Pits

Plant

ROM Pad

TSF

Waste Dumps

Prospects

Golden Delicious

Roads

Main

Secondary

Lake Carey

Airfield

Village

Laverton

2km

Golden Delicious

Cleo Pit

Watu portal

WSZ portal

to Ka

oor

lie

Mine village

Lake

Carey

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A U S T R A L A S I A

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COMPETENT PERSONS

Sunrise Dam

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Fraser Clark

MAusIMM

226 390

15 years

BSc Hons (Geology)

Postgraduate Certiﬁcate in Geostatistics

Ore Reserve

Peter Merry

MAusIMM

306 163

15 years

BEng (Mining)

GDE (Mining Engineering)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

Sunrise Dam is considered to be a mesothermal gold deposit typical of many orebodies found in the Archaean greenstone belts of

Western Australia.

MINERALISATION STYLE

At Sunrise Dam, gold mineralisation is structurally controlled and vein hosted. The style of mineralisation can be differentiated

depending on the structure or environment in which it is hosted. There are three dominant styles recognised:

•

shear-related and high strain, e.g. Sunrise Shear Zone

•

stockwork development in planar faults with brittle characteristics (these occur in all rock types and are commonly concentrated at

contacts within the volcanic stratigraphy or the porphyry margin and within hinge positions within the magnetite shales) e.g. Cosmo,

Dolly, Vogue

•

placer-style mineralisation hosted within the ﬂuvial sediments

MINERALISATION CHARACTERISTICS

Mineralisation is typically hosted in quartz-carbonate veins and breccias with varying quantities of pyrite and arsenopyrite. Gold occurs

as free gold and is also occulded in the sulphides. The gold mineralisation is often associated with strongly altered country rocks

proximal to the shear and fracture network that the hydrothermal ﬂuids have passed through.

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2000m

1500m

Mineralised Zone

Shear Zone

Felsic Porphyry

Basalt & Dolerite

BIF

V olcanic Conglomerate

Megacrystic Andesite

Turbidite Beds

Andesite

Maﬁc

Legend

250m

Cleo upper shear

Midway shear zone

Sunrise shear zone

Western
shear zone

Elevation

GEOLOGICAL CROSS-SECTION THROUGH SUNRISE DAM

E X P L O R AT I O N

During 2016, the exploration plan was focused on Mineral Resource expansion drilling and Mineral Resource inﬁll drilling. The Mineral

Resource expansion drilling focused on drill testing the under explored portions of the mine at depth and along strike to supply

additional Mineral Resource into the LoM plan. Signiﬁcant drill platforms have been established at the southern end of the mine

to access the strike and depth extensions of the Vogue orebody. Strategic drill platforms have also been established to facilitate

systematic exploration of the middle and northern regions of the property. The priority target is Carey Shear which was successfully

explored with step-out drilling adding 326koz of Inferred Mineral Resource during the year. The Carey Shear remains open along strike

and down-dip, providing signiﬁcant upside potential as the exploration proceeds Mineral Resource conversion.

Mineral Resource development drilling took place concurrently and focused on drilling in the southern strike extension of the upper

part of the Vogue orebody. This has been highly successful during the year adding 185Koz to the Vogue Mineral Resource. Signiﬁcant

Indicated Mineral Resource additions also occurred in Cosmo North which added 61Koz.

P R O J E C T S

There are two projects in progress at Sunrise Dam, they are:

•

The Recovery Enhancement project which is looking to evaluate the feasibility of using ﬁne grind and ﬂotation to improve the

process plant recovery. This project is currently in FS with construction planned for late 2017

•

The Materials Handling project which is exploring the options for reducing the long term materials handling costs at the mine by

replacing part of the truck and haul operations used to transport material to the process plant

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M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Sunrise Dam

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

–

Indicated

40 x 20 ✔ ✔

–

Inferred

40 x 40 ✔ ✔

–

– –

Grade/ore control

9 x 10

– ✔

–

INCLUSIVE MINERAL RESOURCE

Sunrise Dam

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Golden Delicious

Measured

0.66

1.47

0.97

0.03

Indicated

2.40

1.24

2.98

0.10

Inferred

0.02

0.89

0.02

0.00

Total

3.09

1.29

3.97

0.13

Stockpile (open pit)

Measured

11.52

0.98

11.27

0.36

Indicated

–

Inferred

–

Total

11.52

0.98

11.27

0.36

Underground

Measured

–

Indicated

49.53

2.41

119.36

3.84

Inferred

25.37

1.88

47.77

1.54

Total

74.90

2.23

167.12

5.37

Stockpile (underground)

Measured

0.15

2.54

0.38

0.01

Indicated

–

Inferred

–

Total

0.15

2.54

0.38

0.01

Sunrise Dam

Total

89.66

2.04

182.74

5.88

ESTIMATION

Estimation of the underground Mineral Resource uses the geological model boundaries to subdivide all drill hole data into appropriate

domains. The geostatistical method of ordinary block kriging is used to estimate the Mineral Resource. High-grade restraining is used

to limit the effects of outlier grade values. Dense patterns of underground RC are completed prior to the ﬁnal mine design, upon which,

grade control models are created using conditional simulation. This allows for the probabilistic determination of the optimal mining

stope conﬁguration.

Mining of the open pit Mineral Resource was completed during 2012, and mining of the crown pillar at the base of the pit ﬁnished in

early 2014. Remaining stockpiled material is estimated based on detailed grade control drilling completed prior to mining. Grades were

estimated by means of the conditional simulation geostatistical method.

The Golden Delicious deposit has been estimated using UC. All available geological drill hole information is validated for use in the

models and the local geology of the deposit is used to classify the drill hole information into appropriate estimation domains. Detailed

statistical analyses are conducted on each of these domains and this allows for the identiﬁcation of high-grade outliers. If these values

are anomalous to the characteristics of the general population they are then cutback to an appropriate upper limit for the population.

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EXCLUSIVE MINERAL RESOURCE

Sunrise Dam

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.66

1.47

0.97

0.03

Indicated

41.37

2.23

92.19

2.96

Inferred

25.40

1.88

47.79

1.54

Total

67.43

2.09

140.95

4.53

The exclusive Mineral Resource includes a large portion of the underground Indicated Mineral Resource as the material is of a

lower-grade and therefore fails to meet Ore Reserve cut-off grade requirements as well a small amount of Golden Delicious. The

entire Inferred Mineral Resource in the underground mine is included in the exclusive Mineral Resource. Much of this Inferred Mineral

Resource is located in the deeper parts of the underground mine where the drill density is not yet adequate for the Mineral Resource

to be considered in the Ore Reserve estimation process.

MINERAL RESOURCE BELOW INFRASTRUCTURE

Sunrise Dam

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

3.23

2.21

7.16

0.23

Inferred

14.84

1.96

29.16

0.94

Total

18.07

2.01

36.32

1.17

The Mineral Resource below infrastructure occurs in three of the mine areas – Vogue below 1,600mRL and Cosmo East below

1,550mRL and the entire Carey Shear.

SUNRISE DAM

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

0.25 0.50 0.75

1.25 1.50 1.75 2.00

2.50 2.75 3.00

1.00

2.25

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

SUNRISE DAM

Grade tonnage curve underground (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

200
180
160
140
120
100

80
60
40
20

0.5

1.0

1.5

2.0

3.0

3.5

4.0

4.5

5.0

5.5

6.0

2.5

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

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A U S T R A L A S I A

c o n t i n u e d

S u n r i s e D a m

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

SUNRISE DAM year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

6.0

5.8

5.6

5.4

5.2

5.0

4.8

4.6

4.4

-0.25

0.57

0.46

0.24

0.00

4.85

5.88

The increase in Mineral Resource from 2015 was largely due to successful exploration, a higher local gold price, AUD1817/oz (2015:

AUD1704/oz), as well as methodology change brought about by relaxing the required drill density to achieve an Indicated Mineral

Resource classiﬁcation and calibrating the grade – tonnage proﬁles in the Mineral Resource estimate to the grade control models.

In 2016, Golder Associates conducted a detailed simulation study to determine the optimal drill hole spacing required to classify an

Indicated Mineral Resource. The outcome of this study demonstrated that the drill hole spacing could be relaxed without having a

detrimental effect on the tonnage and grade estimates.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

SUNRISE DAM

Inclusive Mineral Resource sensitivity

-5

-10

-15

O R E R E S E R V E

ORE RESERVE

Sunrise Dam

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Stockpile (open pit)

Proved

11.52

0.98

11.27

0.36

Probable

–

Total

11.52

0.98

11.27

0.36

Underground

Proved

–

Probable

10.56

2.86

30.15

0.97

Total

10.56

2.86

30.15

0.97

Stockpile (underground)

Proved

0.15

2.54

0.38

0.01

Probable

–

Total

0.15

2.54

0.38

0.01

Sunrise Dam

Total

22.23

1.88

41.80

1.34

As a low grade underground mine Sunrise Dam is
sensitive to changes in gold price.

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ESTIMATION

The underground Ore Reserve is based on portions of the Mineral Resource model which were projected to be mineable based on

price, mining factors and mill recovery assumptions. The mining shapes are based on Indicated Mineral Resource materials that are

projected to provide a 15% margin on total cost, based on the reference assumptions. Mine layout and designs have been created

within mining shapes for each geological domain, to calculate the Ore Reserve directly from the Mineral Resource model. The Proved

and Probable Ore Reserve was then deﬁned by applying the Mineral Resource classiﬁcation for each estimation domain.

ORE RESERVE MODIFYING FACTORS

Sunrise Dam

Gold

price

Cut-off

grade

Dilution

MRF

MCF MetRF

as at 31 December 2016

AUD/oz

g/t Au

g/t

% (based

on tonnes)

% (based

on g/t)

Stockpile (open pit)

1,500

0.60

0.0

0.00

100.0

85.0

Underground

1,500

1.23

5.0

0.20

99.0

100.0

80.9

Stockpile (underground)

1,500

1.23

5.0

0.20

99.0

100.0

80.9

No signiﬁcant changes in the modiﬁcation factors used in the Ore Reserve as gold price and costs were fairly constant year-on-year.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Sunrise Dam

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Underground

2.63

3.27

8.60

0.28

Total

2.63

3.27

8.60

0.28

The Inferred Mineral Resource in the business plan includes extensions of all geological domains with the notable addition of areas of

the Carey Shear domain being included for the ﬁrst time. Further exploratory drilling during 2017 is planned with the aim of increasing

conﬁdence in these areas to bring them into the Ore Reserve.

ORE RESERVE BELOW INFRASTRUCTURE

No Ore Reserve reported below infrastructure.

SUNRISE DAM year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

-0.27

0.32

0.03

0.00

-0.01

0.00

0.01

0.00

1.34

1.25

1.35

1.30

1.25

1.20

1.15

1.10

1.05

1.00

0.95

0.90

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Year-on-year changes in Ore Reserve are due to a wider drill spacing being used that has resulted in more Indicated Mineral Resource

available for conversion. The increase in the underground Ore Reserve is therefore a result of a large increase in the conversion of

Inferred to Indicated Mineral Resource during 2016, particularly in the Vogue domain.

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I N T R O D U C T I O N

Property description

Tropicana is a JV between AngloGold Ashanti (70%), which manages the operation, and Independence

Group NL (30%).

Location

Tropicana is located 200km east of Sunrise Dam and 330km east-northeast of Kalgoorlie, Western

Australia. Tropicana is the ﬁrst deposit discovered in this remote portion of the Great Victoria Desert.

History

Open pit mining began during 2012, with ﬁrst gold production occurring during September 2013.

Tropicana celebrated reaching the one million ounce milestone during 2015.

Legal aspects and

tenure

Tropicana has security of tenure for all current exploration licences and the mining lease that covers its

future Ore Reserve:

•

M39/1096 valid from 11 March 2015 to 10 March 2036 covering a total area of 27,228ha.

The previous 31 mining leases comprising the 27,228ha (including M39/980, M39/981, M39/982 and

M39/1052) were conditionally surrendered in favour of the grant of the single mining lease M39/1096 on

11 March 2015 for 21 years with all existing rights and obligations preserved. This process was completed

with the cooperation of the Department of Mines and Petroleum.

Mining method

Mining activities are undertaken by Macmahon in an alliance partnership with AngloGold Ashanti. Mining is

conventional open cut, drill and blast, followed by truck and excavator operation to develop the deposits

(Havana, Tropicana and Boston Shaker). The total annual movement rate is approximately 60Mtpa.

Operational

infrastructure

All infrastructure facilities are in place and operational. The processing and tailings storage facilities are

operating well, consistent with design speciﬁcations. The infrastructure includes, but it is not limited to a

dedicated gas and diesel power station, water supply, processing plant, mine, dewatering infrastructure,

tailing dump facility, workshops, camp facilities and airstrips.

Mineral processing

The processing plant comprises crushing, high pressure grinding rolls, one stage grinding and CIL recovery

and has a capacity of 7.0 to 7.5Mtpa is anticipated.

Risks

None.

A U S T R A L A S I A

c o n t i n u e d

Tr o p i c a n a

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Boston Shaker

(BS03)

Tropicana

(TP02)

Havana Sth

(Shell)

Havana Sth

(HS01)

2km

Havana

(HA04)

Boston Shaker

(BS01)

Licences

Mining

Exploration

Mine Infrastructure

Pits

Plant

ROM Pad

Stockpiles

TSF

Waste Dumps

Settlements

Villages

Roads

Main

Secondary

Airfield

to Kalg

rlie

to th

Full Mining Lease area

e Borefield

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COMPETENT PERSONS

Tropicana

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Mark Kent

MAusIMM

203 631

19 years

BSc Hons (Geology)

MSc (Mineral Resource Evaluation)

Ore Reserve

Jason Vos

MAusIMM

310 219

21 years

BEng (Mining)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

Together, the Tropicana, Havana, Havana South and Boston Shaker deposits deﬁne a north-east trending mineralised corridor,

approximately 1.2km wide and 5km long, that has been tested to a vertical depth of more than 1,200m. The Mineral Resource remains

open down-dip of Tropicana, Havana and Boston Shaker deposits and has the potential to be extended to the north and south.

Neither the immediate metamorphic host rocks nor the mineralised zones are exposed at surface due to the presence of widespread

younger cover sequences of between 0.5m and 15m thick.

MINERALISATION STYLE

The Tropicana deposit comprises a mineralised zone up to 50m thick, hosted predominantly in quartzo-feldspathic gneiss with

a garnet-gneiss dominated hangingwall package. The mineralisation is comprised of subordinate thin (3m to 5m), discontinuous

mineralised lenses that typically return intercepts of >0.5g/t gold. The Havana deposit comprises a lower, laterally continuous, higher-

grade lode up to 50m thick that is overlain, in the central and southern parts of the proposed pit, by stacked, typically lower-grade

and thinner (up to 25m thick) mineralised zones. Havana is also dominantly hosted in quartzo-feldspathic gneiss, again with a garnet

gneiss dominated hangingwall.

MINERALISATION CHARACTERISTICS

Mineralisation is accompanied by pyrite (2% to 8%) with accessory pyrrhotite, chalcopyrite and other minor sulphides and tellurides.

The gold mineralisation is related to shear planes that postdate the main gneissic fabric developed during peak granulite-facies

metamorphism.

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500m

Legend

Amphibolite & granulite dominant gneiss

Fault / Shear

Regolith

Basaltdyke

Quartz, grunerite, pyrite, pyrrhotite breccia/chert

Garnet bearing amphibolite & granulite

Dominantly monzonitic, dioritic & tonalitic gneiss

Dominantly syenitic, dioritic & tonalitic gneiss

Orebody

200m

-200m

-400m

-600m

Elevation

current open pit

new proposed pit limits

GEOLOGICAL CROSS-SECTION THROUGH HAVANA PIT

E X P L O R AT I O N

During 2016 the Tropicana Joint Venture (TJV) brownﬁelds exploration programmes completed Mineral Resource development

drilling at Tropicana for the Long Island Mining Study, and near mine exploration continued to explore for potential open pit satellite

Mineral Resource, within 60km of the mine. The Mineral Resource development drilling completed an initial 100 x 100m spaced drill

programme to scope the down-dip extent of the Tropicana Mineralisation System in early 2016, and successfully identiﬁed signiﬁcant

extensions of the Tropicana mineralisation at Havana South and Boston Shaker. Mineral Resource Development drilling continued

through 2016, completing inﬁll drilling at Havana South, Havana, Tropicana and Boston Shaker. The results of the Mineral Resource

development work will update the 2016 Mineral Resource, for the Long Island Mining Study, scheduled for completion mid-2017.

The near mine exploration programmes comprise a mix of advanced and early stage exploration including DD, RC and AC drilling,

testing prospects such as Madras, New Zebra, Paradise, Angel Eyes and Sanpan, following a comprehensive target generation

exercise in early 2016. The results of the 2016 exploration drilling and targeting work provide a comprehensive pipeline of exploration

targets, with a focus on near mine exploration going forward in 2017.

P R O J E C T S

Tropicana is currently undertaking the Long Island FS. The Long Island Study is based on waste overburden mining of the depth

extensions of the Tropicana mineralised system that uses the completed Tropicana pit as an initial void into which waste will be

backﬁlled. The proposed backﬁlling of the Tropicana pit in conjunction with waste overburden mining will greatly reduce the cost of

mining waste by introducing short, horizontal hauls instead of the long uphill hauls out of the pit to surface waste dumps that would

be required by conventional mining.

The drilling programme to support the study is nearing completion and work is continuing on aspects such as bench height, the grade

control approach, the mining rate and the optimal mining ﬂeet conﬁguration. A programme of 161,000m of RC and DD carried out

during 2015 and 2016 to test the strike extent and down-dip extensions of the known mineralised system has been highly successful,

contributing to a 45% increase in Ore Reserve and a 27% increase in the Mineral Resource, highlighting the signiﬁcant upside potential

of the system.

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A U S T R A L A S I A

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It is anticipated that the FS study will be completed in Q2 2017 and the initial Long Island cutback would commence in 2019 when

the Tropicana pit has been mined to full depth.

The Plant Optimisation Project, which aimed to lift throughput to 7.5mtpa, has been completed, with commissioning of two additional

CIL tanks in October 2016.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Tropicana

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

25 x 25 ✔ ✔

–

Indicated

50 x 50 ✔ ✔

–

Inferred

100 x 100 ✔ ✔

–

Grade/ore control

10 x 12

– ✔

–

INCLUSIVE MINERAL RESOURCE

Tropicana

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Boston Shaker Stage 1 – BS01

Measured

0.92

1.91

1.76

0.06

Indicated

0.01

1.33

0.01

0.00

Inferred

–

Total

0.93

1.90

1.77

0.06

Havana Stage 2 – HA02

Measured

0.01

2.48

0.02

0.00

Indicated

2.11

2.15

4.53

0.15

Inferred

–

Total

2.12

2.15

4.55

0.15

Boston Shaker Stage 3 – BS03

Measured

0.42

1.84

0.77

0.02

Indicated

3.19

2.20

7.00

0.23

Inferred

0.83

1.89

1.57

0.05

Total

4.44

2.10

9.35

0.30

Havana Stage 3 – HA03

Measured

0.86

2.40

2.06

0.07

Indicated

6.57

1.70

11.14

0.36

Inferred

0.00

0.47

0.00

Total

7.43

1.78

13.21

0.42

Tropicana Stage 2 – TP02

Measured

3.91

1.79

7.02

0.23

Indicated

6.56

1.84

12.09

0.39

Inferred

0.00

2.15

0.00

Total

10.48

1.82

19.12

0.61

Havana Stage 4 – HA04

Measured

0.06

1.43

0.09

0.00

Indicated

19.17

1.78

34.04

1.09

Inferred

0.00

0.94

0.00

Total

19.24

1.77

34.14

1.10

Havana South Stage 1 – HS01

Measured

–

Indicated

8.94

1.26

11.29

0.36

Inferred

0.02

1.71

0.03

0.00

Total

8.96

1.26

11.32

0.36

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Tropicana

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Havana South Shell

Measured

–

Indicated

10.24

1.10

11.21

0.36

Inferred

14.77

1.28

18.96

0.61

Total

25.01

1.21

30.17

0.97

Stockpile (open pit)

Measured

12.06

0.73

8.81

0.28

Indicated

–

Inferred

–

Total

12.06

0.73

8.81

0.28

Underground

Measured

–

Indicated

4.74

3.38

15.99

0.51

Inferred

8.30

3.15

26.17

0.84

Total

13.04

3.23

42.16

1.36

Tropicana

Total

103.70

1.68

174.58

5.61

ESTIMATION

All available geological drill-hole information is validated for use in the models and the local geology of the deposit is used to classify

the drill hole information into appropriate geostatistical domains. Detailed statistical analyses are conducted on each of these domains.

The recoverable gold Mineral Resource for the open pit is estimated by Local Uniform Conditioning (LUC). UC estimates the proportion

of material recovered by mining above a cut-off grade, assuming a speciﬁed SMU, LUC goes a step further to position the SMU-size

block within the estimated panel based on the most likely position of the higher grade SMU blocks relative to the lower grades SMU

blocks.

The underground Mineral Resource estimate uses all available drilling targeting the down plunge and along strike extents of the

mineralisation, outside the current open pit limits. The geostatistical method of ordinary kriging is used to estimate the underground

Mineral Resource.

TROPICANA

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

150

140

120

100

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

0.1 0.2 0.3 0.4

0.7 0.8 0.9

1.2

1.4 1.5

0.5 0.6

1.0 1.1

1.3

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

TROPICANA

Grade tonnage curve underground (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

5.2
5.0
4.8
4.6
4.4
4.2
4.0
3.8
3.6
3.4
3.2
3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

INCLUSIVE MINERAL RESOURCE

continued

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EXCLUSIVE MINERAL RESOURCE

Tropicana

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

7.27

0.59

4.32

0.14

Indicated

30.43

1.34

40.83

1.31

Inferred

23.93

1.95

46.73

1.50

Total

61.63

1.49

91.88

2.95

The exclusive Mineral Resource includes Inferred Mineral Resource at depth in the designed pits and optimised shells, as well as the

underground Mineral Resource, which is not yet drilled to a level of conﬁdence to support an Ore Reserve.

MINERAL RESOURCE BELOW INFRASTRUCTURE

Tropicana

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

4.74

3.38

15.99

0.51

Inferred

8.30

3.15

26.17

0.84

Total

13.04

3.23

42.16

1.36

The underground Mineral Resource is considered as being below infrastructure, as no development has yet taken place or is

currently planned.

The Mineral Resource has increased signiﬁcantly due to exploration success within and below the previous Mineral Resource limits.

This success, coupled with some innovative thinking around mine planning led to the start of waste-dumping within the mined-out

pits, has reduced the mining costs, and also allowed for the extension of the underground Mineral Resource to cover all areas down-dip

from the open pits.

