AngloGold Ashanti Limited

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 January 21, 2020

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 - UPDATED PRELIMINARY

ECONOMIC ASSESSMENT FOR THE GRAMALOTE PROJECT IN COLOMBIA

AngloGold Ashanti Limited

(Incorporated in the Republic of South Africa)

Reg. No. 1944/017354/06

ISIN. ZAE000043485 – JSE share code: ANG

CUSIP: 035128206 – NYSE share code: AU

(“AngloGold Ashanti” or “AGA” or the “Company”)

21 January 2020

NEWS RELEASE

Updated Preliminary Economic Assessment for the Gramalote Project in Colombia

(JOHANNESBURG – NEWS RELEASE) – The below market statement was published
earlier today by B2Gold Corp., AngloGold Ashanti’s Joint Venture partner in, and manager
of, the Gramalote project in Colombia. Both partners use different gold price assumptions in
calculating Mineral Resources and returns from the project. In addition, the companies are
subject to different regulatory frameworks, notably NI 43-101 for B2Gold and SAMREC for
AngloGold Ashanti.

AngloGold Ashanti will provide all necessary support to B2Gold as it works to advance this
project in one of the world’s most important new gold-producing regions. AngloGold Ashanti
duplicates the B2Gold statement here for information purposes only.

B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”)

is pleased to announce positive results from the Updated Preliminary Economic Assessment
(“PEA”) for the Gramalote Ridge deposit (“Gramalote Ridge”) at the Gramalote gold project
in Colombia (the “Gramalote Project”), a joint venture between B2Gold and AngloGold
Ashanti Ltd. (“AGA”). B2Gold assumed the role of the manager of the Gramalote joint venture
on January 1, 2020. All dollar figures are in United States dollars unless otherwise stated.

Highlights

Assuming an effective date of January 1, 2020 and a gold price of $1,350 per ounce,

Gramalote Ridge project economic highlights from the PEA (100% basis) include:

◦

Open pit gold mine with an initial life of mine (“LOM”) of 13.6 years based on current

Indicated and Inferred Mineral Resources (for Gramalote Ridge only)

◦

LOM gold production of 3.85 million ounces

◦

Average annual gold production of 416,600 ounces per year for the first 5 full years

of production

◦

Average annual gold production LOM of 283,990 ounces per year at $544 cash

operating cost per ounce

AngloGold Ashanti will publish its own pricing sensitivities upon completion of the Feasibility Study

◦

Average LOM all-in sustaining costs (“AISC”) of $648 per ounce of gold, and

average LOM all-in costs (including pre-production capital costs) of $882 per ounce
of gold

◦

Annual processing rate of 11.0 million tonnes per annum (“Mtpa”)

◦

Average LOM gold recovery of 94.3% from conventional milling, flotation and

cyanide leach of the flotation concentrate

◦

Estimated pre-production capital cost of $901 million (includes approximately

$160 million for mining equipment)

◦

LOM pre-tax net cash flow of $1,827 million, and after-tax net cash flow of

$1,283 million

◦

Assuming a discount rate of 5%, net present value (“NPV”) pre-tax of $1,027 million

and NPV after-tax of $671 million, generating an after-tax internal rate of return
(“IRR”) of 18.1% at the project construction decision date (estimated to be January
1, 2021), with a project payback (including construction capital) of 3.6 years

◦

Assuming a gold price of $1,500 per ounce and a discount rate of 5%, NPV

pre-tax increases to $1,394 million and NPV after-tax increases to $928 million,
generating an after-tax IRR of 21.9% at the project construction decision date
(estimated to be January 1, 2021), and reducing the project payback (including
construction capital) to 3.2 years

Continue ongoing feasibility work to optimize the PEA results and a final feasibility

study expected to be completed by December 31, 2020

Amended and restated shareholders agreement signed by B2Gold and AGA on

December 23, 2019 under which B2Gold agreed to sole fund the next $13.9 million of
expenditures on the Gramalote Project, following which B2Gold and AGA will each
hold a 50% ownership interest in the joint venture (currently 48.3% B2Gold and 51.7%
AGA)

Exploration drilling is ongoing at the Trinidad deposit, with additional drilling at the

Monjas zone to commence later in 2020

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered
too speculative geologically to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA
based on these Mineral Resources will be realized. Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability.

B2Gold is currently completing approximately 42,500 metres of infill drilling at Gramalote
Ridge to convert existing Inferred Mineral Resources to an Indicated category, and 7,645
metres of geotechnical drilling for site infrastructure.