TROPICANA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

5.8
5.6
5.4
5.2
5.0
4.8
4.6
4.4
4.2
4.0
3.8

-0.24

1.28

-0.42

0.00

0.60

0.00

4.40

5.61

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

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O R E R E S E R V E

ORE RESERVE

Tropicana

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Boston Shaker Stage 1 – BS01

Proved

0.75

2.24

1.67

0.05

Probable

0.00

1.61

0.01

0.00

Total

0.75

2.23

1.67

0.05

Havana Stage 2 – HA02

Proved

0.01

2.81

0.02

0.00

Probable

1.69

2.54

4.30

0.14

Total

1.70

2.55

4.32

0.14

Havana Stage 3 – HA03

Proved

0.64

3.05

1.94

0.06

Probable

4.71

2.15

10.15

0.33

Total

5.35

2.26

12.09

0.39

Tropicana Stage 2 – TP02

Proved

3.13

2.11

6.59

0.21

Probable

5.12

2.21

11.31

0.36

Total

8.25

2.17

17.90

0.58

Havana Stage 4 – HA04

Proved

0.03

1.90

0.05

0.00

Probable

14.19

2.21

31.33

1.01

Total

14.21

2.21

31.39

1.01

Havana South Stage 1 – HS01

Proved

–

Probable

5.37

1.75

9.38

0.30

Total

5.37

1.75

9.38

0.30

Stockpile (open pit)

Proved

6.43

0.92

5.95

0.19

Probable

–

Total

6.43

0.92

5.95

0.19

Tropicana

Total

42.07

1.97

82.70

2.66

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

TROPICANA

Inclusive Mineral Resource sensitivity

-2

-4

-6

-8

-10

The open pit Mineral Resource is sensitive to gold
price changes in the Havana South and Boston
Shaker areas at the south and north of the mine,
respectively. In other areas, the pit designs are
fixed based on the current business plan.

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ESTIMATION

The Ore Reserve for Tropicana is based on an operating LoM plan and a PFS. For the operating LOM plan, a FS was completed

in 2010, which determined a technically achievable and ﬁnancially economic mine plan. The pits that make up the operating LoM

plan are Tropicana, Havana, Boston Shaker and Havana South. The PFS is based on an expansion of Havana. All Ore Reserve is

estimated by reporting physicals (volumes, tonnes, grades, material types, etc.) against the Mineral Resource model within detailed

staged pit designs. Ore Reserve physicals are then put through a ﬁnancial model for economic evaluation.

ORE RESERVE MODIFYING FACTORS

Tropicana

Gold

price

Cut-off

grade

MCF MetRF

as at 31 December 2016

AUD/oz

g/t Au

1,500

0.70

100.0

90.0

The metallurgical recovery is based upon historical performance of the process plant to date. This is the only factor applied in the Ore

Reserve estimation process. Mining selectivity was accounted for during the Mineral Resource estimation process, which produced

a diluted Mineral Resource model. Consequently, no further adjustment was made and 100% mining recovery and no grade dilution

were assumed during the Ore Reserve estimation process.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Tropicana

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Tropicana Stage 2 – TP02

0.00

0.07

0.00

Havana Stage 4 – HA04

0.00

1.68

0.00

Havana South Stage 1 – HS01

0.01

3.56

0.02

0.00

Total

0.01

3.29

0.02

0.00

All Mineral Resource categories, including the Inferred Mineral Resource, were included in the business plan but excluded from the

Ore Reserve. It is noted that there is an insigniﬁcant percentage of Inferred Mineral Resource (approximately 0.1% by tonnage) within

the pit designs used.

ORE RESERVE BELOW INFRASTRUCTURE

No Ore Reserve reported below infrastructure.

TROPICANA year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

2.8

2.6

2.4

2.2

2.0

1.8

1.6

1.4

1.2

-0.32

0.10

1.04

0.00

-0.00

0.00

2.66

1.83

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

A U S T R A L A S I A

c o n t i n u e d

Tr o p i c a n a

Changes in the Ore Reserve are mainly due to the addition of a large cutback on the Havana pit and depletion during 2016 operations.

172

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Continental Africa

Australasia

Americas

Administrative

S E C T I O N 5

A M E R I C A S

T h e A m e r i c a s r e g i o n i n c o r p o r a t e s

t h r e e m i n i n g o p e r a t i o n s i n B r a z i l

a n d A r g e n t i n a , a n a c t i v e g r e e n f i e l d

e x p l o r a t i o n a n d a d v a n c e d p r o j e c t

d e v e l o p m e n t p r o g r a m m e i n C o l o m b i a .

Regional overview /

175

Argentina /

178

Brazil /

188

Colombia /

230

174

Introduction

South Africa

Continental Africa

Australasia

Americas

Administrative

A M E R I C A S

Operations

Argentina

1 Cerro Vanguardia (92.5%)

Brazil

2 Serra Grande

3 AGA Mineração

Advanced greenfield projects

Colombia

Gramalote (51%)

La Colosa

Quebradona (92.72%)

CONTRIBUTION TO
GROUP PRODUCTION

•

Americas

•

Rest of AngloGold Ashanti

CONTRIBUTION TO
REGIONAL PRODUCTION

•

Argentina

•

Brazil

A M E R I C A S

R e g i o n a l o v e r v i e w

KEY STATISTICS

Units

2016

2015

2014

Operational performance

(1)

Tonnes treated/milled

7.0

6.8

Recovered grade

oz/t

0.106

0.108

0.104

g/t

3.64

3.71

3.58

Gold production (attributable)

000oz

820

948

996

– Continuing operations

808

831

785

– Discontinued operations

–

117

211

Silver (attributable)

Moz

4.9

4.4

3.1

Total cash costs

$/oz

578

576

676

Total production costs

$/oz

909

845

918

All-in sustaining costs

(2)

$/oz

875

792

974

Capital expenditure (100% basis)

225

196

225

(1)

Operational performance data for the Americas region is for the continuing operations (excludes CC&V which was sold effective 3 August 2015),
unless otherwise stated. Comparative data for operational performance has been restated

(2)

Excludes stockpile write-offs

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Administrative

A M E R I C A S

c o n t i n u e d

R e g i o n a l o v e r v i e w

A s a t 3 1 D e c e m b e r 2 0 1 6 , t h e t o t a l a t t r i b u t a b l e M i n e r a l R e s o u r c e ( i n c l u s i v e o f t h e O r e R e s e r v e )

f o r t h e A m e r i c a s r e g i o n w a s 5 8 . 1 M o z ( 2 0 1 5 : 5 7 . 6 M o z ) a n d t h e a t t r i b u t a b l e O r e R e s e r v e , 3 . 1 M o z

( 2 0 1 5 : 3 . 2 M o z ) .

This is equivalent to around 27% and 6% of the group’s Mineral Resource and Ore Reserve respectively. Combined production for the

Americas was 820koz of gold in 2016, equivalent to 23% of group production.

CONTRIBUTION TO GROUP
TOTAL MINERAL RESOURCE

•

Americas

•

Rest of AngloGold Ashanti

CONTRIBUTION TO GROUP
TOTAL ORE RESERVE

•

Americas

•

Rest of AngloGold Ashanti

AngloGold Ashanti has three operations in the Americas, the Cerro Vanguardia mine in Argentina (AngloGold Ashanti 92.5% and Formicruz

7.5%), AngloGold Ashanti Córrego do Sítio Mineração operations (which is referred to as AGA Mineração and includes the Cuiabá,

Lamego and Córrego do Sítio (CdS) mines) and Serra Grande, both in Brazil, and three advanced greenﬁeld projects in Colombia.

The projects in Colombia form a signiﬁcant contribution to AngloGold Ashanti’s Mineral Resource with the three projects, La Colosa,

Quebradona (AngloGold Ashanti 92.72% and B2Gold 7.28%) and Gramalote (AngloGold Ashanti 51% and B2Gold 49%) contributing

37.6Moz.

INCLUSIVE MINERAL RESOURCE

Americas

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

3.41

168

Indicated

1,044

0.96

1,001

Inferred

908

0.70

638

Total

2,002

0.90

1,807

EXCLUSIVE MINERAL RESOURCE

Americas

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

3.38

121

Indicated

1,032

0.90

925

Inferred

907

0.70

631

Total

1,974

0.85

1,677

ORE RESERVE

Americas

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

2.67

Probable

4.54

Total

3.69

176

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Continental Africa

Australasia

Americas

Administrative

AMERICAS
MINERAL RESOURCE – ATTRIBUTABLE

(per operation/project)

3.3

3.1

3.5

3.4

3.6

5.7

5.6

Moz

Cerro

Vanguardia

Gramalote

Serra

Grande

Quebradona

La Colosa

AGA

Mineração

2016

2015

AMERICAS
ORE RESERVE – ATTRIBUTABLE

(per operation/project)

0.4

0.5

1.2

0.9

1.6

1.7

Moz

3.0

2.5

2.0

1.5

1.0

0.5

Serra

Grande

Cerro

Vanguardia

AGA

Mineração

2016

2015

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Continental Africa

Australasia

Americas

Administrative

A M E R I C A S

c o n t i n u e d

A r g e n t i n a

C O U N T RY O V E R V I E W

Cordoba

ARGENTINA

Santa Fe

Buenos Aires

Bahia Blanca

San Julian

Rio Gallegos

Operations
1 Cerro

Vanguardia

1,000km

AngloGold Ashanti has a single operation in

Argentina, the Cerro Vanguardia mine, which is

a JV with Formicruz (a state company operating

in the province of Santa Cruz). Formicruz holds a

7.5% interest in the mine, with the remaining

92.5% belonging to AngloGold Ashanti. Production

is from both underground and open pit mining and

is fed either into a Merrill Crowe plant or onto

a heap-leach.

INCLUSIVE MINERAL RESOURCE

Argentina

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

1.80

Indicated

3.20

Inferred

2.78

Total

2.78

EXCLUSIVE MINERAL RESOURCE

Argentina

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

2.10

Indicated

2.61

Inferred

1.69

Total

2.43

ORE RESERVE

Argentina

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

1.47

Probable

4.85

Total

2.88

178

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Australasia

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Administrative

A M E R I C A S

c o n t i n u e d

C e r r o V a n g u a r d i a

I N T R O D U C T I O N

Property description

Cerro Vanguardia is a gold-silver mine. A number of open pits and multiple underground mines, located in

different parts of the property, are mined at the same time. AngloGold Ashanti has a 92.5% stake in Cerro

Vanguardia, the company’s sole operation in Argentina, with Fomicruz, a state company operating in the

province of Santa Cruz, owning the remaining 7.5%. The climate is semi-arid and although snow is not

rare, winter is mild and exploration activities are normally possible all year round.

Location

Cerro Vanguardia is located in Santa Cruz province, southern Patagonia, Argentina, approximately 110km

north-northwest of the coastal town of Puerto San Julián. Access to the area is by aircraft from Buenos

Aires to Comodoro Rivadavia (380km) or Rio Gallegos (510km) and subsequently by road to the mine site.

History

Gold exploration at the site started in late 1980s by the state owned Fomicruz and Minera Mincorp (JV

between Anglo American Argentina Holdings Limited and the local private company Perez Companc).

Cerro Vanguardia started out as an open pit operation in 1998, which was supplemented in 2010 with the

start of shallow underground mining to access high-grade material. The heap-leaching operation started

in 2012. The mine has been operated by AngloGold Ashanti since 1998.

Legal aspects and

tenure

The mining lease encompasses an area of approximately 543km

. The licence 402642/CV/97 covers the full

Ore Reserve and was issued on the 27 December 1996 and expires on the 26 December 2036.

Mining method

Cerro Vanguardia uses conventional open pit mining with a doubled bench height of 20m and in the

underground, longhole stoping. Open pit mining is distributed between multiple operating pits, typically

three to ﬁve at any one time, depending on the plant feed requirements. Currently, there are four

underground mines which are operated at same time, located at Fortuna, Osvaldo 8, Verónica and

Zorro veins. Two more are in development (Liliana and Serena). The underground workings, which began

production in 2010, account for around 30% of total production, a percentage that will increase in the next

few years. Low-grade material is stockpiled and processed as heap-leaching.

Operational

infrastructure

Most of the infrastructure is located on a single area. It includes a camp site with capacity for more

than 1,000 people, Merrill Crowe plant, heap-leaching facilities, cyanide recycling plant, mine laboratory,

maintenance facilities, warehouses and sewage processing plant. Four natural gas power generators fed

by a 40km long pipeline provide electricity to the operation. Natural gas is also used for heating. Mine

ofﬁces facilities are conveniently located in the main mining area. Dewatering supplies water for use both

as processing water and camp consumption. Due to the particular features of the mine, and in order to

optimise hauling, all pits have local single or multiple waste dumps. The tailings dam is located in and

contained by a natural depression.

Mineral processing

Waste dumps and heap-leach stockpiles are located adjacent to each pit. Plant grade ore feed is trucked

to either the long-range or the short-range stockpiles in order to smooth out the head grades and avoid

recovery losses due to higher than planned silver grades.

The metallurgical plant, has a daily capacity of 3,000t and includes a cyanide recovery facility.

Production capacity of the heap-leach facility, which was commissioned in the last quarter of 2012 and

processes lower-grade material, is around 2.0Mtpa at gold and silver grades of around 0.65g/t and

17g/t respectively.

Risks

The Mineral Resource and Ore Reserve is sensitive to gold and silver prices as well as to local exchange

rate ﬂuctuations (ARS versus US$). The low grades from the open pits and difﬁcult hydrogeological and

geotechnical conditions for underground are on-going risks that are managed on a day to day basis.

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A M E R I C A S

c o n t i n u e d

C e r r o V a n g u a r d i a

Vanguardia
3 CB4

Luciana
3 CB2

Mangas CB6

Lucy CB1

Rocío CB1

Osvaldo Diez

CB9

Potrero

CB3

Gabriela CB3

Loma CB9

Luciana
6 CB4

Loma CB6

Luciana 1 CB2

Patty CB3

Patty CB4

Leon

Full Mining Lease area

ardo

CB2

Plant centroid co-ordinates

68°15'46"W, 48°23'08"S

2km

to Comodoro Rivadavia /

Rio Gallegos

Serena portal

Fortuna - Level 225

Fortuna - Level 205

Zorro portal

Osvaldo Diez CB8

Level 70

Level 125

Level 85

Liliana Sur

Portal

Liliana Norte

Portal

Licences

Mine infrastructure

Roads

Mining

Pits

Plant

Stockpiles

Leach pad

TSF

Waste dumps

Main

Secondary

Airfield

Underground workings

Verónica portal

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Administrative

COMPETENT PERSONS

Cerro Vanguardia

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Juan Paredes

MAusIMM

227 738

20 years

PhD (Geology)

Ore Reserve

Javier Santillan

MAusIMM

319 366

13 years

BSc (Mining Engineering)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this

report, in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The Middle to Upper Jurassic ignimbrites and volcanic rocks from Chon Aike formation host a low-sulphidation epithermal gold and

silver deposit. The thickness of the ignimbrite sequence is estimated to have exceeded 1,000m, but some lateral variations have

been identiﬁed across the district. Epithermal Au-Ag bearing structures cut across all Jurassic rocks in the stratigraphy. The two

main ignimbrite units, Masiva-Lajosa and Granosa, host the majority of mineralised veins. The Masiva-Lajosa ignimbrite occurs at the

top of the sequence whilst the Granosa ignimbrite occurs towards the bottom. These two ignimbrites are separated by two thinner,

polymictic ignimbrite units (Brechosa and Brechosa Base) and a sequence of stratiﬁed crystal to ash-rich tuffs (Estratiﬁcada unit). The

base of the sequence is a mixed unit of stratiﬁed ignimbrite intercalated with ﬁne-grained tuffs (Estratiﬁcada Inferior ignimbrite).

MINERALISATION STYLE

Cerro Vanguardia is located in the core of the 60,000km

Deseado Massif, one of the most extensive volcanic complexes in southern

Patagonia, Argentina. The Deseado Massif is an extensive rhyolite province of Middle to Upper Jurassic age deposited over Paleozoic

low-grade metamorphic basement rocks. These rocks are exposed in erosional windows through overlying Cretaceous sediments

and Tertiary to Quaternary basalts. The orebodies comprise a series of low-sulphidation epithermal vein deposits containing gold and

large quantities of silver, produced as a by-product.

MINERALISATION CHARACTERISTICS

The mineralisation is concentrated in steeply-dipping quartz veins that cut the ﬂat-lying ignimbrites and volcaniclastic rocks. The Cerro

Vanguardia district contains around 100 gold and silver-bearing epithermal veins for a cumulative exposed vein strike extension of

more than 240km. Fifty-seven veins are currently known to contain economic gold and silver mineralisation.

All veins at Cerro Vanguardia consist mainly of quartz and adularia containing minor electrum, native gold, silver sulphides and native

silver as ﬁne-grained disseminations. Vein textures are mainly characterised by colloform-crustiform banding, pseudomorphic quartz-

lattice textures, massive-to-vuggy quartz veins and vein breccias. 40Ar/39Ar dating on adularia from the Osvaldo Diez vein yielded

ages of around 153Ma, while the age of the thick sequence of ignimbrites hosting the veins has been dated between 166 to 150Ma.

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A M E R I C A S

c o n t i n u e d

C e r r o V a n g u a r d i a

200m

300m

400m

100m

-100m

Cerro V anguardia Hill

Elevation

Legend

Mineralised zone

Granosa Ignimbrite

Masiva Lajosa Ignimbrite

Estratiﬁcada Ignimbrite

100m

GEOLOGICAL CROSS-SECTION OF CERRO VANGUARDIA AREA

E X P L O R AT I O N

The 2016 exploration programme comprised of 2,749m of DD and 3,546m of RC, as well as 14,000m of trenches and more than

4,000m of channel sampling.

Surface exploration targeted poorly explored areas of the outer parts of the district while the drilling focused on the identiﬁcation and

development of the Mineral Resource in the central core area and around the southern part of the main central zone.

The main veins drilled during 2016 were: Liliana, Mangas, Patty, Paula, Serena Sur and Verónica. At Liliana and Mangas the downdip

extension of mineralisation was identiﬁed. At Patty, Paula and Verónica, small, shallow ore shoots were deﬁned and at Serena Sur,

near-surface, open pit, high-grade Mineral Resource was also delineated. The additional Mineral Resource generated was separated

into full-grade vein material and low-grade heap-leaching material.

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Administrative

P R O J E C T S

Cerro Vanguardia currently mines from multiple open pits that are up to 200m deep. The highest grade and thickest veins were mined

ﬁrst to maximise the project’s NPV leaving behind the thinner lower grade veins.

The startup of the heap-leach in 2012 turned low-grade material associated with some of these veins into new exploration targets.

Currently, the heap-leach Mineral Resource consists only of stockworks material that is being mined concurrently with ore destined

for the metallurgical plant or from stockpiles. A project was therefore initiated to identify the lower grade veins that were previously

unmined and that could be mined for heap-leaching. This is ongoing.

The underground mining at Cerro Vanguardia complements the open pit production and will gradually become more dominant.

The tonnage from the open pits will decrease as the high-stripping-ratio open pits are replaced by underground operations. The

underground mines are currently producing 330,000tpa and are expected to increase production to 420,000tpa next year and then

up to 500,000tpa. Currently, several veins are being mined from underground with additional projects planned.

Mapping and new exploration supported by geophysics is focused on discovering new veins, domes and other potential bulk-

tonnage, low-grade deposits not previously investigated. This work is ongoing mainly in the less known western and southern areas

of the property, and is complemented with the search for any possible concealed high-grade ore shoots located within the central

part of the district.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Cerro Vanguardia

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

12 x 5

–

Indicated

40 x 40

–

Inferred

80 x 80

–

Grade/ore control

6 x 15, 12 x 5

–

INCLUSIVE MINERAL RESOURCE

Cerro Vanguardia

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Vein (open pit)

Measured

1.95

5.21

10.14

0.33

Indicated

8.94

5.31

47.45

1.53

Inferred

1.12

5.52

6.20

0.20

Total

12.01

5.31

63.79

2.05

Stockwork material

Measured

2.41

0.64

1.55

0.05

Indicated

11.11

0.55

6.14

0.20

Inferred

2.03

0.50

1.02

0.03

Total

15.55

0.56

8.70

0.28

Vein (underground)

Measured

0.23

9.11

2.14

0.07

Indicated

1.36

11.03

15.04

0.48

Inferred

0.47

6.01

2.85

0.09

Total

2.07

9.66

20.03

0.64

Heap leach stockpile

Measured

4.55

0.58

2.64

0.08

Indicated

–

Inferred

–

Total

4.55

0.58

2.64

0.08

Cerro Vanguardia

Total

34.19

2.78

95.16

3.06

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A M E R I C A S

c o n t i n u e d

C e r r o V a n g u a r d i a

CERRO VANGUARDIA

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

CERRO VANGUARDIA

Grade tonnage curve underground (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

2.2

2.0

1.9

1.6

1.4

1.2

1.0

0.8

0.6

0.4

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: SILVER (Ag)

Cerro Vanguardia

Tonnes

Grade

Contained silver (Ag)

Category

million

g/t

tonnes

Moz

Measured

45.43

416

Indicated

74.11

1,587

Inferred

79.85

289

Cerro Vanguardia

Total

67.05

2,292

ESTIMATION

The mineralisation boundaries for each geological entity (veins, stockwork and wall rock) are deﬁned from the detailed logging of all

geological drill holes. This data is validated and the information then used to create a 3D model. This model is subsequently overlain

with a 5m x 25m x 5m block model.

Volumetric measurements of the deposit are computed using the relevant block dimensions. Ordinary kriging is used to perform the

grade interpolation and ﬁeld tests are conducted to determine appropriate in situ densities.

Conditional simulations are performed in the main deposits for uncertainty assessment and for the classiﬁcation of the Mineral

Resource. This has been validated to conform to the internal AngloGold Ashanti 15% rule guidelines. For the veins where simulations

are not done, drill density is used to classify the Mineral Resource.

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EXCLUSIVE MINERAL RESOURCE

Cerro Vanguardia

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

3.75

2.10

7.89

0.25

Indicated

18.83

2.61

49.15

1.58

Inferred

2.97

1.69

5.03

0.16

Total

25.55

2.43

62.07

2.00

The exclusive Mineral Resource is primarily located between the pit design and the Mineral Resource shell and exists due to the

difference in the economic parameters that have been used.

Where the grades of gold and silver are above the Mineral Resource cut-off but below the Ore Reserve cut-off, signiﬁcant zones of

exclusive Mineral Resource will be generated. Very deep Mineral Resource will also not be converted in the near term to Ore Reserve

and is therefore listed as exclusive Mineral Resource.

MINERAL RESOURCE BELOW INFRASTRUCTURE

Cerro Vanguardia

Tonnes

Grade

Contained gold

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

–

Inferred

0.30

0.35

0.10

0.00

Total

0.30

0.35

0.10

0.00

CERRO VANGUARDIA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

3.35

3.30

3.25

3.20

3.15

3.10

3.05

3.00

2.95

-0.30

0.02

0.00

-0.01

0.00

0.02

3.33

3.06

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Year-on-year changes in Mineral Resource are mainly related to depletion.

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A M E R I C A S

c o n t i n u e d

C e r r o V a n g u a r d i a

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

CERRO VANGUARDIA

Inclusive Mineral Resource sensitivity

35
30
25
20
15
10

5
0

-5

-10
-15
-20

O R E R E S E R V E

ORE RESERVE

Cerro Vanguardia

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Vein (open pit)

Proved

0.56

6.36

3.58

0.12

Probable

1.67

5.44

9.10

0.29

Total

2.24

5.67

12.68

0.41

Stockwork material

Proved

5.18

0.60

3.12

0.10

Probable

1.39

0.82

1.14

0.04

Total

6.57

0.65

4.26

0.14

Vein (underground)

Proved

0.22

9.24

2.08

0.07

Probable

1.20

8.67

10.41

0.33

Total

1.43

8.76

12.49

0.40

Cerro Vanguardia

Total

10.23

2.88

29.43

0.95

ORE RESERVE BY-OPERATION: SILVER (Ag)

Cerro Vanguardia

Tonnes

Grade

Contained silver (Ag)

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

35.67

213

Probable

83.17

354

Total

55.46

567

ESTIMATION

The appropriate Mineral Resource models are used as the basis for the Ore Reserve. All relevant modifying factors such as mining

dilution and costs are used in the Ore Reserve conversion process. This is based on the original block grades and tonnage and

includes waste material (both internal and external). Appropriate Ore Reserve cut-off grades are applied and all blocks above this

cut-off are reported.

It is important to emphasise the importance of silver during the optimisation of the pits, since silver is a signiﬁcant by-product at Cerro

Vanguardia. The ratio of silver to gold commonly ranges from 20g/t to 30g/t of silver per 1g/t of gold.

Ore Reserve depletion includes material that comes from the operational dilution, which constitutes an additional low grade tonnage

that is mined as part of the ongoing operation. Mineral Resource is estimated in situ and thus does not include this dilution.

The Mineral Resource is sensitive to
changes in gold price. A great deal of
low-grade material is present in the
deposit which is reflected in the large
tonnage increase and grade decrease at
elevated gold prices.

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ORE RESERVE MODIFYING FACTORS

Cerro Vanguardia

Gold

price

Cut-off

grade

Dilution

MRF

MCF

MetRF

as at 31 December 2016

ARS/oz

g/t Au

% (based on

tonnes)

% (based on

g/t)

Vein (open pit)

14,969

2.60

45.0

97.0

96.0

93.0

95.9

Stockwork material

14,969

0.46

–

97.0

96.0

93.0

61.8

Vein (underground)

14,969

5.00

45.0

97.0

96.0

93.0

95.9

A detailed reconciliation process compares estimated versus mined ore, including comparison between predicted grades and tonnes

produced in the processing plant and these comparisons are used in determining the modifying factors to use in the Ore Reserve

calculations.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

Cerro Vanguardia

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Vein (open pit)

0.56

4.19

2.33

0.07

Stockwork material

0.28

0.33

0.09

0.00

Vein (underground)

0.30

9.47

2.81

0.09

Total

1.13

4.63

5.23

0.17

The Inferred Mineral Resource is normally located in the deeper parts of the orebody, such as the bottom of the open pits and deeper

portions of the underground Mineral Resource. It is considered in the business plan in order to delineate the ﬁnal designs of the open

pits, improving efﬁciency in Mineral Resource utilisation. In the current business plan, around 5% of the open pits and 16% of the

underground designs consist of Inferred Mineral Resource.

CERRO VANGUARDIA year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

1.25

1.20

1.15

1.10

1.05

1.00

0.95

0.90

0.85

-0.30

0.07

-0.03

0.00

-0.01

0.00

1.22

0.95

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Ore Reserve reduction primarily due to depletion and changes in estimation methodology offset by exploration additions in the open

pits. Changes in the mining method have resulted in the reduction of planned dilution.

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Administrative

A M E R I C A S

c o n t i n u e d

B r a z i l

BRAZIL

Recife

Salvador

Belo Horizonte

Crixás

Manaus

Belem

Rio de Janeiro

Sao Paulo

Brasilia

Operations
1 Serra

Grande

2 AGA

Mineração

1,000km

AngloGold Ashanti’s operations in Brazil comprise AngloGold Ashanti Córrego do Sítio Mineração (AGA Mineração) in the Quadrilátero

Ferrífero Minas Gerais state and Mineração Serra Grande in Goiás state. AGA Mineração consists of several operations, namely

Cuiabá, Lamego and Córrego do Sítio (CdS) as current operating mines and Nova Lima Sul as a Conceptual project.

C O U N T RY O V E R V I E W

INCLUSIVE MINERAL RESOURCE

Brazil

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

5.88

139

Indicated

5.81

136

Inferred

5.89

270

Total

5.87

544

EXCLUSIVE MINERAL RESOURCE

Brazil

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

6.51

100

Indicated

5.88

Inferred

5.91

267

Total

6.03

447

ORE RESERVE

Brazil

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

3.85

Probable

4.41

Total

4.20

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M I N E R A L R E S O U R C E

INCLUSIVE MINERAL RESOURCE

AGA Mineração

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

15.85

6.78

107.43

3.45

Indicated

17.98

6.19

111.25

3.58

Inferred

33.32

6.45

215.01

6.91

AGA Mineração

Total

67.15

6.46

433.69

13.94

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: SULPHUR (S)

AGA Mineração

Tonnes

Grade

Contained sulphur (S)

as at 31 December 2016

Category

million

tonnes million pounds million

Measured

6.6

0.60

1,332

Indicated

6.6

0.51

1,119

Inferred

7.0

0.73

1,603

AGA Mineração

Total

6.8

1.84

4,054

Sulphur is a by-product of the Cuiabá and Lamego mining operations. 74% of the sulphur is from Cuiabá and 26% from Lamego.

A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o

I N T R O D U C T I O N

Property description

AGA Mineração encompasses the mining operations at Cuiabá, Lamego, CdS and the project,

Nova Lima Sul.

Location

The AGA Mineração mining complex is located in south-eastern Brazil, in the state of Minas Gerais.

Operations are 30km from the capital of the state (Belo Horizonte) in the case of Cuiabá and Lamego,

and about 100km in the case of CdS, in the municipalities of Nova Lima, Sabará and Santa Bárbara

respectively.

Legal aspects and

tenure

Under the current Brazil Mining Code and pertinent complementary legislation, mining concessions and

mining “manifests” are valid up to the depletion of the Ore Reserve and Mineral Resource, provided all

obligations and the required periodic reporting to the Federal Government are met. AGA Mineração has

mining rights over 61,864ha.

20km

Cuibá complex
1 Cuiabá
2 Lamego
3

Queiroz plant refinery

Operations
AGA Mineração

Córrego do Sítio complex
4 CdS

5 CdS

Nova Lima Sul
6 Raposos

Sabará

Nova Lima

Belo Horizonte

Caeté

Barão de

Cocais

Rio

Acima

Santa Barbara

Gandarela

Descoberto

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AGA MINERAÇÃO year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

14.2

14.0

13.8

13.6

13.4

13.2

13.0

12.8

12.6

12.4

2015

Depletion

-0.49

Exploration

Methodolog

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

0.11

1.21

-0.15

0.19

0.00

-0.19

0.00

13.27

13.94

EXCLUSIVE MINERAL RESOURCE

AGA Mineração

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

11.15

7.35

81.98

2.64

Indicated

11.30

5.92

66.90

2.15

Inferred

32.78

6.48

212.43

6.83

Total

55.24

6.54

361.31

11.62

MINERAL RESOURCE BELOW INFRASTRUCTURE

AGA Mineração

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

1.52

3.72

5.65

0.18

Indicated

7.70

5.79

44.56

1.43

Inferred

26.57

6.73

178.78

5.75

Total

35.78

6.40

228.99

7.36

The Mineral Resource below infrastructure is made up of 48% (3.55Moz) CdS, 34% (2.49Moz) Cuiabá, 7% (0.48Moz) Lamego and

11% (0.82Moz) Nova Lima Sul.

AGA MINERAÇÃO

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

12
11
10

9
8
7
6
5
4
3
2

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

AGA MINERAÇÃO

Grade tonnage curve underground (metric) (attributable)

onnes above cut-off (millions)

Average grade above cut-off (g/t)

9.0

8.5

8.0

7.5

7.0

6.5

6.0

5.5

0.5

1.0

1.5

2.5

3.0

3.5

4.5

2.0

5.0

4.0

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

Mainly the result of open pit gains at Rosalino, some underground additions at Cuiabá and CdS, positive results from surface drilling

at Carvoaria and reduced costs at Lamego.

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Ore Reserve increase is due to exploration additions at Cuiabá and change in costs driven by exchange rate at CdS and Cuiabá offset

by changes in mining method at depth at Cuiabá and removal of the barrier pillar at the São Bento Mine (CdS).

AGA MINERAÇÃO year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

1.8

1.7

1.6

1.5

1.4

1.3

1.2

1.1

1.0

-0.45

0.40

0.01

0.00

0.15

-0.03

-0.01

0.05

0.04

0.00

1.56

1.72

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o

O R E R E S E R V E

ORE RESERVE

AGA Mineração

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

3.62

4.74

17.19

0.55

Probable

7.05

5.16

36.38

1.17

AGA Mineração

Total

10.67

5.02

53.57

1.72

ORE RESERVE BY-PRODUCT: SULPHUR (S)

AGA Mineração

Tonnes

Grade

Contained sulphur (S)

as at 31 December 2016

Category

million

tonnes million pounds million

Proved

5.6

0.13

286

Probable

5.3

0.29

635

Total

5.4

0.42

921

Sulphur is a by-product of the Cuiabá and Lamego mining operations. 92% of the Sulphur is from Cuiabá and 8% from Lamego.

ORE RESERVE BELOW INFRASTRUCTURE

AGA Mineração

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

0.01

7.21

0.05

0.00

Probable

1.78

6.03

10.74

0.35

Total

1.79

6.03

10.79

0.35

The Ore Reserve below infrastructure is made up of 72% (0.25Moz) Cuiabá and 28% (0.10Moz) Lamego.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

AGA MINERAÇÃO

Inclusive Mineral Resource sensitivity

-2

-4

-6

-8

The combined mining operations at
Cuiabá, Lamego, CdS and the project,
Nova Lima Sul are not very sensitive to
changes in gold price.

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A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – C ó r r e g o d o S í t i o

I N T R O D U C T I O N

Property description

CdS is composed of a number of underground and open pit operations. The southern portion of this

mining complex is referred to as CdS I while the central portion (formerly known as São Bento) has been

renamed CdS II and northern portion is called CdS III.

The majority of the Ore Reserve is in the CdS I area (Carvoaria, Laranjeiras and Cachorro Bravo underground

mines and the Rosalino open pit).

Location

CdS is located in the Municipality of Santa Bárbara, 100km east of the city of Belo Horizonte, the capital

of Minas Gerais state.

History

Exploration across the CdS area by AngloGold Ashanti began in the 1980s. A FS for the oxide Ore

Reserve, to be mined by open pit and treated in a heap-leach plant, was approved in 1987. From 2002,

development of underground exploration drifts began, and a FS for the sulphide Ore Reserve, to be mined

underground and treated in a sulphide plant, was concluded in 2010. Implementation followed from 2010,

and the ramp-up was concluded in 2012.

Legal aspects and

tenure

CdS I includes one underground operation and a number of individual open pit operations, and is hosted

by three geographically contiguous concessions granted by DNPM (the Brazilian National Department for

the Mineral Production, the licensing authority) to AGA Mineração, as follows:

•

DNPM Mining Concession 930.181/2008 with 2,977.83ha in area

•

DNPM Mining Concession 833.472/2003 with 7.57ha in area

•

The DNPM Mining Concession 830.129/1982 with 460.13ha in area

CdS II includes one active underground operation (formerly known as the São Bento Mine), and is hosted

by two geographically contiguous concessions granted by DNPM to AGA Mineração.

•

The DNPM Mining Concession 930.556/2000 with 2,015.54ha in area; and

•

The DNPM Mining Concession 830.943/1979 with 556.37ha in area.

All ﬁve CdS mining concessions are in good standing.

DNPM Mining Concession 830.943/1979, hosts the deepest portion of the former São Bento mine and

has been granted a temporary mining suspension by AGA Mineração. New documentation, based on a

revised mine plan has to be submitted to the Federal Government (DNPM), if and when AGA Mineração

decides to resume the underground operation on this concession area. A new Brazilian mining code

is currently under discussion, however, it is not anticipated to change the company’s rights, which are

already established.

Mining method

The mining method for CdS is sub-level stoping. Each panel consists of three levels, with secondary

development drives being some 300m along strike in the NE-SW direction and cross cuts, 300m in a

south-west direction. The stopes are 15m in height. Some of the mining sequence is still bottom/up,

though all of CdS I is being converted to top/down sequences. According to geotechnical guidance, a sill

pillar of 4m in height is designed between panels, and 4m rib pillars are used each 30m along the strike.

The stope drilling is executed via fan drilling in ascending and descending directions. The loading and

hauling operations are performed by 8t front-end loaders and 30t articulated trucks, at an approximate

rate of 1,500tpd.

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Operational

infrastructure

CdS infrastructure consists of two treatment plants, namely, the sulphides plant for the underground

mines at CdS II and the heap-leach plant for the oxide ore mined by open pit mine at CdS I, as well as

a tailings dam for the sulﬁde plant, the neutralised tailings deposit for the oxide material and numerous

waste dumps for the open pit mines at CdS I.

Ancillary facilities comprise a water treatment facility, efﬂuents treatment facilities, equipment workshops,

laboratory, warehouses, explosives and accessories magazines, fuel stations, electric substations as

well as ofﬁces, medical clinic, cafeteria, dressing rooms, bathrooms, storerooms, garage, fuel stations,

explosives magazines, a Centre of Environmental Studies (CEA), nursery and other facilities to assist the

needs of the mine.

The mine power is supplied from the state electric grid. Water is primarily sourced from recycling of the

underground mine water and supplementary water catchment wells.

Good communication infrastructure is available in the area.

Mineral processing

There are two metallurgical plants in CdS: the heap-leach plant for the oxide ore and the sulphide plant.

The sulphide process consists of crushing, grinding and gravity concentration, ﬂotation, thickening,

acidulation, pressure oxidation (POX autoclave), CCD (counter current decantation), CIL extraction,

elution, neutralisation, electro-winning and tailings disposal. The plant and POX circuit have a capacity

as of 600ktpa.

The heap-leaching process consist of crushing, agglomeration, stacking, leaching, adsorption, elution and

electro-winning.

Risks

The major risk to the operation is the lack of Ore Reserve ﬂexibility. Such risks are controlled and mitigated

by integrated planning with the exploration team and monitoring of the execution of the plan.

An independent external Mineral Resource and Ore Reserve audit has been undertaken in 2016 and found

no fatal ﬂaws, in process or output.

However, the Ore Reserve estimation process for the Rosalino open pit operation was found to have not

been performed to the same standard as the underground operations and therefore was not considered

by the auditor to be at an appropriate level to enable the Mineral Resource to Ore Reserve conversion

or the declaration of an Ore Reserve under either the SAMREC Code (2016) or the JORC Code (2012).

AngloGold Ashanti supports the auditors view regarding the sulphide and transitional material, however it

differs regarding the oxide component, as it believes there is sufﬁcient production and reconciliation history

for an oxide Ore Reserve to be reported for the Rosalino pit.

A M E R I C A S

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Administrative

Onca

Mutuca

Cristina

Licences

Mine infrastructure

Settlements

Roads

Leach pad

TSF

Waste dumps

Underground workings

Main

Secondary

São Bento

Plant

Pits

Exploration application

Exploration

Mining application

Mining

Towns

Villages

Rosalino

João Burro

Carvoaria Sul

Plant centroid co-ordinates

43°31'11"W, 20°0'58"S

Candeias

Santa Barbara

Mine

Campo Grande

3km

Brumal

Barão de Cocais

Santa Barbara

CDS III

CDS II

CDS I

Barra F eliz

to Catas Altas

to Itabira

São Bento

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COMPETENT PERSONS

AGA Mineração – Córrego do Sítio

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Rodrigo Martins

MAusIMM

311 050

12 years

BSc (Geology)

MSc (Geology)

Ore Reserve

Cristóvão dos Santos

MAusIMM

312 542

9 years

MSc (Mining Engineering)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this

report, in the form and context in which it appears.

G E O L O G Y

MINERALISATION STYLE

CdS is located in the eastern part of the lower to middle greenschist facies Archaean Rio das Velhas greenstone belt. The CdS I, II

and III gold deposits and associated targets are located in a gold trend that extends for about 14km in a north-easterly direction, from

Grota Funda (CdS I areas) in the south to Jambeiro (CdS III areas) in the north. The main gold targets and deposits are distributed

over three trends, namely the CdS trend, the Donana Trend and the Cristina Trend. CdS mineralisation occurs in a greenstone belt

geological environment, associated with quartz and sulphides (mainly arsenopyrite) in a structurally-controlled corridor approximately

16 – 20km in strike length and about 500m vertical extent.

MINERALISATION CHARACTERISTICS

The CdS deposits consist of narrow north-east/south-west elongated lenses of mineralisation dipping 60° to 70° south-east and

plunging 20°‚ to 30° north-east. CdS is an orogenic type deposit and comprises many hydrothermal lodes with quartz veins and low

sulphide content disseminated in the wall rocks. The deposits are narrow, elongated and folded. In general, the mineralisation consists

of sericitic zones and quartz veinlets.

The gold occurs as free and coarse gold and also as microscopic or sub-microscopic inclusions in arsenopyrite and sometimes

iron-antinomy sulphide berthierite (FeSb

). Other typical sulphide minerals are pyrrhotite, pyrite and chalcopyrite.

Diabase dyke

Gold lode

Carbonate-bearing
sericite-Chlorite-quartz schist

Legend

100m

00m

800m

600m

900m

Elevation

Rosalino
open pit

GEOLOGICAL CROSS-SECTION THROUGH ROSALINO OPEN PIT

A M E R I C A S

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A G A M i n e r a ç ã o – C ó r r e g o d o S í t i o

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E X P L O R AT I O N

In 2016, 55,000m of drilling was executed along the CdS trends with the exploration work focused on:

•

supporting the production plan of the mines through Mineral Resource conversion

•

assessing high grade mineralisation targets

•

evaluating the potential of near-mine areas and the region

Mineral Resource drilling at the Rosalino (CdS I) and Pinta Bem (CdS II) targets was undertaken on the oxide Mineral Resource aimed

at converting Inferred to Indicated Mineral Resource. A mapping and drilling programme at Pinta Bem target has conﬁrmed the orebody

model previously interpreted. At the Rosalino target, the drilling programme intercepted the orebody below the projected open pit. The

best results came from Rosalino where the drilling campaign resulted in an addition to the Mineral Resource and improved knowledge of

the extension on orebody model.

The review of the geological potential continued for CdS II, particularly the São Bento Mineral Resource and for CdS III (Santa Quitéria).

The São Bento lode model has been updated based on geological cross sections from São Bento historical data. Drilling campaign

is ongoing, aiming at Mineral Resource addition between levels 21 and 23 at the São Bento mine.

Surface Drilling was undertaken at CdS III on Anomalia I and Anomalia II targets aiming at Mineral Resource addition and conversion.

In addition, several new targets have been identiﬁed due to the geological and structural mapping, surface geochemistry, geophysic

surveys, and trenches sampling. The exploration on Mina de Pedra, Jambeiro and Mina de Pedra Sul targets is in progress and

exploratory drilling was performed to test grade models inferred by galleries mapping and legacy data.

In support of mine production at CdS I, the exploration drilling was concentrated along three different orebodies namely Cachorro

Bravo, Laranjeiras and Carvoaria. The results have conﬁrmed the mineralisation along the structures, adding some Mineral Resource.

Finally, mapping and exploratory drilling at the Bocaina target showed potential to add Mineral Resource.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

AGA Mineração – Córrego do Sítio

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

25 x 25 ✔

–

– ✔

– –

Indicated

25 x 40,

30 x 25, ✔ ✔

50 x 30,

50 x 50

–

– –

Inferred

30 x 25, ✔ ✔

40 x 100,

50 x 30,

100 x 50,

100 x 100,

200 x 200

– ✔

– –

Grade/ore control

3 x 3,

5 x 4,

5 x 5

– ✔

–

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INCLUSIVE MINERAL RESOURCE

AGA Mineração – Córrego do Sítio

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

CdS I (sulphides) – Cachorro Bravo

Measured

1.31

6.34

8.34

0.27

Indicated

0.62

6.50

4.05

0.13

Inferred

0.60

5.95

3.57

0.11

Total

2.54

6.29

15.95

0.51

CdS I (sulphides) – Carvoaria

Measured

0.35

9.75

3.37

0.11

Indicated

0.64

6.95

4.45

0.14

Inferred

1.17

8.98

10.54

0.34

Total

2.16

8.50

18.37

0.59

CdS I (sulphides) – Secondary orebodies

Measured

–

Indicated

0.11

6.19

0.66

0.02

Inferred

0.73

4.90

3.60

0.12

Total

0.84

5.07

4.26

0.14

CdS I (sulphides) – Laranjeiras

Measured

1.28

5.81

7.45

0.24

Indicated

0.91

5.16

4.70

0.15

Inferred

1.57

6.57

10.29

0.33

Total

3.76

5.97

22.44

0.72

CdS I (sulphides) – Rosalino (open pit)

Measured

0.60

3.99

2.39

0.08

Indicated

1.85

4.58

8.47

0.27

Inferred

0.28

4.27

1.18

0.04

Total

2.72

4.42

12.03

0.39

CdS I (sulphides) – Rosalino (underground)

Measured

0.24

3.97

0.94

0.03

Indicated

0.87

4.12

3.60

0.12

Inferred

4.13

3.98

16.43

0.53

Total

5.24

4.00

20.97

0.67

CdS I (oxides) – Rosalino (open pit)

Measured

1.32

3.08

4.07

0.13

Indicated

0.44

2.56

1.13

0.04

Inferred

0.05

1.98

0.10

0.00

Total

1.82

2.92

5.31

0.17

CdS I (oxides) – Secondary orebodies

Measured

0.83

3.31

2.75

0.09

Indicated

1.05

2.83

2.99

0.10

Inferred

0.97

2.21

2.14

0.07

Total

2.85

2.76

7.88

0.25

CdS I (transitional)

Measured

0.01

6.45

0.08

0.00

Indicated

0.25

7.13

1.81

0.06

Inferred

0.29

6.57

1.92

0.06

Total

0.56

6.82

3.80

0.12

CdS I (transitional) – Rosalino (underground)

Measured

0.03

6.49

0.17

0.01

Indicated

0.02

4.22

0.10

0.00

Inferred

0.06

4.86

0.29

0.01

Total

0.11

5.11

0.55

0.02

CdS I (transitional) – Rosalino (open pit)

Measured

0.55

3.05

1.67

0.05

Indicated

0.26

2.63

0.69

0.02

Inferred

0.01

3.00

0.03

0.00

Total

0.82

2.91

2.40

0.08

A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – C ó r r e g o d o S í t i o

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AGA Mineração – Córrego do Sítio

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

CdS II (sulphides) – Sangue de Boi

Measured

0.06

9.70

0.54

0.02

Indicated

0.44

7.78

3.40

0.11

Inferred

1.64

6.57

10.77

0.35

Total

2.13

6.90

14.70

0.47

CdS II (sulphides) – São Bento mine

Measured

–

Indicated

0.45

7.96

3.58

0.12

Inferred

5.06

6.08

30.79

0.99

Total

5.51

6.23

34.38

1.11

CdS II (sulphides) – Pinta Bem

Measured

–

Indicated

0.31

3.21

0.99

0.03

Inferred

0.53

3.36

1.77

0.06

Total

0.84

3.30

2.76

0.09

CdS II (sulphides) – Secondary orebodies

Measured

–

Indicated

–

Inferred

0.81

7.10

5.72

0.18

Total

0.81

7.10

5.72

0.18

CdS II (oxides)

Measured

–

Indicated

1.57

3.49

5.46

0.18

Inferred

1.32

3.24

4.29

0.14

Total

2.89

3.37

9.75

0.31

CdS II (transitional)

Measured

–

Indicated

0.11

3.78

0.42

0.01

Inferred

0.16

3.86

0.62

0.02

Total

0.27

3.83

1.04

0.03

AGA Mineração – Córrego do Sítio

Total

35.87

5.08

182.30

5.86

ESTIMATION

Drilling and underground sampling data is split into representative domains using a geological model created from mapping and

logging. The Mineral Resource is estimated by ordinary kriging, and classiﬁed using conditional simulation or drill spacing.

EXCLUSIVE MINERAL RESOURCE

AGA Mineração – Córrego do Sítio

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

4.07

5.19

21.13

0.68

Indicated

7.81

4.88

38.11

1.23

Inferred

19.38

5.37

104.04

3.34

Total

31.27

5.22

163.28

5.25

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1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

AGA MINERAÇÃO – Córrego do Sítio

Inclusive Mineral Resource sensitivity

-5

-10

-15

A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – C ó r r e g o d o S í t i o

O R E R E S E R V E

ORE RESERVE

AGA Mineração – Córrego do Sítio

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

CdS I (sulphides) – Cachorro Bravo

Proved

0.10

3.71

0.38

0.01

Probable

0.22

4.35

0.97

0.03

Total

0.32

4.15

1.35

0.04

CdS I (sulphides) – Carvoaria

Proved

0.12

6.52

0.76

0.02

Probable

0.28

4.70

1.31

0.04

Total

0.40

5.24

2.08

0.07

CdS I (sulphides) – Laranjeiras

Proved

0.18

4.24

0.75

0.02

Probable

0.19

3.93

0.73

0.02

Total

0.36

4.08

1.49

0.05

CdS I (oxides) – Rosalino (open pit)

Proved

0.88

2.43

2.14

0.07

Probable

0.13

2.05

0.28

0.01

Total

1.02

2.38

2.42

0.08

CdS II (sulphides) – Sangue de Boi

Proved

0.04

5.51

0.22

0.01

Probable

0.42

5.11

2.12

0.07

Total

0.46

5.14

2.34

0.08

CdS II (sulphides) – São Bento mine

Proved

–

Probable

0.10

4.18

0.43

0.01

Total

0.10

4.18

0.43

0.01

CdS II (oxides)

Proved

–

Probable

0.31

2.62

0.82

0.03

Total

0.31

2.62

0.82

0.03

AGA Mineração – Córrego do Sítio

Total

2.97

3.67

10.92

0.35

Córrego do Sítio is sensitive to changes
in gold price varying in ounces from
-7% to 4% with lower and higher prices
respectively.

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ESTIMATION

The gold price, projected operational performance and costs as well as metallurgical recoveries are taken into consideration in

determining the Ore Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are

all applied in the process.

ORE RESERVE MODIFYING FACTORS

AGA Mineração –

Córrego do Sítio

Gold

price

Cut-off

grade

Stoping

width

Dilution

RMF

MRF

MCF

MetRF

as at 31 December 2016

BRL/oz

g/t Au

% (based

on tonnes)

% (based

on g/t)

% (based

on tonnes)

% (based

on g/t)

CdS II (oxides)

4,041

0.68

–

100.0

70.0*

CdS I (oxides) –

Rosalino (open pit)

4,041

0.58

–

100.0

75.7*

CdS I (sulphides) –

Cachorro Bravo

4,041

2.78

404.0

52.0

98.0

119.0

102.0

87.0

90.0

90.0**

CdS I (sulphides) –

Carvoaria

4,041

2.78

279.0

53.0

98.0

119.0

102.0

87.0

90.0

90.0**

CdS I (sulphides) –

Laranjeiras

4,041

2.78

341.0

50.0

98.0

119.0

102.0

87.0

90.0

90.0**

CdS II (sulphides) –

Sangue de Boi

4,041

2.81

333.0

42.0

98.0

119.0

102.0

87.0

90.0

90.0**

CdS II (sulphides) –

São Bento mine

4,041

2.81

404.0

45.0

98.0

119.0

102.0

87.0

90.0

90.0**

* Not considering dilution or mining recovery because Ore Reserve is calculated based on regularised model
** The gold reported represents the total Ore Reserve without metallurgical recovery, however it was considered in the cut-off grade calculation. The

percentage grade dilution and the MCF are already included in the Ore Reserve reported

As the CdS underground mines have been in operation since 2011, the technical and economic modifying factors derive from

historical data and reasonable levels of certainty exist on CdS projections.

For the Ore Reserve estimates, a minimum thickness is applied for stope design. Other factors derive from historic data, such as the

dilution, ore loss and the MCF as well as the metallurgical recovery applied in the estimates.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

AGA Mineração – Córrego do Sítio

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

CdS I (sulphides) – Cachorro Bravo

0.01

4.09

0.03

0.00

CdS I (sulphides) – Carvoaria

0.00

2.96

0.00

CdS I (sulphides) – Laranjeiras

0.01

3.31

0.04

0.00

CdS II (oxides)

0.12

2.93

0.36

0.01

CdS II (sulphides) – Sangue de Boi

0.09

3.47

0.32

0.01

Total

0.23

3.20

0.75

0.02

The Inferred Mineral Resource is located in the mining panels in the lower areas of some sulphide deposits such as Cachorro Bravo,

Laranjeiras and Carvoaria underground mine in CdS I and Sangue de Boi underground mine in CDS II.

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A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – C u i a b á

I N T R O D U C T I O N

Property description

An ongoing underground operation, that is wholly-owned by AngloGold Ashanti.

Location

The Cuiabá mine is located near Sabará, southeast of the city of Belo Horizonte within the mining district

referred to as the Iron Quadrangle. This region is the largest producer of iron ore and gold in Brazil.

History

Artisanal miners starting in 1740 carried out the ﬁrst mining in the area. Saint John Del Rey Mining Company

Ltd acquired the mine in 1834. Exploration and development were resumed in 1977, culminating with the

reopening of the mine in 1985. In 1996, the company became a wholly owned subsidiary of the Anglo

American Group, and in 1999, its ownership was transferred to the holding company AngloGold (now

AngloGold Ashanti), where it remains to date.

Legal aspects and

tenure

The Cuiabá Mineral Resource and Ore Reserve are fully hosted by a single concession granted by the

DNPM the “Mine Manifest DNPM title 000.323/1973”, held by AGA Mineração, covering a total area

of 3,662ha. A new Brazilian mining code is currently under discussion, however, it is not anticipated to

change the company’s rights, which are already established.

Mining method

Cuiabá mine has two mining methods: cut-and-ﬁll and longhole stoping. To improve the safety and

productivity of the operation, in 2011, the mining method was changed from cut-and-ﬁll to longhole

stoping (sub-level stoping and variations). Cut-and-ﬁll is still applied in stopes with lower inclination,

requiring the use of in-stope pillars in large-width stopes.

Operational

infrastructure

Two plants connected by an aerial ropeway (Cuiabá Gold plant and Queiroz plant) and a set of small

hydropower plants (Rio de Peixe).

Cuiabá mine has a shaft system (846m deep) for production and personal transport, the current nominal

airﬂow capacity is 1,035m

/s, at which 320m

/s are refrigerated.

Tailings deposition is at one of four sites located at Cuiabá, Calcinado, Rapaunha and Cocuruto.

Rio de Peixe hydroelectric complex is a set of seven small hydropower plants that generate energy from

three dams (Ingleses, Miguelão and Codorna), connecting directly to the Queiroz Plant.

Mineral processing

Cuiabá and Lamego Mines feed the Cuiabá Gold (ﬂotation) and Queiroz (roaster, carbon circuit and

reﬁnery) plants, currently at 1.7Mtpa for a metallurgical recovery of 93.3%. At Cuiabá Gold Plant, crushing

and milling of the ore is followed by ﬂotation and ﬁltration in order to produce a concentrate, which is

transported by aerial ropeway to Queiroz for further treatment. Approximately 25% to 30% of gold is

recovered through a gravity circuit at the Cuiabá plant. The backﬁll plant is also located at Cuiabá. The

Queiroz Plant is located in Nova Lima and comprises two different circuits for refractory ore (from Cuiabá)

and non-refractory ore (used for the Raposos mine production in the past) with facilities for pyrometallurgy

and hydrometallurgy. The concentrate is roasted, and the calcine proceeds to a carbon circuit for further

reﬁning. The sulphide gas is captured for processing through the acid plant; approximately 230ktpa of

sulphuric acid are produced as a by-product.

Risks

No legal or environmental risks identiﬁed. Strategic studies in place are managing some possible risks

such as low level of Ore Reserves and the reliance on Inferred Resources in the production plan and rock

engineering constraints at depth.

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! !

!
!

! !

!
!

Cuia

bá M ne

Lamego Mine

Licences

Mine infrastructure

Roads

Mining

Mining application

Exploration

Exploration application

Plant

TSF

Waste d umps

Aerial ropeway

Underground workings

Hydropower

Main

Secondary

Cuiabá plant centroid co-ordinates

43°43'55"W, 19°51'40"S

2.5

7.5 km

Nova Lima Sul

Queiroz Plant

Raposos Mine

(non- operational)

Morro da Glória Mine

(non- operational)

Rio de Peixe hydropower

to Sabará

to Caeté

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A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – C u i a b á

COMPETENT PERSONS

AGA Mineração – Cuiabá

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Rodrigo Martins

MAusIMM

311 050

12 years

BSc (Geology)

MSc (Geology)

Ore Reserve

Paulo Peruzzo

MAusIMM

312 703

27 years

BSc (Mining Engineering)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The area in which Cuiabá is located is known as the Iron Quadrangle and is host to a number of historic and current gold mining

operations, as well as a number of open pit limestone and iron ore operations. The geology of the Iron Quadrangle is composed of

Proterozoic and Archaean volcano-sedimentary sequences and pre-Cambrian granitic complexes.

Cuiabá is a “gold-only” Archaean banded iron formation (BIF)-hosted gold deposit. The deposit consists of an intermediate meta-maﬁc

sequence of the Archaean Greenstone Belt type. It is characterised by hydrothermal alteration of the rocks, with the mineralisation

occurring mainly in BIF layers, and subordinately in quartz veins or in the host schists. The host to the gold mineralisation is the

volcano-sedimentary Nova Lima Group that occurs at the base of the Rio das Velhas Super Group. The upper sequence of the Rio

das Velhas Super Group is the meta-sedimentary Maquiné Group. The gold mineralisation at Cuiabá has features and characteristics

that are in agreement with the epigenetic orogenic gold deposit model presented for Archaean gold-lode deposits.

MINERALISATION STYLE

Cuiabá mine has gold mineralisation associated with sulphides and quartz veins in BIF and volcanic sequences. Structural control

and ﬂuid ﬂow ascension are the most important factors for gold mineralisation with a common association between large-scale shear

zones and their associated structures. Where BIF is mineralised the ore appears strongly stratiform due to the selective sulphidation

of the iron rich layers. Steeply plunging shear zones tend to control the ore shoots, which commonly plunge parallel to intersections

between the shears and other structures.

MINERALISATION CHARACTERISTICS

Apparent intersections of thrust faults with tight isoclinal folds, in a ductile environment, tend to control the mineralisation structures.

The host rocks are primarily BIF and secondarily maﬁc volcanics (mainly basaltic). Mineralisation is believed to be due to the interaction

of low salinity, carbon dioxide-rich gold-bearing ﬂuids with the high-iron BIF, basalts and carbonaceous graphitic schists.

Sulphide mineralisation consists of pyrite and pyrrhotite with subordinate arsenopyrite and chalcopyrite; the latter tends to occur as

a late-stage fracture ﬁll and is not associated with gold mineralisation. Wallrock alteration is typically carbonate, potassic and silicic,

showing clear zonation in the underground environment. The ore is mainly concentrated in the silicic and sulphidation zones, inside

the BIF or in potassic (and sericitic) zones near the basalts. The main orebodies at Cuiabá are as follows:

•

normal limb: Fonte Grande Sul and Serrotinho

•

overturned limb: Balancão, Galinheiro and Canta Galo

Secondary orebodies occur in hydrothermaly altered schists at the footwall of Galinheiro (Galinheiro footwall orebody) and

hydrothermaly altered schists/quartz veins near the footwall of Fonte Grande Sul – Serrotinho (quartz vein orebody).

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BIF

Morro Vermelho

Ribeirão Vermelho

Mindá chlorite-sericite-quartz schist

Mindá sericite-quartz schist

Mindá

Mestre Caetano

Córrego Do Sítio

Cuiabá structure

Legend

500m

-250m

-1250m

250m

-500m

750m

1000m

-750m

-1000m

250m

Elevation

planned drill hole

Fonte Grande

Balancão

Serrotinho

Galinheiro

GEOLOGICAL CROSS-SECTION THROUGH DEEP DRILLING PLAN LEVEL 28 CUIABÁ MINE

E X P L O R AT I O N

In 2016, 67,000m of drilling was completed, with underground drilling comprising almost 65,500m of this total. Underground

exploration was focused in two areas, Mineral Resource conversion and Mineral Resource addition representing 83% (55,000m) and

17% (10,500m) of the underground drilling respectively.

For the Mineral Resource conversion, Galinheiro levels 9, 12 and 15, Balancão levels 15-17, Serrotinho level 19, Cantagalo level 14,

Galinheiro Footwall (footwall of Fonte Grande Sul) and Fonte Grade Sul levels 17-19 were the main targets converted. Mineral

Resource conversion drilling also continued at Fonte Grande Sul from a hangwall drive speciﬁcally developed for that purpose.

The Mineral Resource addition drilling was focused on Serrotinho Blue Sky level 19, Galinheiro levels 15 and 19 to 21 and Galinheiro

Footwall (footwall of Fonte Grande Sul) orebody.

During 2016, a deep exploration drill programme was started to assess the continuity of Cuiabá orebodies at depth. Drilling is being

performed using a directional core barrel to direct the drilling and control the natural deviation that affects the trajectory of the drill hole

as well as to drill deﬂections out of the mother holes.

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P R O J E C T S

In the near term, Cuiabá will increase plan conﬁdence by achieving production stability and building ﬂexibility through targeted

production interventions and by attaining Ore Reserve and developed stope stocks targets. Operational effectiveness will be the

foundation for the strategic approach. Currently, the mine team is reviewing the mine plan in order to meet the current cash generation

needs looking to the inclusion of Galinheiro orebody and to maximise production from the secondary orebodies, both near and within

infrastructure.

Over the next ﬁve years, Cuiabá plans to optimise the orebody capability by targeting the secondary and satellite veins in conjunction

with the main orebodies. Lamego mine will be integrated into Cuiabá plans as the mine looks to maximise orebody capability by

balancing selectivity against bulk mining.

In the long term, Cuiabá plans to maintain sustainable production by continuing to explore and convert the Mineral Resource below

infrastructure and bring the full economic endowment to production.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

AGA Mineração – Cuiabá

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

10 x 20, ✔

20 x 30

–

– ✔

–

Indicated

20 x 40, ✔

40 x 60

–

– ✔

–

Inferred

40 x 60, ✔

80 x 120

–

Grade/ore control

5 x 5 ✔

–

– ✔

–

A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – C u i a b á

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INCLUSIVE MINERAL RESOURCE

AGA Mineração – Cuiabá

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Main Deposits – Fonte Grande Sul

Measured

1.12

9.92

11.16

0.36

Indicated

0.96

10.52

10.12

0.33

Inferred

1.80

14.53

26.21

0.84

Total

3.89

12.21

47.49

1.53

Main Deposits – Serrotinho

Measured

0.54

12.92

7.01

0.23

Indicated

0.57

12.98

7.36

0.24

Inferred

0.69

12.45

8.65

0.28

Total

1.80

12.76

23.02

0.74

Narrow Veins – Balancão

Measured

0.76

8.52

6.48

0.21

Indicated

1.29

11.24

14.46

0.46

Inferred

0.64

12.62

8.06

0.26

Total

2.69

10.80

29.00

0.93

Narrow Veins – Galinheiro

Measured

0.59

9.36

5.50

0.18

Indicated

0.91

7.94

7.27

0.23

Inferred

0.88

7.24

6.38

0.21

Total

2.38

8.03

19.14

0.62

Narrow Veins – Canta Galo

Measured

0.33

8.10

2.64

0.08

Indicated

0.11

8.65

0.96

0.03

Inferred

0.18

10.41

1.83

0.06

Total

0.61

8.87

5.43

0.17

Secondary Areas – Satellite orebodies

Measured

0.79

6.11

4.85

0.16

Indicated

0.17

6.71

1.15

0.04

Inferred

0.32

6.08

1.92

0.06

Total

1.28

6.18

7.92

0.25

Secondary Areas – Galinheiro Footwall

Measured

–

Indicated

0.44

7.86

3.45

0.11

Inferred

0.51

6.96

3.52

0.11

Total

0.95

7.37

6.97

0.22

Secondary Areas – Sill Pillars

Measured

1.83

10.36

18.98

0.61

Indicated

0.37

10.37

3.87

0.12

Inferred

1.00

12.73

0.41

Total

3.21

11.10

35.58

1.14

Secondary Areas – Quartz vein

Measured

–

Indicated

–

Inferred

0.72

7.26

5.23

0.17

Total

0.72

7.26

5.23

0.17

AGA Mineração – Cuiabá

Total

17.53

10.26

179.79

5.78

ESTIMATION

The Cuiabá dataset consists of channel samples and drill hole samples. The 3D modelling and estimation is performed with two

estimation domains, namely the thick mineralisation, consisting of Fonte Grande Sul and Serrotinho, and the narrow-vein domain

consisting of Balancão, Galinheiro and Canta Galo. All channel and drill hole samples are used in the creation of 3D geological models

and for identifying rock types in order to incorporate lithological proportions into the grade estimates. Conditional Simulation is applied

to estimate the uncertainty in the block models and classify the Mineral Resource into Measured, Indicated and Inferred Mineral

Resource, following a standard internal AngloGold Ashanti methodology.

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A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – C u i a b á

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

MINERAÇÃO – Cuiabá

Inclusive Mineral Resource sensitivity

-2

-4

-6

-8

-10

EXCLUSIVE MINERAL RESOURCE

AGA Mineração – Cuiabá

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

4.05

10.87

44.01

1.41

Indicated

0.89

18.89

16.85

0.54

Inferred

6.73

11.06

74.52

2.40

Total

11.68

11.59

135.38

4.35

The exclusive Mineral Resource consists primarily of the Inferred Mineral Resource that is in the process of being upgraded via inﬁll
drilling. The exclusive Mineral Resource is located below infrastructure, starting on level 18 (at Fonte Grande Sul and Serrotinho), level
15 (at Galinheiro), between level 10 and corresponding sub-levels to level 14 as well as below level 16 (at Galinheiro Footwall), between
levels 15-16 as well as below level 17 (at Balancão and Canta Galo), and below level 21 (Fonte Grande Sul Deeps and Serrotinho
Deeps). In addition, secondary areas consisting of old stoping panels, quartz vein orebody and satellite deposits, as well as sill pillars
for all orebodies are also included.

O R E R E S E R V E

ORE RESERVE

AGA Mineração – Cuiabá

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Main Deposits – Fonte Grande Sul

Proved

0.62

6.65

4.15

0.13

Probable

0.81

6.25

5.06

0.16

Total

1.43

6.43

9.21

0.30

Main Deposits – Serrotinho

Proved

0.18

7.88

1.38

0.04

Probable

0.59

7.26

4.29

0.14

Total

0.77

7.40

5.67

0.18

Narrow Veins – Balancão

Proved

0.67

4.68

3.12

0.10

Probable

1.67

5.94

9.96

0.32

Total

2.34

5.59

13.08

0.42

Narrow Veins – Galinheiro

Proved

0.41

6.20

2.51

0.08

Probable

0.96

4.31

4.16

0.13

Total

1.37

4.87

6.67

0.21

Narrow Veins – Canta Galo

Proved

0.05

3.79

0.17

0.01

Probable

0.16

4.52

0.74

0.02

Total

0.21

4.36

0.91

0.03

Secondary Areas – Galinheiro Footwall

Proved

–

Probable

0.17

7.16

1.19

0.04

Total

0.17

7.16

1.19

0.04

AGA Mineração – Cuiabá

Total

6.28

5.85

36.73

1.18

Cuiabá mine is not sensitive to changes
in gold price.

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ESTIMATION

The gold price, projected operational performance and costs as well as metallurgical recoveries are taken into consideration in

determining the Ore Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are

all applied in the process.

ORE RESERVE MODIFYING FACTORS

AGA Mineração – Cuiabá

Gold

price

Cut-off

grade

Stoping

width

Dilution

MCF

MetRF

as at 31 December 2016

BRL/oz

g/t Au

Main Deposits – Fonte Grande Sul

4,041

3.07; 3.61*

600.0

44.6

94.1

93.3

Main Deposits – Serrotinho

4,041

3.07; 3.61*

600.0

46.8

94.1

93.3

Narrow Veins – Balancão

4,041

3.07; 3.61*

200.0

52.3

94.1

93.3

Narrow Veins – Galinheiro

4,041

3.07; 3.61*

200.0

44.4

94.1

93.3

Narrow Veins – Canta Galo

4,041

3.07; 3.61*

200.0

38.4

94.1

93.3

Secondary Areas – Galinheiro Footwall

4,041

3.07; 3.61*

400.0

36.1

94.1

93.3

* COG = 3.07g/t in areas where primary development already done; COG = 3.61g/t in areas where primary development not yet in place

Two cut-off grades are calculated and applied in the Ore Reserve estimation process. The higher cut-off grade is applied upon

the Mineral Resource which are still to be accessed by primary development, bearing such costs and additional projected capital

expenses (full cut-off grade); the lower cut-off grade is applied upon the Mineral Resource where primary development already exists,

which bear all the downstream costs, except for capital development (COG without development).

Dilution is considered in two stages: planned dilution, inherent to the mining area, is incorporated as a function of operational needs,

related to the size of the equipment involved; operational dilution, which is a result of drilling and blasting processes, ore mucking in the

stopes, and its transfer to the loading station, follows. The latter is independent of the width of the structure and has been considered

as of 5% for cut-and-ﬁll and 12% for longhole mining method.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

AGA Mineração – Cuiabá

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Main Deposits – Fonte Grande Sul

0.08

5.74

0.45

0.01

Main Deposits – Serrotinho

0.24

7.00

1.65

0.05

Narrow Veins – Balancão

0.57

7.30

4.14

0.13

Narrow Veins – Galinheiro

0.37

4.54

1.69

0.05

Narrow Veins – Canta Galo

0.15

5.56

0.82

0.03

Secondary Areas – Galinheiro Footwall

0.14

4.81

0.69

0.02

Total

1.54

6.11

9.44

0.30

According to the standards adopted by AngloGold Ashanti, Inferred Mineral Resource is included for the purpose of deﬁning the

business plan and is associated with an exploration plan, but is not included as Ore Reserve.

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A M E R I C A S

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A G A M i n e r a ç ã o – L a m e g o

I N T R O D U C T I O N

Property description

An ongoing underground operation, wholly-owned by AngloGold Ashanti, with an estimated production

rate of 450ktpa until 2017, downsizing to 350ktpa thereafter.

Location

Lamego is located in the north west of the Iron Quadrangle, close to the Cuiabá gold mine. The mine is

located to the east of Belo Horizonte, the capital of Minas Gerais State, in the southeast of Brazil.

History

Exploration began in the area in 1985 with a drilling campaign along a 5.7km strike length of iron formation

and the opening of 2.5km of development of the Arco da Velha, Queimada and Cabeça de Pedra

orebodies. After the successful completion of FS, project approval was given and implementation began

in 2010 with ﬁrst gold poured soon afterwards.

Legal aspects and

tenure

The Lamego mining operation are hosted by three geographically contiguous DNPM concessions granted

to AGA Mineração:

•

The DNPM Mining Concession 830.720/1981 with 577.14ha in area

•

The DNPM Mining Concession 831.554/1983 with 462.09ha in area

•

The DNPM Mining Concession 832.238/2003 with 583.45ha in area

A new Brazilian mining code is currently under discussion, however, it is not anticipated to change the

company’s rights, which are already established

Mining method

The mining methods are cut-and-ﬁll and longhole open stope. Cut-and-ﬁll is typically used for the larger

mining areas, when the orebodies exceed 20m spans. While this method allows for selectivity, it has

constraints in terms of productivity. Longhole open stope on the other hand is less selective, but allows

higher productivity.

Operational

infrastructure

As a satellite operation to Cuiabá, Lamego ore is primarily crushed at the site and hauled by trucks

to Cuiabá.

Ore is hauled in Lamego mine via ramps, one for each orebody, exiting the same portal, the average

tramming distance is 4km for the 20t and 30t trucks. The ore is crushed by a primary crusher and

transported by road to the Cuiabá ﬂotation plant. The mine has an airﬂow as of 295m

/s. Lamego has a

natural water supply system and a plant for water and sewage treatment.

Mineral processing

Cuiabá and Lamego mines feed the Cuiabá gold plant (ﬂotation) and Queiroz (roaster, carbon circuit

and reﬁnery) plants, currently at 1.7Mtpa for a metallurgical recovery of 93.3%. At the Cuiabá gold plant,

crushing and milling of the ore is followed by ﬂotation and ﬁltration in order to produce a concentrate,

which is transported by aerial ropeway to Queiroz for further treatment. Approximately 25% to 30% of gold

is recovered through a gravity circuit at the Cuiabá plant. The backﬁll plant is also located at Cuiabá. The

Queiroz plant is located in Nova Lima, it was built with two different metallurgical routes to treat refractory

ore and non-refractory ore. The concentrate is roasted, and the calcine proceeds to a carbon circuit for

further reﬁning. The sulphide gas is captured for processing through the acid plant; approximately 230ktpa

of sulphuric acid are produced as a by-product.

Risks

There are no major or signiﬁcant risks. However, as a low grade operation, the accurate prediction of

grade and the management of its variability is critical to ensure a successful operation.

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Underground workings

to Sabará
and Lamego

Lamego Mine

Licences

Mining

Mine Infrastructure

Plant

TSF

Waste dumps

Aerial ropeway

Underground workings

Roads

Main

Secondary

Cuiabá plant centroid co-ordinates

43°43'55"W, 19°51'40"S

0.5

1.5km

to Caeté

Cuiabá Mine

to Sabará
and Cuiabá

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A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – L a m e g o

COMPETENT PERSONS

AGA Mineração – Lamego

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Rodrigo Martins

MAusIMM

311 050

12 years

BSc (Geology)

MSc (Geology)

Ore Reserve

Alexandre Heberle

MAusIMM

317 105

11 years

BSc (Mining Engineering)

The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The Arco da Velha deposit is located on the eastern side of a large fold and extends for 250m along the strike. In the north-eastern portion,

the mineralisation is concentrated in the meta-chert (MCH), while in the south-western portion it is concentrated in the BIF. Carbonaceous

phyllite and chlorite-sericite schists occur in the hangingwall contact, while hydrothermally-altered meta-andesite occurs in the footwall.

The Cabeça de Pedra deposit is located in the hinge region of the large Lamego structure. The area which has shown the best

economic potential contains BIF and MCH (80% of the area consists of BIF and the remaining 20% is MCH). The presence of faulting

makes the stratigraphy complex in some areas. The carbonaceous phillite and clorite/sericite schists normally occur in the hangingwall

and meta-andesites in the footwall.

Carruagem is the main deposit and it is located close to the junction of two fold limbs in the north-east portion of the major structure.

It is a boudinaged body with two large disruptions in the structure (pinch and swell), followed by eastward displacement. The gold

mineralisation is mainly associated with hydrothermal zones within the BIF.

MINERALISATION STYLE

The gold mineralisation at Lamego is characterised by orebodies associated with two horizons of chemical sedimentary rocks: BIF

and MCH, and also with shear zones containing abundant quartz veinlets. The proportions of these lithotypes vary substantially from

one deposit to another. In the BIF, sulphide mineralisation is associated with gold, while in the MCH and quartz veins, the gold occurs

either as native gold or in sulphides. Lamego shows similar rock assemblage, but with higher structural complexity than Cuiabá. The

BIF which contains the mineralisation is more structurally deformed and is sometimes described as a MCH.

MINERALISATION CHARACTERISTICS

The mineralisation is characterised by sulphidation in the form of disseminated sulphide bands or as fracture ﬁlling and, more rarely, as

massive sulphide hosted in BIF/MCH. Sulphide bands are rare in MCH. The plunge of the mineralised zones coincides with both the

fold axis of the ﬁrst two structural events and the mineral stretching

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20m

Elevation

Meta-volcaniclastic
Meta-pelite
Carbonaceousphyllite
Smoky Quartz
Branded Iron Formation
Meta-andesite
Gold lode

Legend

00m

350m

400m

GEOLOGICAL CROSS-SECTION THROUGH CARRUGEM LEVEL 9.1 LAMEGO MINE

E X P L O R AT I O N

In 2016, 11,543m of underground drilling was completed, with two of the main orebodies being prioritised, Carruagem Levels 9 to10

and Queimada Level 4.

Carruagem orebody was drilled from the hangingwall drive developed for this purpose. Drilling along strike of the Carruagem orebody,

testing the BIFs on the limbs and targeted Mineral Resource addition for the mine.

At Queimada the exploration drilling aimed at Mineral Resource conversion conﬁrmed the expectation in terms of grades and continuity.

Development is planned to intersect ore on Level 4 in 2017.

Exploration at Lamego continues to focus on identifying new Mineral Resource opportunities close to the current mine infrastructure.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

AGA Mineração – Lamego

Type of drilling

Category

Spacing m (-x-) Diamond

Blasthole

Channel

Other

Comments

Measured

10 x 12, ✔

12 x 13,

20 x 10

–

– ✔

–

Indicated

125 x 25 ✔

–

Inferred

300 x 50 ✔

–

Grade/ore control

2 x 3

–

– ✔

–

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INCLUSIVE MINERAL RESOURCE

AGA Mineração – Lamego

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Main Deposits – Arco da Velha

Measured

0.60

3.85

2.30

0.07

Indicated

0.79

3.76

2.96

0.10

Inferred

0.70

2.53

1.77

0.06

Total

2.09

3.37

7.03

0.23

Main Deposits – Cabeça de Pedra

Measured

0.37

3.68

1.36

0.04

Indicated

0.78

3.24

2.54

0.08

Inferred

0.93

3.12

2.92

0.09

Total

2.09

3.27

6.82

0.22

Main Deposits – Carruagem

Measured

2.16

6.52

14.07

0.45

Indicated

0.77

6.60

5.06

0.16

Inferred

0.74

4.87

3.58

0.12

Total

3.66

6.21

22.71

0.73

Secondary Areas – Queimada

Measured

0.00

6.10

0.03

0.00

Indicated

0.50

5.52

2.75

0.09

Inferred

0.56

5.39

3.02

0.10

Total

1.06

5.46

5.79

0.19

Secondary Areas – Arco NE

Measured

–

Indicated

–

Inferred

0.76

3.22

2.45

0.08

Total

0.76

3.22

2.45

0.08

AGA Mineração – Lamego

Total

9.65

4.64

44.80

1.44

ESTIMATION

The geological model is used to sub-divide the sampling information into domains for estimation. The estimation method applied at

Lamego is ordinary kriging and classiﬁcation of the Mineral Resource is based on conditional simulation.

EXCLUSIVE MINERAL RESOURCE

AGA Mineração – Lamego

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

2.84

5.47

15.56

0.50

Indicated

2.19

4.18

9.14

0.29

Inferred

3.16

3.54

11.16

0.36

Total

8.19

4.38

35.85

1.15

The exclusive Mineral Resource is made up of ore not included in the Ore Reserve, due to economic considerations plus the ore

contained in the sill pillars and stope pillars. Those pillars have been designed in the Ore Reserve estimation process according to

geomechanical parameters.

A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – L a m e g o

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O R E R E S E R V E

ORE RESERVE

AGA Mineração – Lamego

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Main Deposits – Arco da Velha

Proved

0.11

3.12

0.35

0.01

Probable

0.26

3.04

0.79

0.03

Total

0.37

3.07

1.14

0.04

Main Deposits – Cabeça de Pedra

Proved

–

Probable

0.07

3.20

0.21

0.01

Total

0.07

3.20

0.21

0.01

Main Deposits – Carruagem

Proved

0.27

4.51

1.23

0.04

Probable

0.44

4.85

2.11

0.07

Total

0.71

4.72

3.34

0.11

Secondary Areas – Queimada

Proved

0.00

4.75

0.02

0.00

Probable

0.27

4.54

1.21

0.04

Total

0.27

4.55

1.23

0.04

AGA Mineração – Lamego

Total

1.42

4.18

5.92

0.19

ESTIMATION

The gold price, projected operational performance and costs as well as metallurgical recoveries are taken into consideration in

determining the Ore Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are

all applied in the process.

ORE RESERVE MODIFYING FACTORS

AGA Mineração – Lamego

Gold

price

Cut-off

grade

Stoping

width

Dilution

MCF

MetRF

as at 31 December 2016

BRL/oz

g/t Au

Main Deposits – Arco da Velha

4,041

2.43

350.0

14.9

94.5

93.3

Main Deposits – Cabeça de Pedra

4,041

2.43; 2.75

350.0

13.9

94.5

93.3

Main Deposits – Carruagem

4,041

2.43; 2.75

2,000.0

10.0

94.5

93.3

Secondary Areas – Queimada

4,041

2.75

350.0

15.0

94.5

93.3

Two cut-off grades are calculated and applied in the Ore Reserve estimation process. The higher cut-off grade is applied to the Mineral

Resource which are still to be accessed by primary development, bearing such costs and additional projected capital expenses (full

cut-off grade); the lower cut-off grade is applied to the Mineral Resource where primary development already exists, which carries all

the downstream costs, except for capital development.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

AGA MINERAÇÃO – Lamego

Inclusive Mineral Resource sensitivity

-2

-4

-6

-8

-10

Lamego mine is insensitive to gold price
changes within the $1,200/oz to $1,600/oz
range.

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A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – L a m e g o

Dilution is considered in two stages: planned dilution, inherent to the mining area is incorporated as a function of operational needs,

related to the size of the equipment involved. Operational dilution, which is a result of drilling and blasting processes, ore mucking in

the stopes, and transfer to the loading station, follows. The latter is independent of the width of the structure and has been considered

as 5% for both cut-and-ﬁll and longhole open stoping mining methods.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

AGA Mineração – Lamego

Tonnes

Grade

Contained gold

as at 31 December 2016

million

g/t

tonnes

Moz

Main Deposits – Cabeça de Pedra

0.06

3.31

0.21

0.01

Main Deposits – Carruagem

0.05

4.26

0.22

0.01

Secondary Areas – Queimada

0.27

3.79

1.01

0.03

Total

0.38

3.77

1.43

0.05

According to the standards adopted by AngloGold Ashanti, Inferred Mineral Resource is included for the purpose of deﬁning the

business plan and associated with an exploration plan, but is not included as Ore Reserve.

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A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – N o v a L i m a S u l

I N T R O D U C T I O N

Property description

Nova Lima Sul comprise the underground mines of Raposos and Morro da Glória. The project is currently

in care and maintenance pending a decision around its future. No Ore Reserve is reported for Nova Lima Sul.

Location

The Nova Lima Sul project is located in the western portion of the Rio das Velhas greenstone belt, and

all the exploration targets are within a 16km radius of the Queiroz metallurgical plant. The project area

corresponds to an area of 7,000km

, close to the cities of Nova Lima, Raposos and Rio Acima.

History

The ﬁrst formal mining company to start operations in the area is São João Del Rey Mining Co. Ltd in

1834. It was subsequently acquired by Mineração Morro Velho in the early 1900s.

Raposos mine reported production from 1929 to 1999 is 1.08Moz.

Morro da Glória was an exploration project with drilling and underground exploratory development.

Development to access the orebody produced 5,000oz from 1992 to 1994.

Legal aspects and

tenure

Nova Lima Sul is an exploration project wholly owned by AngloGold Ashanti and is made up of a number

of DNPM Mining Concession including;

•

Mining Concession No. 308-II 02/03/1936, DNPM 322/1973, covering an area of 2,826.33ha

•

Mining Concession No. 308-VI 02/03/1936, DNPM 326/1973, covering an area of 7,465.22ha

•

Mining Concession No. 308 V 02/03/1936, DNPM 325/1973, covering an area of 1,014.53ha

New individual mining plans have to be delivered to the Federal Government (DNPM Federal Agency),

if and when AGA Mineração decides to resume underground operations inside the geographic limits of

each one of these three “inactive” mining concessions. In 2016 the Mineral Resource of Luzia da Motta

was written-off due to environmental restrictions with the creation of a preservation area, called Serra do

Gandarela National Park.

Mining method

Raposos mine operated with a cut-and-ﬁll method.

Operational

infrastructure

Raposos mine has signiﬁcant amount of underground development, a shaft and a cableway to take the

ore to Queiroz Plant. Morro da Glória has some underground drifts developed.

Mineral processing

Raposos mine circuit was a standard direct 1,000tpd gold-leaching circuit suitable for non-refractory

material.

Risks

The project has been on care and in maintenance for a number of years.

COMPETENT PERSONS

AGA Mineração – Nova Lima Sul

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Rodrigo Martins

MAusIMM

311 050

12 years

BSc (Geology)

MSc (Geology)

The Competent Person consents to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

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G E O L O G Y

DEPOSIT TYPE

The Raposos sequence is interpreted as a ductile thrust that occurred during the ﬁrst deformation event. The main mineralised area is

associated with an anticline of the same age. The stratigraphic sequence, repeated by folds, has ultramaﬁcs at the base, overlain by

komatiitic basalts and andesites with layers of BIF. Pelites and meta-volcaniclastic occur at the top of the sequence. The BIF is oxide

facies (magnetite and quartz), with carbonatisation in the mineralised areas.

In the Morro da Glória area the rocks consist of komatiitic ultramaﬁcs, graphitic phylite, felsic meta-volcaniclastics associated with

meta-pelites and several layers of BIF.

The macro structures at Raposos and Morro da Glória are anticlines and the mineralisation is associated with these folds and shear

zones, surrounded by concentric hydrothermal alteration zones consisting of sericitisation, carbonisation and chloritisation. BIF is

oxide facies (magnetite and quartz), with carbonatisation in the mineralised areas. The gold is associated with sulphides and quartz

veins in the BIF and altered schists.

MINERALISATION STYLE

The Nova Lima Sul targets are situated in the south-western portion of the Iron Quadrangle in the state of Minas Gerais, in Brazil.

The area is located in the volcanic sedimentary sequence of the Nova Lima Group (Rio das Velhas Supergroup), within the Rio das

Velhas greenstone belt.

The Nova Lima Group hosts the main gold mines and mineral occurrences in the Iron Quadrangle and consists of a basal tholeiitic-

komatiitic volcanic unit with abundant chemical sedimentary rocks, which is overlain by a volcaniclastic unit with associated felsic

volcanic rocks. This is in turn overlain by an upper clastic unit. The mineralised deposits in the Rio das Velhas greenstone belt

are structurally controlled and are associated with hydrothermal alterations along D2 thrust shear zones, on a regional scale. The

mineralisation is epigenetic and the most common mineralisation styles at Nova Lima Sul are massive, banded and disseminated

sulphides hosted in BIF and lapa seca (albitised hydrothermal rocks).

MINERALISATION CHARACTERISTICS

Mapped deposit dimensions vary in thickness from around 0.5m to 20m and can be more than 5,000m in length (down plunge).

The plunge is deﬁned by the stretching lineation and it is parallel to the fold axis of the ﬁrst two regional deformation events. The

mineralisation is primarily located in the BIF and surrounded by concentric hydrothermal alteration zones consisting of sericitisation,

carbonatisation and chloritisation.

E X P L O R AT I O N

In 2016 no exploration was completed in the Nova Lima Sul region. Nova Lima Sul exploration targets comprise the Raposos

underground mine, the Mina Grande, Morro da Glória, Bicalho, Faria, Bela Fama mines, as well as the old prospects (Luzia da Mota,

Limoeiro) and several old surface workings (Saboeiro Rasgão, Urubu and Luzia’s Mina Grande).

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

AGA Mineração – Nova Lima Sul

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other Comments

Measured

30 x 30 ✔

–

– ✔

–

Indicated

60 x 60 ✔

–

– ✔

–

Inferred

100 x 100 ✔

–

– ✔

– –

Grade/ore control

3 x 3

–

A M E R I C A S

c o n t i n u e d

A G A M i n e r a ç ã o – N o v a L i m a S u l

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INCLUSIVE MINERAL RESOURCE

AGA Mineração – Nova Lima Sul

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Morro da Glória

Measured

–

Indicated

–

Inferred

1.26

6.52

8.21

0.26

Total

1.26

6.52

8.21

0.26

Raposos

Measured

0.18

7.01

1.29

0.04

Indicated

0.41

6.85

2.80

0.09

Inferred

2.25

6.44

14.50

0.47

Total

2.84

6.53

18.59

0.60

AGA Mineração – Nova Lima Sul

Total

4.10

6.53

26.80

0.86

ESTIMATION

Morro da Glória has been estimated using ordinary kriging and the Raposos mine in the Nova Lima Sul project was estimated

using UC.

The Nova Lima Sul project currently does not have any declared Ore Reserve and the exclusive and inclusive Mineral Resource

numbers are therefore identical.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

MINERAÇÃO – Nova Lima Sul

Inclusive Mineral Resource sensitivity

-2

-4

-6

-8

-10

Nova Lima Sul is not sensitive to changes
in gold price in the range $1,200/oz to
$1,600/oz.

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A M E R I C A S

c o n t i n u e d

S e r r a G r a n d e

I N T R O D U C T I O N

Property description

Mineração Serra Grande (MSG or Serra Grande) is 100% owned by AngloGold Ashanti and is located

in the north-western area of the Goiás State, central Brazil. It operates three underground and two open

pit mines.

Location

Serra Grande is located 5km southern of the town of Crixás, 420km from the Brazilian capital, Brasilia and

about 350km from the state capital of Goiás, Goiânia. Employing 1,120 persons in this largely rural area

means that the mine represents the principal economic activity in the region.

History

Exploration works begun in 1973 with a phase of detailed mapping and DD continued until 1976. The

mining operation started up in 1986 in Mina III and the metallurgical plant start up was in 1989.

MSG production peaked at 210koz/year supported by high grades. In 2009, the metallurgical plant was

expanded to 1.3Mtpy to compensate for a declining grade-proﬁle. In 2012, AngloGold Ashanti acquired

the 50% stake that belonged to the Kinross Group.

Legal aspects and

tenure

Serra Grande has interest or agreements over 61,500ha in the Crixás Greenstone belt, through a series of

DNPM mining leases and exploration permits. The mining concessions include:

•

002.286/1935, covering an area of 4,206.88ha

•

960.658/1987, covering an area of 1,946.89ha

•

860.746/2005, covering an area of 88.28ha

•

862.103/1994, covering an area of 125.41ha

•

804.366/1975, covering an area of 196.05ha

Brazilian mining concessions remain valid up to the depletion of the Ore Reserve and Mineral Resource.

A new Brazilian mining code is currently under discussion, however, it is not anticipated to change the

company’s rights, which are already established.

Mining method

Serra Grande operation comprises three underground mines, namely Mina III (including Orebody IV, V and

Ingá), Mina Nova (including Pequizão Orebody) and Mina Palmeiras. The open pits are the outcrop of Mina

III Inferior and Structure IV zones. Three mining methods are being used underground: sub-level stoping

(bottom-up and top-down), cut and ﬁll, and room and pillar.

Operational

infrastructure

MSG power supplies comes from government’s local state concessionaire. The metallurgical plant has the

capacity of 1.3Mtpa, combining Merrill Crowe’s and gravimetric circuits. It operates a single tailings dam,

which will be expanded in 2017 to support the LoM production, with government environmental licensing

already available. The water used on metallurgical process comes from underground mines. The state

road GO-337 passes alongside operation providing logistical facility to its supply chain.

Mineral processing

The ore is blended to feed the crushing circuit with 3,600tpd. There are two mills in operation, and

20 leaching tanks with capacity of 4,800m

divided on pre-liming and cyanidation stages. About 58% of

free gold is captured in the parallel gravity circuit. The rest of the gold is recovered by the Merrill Crowe

process to form the bullion that is sent to Nova Lima reﬁning process.

Risks

There is no material risk in the Mineral Resource and Ore Reserve statement at MSG.

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Crixás City

Mine III

Corpo V

Palmeiras Portal

Pequizão/Mina Nova Portal

Mina III Portal

Plant centroid co-ordinates

49°58'04"W, 14°34'25"S

Mine village

0.5

1.5km

Licences

Mine infrastructure

Settlements

Roads

Mining

Exploration

Pits

Plant

TSF

Underground workings

Towns

Villages

Main

Secondary

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A M E R I C A S

c o n t i n u e d

S e r r a G r a n d e

COMPETENT PERSONS

Serra Grande

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource and

Ore Reserve

Diogo Afonso Costa

MAusIMM

311 574

14 years

BSc (Geology)

The Competent Person consents to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

The gold deposit is orogenic mesothermal, associated with the development of shear zones. The host rocks belong to the Upper

Archaean Crixás Group. Gold mineralisation is associated with meta-sediments and meta-volcanics rocks from the Ribeirão das Antas

and Rio Vermelho formations respectively. The Crixás Greenstone Belt is surrounded by granitic gneiss terrains from the Anta and

Caiamar complexes and meta-sedimentary rocks from the Santa Terezinha Group, which is part of the Goiás magmatic arc.

MINERALISATION STYLE

The mine complex is located in the Crixás Greenstone Belt sequence, in the central portion of Brazil, and the main host rocks are the

meta-sedimentary sequences with association with meta-volcanic meta-basic rocks. The mineralisation at MSG is associated with

quartz veins and massive to disseminated sulphides in meta-sedimentary, meta-volcaniclastic and meta-basalt rocks, with differing

degrees of hydrothermal alteration developed over orogenical stacked thrust layers (duplexes).

Two main deformation events are responsible by mineralisation style. The ﬁrst event is the principal thrust event (east over west, called

D1) and develops an irregular thrust ramp geometry. This event stacked and inverted the stratigraphic sequence. The second event

(D2) was the Santa Terezinha sequence (Magmatic Arc) thrusting over Crixás Greenstone Belt, folding the rocks (F2) and generating

the structures that control the gold mineralisation, generally parallel to the fold axis.

MINERALISATION CHARACTERISTICS

Geometry of the mineralised deposits is typically complex, pinch and swell, folded and boudinage shapes, dipping from 10° to 25°

and with greatest continuity along north-west-plunging structures (azimuth 290°).

The mineralisation have been split into four main domains called structures – the thrust ramps themselves (named Structure II, III,

IV and Palmeiras), and occurs as stacked lenses, generally concentrated in the same high deformation positions (with folds and

disruptions) in the structures.

In Structure II the mineralisation is arsenopyrite associated with quartz as veinlets in carbonaceous meta-pelite.

In Structure III, the mineralisation is located in quartz veins that are hosted in carbonaceous schists, representing the highest

gold grades (>8g/t, with free gold), as seen in Mina III (Inferior zone) and Ingá. This structure is also associated with massive and

disseminated sulphides (mainly pyrrhotite and arsenopyrite) that occur in a sequence of hydrothermally-altered schists, commonly

named superior zones.

In Structure IV, the mineralisation comprise quartz veinlets and disseminated sulphide (pyrrhotite) hosted in graphite schists as at

Pequizão. The mineralised zones are hosted in sericite and chlorite schists with massive and disseminated sulphide concentrated in

folded zones. The ore shoots plunge to the north-west and the dips vary between 6° and 35°.

The Palmeiras structure is associated with hydrothermal alteration of meta-basalts, with sericite, chlorite, carbonate and massive

sulphides (pyrrhotite).

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E X P L O R AT I O N

The MSG exploration programme has added 1.8Moz of new Inferred Mineral Resource to its portfolio over the last ﬁve years with

an average grade of 6.34g/t. The underlying strategy has been to add new high-grade Mineral Resource, such as Ingá, Mine II

quartz vein below the level 700m and Crixás North, as well as to extend the LoM of current orebodies such as Pequizão, Palmeiras,

Orebody IV and Mina Nova.

As part of the overall strategy 69,521m of DD for Mineral Resource addition purposes was completed in 2016, over the principal

exploration targets of Orebody IV down Plunge, Mangaba, Structure II and Pequizão North. An additional 17,500m of Mineral Resource

conversion drilling was drilled in Mina Nova, Mina III, Open pits and Ingá.

New regional targets are being generated through geochemistry, geophysics and geological mapping. The main prospects are the

south and north vectors of the greenstone belt and the north Goiás Magmatic Arch. In 2016 the principal drilling was focused on

upgrading the Palmeiras South Mineral Resource classiﬁcation to Indicated Mineral Resource, new Mineral Resource addition in Ingá

and Pequizão (Inferred Mineral Resource) and to identify new open pit targets such as Corpo V South, Dona Tereza so as to, extend

the life of open pits to beyond 2021.

Deep drilling below the Pequizão mine has identiﬁed a new target named Mangaba which has the potential to increase the MSG Mineral

Resource, additional drilling is planned for 2017. This discovery conﬁrms the depth exploration potential of the Crixás Greenstone Belt.

Dolerite dyke

Orebody

Quartz vein

Meta-greywacke

Chlorite garnet schists

Carbonaceous schists

Carbonated schists & dolomite

Chloritized & carbonated meta-basic rocks

Legend

200m

250m

300m

350m

50m

Elevation

GEOLOGICAL CROSS-SECTION THROUGH MINA NOVA SERRA GRANDE

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S e r r a G r a n d e

P R O J E C T S

During 2016, the exploration campaign consolidated the geological potential of Ingá orebody. The main decline to the Ingá orebody

developed 950m of the planned 1,300m and the start of production is scheduled for the ﬁrst quarter of 2017.

In recent years the plant throughput of MSG has increased with the result that the ﬁltering circuit has became an operational bottleneck.

To ﬁx this operational restriction, MSG has intitiated the Activated Carbon Project which is looking at replacing the ﬁltering circuit with a

CIL. Its overall objectives are to increase the production rate from 1,300ktpa to 1,350ktpa in the metallurgical plant by the debottlenecking.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Serra Grande

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other Comments

Measured

10 x 10, ✔ ✔ ✔ ✔ ✔

20 x 10

–

Indicated

20 x 50, ✔ ✔ ✔ ✔

25 x 25,

40 x 20,

40 x 40

–

Inferred

50 x 100, ✔

80 x 80,

100 x 50

–

Grade/ore control

2 x 2, ✔

10 x 10

– ✔ ✔

–

Serra Grande

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Mina Nova

Measured

3.10

3.47

10.75

0.35

Indicated

1.06

3.20

3.39

0.11

Inferred

2.04

3.55

7.27

0.23

Total

6.20

3.45

21.40

0.69

Mina III

Measured

2.08

4.81

10.02

0.32

Indicated

1.60

5.11

8.17

0.26

Inferred

2.19

4.74

10.39

0.33

Total

5.87

4.87

28.57

0.92

Palmeiras

Measured

0.21

7.18

1.49

0.05

Indicated

0.30

5.73

1.70

0.05

Inferred

0.97

4.71

4.58

0.15

Total

1.48

5.26

7.77

0.25

Palmeiras Sul

Measured

–

Indicated

0.06

6.62

0.42

0.01

Inferred

0.12

6.78

0.78

0.03

Total

0.18

6.72

1.20

0.04

Pequizão

Measured

1.28

4.20

5.37

0.17

Indicated

1.18

3.95

4.66

0.15

Inferred

3.87

3.74

14.48

0.47

Total

6.33

3.87

24.51

0.79

Cajueiro

Measured

–

Indicated

–

Inferred

1.22

2.89

3.52

0.11

Total

1.22

2.89

3.52

0.11

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Serra Grande

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Ingá

Measured

0.01

29.60

0.19

0.01

Indicated

0.56

7.70

4.33

0.14

Inferred

1.95

6.87

13.42

0.43

Total

2.52

7.11

17.93

0.58

Open pit

Measured

1.01

3.31

3.36

0.11

Indicated

0.67

3.16

2.11

0.07

Inferred

0.05

2.88

0.14

0.00

Total

1.73

3.24

5.61

0.18

Total stockpiles

Measured

0.06

2.00

0.12

0.00

Indicated

–

Inferred

–

Total

0.06

2.00

0.12

0.00

Serra Grande

Total

25.59

4.32

110.63

3.56

ESTIMATION

The grades estimation is performed by ordinary kriging using diamond, RC and channel samples from MSG database. All search

distance are based on variographic studies for each orebody/structure. Classiﬁcation is done through a combination of Conditional

Simulation and sample spacing studies.

SERRA GRANDE

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

1.8

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

SERRA GRANDE

Grade tonnage curve underground (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

EXCLUSIVE MINERAL RESOURCE

Serra Grande

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

4.19

4.27

17.89

0.58

Indicated

2.25

5.68

12.77

0.41

Inferred

12.41

4.40

54.56

1.75

Total

18.85

4.52

85.21

2.74

The exclusive Mineral Resource can be divided into three categories:

•

Inferred Mineral Resource within the operating mines – every year, this is partially upgraded through inﬁll drilling based on the

production plan

•

that portion of the Mineral Resource that is not currently economically feasible

•

that portion of the Mineral Resource that requires economic studies

The exception to this is the Cajueiro deposit, located 10km from the Serra Grande site.

INCLUSIVE MINERAL RESOURCE

(continued)

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SERRA GRANDE year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

3.60

3.55

3.50

3.45

3.40

3.35

3.30

3.25

3.20

-0.17

0.25

0.00

0.04

0.00

3.43

3.56

2015

Depletion

Exploration

Methodolog

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

SERRA GRANDE

Inclusive Mineral Resource sensitivity

-1

-2

-3

-4

-5

-6

-7

Changes mainly due to exploration additions from Ingá and Minas III and model changes.

MINERAL RESOURCE BELOW INFRASTRUCTURE

Serra Grande

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.01

29.60

0.19

0.01

Indicated

0.46

6.97

3.21

0.10

Inferred

12.36

4.40

54.41

1.75

Total

12.83

4.51

57.80

1.86

The total Inferred Mineral Resource is considered below infrastructure, in addition some Indicated and Measured Mineral Resource

from certain of the orebodies, such as Ingá, are also considered below infrastructure.

The Mineral Resource at Serra Grande is
relatively insensitive to changes in gold
price. The change in Mineral Resource
ounces between the US$1,200/oz and
US$1,400/oz is within 5% of the 2016
Mineral Resource.

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O R E R E S E R V E

ORE RESERVE

Serra Grande

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Mina Nova

Proved

0.31

1.88

0.59

0.02

Probable

0.77

2.16

1.67

0.05

Total

1.09

2.08

2.26

0.07

Mina III

Proved

0.47

2.40

1.13

0.04

Probable

0.65

3.07

2.00

0.06

Total

1.12

2.79

3.13

0.10

Palmeiras

Proved

0.05

2.31

0.10

0.00

Probable

0.14

2.33

0.31

0.01

Total

0.18

2.32

0.42

0.01

Pequizão

Proved

0.53

2.28

1.20

0.04

Probable

0.69

2.63

1.81

0.06

Total

1.22

2.48

3.02

0.10

Ingá

Proved

–

Probable

0.25

4.36

1.09

0.04

Total

0.25

4.36

1.09

0.04

Open Pit

Proved

0.99

2.93

2.90

0.09

Probable

0.70

2.75

1.93

0.06

Total

1.69

2.85

4.82

0.16

Total stockpiles

Proved

0.06

2.00

0.12

0.00

Probable

–

Total

0.06

2.00

0.12

0.00

Serra Grande

Total

5.61

2.65

14.86

0.48

ESTIMATION

The gold price, projected operational performance and costs as well as metallurgical recoveries are taken into consideration in

determining the Ore Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are

all applied in the process.

ORE RESERVE MODIFYING FACTORS

Serra Grande

Gold

price

Cut-off

grade

Stoping

width

Dilution

MRF

MCF

MetRF

as at 31 December 2016

BRL/oz

g/t Au

g/t

% (based

on tonnes)

Mina Nova

4,041

2.45

180.0

16.7

0.03

85.3

95.0

88.9

Mina III

4,041

2.45

180.0

16.7

0.03

85.3

95.0

91.8

Palmeiras

4,041

2.45

180.0

16.7

0.03

85.3

95.0

90.1

Pequizao

4,041

2.45

180.0

16.7

0.03

85.3

95.0

90.7

Ingá

4,041

2.45

180.0

16.7

0.03

85.3

95.0

94.7

Open pit

4,041

2.45

180.0

9.0

0.03

85.3

95.0

91.9

Total stockpiles

4,041

–

88.5

Mining recovery and dilution are determined per mining method but are expressed as the average for this table. Plant recovery depends upon a ﬁxed
tailing grade of 0.23g/t

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The main modifying factors can be divided in economic and operational ones.

Economic modifying factors are the gold price, exchange rate (BRL/US$) and the cost matrix of the operation that is based on the

previous year’s production performance. These are then used to deﬁne the cut-off grades that are listed in the economic evaluation

of each mineable block.

Operational factors are based in historical data and usually deﬁned by the last year performance. Among the most important ones, can

be mentioned the minimum mining width, operational dilution, mining recovery, mine call factor and metallurgical recovery. Operational

factors are used to design Ore Reserve solids or applied directly in the solid evaluation to estimate the Ore Reserve of each stope.

Mining recovery and operational dilution used in the determining of the Ore Reserve are mining method speciﬁc.

INFERRED MINERAL RESOURCE IN BUSINESS PLAN

No Inferred Mineral Resource was included in the Ore Reserve, 29% of the LoM plan is Inferred Mineral Resource that Serra Grande

considers possible to apply the modifying parameters with consistency and reliability.

ORE RESERVE BELOW INFRASTRUCTURE

Serra Grande

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Proved

0.31

2.49

0.77

0.02

Probable

0.76

3.25

2.47

0.08

Total

1.07

3.03

3.24

0.10

Most of the ounces below infrastructure are categorised as Probable Ore Reserve from the bottom of sub-level stoping panels that

have at least the top ore drift opened and sampled.

SERRA GRANDE year-on-year changes in Ore Reserve

Total (attributable)

Ounces (millions)

0.55

0.50

0.45

0.40

0.35

0.30

0.25

0.20

-0.16

0.18

0.00

0.08

0.01

-0.11

0.00

-0.00

0.05

0.00

0.48

0.42

2015

Depletion

Exploration

Methodolog

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

Revenue

factor

Ore Reserve variation due to exploration changes mainly at Mina III, Pequizão and Ingá, higher local gold prices and lower costs

(exchange rate) which were offset by revised dilution and recoveries at Mina III.

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A M E R I C A S

c o n t i n u e d

C o l o m b i a

C O U N T RY O V E R V I E W

Systematic regional greenﬁelds exploration has been undertaken by AngloGold Ashanti and its JV partners (B2Gold, Glencore

International and Mineros S.A.) in Colombia since 2004. AngloGold Ashanti consolidated its tenement position from roughly

100,000km

in 2009 to a core area of 2,131km

at the end of 2015.

At the Gramalote JV (AngloGold Ashanti, 51% and B2Gold, 49%), AngloGold Ashanti is currently responsible for the management of

the project.

At the wholly-owned La Colosa project, infrastructure drilling continued after area adjustment permitting for new platforms was

successfully completed. PFS development has focused on infrastructure site facility scenarios. AngloGold Ashanti secured regional

district scale opportunities surrounding La Colosa and is continuing with regional targeting of similar gold-rich porphyry mineralisation.

Nuevo Chaquiro is a signiﬁcant new copper-gold porphyry-style mineralised system that is located within the Quebradona Project,

which is a JV between AngloGold Ashanti 92.72% and B2Gold 7.28%. B2Gold is not participating in the exploration expenditure

and its interest in the project is being diluted. The Quebradona Project is situated in the Middle Cáuca region of Colombia, in the

Department of Antioquia, 60km south-west of Medellin. Nuevo Chaquiro, is one of ﬁve known porphyry centres on the property and

has been the focus of exploration activities since the beginning of 2012.

COLOMBIA

Nuevo Chaquiro

200km

Ibagué

Cali

Quibdó

Medellin

Bogotá

Advanced greenfield projects
1 Gramalote

(51%)

2 Quebradona

(92.72%)

3 La

Colosa

200km

INCLUSIVE MINERAL RESOURCE

Colombia

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

0.79

Indicated

999

0.80

796

Inferred

859

0.42

359

Total

1,875

0.62

1,168

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Australasia

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A M E R I C A S

c o n t i n u e d

G r a m a l o t e

I N T R O D U C T I O N

Property description

Gramalote is a JV between AngloGold Ashanti (51%) and B2 Gold (49%). The project Mineral Resource

comprises ounces from three orebodies, namely Gramalote Central, Monjas and Trinidad.

Location

The Gramalote property is located on the eastern ﬂank of the Cordillera Central near the towns of

Providencia and San Jose del Nus in the municipality of San Roque, north-west of Antioquia Department.

It is approximately 230km north-west of Bogotá and 124km north-east of Medellin.

History

The region encompassing Gramalote has a long history of artisanal gold. Gramalote itself has had small

scale artisanal mining for several decades prior to exploration work and mineral discovery by AngloGold

Ashanti. Drilling commenced in 2006. In 2010, AngloGold Ashanti became the operator with a 51% share.

Sufﬁcient work has been completed to enable a PFS to be generated in late 2013. Based upon continued

growth of the Mineral Resource, signiﬁcant processing opportunities generated by the project team, and

ongoing capital and operating cost optimisations, an update of the original PFS is currently underway.

Legal aspects and

tenure

The Gramalote project area is covered by a total of 16 contract concessions of 33,028.45ha, one

exploration licence of 2,292.81ha and two applications of 10,002.98ha.

•

7153B, 745, 83ha, expires 2037-01-17

•

6192B, 18.92ha, expires 2039-01-28

•

6386B, 2,418.28ha, expires 2039-02-11

•

6386, 1,250.36ha, expires 2039-02-11

•

6194, 5,588.49ha, expires 2039-02-16

•

7519, 54.59ha, expires 2039-02-18

•

14292, 9,412.91ha, expires 2043-04-02

•

6195, 5,914.86ha, expires 2040-05-17

•

6189, 1,971.93ha, expires 2041-05-26

•

7589, 51.75ha, expires 2039-02-16

•

ICQ-080062X, 690.35ha, expires 2041-05-09

•

ICQ-0800167X, 437.82ha, expires 2041-05-09

•

7676, 504.98ha, expires 2039-07-15

•

6185, 2,168.42ha, expires 2037-08-13

•

6187B, 13.95ha, expires 2039-01-26

•

6190, 1,785.00ha, expires 2039-01-27

•

4894, 2,292.81ha, exploration licence

•

LJC-08012, 137.44ha, application

•

QHQ-16081, 9,865.54ha, application

Mining method

Gramalote is planned to be a relatively large scale open pit mining operation with an estimated LOM of 13

years (plus one year of pre-stripping)

Operational

infrastructure

Currently the project has a ﬁeld infrastructure that supports PFS studies with roads, accommodations,

ofﬁce, infrastructure for logging and sampling the drill cores and a core shed facility.

Mineral processing

The project is under development but the following process plan is being considered:

•

A planned plant throughput of 11Mtpa (fresh ore) and 4Mtpa (oxide) giving a production of around

350koz per annum

•

Gold recovery process: Semi-autogenous milling circuit/ﬂotation/leaching of concentrate including

upgrade by sorting feed to the sulphide plant in year three and a separate circuit for oxide treatment

•

Conventional tailings deposition with sand dam

Risks

The low grade Inferred Mineral Resource is by deﬁnition a low conﬁdence, high risk part of the Mineral

Resource due to the broad drill spacing (100 x 100m).

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San Roque

San José

del Nus

Monjas

Gramalote

Trinidad

Cristales

Providencia

ML 14292

ML 6185

ML 6190

ML ICQ-080062X

ML 7153B

ML ICQ-0800167X

Planned plant centroid
co-ordinates
75°00'00"W, 06°30'00"N

Licences

Settlements

Roads

Planned mine infrastructure

Mining

Exploration

Pits

Plant

Tailing

Waste Rock facility

Towns

Villages

Main

Secondary

1.5

3km

COMPETENT PERSONS

Gramalote

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Claudio Devaux

MAusIMM

315 689

29 years

BSc Hons (Geology)

The Competent Person consents to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

Gramalote is a pluton-related, mesothermal gold prospect related genetically to the host intrusion. The alteration and mineralisation

is structurally controlled, restricted to small haloes along veins, sheeted veins and stockworks arrays. The sulphides content is less

than 5%. Some evidence indicates that the host rock is directly related to ﬂuids evolved from the cooling pluton, including pegmatite,

aplite and K-feldspar alteration.

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A M E R I C A S

c o n t i n u e d

G r a m a l o t e

MINERALISATION STYLE

The Gramalote property is located in the northern portion of Colombia’s Central Cordillera. The terrain is completely underlain by

medium to coarse-grained biotite +\- hornblende tonalite and granodiorite of the Cretaceous Antioquia Batholith.

Subsequent drilling within an extensive mineral tenement block of some 35,000ha (exclusively retained under licence by the JV)

identiﬁed three distinct mineral deposits (Gramalote Central, Trinidad, and Monjas West) of common mineralisation and alteration and

with vertical to sub-vertical mineral zones extending from tens of metres to over 200m, with variable lengths up to 1km, and extending

several hundred metres to depth.

MINERALISATION CHARACTERISTICS

Gramalote is considered to be an intrusive-hosted structurally controlled stockwork gold and silver deposit.

Mineralisation is controlled by north-east/south-west trending shear zones and north-northwest to south-southeast trending shear

extensional zones affecting the tonalites and granodiorites of the Antioquia Batholith.

Gold mineralisation is associated with three overprinting texture destructive alteration assemblages including potassic, quartz-

sericite and sericite carbonate. Within these alteration zones, anomalous gold mineralisation is associated with three speciﬁc types

of stockwork quartz veining. These include quartz veinlets with ﬁne-grained pyrite, quartz-carbonate veinlets and quartz veinlets with

granular pyrite.

The saprolite (oxide) and “saprock” (transition) portions of the deposit represent a small percentage of the mineralisation. Saprolite

thickness is variable from 5–30m, with an average thickness of 15m.

Petrographic work indicates the gold occurs as ﬁve to 20 micron sized particles associated with fractures and inclusions within pyrite

and cavities associated with sulphosalts (aikinite PbCuBiS

, matildite AgBiS

) and tellurides (hessite (Ag

Te). The silver to gold ratio is

approximately 1:1.

GEOLOGICAL CROSS-SECTION THROUGH PLANNED GRAMALOTE CENTRAL PIT

Legend

Quartz Diorite

Tonalite

Oxide zone

Dyke

Vein

Ore zone

Planned
pit outline

200m

400m

200m

1000m

800m

600m

Elevation

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E X P L O R AT I O N

Exploration in 2016 was primarily focused on limited drilling work aimed to test the regional upside potential and drilling of the

saprolite to assess its potential as a Mineral Resource. As at 31 October 2016 a total of 145,000m of exploration drilling plus a 240m

underground tunnel through the orebody have been completed since the start of the project.

P R O J E C T S

A PFS update is currently underway and the ﬁnal report study will be completed and delivered in September 2017. Main activities

during 2017 include the initiation of the FS Mineral Resource drilling programme to minimise delays in the completion of next stage, the

potential reporting of a maiden Ore Reserve as well as advance in the implementation of the coexistence and resettlement programme.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Gramalote

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other

Comments

Measured

25 x 25 ✔

–

Indicated

50 x 50 ✔

–

Inferred

100 x 100 ✔

–

Grade/ore control

12 x 12

– ✔

–

– Test grade control pattern completed

to conﬁrm the UC parameters

INCLUSIVE MINERAL RESOURCE

Gramalote

Tonnes

Grade

Contained

gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Gramalote Central

Measured

16.64

0.79

13.14

0.42

Indicated

69.61

0.49

34.09

1.10

Inferred

72.38

0.39

28.49

0.92

Total

158.63

0.48

75.72

2.43

Trinidad

Measured

–

Indicated

–

Inferred

57.33

0.39

22.57

0.73

Total

57.33

0.39

22.57

0.73

Monjas West

Measured

–

Indicated

3.49

0.36

1.26

0.04

Inferred

19.18

0.44

8.53

0.27

Total

22.67

0.43

9.79

0.31

Gramalote

Total

238.64

0.45

108.08

3.47

ESTIMATION

At Gramalote, results from about 145,000m of drilling (87,900m at Gramalote Central and 11,250m at the Trinidad area and 17,850m

at Monjas West area) were used to support the estimation of the Mineral Resource. Mineral Resource modelling was performed using

a geological model based on alteration, vein abundance and gold grade. Assay gold grades composited to 2m down-hole intervals

and outliers are capped based on the distribution observations using probability plots by each estimation domains. LUC was used to

estimate block grades and quantify the effect of selective mining.

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A M E R I C A S

c o n t i n u e d

G r a m a l o t e

GRAMALOTE year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

3.48

3.46

3.44

0.00

3.47

3.56

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

No changes took place to the Mineral Resource during the year.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

GRAMALOTE

Inclusive Mineral Resource sensitivity

-5

-10

-15

GRAMALOTE

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

450

400

350

300

250

200

150

100

3.0

2.5

2.0

1.5

1.0

0.5

0.0

0.00

0.25

0.50

0.75

1.00

1.25

1.75

2.00

1.50

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

As a low grade deposit Gramalote is
sensitive to changes in gold price.

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A M E R I C A S

c o n t i n u e d

L a C o l o s a

I N T R O D U C T I O N

Property description

The exploration project is wholly owned by AngloGold Ashanti.

Location

The project is located 150km west of Colombia’s capital city, Bogota, and 30km west of the major town

of Ibague, which is the capital of the Tolima department and the location of local government entities

monitoring the project.

History

Mineralisation at La Colosa was discovered by AngloGold Ashanti’s Colombian greenﬁelds exploration

team in 2006. Drilling commenced in 2007 and a Conceptual study was completed in 2008. Economic

studies continue.

Legal aspects and

tenure

The La Colosa comprises of a number of exploration permits namely:

•

EIG-163 comprising 2,581.83ha ﬁnishing the ninth year of exploration (third extension of exploration)

•

EIG-166 comprising 21.96ha in the third year of construction

•

EIG-167 comprising 1,237.62ha in the second year of exploitation

•

GLN-09261X comprising 3.63ha running the ninth year of construction (third extension of exploration)

•

HEB-169 comprising 3,861.45ha in the second year of exploitation

•

GGF-151 comprising 1,553.85ha starting the ninth year of exploration (third extension of exploration)

The ANM (National Mining Agency) has approved the concept of mineral tenement integration and the

proposed mineral exploration work plan. Final approval and contract registration of the integrated mining

rights is outstanding.

MADS (Environmental Ministry) has published the coordinates of the Chili-Barragan Páramo (alpine tundra

ecosystem) in the east of the project an area where mining is not permitted. Around 84ha overlap with

the integrated mineral tenement but do not affect the project as such. A recent ruling by the government

delineating the Los Nevados Páramo (across the remainder of the deposit) to 3,200m is currently being

reviewed by AngloGold Ashanti.

Exploration has been restricted in the Instituto Nacional de Vías (INVIAS) area of inﬂuence for the La Linea

tunnel.

Mining method

The project is still under development, but the concept is a large open pit.

Operational

infrastructure

Currently the project has a ﬁeld infrastructure that supports access to the Mineral Resource with roads,

accommodation, ofﬁce and surface infrastructure for pre-logging and organisation of the drilling core,

complementary to that there is a core shed facility in the city of Ibague, where geological and geo-

metallurgical logging are performed.

Mineral processing

The project is currently at an early stage and the ﬂotation of the sulphide ore is being considered.

Risks

The La Colosa project is at an early stage and a number of possible technical options have been identiﬁed,

all of which require signiﬁcant capital. Efforts to reduce capital thorough optimisation are ongoing.

The political risks associated with the mining industry in Colombia speciﬁcally in the Tolima department

need to be considered.

The recent ruling from the government delineating the Los Nevados Páramo to 3,200m is currently being

contested. If unsuccessful, this will have a signiﬁcant impact on the Mineral Resource being reported and

on the project as a whole.

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Cajamarca

Licences

Exploration

Villages

Main

Secondary

Settlements

Roads

La Colosa village

co-ordinates

75°29'39"W, 4°26'50"N

3km

larc

GGF -151

HEB-169

EIG-167

EIG-163

EIG-166

GLN-09261X

COMPETENT PERSONS

La Colosa

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Rudolf Jahoda

MAusIMM

990 544

25 years

MSc (Mining Geology)

PhD (Geology)

The Competent Person consents to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

Preliminary studies on the mineralogy, ﬂuid inclusion assemblages and geochemistry indicate that a younger hydrothermal event

overprints the previous porphyry-style mineralisation event. These younger veinlets consist of quartz (colloform-crustiform texture)

together with adularia and gold with narrow alteration halos of illite, sericite and carbonates. A distinct temperature-salinity environment

marks this high grade ore zone (>2g/t gold average), which is spatially and genetically controlled by a N-trending corridor of tension

gashes, crossing the magmatic complex and extending towards the metamorphic rocks in the northern areas.

A M E R I C A S

c o n t i n u e d

L a C o l o s a

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MINERALISATION STYLE

The La Colosa project is centered on a late Miocene (8.1Ma) multiphase diorite porphyry gold complex intruded into reduced

Paleozoic meta-sedimentary rocks. Although the porphyry system is generally copper-poor, a 0.1 – 0.2%Cu anomaly associated with

Mo>150ppm occurs laterally and at depth. The highest grade gold mineralisation is closely associated with a suite of early porphyry

intrusions/breccias with potassic and sodic-calcic alteration, high intensity of gold-sulphide veinlets and sulphur values generally

exceeding 2.5%. The multiphase diorite porphyry gold complex can be divided into three phases (early, intermineral and late) and

is elliptical in shape with a known maximum north-south axis of at least 1,200m. The complex strikes N10W with a dip of 75° east-

north-east, the contacts are mostly structurally bound. Intermineral and late dacitic dykes extend both north and south into the foliated

schistose hornfels.

Previous extension drilling has better deﬁned the porphyry contacts and high-grade mineralisation along structural corridors. Additional

upside for mineralisation occurs to the north-west of the porphyry – (sub) epithermal targets and at depth.

San Antonio is a separate much smaller porphyry centre 1.2km south of La Colosa and characterised by hydrothermal and intrusion

breccias associated with intermineral diorites and a late dacite stock.

MINERALISATION CHARACTERISTICS

Three types of porphyry-style hydrothermal alteration are associated with magmatic activity:

•

potassic alteration (mainly secondary biotite), which occurs as pervasive replacement of ferromagnesian minerals and matrix in the

early and intermineral phase rocks

•

sodic-calcic alteration (albite, actinolite and epidote), which is conﬁned to cm-scale patches in the early and intermineral stage rocks

•

propylitic alteration (chlorite, epidote, albite and carbonates) within the late magmatic stage. Multiphase siliciﬁcation occurs within

the schistose metamorphic rocks

Six major types of veinlets have been identiﬁed at the La Colosa project area. The veinlets occur in the magmatic rocks as well as in

the metamorphic rocks. The veinlet sequence is (from oldest to youngest): EB-type, A-type, M-type, S-type, D-type, and CC-type.

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Envelope 0.5 g/t Au

N-trending extensional faults

La Colosa F

ault

Ns1 F

ault

La Ceja F

ault

2,250m

3,000m

750 m

493900

Early magmatic rocks

Intermineral magmatic rocks

Schistose wallrock

Ore zone

0.5g/t au

1.5g/t au

2.0g/t au

Pyroclastic fall deposits

Late magmatic rocks

Legend

GEOLOGICAL CROSS-SECTION THROUGH LA COLOSA

E X P L O R AT I O N

The La Colosa Mineral Resource is located in a forest reserve as deﬁned by the Colombian Government. An area of 6.39ha has been

temporarily extracted within a boundary of 515ha allowing for drill platforms, access and camp sites.

The current exploration strategy is to deﬁne an Indicated Mineral Resource, centered on the conceptual pit shell and extend the

known high-grade mineralisation. The average drill spacing of 100m x 100m has been reviewed for Mineral Resource classiﬁcation.

Conversion to Indicated Mineral Resource has been allowed for sectors with a drill spacing of 75m x 75m.

A total of 138,969m (397 holes) have been drilled to date.

P R O J E C T S

A Conceptual study was presented in October 2015 considering a mine and whole ore leach processing plant of a reduced size

of 23Mtpa and all facilities located “on mountain”. Project economics were favorable leading to the initiation of a PFS study on this

reduced size option with the work emphasis on conﬁrmation of the suitability of the proposed tailings and waste rock storage area

and optimisation of the processing circuit.

Geometallurgical studies related to comminution modelling focused on obtaining hardness parameters are advancing. The metallurgical

data has been correlated with multi-element assay and spectral mineralogical data to obtain proxies for metallurgical parameters.

The comminution parameters have been kriged and a preliminary throughput model has been obtained.

A M E R I C A S

c o n t i n u e d

L a C o l o s a

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M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

La Colosa

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other Comments

Measured

–

– –

Indicated

75 x 75 ✔

–

– –

Inferred

100 x 100 ✔

–

– –

Grade/ore control

–

– –

INCLUSIVE MINERAL RESOURCE

La Colosa

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Open pit

Measured

–

Indicated

821.67

0.85

695.68

22.37

Inferred

242.51

0.78

189.65

6.10

La Colosa

Total

1,064.18

0.83

885.33

28.46

ESTIMATION

At La Colosa, some 138,969m of drilling supported the estimation of an Indicated Mineral Resource. Gold grades were estimated

using ordinary kriging. Kriging was performed into a block size of 50m x 50m x 10m using lithological domains (wireframes) in a

grade-based mineralisation envelope and also for the waste surrounding the mineralisation. All available geological drill holes, surface

sampling and mapping information was validated for use in the modelling process.

The La Colosa Mineral Resource is reported at a cut-off grade of 0.35g/t. The mineralisation has been classiﬁed on the basis of kriging

variance related to drill spacing.

LA COLOSA

Grade tonnage curve surface (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

1 800

1 600

1 400

1 200

1 000

800

600

400

200

1.8

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.0

0.1

0.2

0.3

0.5

0.6

0.7

0.8

1.0

1.1

1.2

0.4

0.9

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

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A M E R I C A S

c o n t i n u e d

L a C o l o s a

2015

Depletion

Exploration

Methodology

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

LA COLOSA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

28.48

28.46

28.44

0.00

28.46

Only sterilisation drilling has been carried out in 2016. There is no change therefore to the overall Mineral Resource.

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

LA COLOSA

Inclusive Mineral Resource sensitivity

-2

-4

-6

La Colosa is a high volume, low grade
mineral occurrence. The Mineral
Resource is insensitive to gold price.

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A M E R I C A S

c o n t i n u e d

Q u e b r a d o n a

I N T R O D U C T I O N

Property description

Quebradona is an exploration project having completed a Conceptual study and starting PFS. It is a

JV between AngloGold Ashanti (92.72%) and B2Gold (7.28%). Five main targets have been identiﬁed,

namely Nuevo Chaquiro, Aurora, Tenedor, Isabela and La Sola. Nuevo Chaquiro is the most advanced of

the targets.

Nuevo Chaquiro, a signiﬁcant copper-gold porphyry-style mineralised system, is one of ﬁve known porphyry

centres on the property and has been the focus of exploration activities since the beginning of 2011.

Location

The Quebradona project is situated in the Middle Cáuca region of Colombia, in the Department of

Antioquia, 60km south-west of Medellin.

History

Exploration was carried out from 2004 by AngloGold Ashanti and then from 2006 to 2009 by B2Gold. In

2010 AngloGold Ashanti took management control and focused its exploration effort on Nuevo Chaquiro,

a signiﬁcant copper-gold porphyry-style mineralised system. One of ﬁve known porphyry centres on

the property and this has been the focus of exploration activities since the beginning of 2011. In 2014

a maiden Mineral Resource was published for Nuevo Chaquiro and a Conceptual study was initiated.

Updates of the Mineral Resource model were completed in 2015 and 2016 and did not show signiﬁcant

changes in metal content.

Legal aspects and

tenure

On December 2016 the integration of the ﬁve tenements (7,579; 6,359; 5,869; 5,881 and 6,318) was

successfully registered in the National Mining Register resulting in a unique mining title comprising

7,593ha.

•

5,881 issued on the 9 December 2016 for 7,593ha

Mining method

No mining activities. From the Conceptual study completed, mining will be by sub-level caving with ore

access being by both an upper and a lower access tunnel. The mining rate will be 5Mtpa ore.

Operational

infrastructure

The Conceptual study indicates that the overall project layout and conﬁguration will have nearly all activity

in the lower areas of the project. Included here will be the primary mine access tunnel (which will serve as

ore conveyance as well), processing plant, tailings dam and associated facilities. The upper area includes

the orebody and will maintain only auxiliary access, ventilation, and minor support structure for the mine.

Mineral processing

Metallurgical test are in progress. From the Conceptual study, plant operations will utilise standard copper/

gold ﬂotation and recovery via ﬁltration of a concentrate. Plant throughput will be 5Mtpa of ore generating

approximately 204Ktpa of concentrate. Concentrate will be transported by a combination of truck and

rail to a seaport where concentrate will be bulk loaded for transportation to a smelter facility. Concentrate

quality will be good and present no unusual commercial challenges for sales.

Risks

No siginiﬁcant risk identiﬁed. Conﬁdence in the Mineral Resource increased during the year with the new

inﬁll drilling resulting in 37% (Au Ounces) of the total Mineral Resource being upgraded to an Indicated

Mineral Resource. The PFS under consideration has approximately 78% of the Mineral Resource classiﬁed

as an Indicated Mineral Resource. Variability in copper grade is low and high continuity was conﬁrmed

after the 2015 drilling. Security risk is considered low and Nuevo Chaquiro has a moderate seismic risk.

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(

Jerico

Corr egimiento de Palermo

Airfield co-ordinates
75°44'51"W, 5°45'50"N

Licences

Licenses are unconsolidated

Exploration

Exploration application

Settlements

Villages

Roads

Secondary

Airfield

ExpL 5881

ExpL 6359

ExpL 7579

ExpL 586

Airfield

ExpL 6318

ExpL 7579

COMPETENT PERSONS

Quebradona

Category

Competent Person

Professional
organisation

Membership
number

Relevant
experience

Qualiﬁcation

Mineral Resource

Pablo Luis Noriega

MAusIMM

315 688

17 years

BSc Hons (Geology)

The Competent Person consents to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report,

in the form and context in which it appears.

G E O L O G Y

DEPOSIT TYPE

Main target Nuevo Chaquiro in Quebradona Project is a typical porphyry copper deposit with large tonnes and low grade with gold,

molybdenum and silver by products.

The structural setting facilitated the intrusive bodies rise through of volcaniclastic sequence of Combia formation. The intrusives did

not reach surface and remain as a blind deposit despite erosion acting for a signiﬁcant period.

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MINERALISATION STYLE

The Nuevo Chaquiro deposit consists of Miocene-aged diorite and main proportion of quartz diorite dykes and thin vertical stocks
intruding a thick section of andesitic tuffs and volcaniclastics rocks of the Miocene-aged (6-10 My) Combia formation which ﬁlls a
large pull-apart basin within the prospective middle Cauca belt of central Colombia. Depth to mineralisation from the surface is around
150–400m from NE to SW. Typical copper porphyry alteration zonation is evident with a high temperature, K-silicate central zone
(biotite, magnetite, chalcopyrite, and molybdenite) which trends into an overlying sericitic alteration zone (muscovite, chlorite, quartz,
pyrite,+-tourmaline) surrounded by more distal propylitic alteration (chlorite, epidote, illite, carbonate). There is also an inner core of
calcic-potassic alteration featuring biotite, actinolite, epidote, and anhydrite with lesser copper, gold and molybdenum values.

MINERALISATION CHARACTERISTICS

The intrusive complex can be categorised as premineral, early, intramineral and late, according to cross-cutting relationships, locality
relations, temporality and Cu/Au values. The early dyke is located in the eastern part of the deposit and is the main supplier of heat
and hydrothermal ﬂuids that caused the mineralisation event, in the central area abundant intra-mineral diorite and quartz diorites are
found, of which a classic ore shell of lower-grade mineralisation (>0.3% copper) appears draped over the intrusions. Higher grade
copper-gold mineralisation (>1.4% Cu) is associated with a well-developed quartz vein stock-work in the cupola zone of early quartz
diorite, persisting over a vertical interval of 500m. The majority of the intrusive rocks don’t outcrop.

The mineralised zone is characterised by ﬁne stock works, disseminations and veinlets of quartz, magnetite, pyrite, chalcopyrite
and molybdenite.

Traces of bornite and cubanite have been locally observed, but in amounts not exceeding 0.1% volume. Other sulﬁdes include pyrite
and amounts of pyrrhotite in speciﬁc intervals. Gold and silver correlate well with copper and, by analogy to other deposits, are

believed to occur within the chalcopyrite, although this has not yet been established by detailed metallurgical examination.

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c o n t i n u e d

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2100m

1900m

1700m

1500m

1300m

1100m

900m

Elevation

100m

700m

2100m

1900m

1700m

1500m

1300m

1100m

900m

Legend

Tuff

Intramineral Quartz Diorite

Premineral Quartz Diorite

Early Quartz Diorite

Cu ore zone

0.6%

0.45%

100m

700m

GEOLOGICAL CROSS-SECTION THROUGH NUEVO CHAQUIRO

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E X P L O R AT I O N

During 2016 the project was focused on completing the Conceptual study.

Hydrogeological and geotechnical data was reviewed and compiled for the Conceptual study and limited metallurgical, geotechnical

and hydrogeological drilling started in late 2016. Structural update was completed with focus on the infrastructure location sites. Some

of the areas with granted access were geologically mapped.

P R O J E C T S

The Conceptual study phase was completed in September 30th 2016 and is currently in a bridge period to enter PFS in

January 2017.

M I N E R A L R E S O U R C E

DETAILS OF AVERAGE DRILLHOLE SPACING AND TYPE IN RELATION TO MINERAL RESOURCE CLASSIFICATION

Quebradona

Type of drilling

Category

Spacing m (-x-)

Diamond

Blasthole

Channel

Other Comments

Measured

30 x 30

–

– –

Indicated

60 x 60 ✔

–

– –

Inferred

120 x 120 ✔

–

– –

Grade/ore control

–

– –

Drill hole spacing over the project is variable, being inﬂuenced by environmental and social considerations. Where possible multiple

drill holes are conducted from the same drill pad to minimise impact on the environment. Drilling at Quebradona varies from 50 x 50m

grid in the central part and 100 x 100 to 120 x 120 in the adjacent low grade Inferred Mineral Resource areas. Due to having some

multihole platforms, the drilling spacing in the ﬁrst 300m is tighter than in the deeper portions.

INCLUSIVE MINERAL RESOURCE

Quebradona

Tonnes

Grade

Contained gold

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Nuevo Chaquiro

Measured

–

Indicated

104.37

0.62

65.09

2.09

Inferred

467.64

0.23

109.47

3.52

Quebradona

Total

572.01

0.31

174.57

5.61

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: COPPER (Cu)

Quebradona

Tonnes

Grade

Contained copper (Cu)

as at 31 December 2016

Category

million

%Cu

tonnes million pounds million

Measured

–

Indicated

104

1.08

1.13

2,487

Inferred

468

0.53

2.47

5,446

Quebradona

Total

572

0.63

3.60

7,933

Quebradona is likely to be a Cu mine with Au as a by-product, this will be conﬁrmed during the PFS.

INCLUSIVE MINERAL RESOURCE BY-PRODUCT: SILVER (Ag)

Quebradona

Tonnes

Grade

Contained silver (Ag)

as at 31 December 2016

Category

million

g/t

tonnes

Moz

Measured

–

Indicated

104

6.38

666

Inferred

468

3.80

1,775

Quebradona

Total

572

4.27

2,442

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A M E R I C A S

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INCLUSIVE MINERAL RESOURCE BY-PRODUCT: MOLYBDENUM (Mo)

Quebradona

Tonnes

Grade

Contained molybdenum (Mo)

as at 31 December 2016

Category

million

ppm

kilotonnes pounds million

Measured

–

Indicated

104

137

Inferred

468

126

130

Quebradona

Total

572

128

162

ESTIMATION

Copper, gold, silver, molybdenum, arsenic and sulphur grades were estimated using ordinary kriging into a 40 x 40 x 20m block size

model. Grades were estimated within grade-based 3D wireframe boundaries for copper and gold grades, with separate domains for

molybdenum and sulphur.

Drill hole data was composited to 6m down-hole lengths prior to estimation and extreme values were capped. Estimation was into

homogeneous geological domains using ordinary kriging. Classiﬁcation was done using conditional simulation.

The Mineral Resource was tested for and found to have reasonable and realistic prospects for eventual economic extraction. It

represents a realistic inventory of mineralisation within a conceptual underground mine design, based on two lifts using a combination

of block caving and panel caving. The development levels at 1,000mRL and 1,400mRL, were assumed to be potentially available to

mine at some point in the future. Therefore all of the Inferred Mineral Resource above the 1,000mRL within the mine design is included

in the estimate and since non-selective methods are used, no cut-off can be applied. Additional potentially mineralised material is

included in the mine design, but is not included as part of the reported Mineral Resource due to lower conﬁdence in the grade estimate

as a result of limited drill hole data in those portions of the deposit.

QUEBRADONA

Grade tonnage curve underground (metric) (attributable)

Tonnes above cut-off (millions)

Average grade above cut-off (g/t)

600

500

400

300

200

100

2.0
1.9
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2

0.1 0.2 0.3 0.4 0.5 0.6 0.7

1.4 1.5

0.8 0.9 1.0 1.1 1.2 1.3

Cut-off grade (g/t)

Tonnes above cut-off

Ave grade above cut-off

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QUEBRADONA year-on-year changes in Mineral Resource

Total (attributable)

Ounces (millions)

5.67

5.66

5.65

5.64

5.63

5.62

5.61

5.60

5.59

5.58

0.00

-0.07

0.00

0.02

5.66

5.61

2015

Depletion

Exploration

Methodolog

Gold price

Cost

Geotechnical

Metallurgical

Other

Acquisition/

disposal

2016

1,200

1,400

1,600

Percentage change

Mineral Resource price ($/oz)

Tonnes Ounces

Grade

QUEBRADONA

Inclusive Mineral Resource sensitivity

-2

-4

-6

-8

-10

All the Mineral Resource is below infrastructure.

In 2016 the Mineral Resource model was updated with the addition of ﬁve drill holes, resulting in slightly lower grades in copper

and gold. Despite the decrease in copper and molybdenum prices there were no signiﬁcant changes in the Mineral Resource, it is

explained by a positive balance due to increased recoveries in copper, gold and silver. The attributable percentage increased from

92.42% to 92.72%.

No changes at higher price ($1,600/oz)
as the existing mining designs were used
to constrain the Mineral Resource.
At lower price ($1,200/oz) a step of
0.1g/t Au from the grade ton curve was
used to proportionately represent the
variations in price.

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S E C T I O N 6

A D M I N I S T R A T I O N I N F O R M A T I O N

T h i s s e c t i o n p r o v i d e s i n f o r m a t i o n o n o u r

d e f i n i t i o n o f M i n e r a l R e s o u r c e a n d O r e

R e s e r v e a s w e l l a s a g l o s s a r y o f t e r m s

a n d a b b r e v i a t i o n s .

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D E F I N I T I O N S

M I N E R A L R E S O U R C E

The SAMREC Code, 2016 edition, deﬁnition of a Mineral Resource is as follows:

“A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form,

grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade,

continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from speciﬁc geological

evidence and knowledge, including sampling.

Mineral Resources are subdivided, and must be so reported, in order of increasing conﬁdence in respect of geoscientiﬁc evidence,

into Inferred, Indicated or Measured categories.”

All reports of Mineral Resource must satisfy the requirement that there are reasonable prospects for eventual economic extraction

(i.e. more likely than not), regardless of the classiﬁcation of the Mineral Resource. Portions of a deposit that do not have reasonable

prospects for eventual economic extraction are not included in a Mineral Resource.

The Mineral Resource is estimated using all drilling and sampling information along with a detailed geological model.

The geological models are based on various combinations-of-core and/or chip logging, mapping, geophysics, geochemistry and

geological understanding that have been developed for each deposit. Most of the AngloGold Ashanti deposits have been the subject

of research by world experts in the relevant class of gold deposits.

The grade estimation for each deposit has been developed over the life of the mine and is constantly reviewed in terms of grade control

information and reconciliation with the metallurgical plant. In general, the deep South African mines utilise a process of Compound Log

normal macro co-kriging for the estimation of the Mineral Resource, while the open pits and shallow underground mines generally use

recoverable Mineral Resource models, estimated using UC or LUC.

In order to comply with the economic requirement of the deﬁnition of Mineral Resource, all AngloGold Ashanti Mineral Resource are

constrained at an upside gold price, with all other parameters being kept the same as used for estimation of the Ore Reserve. In

the underground gold mines, scoping studies are conducted on all coherent blocks of ground that lie above the calculated Mineral

Resource cut-off. These studies include all cost and capital requirements to access the block. In the case of open pit operations,

pit optimisations are conducted at the Mineral Resource gold price and all material outside these shells is excluded from the Mineral

Resource, unless it is potentially mineable from underground.

It is the opinion of AngloGold Ashanti that the Mineral Resource represents a realistic view of an upside potential to the Ore Reserve.

In interpreting the Mineral Resource it is critical to factor in the following:

•

That there is a reasonable expectation of eventual economic extraction

•

The Mineral Resource is quoted in situ and has not been corrected for dilution, mining losses or recovery; and

•

Many of the areas lying in the exclusive Mineral Resource are currently being actively drilled and are the subject of economic and

technical studies. It can, however, not be assumed at this stage that the company has intent to mine these areas.

Mineral Resource classiﬁcation is based on the ‘15% Rule’. A Measured Mineral Resource should be expected to be within 15% of the

quarterly metal estimate at least 90% of the time, while for an Indicated Mineral Resource estimate the annual metal estimate should

be within 15% of the metal estimated at least 90% of the time. For an Inferred Mineral Resource the annual error may for 90% of the

time, be greater than 15%.

The process and methodology of classiﬁcation are at the discretion of the Competent Person and involves expressing the ‘15%

Rule’ as a required level of information, in tangible terms the spacing of the drill hole or tunnel spacing in a particular deposit.

Techniques such as conditional simulation or even an empirical reconciliation-based approach are employed. However, all operations

are responsible for demonstrating, through reconciliation, that their classiﬁcation system conforms to the 15% rule set out above.

Final Mineral Resource classiﬁcation also considers relative conﬁdence in sampling and drilling QAQC as well as other variables that

may impact on conﬁdence in tonnage and grade.

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The Inferred Mineral Resource category is intended to cover situations in which a mineral concentration or occurrence has been

identiﬁed and limited measurements and sampling have been completed, but in which the data are insufﬁcient to allow the geological

or grade continuity to be interpreted with conﬁdence. While it would be reasonable to expect that the majority of Inferred Mineral

Resources would upgrade to Indicated Mineral Resources with continued exploration, due to the uncertainty of Inferred Mineral

Resources, it should not be assumed that such upgrading will always occur.

AngloGold Ashanti quotes its Mineral Resource as inclusive of the Ore Reserve. However, in this document the exclusive Mineral

Resource is also quoted. The exclusive Mineral Resource is deﬁned as the inclusive Mineral Resource less the Ore Reserve before

dilution and other factors are applied.

The exclusive Mineral Resource consists of the following components:

•

All Inferred Mineral Resource, including that within the Ore Reserve design or stope shape

•

Mineral Resource that sits above the Mineral Resource cut-off but below the Ore Reserve cut-off and which resides within the

deﬁned Ore Reserve volume

•

Mineral Resource that lies between the LoM pit shell/mine design and the Mineral Resource pit shell / mine design. This material will

become economic if the gold price increases

•

Mineral Resource where the technical studies to engineer an Ore Reserve have not yet been completed

All grade tonnage graphs represent in-situ grade and tonnes within the Mineral Resource. Caution should be exercised when

interpreting the grade tonnage graphs presented. The ability to selectively mine the deposits may be precluded by the deposit

geometry, mining method and the need for practical development of the orebody.

O R E R E S E R V E

The SAMREC Code, 2016 edition, deﬁnition of an Ore Reserve is as follows:

“A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource.

It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is deﬁned by

studies at Pre-Feasibility or Feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that,

at the time of reporting, extraction could reasonably be justiﬁed.

The reference point at which Mineral Reserves are deﬁned, usually the point where the ore is delivered to the processing plant, must be

stated. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement

is included to ensure that the reader is fully informed as to what is being reported.”

Although the term Ore Reserve is used throughout this document, it is recognised that the term Mineral Reserve is used in the

SAMREC code. For the purposes of reporting under the SAMREC Code, these terms are considered to be synonymous.

Ore Reserve is sub-divided in order of increasing conﬁdence into Probable Ore Reserve and Proved Ore Reserve.

In the underground operations, the Ore Reserve is based on a full mine design and in the case of open pits on a pit optimisation

followed by a ﬁnal pit design. The Ore Reserve is reported according to tonnage, mean grade(s), and contained metal inclusive of

mining dilution, mining ore-losses and mine call factors. These modifying factors are based on measurements, rather than estimates.

Tonnage and grade estimates for surface stockpile materials that meet Ore Reserve criteria are itemised separately.

Only the Ore Reserve included for treatment in the business plan production schedule is considered in the Ore Reserve statement.

Inferred Mineral Resource is not included in the Ore Reserve statement.

For all new projects, an audited PFS (as a minimum requirement) must have been completed that demonstrates the viability of the

project and meets the company’s investment requirements. This study must be signed off at the appropriate executive level in order

to demonstrate an intent on the part of the company to proceed to FS and ultimately to implement the project.

D E F I N I T I O N S

c o n t i n u e d

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Banded Iron formation (BIF):

A chemically formed iron-rich sedimentary rock.

By-products:

Any potentially economic or saleable products that emanate from the core process of producing gold, including silver,

uranium, copper, molybdenum and sulphuric acid.

Calc-silicate rock:

A metamorphic rock consisting mainly of calcium-bearing silicates such as diopside and wollastonite, often

formed by metamorphism of impure limestone or dolomite.

Capital expenditure:

Total capital expenditure on tangible assets which includes stay-in-business and project capital.

Carbon-in-leach (CIL):

Gold is leached from a slurry of ore with cyanide in agitated tanks and adsorbed on to activated carbon

granules at the same time (i.e. when cyanide is introduced in the leach tank, there is already activated carbon in the tank and there

is no distinction between leach and adsorption stages). The carbon granules are separated from the slurry and treated in an elution

circuit to remove the gold.

Carbon-in-pulp (CIP):

Gold is leached conventionally from a slurry of ore with cyanide in agitated tanks. The leached slurry then

passes into the CIP circuit where activated carbon granules are mixed with the slurry and gold is adsorbed on to the activated carbon.

The gold-loaded carbon is separated from the slurry and treated in an elution circuit to remove the gold.

Comminution:

The crushing and grinding of ore to make gold available for physical or chemical separation. (See also Milling).

Contained gold:

The total gold content (tonnes multiplied by grade) of the material being described.

Cut-off grade (COG):

The minimum grade at which a unit of ore will be mined to achieve the desired economic outcome.

Depletion:

The decrease in quantity of ore in a deposit or property resulting from extraction or production.

Development:

The process of accessing a deposit through shafts and/or tunnelling in underground mining operations.

Electro-winning:

A process of recovering gold from solution by means of electrolytic chemical reaction into a form that can be

smelted easily into gold bars.

Elution:

Recovery of the gold from the activated carbon into solution before zinc precipitation or electro-winning.

Feasibility study (FS):

A comprehensive technical and economic study of the selected development option for a mineral project

that includes appropriately detailed assessments of applicable modifying factors together with any other relevant operational

factors and detailed ﬁnancial analysis that are necessary to demonstrate at the time of reporting that extraction is reasonably

justiﬁed (economically mineable). The results of the study may reasonably serve as the basis for a ﬁnal decision by a proponent or

ﬁnancial institution to proceed with, or ﬁnance, the development of the project. The conﬁdence level of the study will be higher than

that of a PFS (SAMREC 2016).

Flotation:

Concentration of gold and gold-hosting minerals into a small mass by various techniques (e.g. collectors, frothers, agitation, air-

ﬂow) that collectively enhance the buoyancy of the target minerals, relative to unwanted gangue, for recovery into an over-ﬂowing froth phase.

Full grade ore (FGO):

Ore material with sufﬁcient grade to carry the full operating cost. FGO cut-off is the break-even grade where

cost is representative of all costs to carry the full operation excluding direct mining cost.

Gold produced:

Reﬁned gold in a saleable form derived from the mining process.

Grade:

The quantity of ore contained within a unit weight of mineralised material generally expressed in grams per metric tonne (g/t),

or ounces per short ton of ore (oz/t) for gold-bearing material.

Indicated Mineral Resource:

That part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics

are estimated with sufﬁcient conﬁdence to allow the application of modifying factors in sufﬁcient detail to support mine planning and

evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling

and testing and is sufﬁcient to assume geological and grade or quality continuity between points of observation (SAMREC 2016).

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Inferred Mineral Resource:

That part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of

limited geological evidence and sampling. Geological evidence is sufﬁcient to imply but not verify geological and grade or quality

continuity. An Inferred Mineral Resource has a lower level of conﬁdence than that applying to an Indicated Mineral Resource and must

not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to

Indicated Mineral Resources with continued exploration (SAMREC 2016).

Leaching:

Dissolution of gold from crushed or milled material, including reclaimed slime, prior to adsorption on to activated carbon

or direct zinc precipitation.

Life of mine (LoM):

Number of years that the operation is planning to mine and treat ore, as taken from the current mine plan.

Marginal ore (MO):

Ore material with grade below the FGO cut-off that can be economically treated at the end of mine life when

overhead and mining costs are reduced. MO cut-off is the break-even grade where cost is representative of the reduced cost that will

be experienced after mining has ended.

Measured Mineral Resource:

That part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical

characteristics are estimated with conﬁdence sufﬁcient to allow the application of modifying factors to support detailed mine planning

and ﬁnal evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration,

sampling and testing and is sufﬁcient to conﬁrm geological and grade or quality continuity between points of observation. A Measured

Mineral Resource has a higher level of conﬁdence than that applying to either an Indicated Mineral Resource or an Inferred Mineral

Resource. It may be converted to a Proved Mineral Reserve or to a Probable Mineral Reserve (SAMREC 2016).

Metallurgical plant:

A processing plant designed to treat ore and extract gold (and in some cases often valuable by-products).

Milling:

A process of reducing broken ore to a size at which concentrating can be undertaken (See also Comminution).

Mine call factor (MCF):

The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product

after processing with the amount estimated in the ore based on sampling. The ratio of contained gold delivered to the metallurgical

plant divided by the estimated contained gold of ore mined based on sampling.

Metallurgical recovery factor (MetRF):

A measure of the efﬁciency in extracting gold from the ore deposit.

Mineral deposit:

A mineral deposit is a concentration (or occurrence) of material of possible economic interest in or on the earth’s crust.

Mining recovery factor (MRF):

This factor reﬂects a mining efﬁciency factor relating the recovery of material during the mining

process and is the variance between the tonnes called for in the mining design and what the plant receives. It is expressed in both a

grade and tonnage number.

Modifying factors:

Considerations used to convert Mineral Resource to Ore Reserve. These include, but are not restricted to, mining,

processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.

Net present value (NPV):

The difference between the present value of cash inﬂows and the present value of cash outﬂows.

Ore Reserve:

Ore Reserve is preferred under the JORC Code but Mineral Reserve is in common use in other countries and reporting

codes (i.e. SAMREC) and are generally accepted and regarded as synonymous.

Ounce (oz):

Imperial measure of mass speciﬁcally used for precious metals and still the standard measure of mass in the gold industry.

A kilogram is equal to 32.1507 troy ounces. A troy ounce is equal to 31.1035 grams.

Páramo:

Apline tundra ecosystem.

Pay limit:

The grade of a unit of ore at which the revenue from the recovered mineral content of the ore is equal to the total cash cost

including Ore Reserve development and stay-in-business capital. This grade is expressed as an in-situ value in grams per tonne or

ounces per short ton (before dilution and mineral losses).

Precipitate:

The solid product formed when a change in solution chemical conditions results in conversion of some pre-dissolved

ions into solid state.

Pre-feasibility study (PFS):

A comprehensive study of a range of options for the technical and economic viability of a mineral project

that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit conﬁguration, in the case

of an open pit, is established and an effective method of mineral processing is determined. It includes a ﬁnancial analysis based on

reasonable assumptions on the modifying factors and the evaluation of any other relevant factors which are sufﬁcient for a competent

person, acting reasonably, to determine if all or part of the Mineral Resource may be converted to a Mineral Reserve at the time of

reporting. A PFS is at a lower conﬁdence level than a FS (SAMREC 2016).

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Probable Ore Reserve:

The economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource.

The conﬁdence in the modifying factors applying to a Probable Mineral Reserve is lower than that applying to a Proved Mineral Reserve

(SAMREC 2016).

Proved Ore Reserve:

The economically mineable part of a Measured Mineral Resource. A Proved Mineral Reserve implies a high

degree of conﬁdence in the modifying factors. (SAMREC 2016).

Reclamation:

In the South African context, reclamation describes the process of reclaiming slimes (tailings) dumps using high-

pressure water cannons to form a slurry which is pumped back to the metallurgical plants for processing.

Recovered grade:

The recovered mineral content per unit of ore treated.

Reef:

A gold-bearing horizon, sometimes a conglomerate band that may contain economic levels of gold. Reef can also be any

signiﬁcant or thick gold bearing quartz vein.

Reﬁning:

The ﬁnal puriﬁcation process of a metal or mineral to a saleable form.

Region:

Deﬁnes the operational management divisions within AngloGold Ashanti, namely South Africa, Continental Africa (DRC,

Ghana, Guinea, Mali and Tanzania), Australasia (Australia) and the Americas (Argentina, Brazil and Colombia).

Rehabilitation:

The process of returning disturbed land to a stable, productive or self-sustaining condition requiring no ongoing

maintenance to meet the post-mining land use objectives and taking into account beneﬁcial uses of the site and surrounding land.

Rehabilitation objectives are generally deﬁned in environmental permits but are typically amended during the operational phase of

projects through stakeholder engagement processes to ensure post mining land uses are congruent with surrounding and regional

land use plans. Rehabilitation methods can vary by location owing to the extent of disturbance and geo-climatic factors and include,

among others, the processes of remediation, revegetation and restoration, to address issues such as soil, ground and surface water,

contamination, soil erosion and revegetation.

Resource modiﬁcation factor (RMF):

This factor is applied when there is an historic reconciliation discrepancy in the Mineral

Resource model. For example between the Mineral Resource model tonnage and the Grade Control model tonnage. It is expressed

in both a grade and tonnage number.

Seismic event:

A sudden inelastic deformation within a given volume of rock that radiates detectable seismic energy.

Shaft:

A vertical or subvertical excavation used for accessing an underground mine; for transporting personnel, equipment and

supplies; for hoisting ore and waste; for ventilation and utilities; and/or as an auxiliary exit.

Smelting:

A pyro-metallurgical operation in which gold precipitate from electro-winning or zinc precipitation is further separated

from impurities.

Selective mining unit (SMU):

The smallest unit that can be mined at a particular operation with the equipment available at that site,

reﬂecting the intended or proposed mining selectively.

Stay-in-business capital:

Capital expenditure to maintain existing production assets. This includes replacement of vehicles, plant

and machinery, Ore Reserve development and capital expenditure related to safety, health and the environment.

Stope:

Underground excavation where the mineralised deposit is extracted.

Stoping:

The process of excavating ore underground.

Stripping ratio:

The ratio of waste tonnes to ore tonnes mined calculated as total tonnes mined less ore tonnes mined divided by ore

tonnes mined.

Tailings:

Finely ground rock of low residual value from which valuable minerals have been extracted.

Tailings storage facilities (TSF):

Dam facilities designed to store discarded tailings.

Tonne (t):

Used in metric statistics. Equal to 1,000 kilograms (the International System Units (SI) mass unit).

Tonnage:

Quantity of material measured in tonnes.

Waste:

Material that contains insufﬁcient mineralisation for consideration for future treatment and, as such, is discarded.

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Degrees

‘

Minutes

United States dollars

Three-dimensional space

Two-dimensional space

Aircore drilling

ADU

Ammonium diuranate or yellow cake

Silver

AGA

Mineração

AngloGold Ashanti Córrego do Sítio

Mineração operations

AGAG

AngloGold Ashanti (Ghana) Limited

ARS

Argentine peso

ASX

Australian Securities Exchange

Gold

AUD

Australian dollars

Avg./Ave.

Average

BIOX

Bacterial oxidation

BMD

Below mine datum

BRL

Brazilian real

capex

Capital expenditure

CCD

Counter current decantation

CdS

Córrego do Sítio

CEA

Centre of Environmental Studies

CLR

Carbon Leader Reef

Centimetres

cm.g/t

Centimetre grams per tonne

Crystalkop Reef

Copper

Diamond drilling

DNPM

The Brazilian National Department for

Mineral Production

DRC

Democratic Republic of the Congo

Grams

Grade control

GGM

Geita Gold mine

g/t

Grams per tonne

Hectare

JORC

Australasian Code for Reporting Exploration

Results, Mineral Resource and Ore Reserve

JSE

Johannesburg Stock Exchange Limited

Joint venture

KCD

Karagba, Chauffeur and Durba

Kilograms

koz

Thousand ounces

Thousand tonnes

kg/t

Kilograms per tonne

Kilometres

ktpa

Kilo tonnes per annum

A B B R E V I A T I O N S

LIB

Long inclined borehole

LUC

Local uniform conditioning

M or m

Metre or million, depending on the context

Square metre

Cubic metre

MCH

Meta-chert

MetRF

Metallurgical Recovery Factor

Mlb

Million pounds

Molybdenum

Moz

Million ounces

MRPTO

Mineral and Petroleum Resources

Titles Ofﬁce

mRL

Metres relative level

MSG

Mineração Serra Grande

Million tonnes (metric)

Mtpa

Million tonnes per annum

MWS

Mine Waste Solutions

Nufcor

Nuclear Fuels Corporation of South Africa

(Pty) Ltd

PFZ

Pretorius Fault Zone

POX

Pressure oxidation

QKNA

Quantitative kriging neighbourhood analysis

Mineral Resource and Ore Reserve Reporting

System

R or ZAR

South African rand

Randgold

Randgold Resources Limited

Reverse circulation drilling

ROM

Run-of-mine

Sulphur

SAG

Société Ashanti Goldﬁelds de Guinea

SAMREC

The South African Code for the Reporting of

Exploration Results, Mineral Resource and

SFZ

Sadiola Fracture Zone

SOKIMO

Société Minièrede Kilo-Moto

SSP

Sadiola Sulphide Project

TJV

Tropicana Joint Venture

tpa

Tonnes per annum

tpd

Tonnes per day

tph

Tonnes per hour

tpm

Tonnes per month

Uranium oxide

Uniform conditioning

VCR

Ventersdorp Contact Reef

Vaal Reef

μm

Micron metre

WUDLs

Western Ultra-deep Levels

XRF

X-ray Fluorescence

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A D M I N I S T R A T I V E I N F O R M A T I O N F O R
P R O F E S S I O N A L O R G A N I S A T I O N S

AusIMM

The Australasian Institute of Mining and Metallurgy

PO Box 660, Carlton South, Vic 3053, Australia

Telephone: +61 (3) 9658 6100

Facsimile: +61 (3) 9662 3662

www.ausimm.com.au

PLATO/SAGC

South African Council for Professional and Technical Surveyors/The South African Geomatics Council

P O Box 83018, South Hills, 2136, Gauteng, South Africa

Telephone: +27 (11) 626 1040/1080

Facsimile: +27 (11) 626 2007

www.sagc.org.za

SACNASP

South African Council for Natural Scientiﬁc Professions

Private Bag X540, Silverton, 0127, Gauteng, South Africa

Telephone: +27 (12) 841 1075

Facsimile: +27 (12) 841 1057

www.sacnasp.org.za

SAIMM

The Southern African Institute of Mining and Metallurgy

P.O. Box 61127, Marshalltown, 2107, Gauteng, South Africa

Telephone: +27 (11) 834-1273/7

Facsimile: +27 (11) 838-5923/8156

www.saimm.co.za

SME

The Society for Mining, Metallurgy & Exploration Inc.

12999 E. Adam Aircraft Circle, Englewood, CO 80112

Telephone Toll Free: 1-800-763-3132

Main number: +1 303-948-4200

Facsimile: +1 303-973-3845

www.smenet.org

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F O R W A R D - L O O K I N G S T A T E M E N T

Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning

the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining

costs, all-in costs, cost savings and other operating results, productivity improvements, growth prospects and outlook of AngloGold

Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion

of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions,

dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures and the

outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues,

are forward looking statements regarding AngloGold Ashanti’s operations, economic performance and ﬁnancial condition.

These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause

AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or

achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations

reﬂected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have

been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among

other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives,

changes in the regulatory environment and other government actions, including environmental approvals, ﬂuctuations in gold prices

and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management. For a

discussion of such risk factors, refer to AngloGold Ashanti’s annual reports on Form 20-F ﬁled with the United States Securities and

Exchange Commission. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual

results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could

also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward

looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking

statements to reﬂect events or circumstances after the date hereof or to reﬂect the occurrence of unanticipated events, except to the

extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any

person acting on its behalf are qualiﬁed by the cautionary statements herein.

This communication may contain certain “Non-GAAP” ﬁnancial measures. AngloGold Ashanti utilises certain Non-GAAP performance

measures and ratios in managing its business. Non-GAAP ﬁnancial measures should be viewed in addition to, and not as an alternative

for, the reported operating results or cash ﬂow from operations or any other measures of performance prepared in accordance with

IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use.

AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AngloGold Ashanti Limited

Date: May 12, 2017

By:

/s/ M E SANZ PEREZ________

Name:

M E Sanz Perez

Title:

EVP: Group Legal, Commercial & Governance