Gramalote Project Mineral Resource Estimate

The Mineral Resource estimate for the overall Gramalote Project (100% basis), effective
December 31, 2019, within a pit shell run at a gold price of $1,500 per ounce, includes:

Indicated Mineral Resource Estimate

Area

Tonnes

Gold grade

(g/t)

Contained Gold

Ounces

Gramalote Sulphide

78,200,000

0.85

2,140,000

Total Indicated Resources

78,200,000

0.85

2,140,000

Inferred Mineral Resource Estimate

Area

Tonnes

Gold grade

(g/t)

Contained Gold

Ounces

Gramalote Oxide

6,000,000

0.61

120,000

Trinidad Oxide

3,100,000

0.55

50,000

Subtotal Oxide Inferred

9,100,000

0.59

170,000

Gramalote Sulphide

105,600,000

0.70

2,370,000

Trinidad Sulphide

14,400,000

0.62

290,000

Subtotal Sulphide Inferred

120,100,000

0.69

2,660,000

Total Inferred Resources

129,200,000

0.68

2,830,000

Notes:

1. Mineral Resources have been classified using the CIM Standards.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. The Qualified Person for the Mineral Resource estimate is Tom Garagan, P.Geo., B2Gold’s Senior Vice
President, Exploration.
4. Mineral Resources are reported on a 100% project basis (B2Gold currently holds a 48.3% attributable interest
with the remaining 51.7% interest held by AGA).
5. Mineral Resources for Gramalote assume metallurgical recoveries of 83.9% for oxide and 95% for sulphide,
and operating cost estimates of an average mining cost of $2.13/t mined, processing cost of $3.35/t processed
for oxide and $6.58/t processed for sulphide, general and administrative cost of $1.89/t processed and selling
cost of $50.52/oz produced.
6. Mineral Resources for Trinidad assume metallurgical recoveries of 81.7% for oxide and 90.9% for sulphide,
and operating cost estimates of an average mining cost of $1.82/t mined, processing cost of $3.35/t processed
for oxide and $6.58/t processed for sulphide, general and administrative cost of $1.89/t processed and selling
cost of $50.52/oz produced.
7. Mineral Resources for Gramalote and Trinidad are reported at cut-offs of 0.15 g/t gold for oxide and 0.20 g/t
gold for sulphide.
8. All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent
summation differences between tonnes, grade, and contained metal content.

PEA Overview

The Gramalote Project is located in central Colombia, approximately 230 kilometres (“km”)
northwest of Bogota and 120 km northeast of Medellin, in the Province of Antioquia which has
expressed a positive attitude towards the development of responsible mining projects in the
region. The PEA was prepared by B2Gold and evaluates recovery of gold from a an open pit
mining operation that will move up to 143,000 tonnes per day (“tpd”) (50.0 Mtpa), with a
30,137 tpd (11.0 Mtpa) processing plant that includes crushing, grinding, flotation, with fine
grinding of the flotation concentrate and agitated leaching of both the flotation concentrate and
the flotation tails followed by a carbon-in-pulp recovery process to produce doré bullion. The
PEA is based solely on production from the Gramalote Ridge deposit and does not include
potential production from the nearby Trinidad deposit, which has a current Inferred Mineral
Resource estimate (see above), and the Monjas West zone. The Mineral Resource estimate
for Gramalote Ridge that forms the basis for the PEA includes Indicated Mineral Resources of
70,110,000 tonnes grading 0.92 g/t gold for a total of 2,070,000 ounces of gold, and Inferred
Mineral Resources of 79,030,000 tonnes grading 0.79 g/t gold for a total of 2,010,000 ounces
of gold.

The PEA updates and enhances the previous studies on the Gramalote Project in several
areas, including:

•

For Gramalote Ridge, additional drilling has been completed, and a new Mineral
Resource model has been developed

•

The PEA is based solely on Gramalote Ridge Mineral Resources, where the previous
studies included mining and processing ore from Trinidad deposit and the Monjas West
zone

•

Recent metallurgical test work has resulted in slightly lower processing costs and
improved economics

•

The new Mineral Resource model for Gramalote Ridge includes new interpretations of
higher grade ore zones and has allowed more efficient mine optimization, which has
resulted in higher grade ore being fed to the plant during the first years of production,
significantly improving project economic

•

Due to better defined high-grade zones in Gramalote Ridge in the block model, the
overall gold grade for the PEA is 0.85 g/t, which is significantly higher than previous
studies

Accelerated mining is planned in the early years of production to provide higher grade feed to
the plant while stockpiling lower grade material. The final four years of plant feed are from low
grade stockpiles and oxide ore. Oxide ore, which only makes up about 3% of the plant feed,
will be stockpiled and processed at the very end of the project life as blending this material
with the fresh ore does not yield optimal gold recoveries.

The PEA assumptions include revenues using a gold price of $1,350 per ounce and current
prices for fuel, reagents, labor, power and other consumables. The key parameters of the
PEA are presented in the following table (100% basis):

Production Profile

Contained gold ounces processed (Mozs)

4.082

Gold Recovery (%)

94.3

Average gold grade

0.85 g/t

Gold ounces produced (Mozs)

3.85

Average gold production for the first five years (ounces)

416,600

Average Annual gold production (ounces)

283,990

Mine Life (years)

13.6

Ore tonnes processed (Mt)

149

Waste material mined (Mt)

288

Waste to Ore strip ratio

1.93

Project Economics - $1,350 per ounce gold price

Construction Capital ($M)

901

Sustaining Capital ($M)

103

Gross gold revenue ($M)

5,198

Net Cash Flow (pre-tax) ($M)

1,827

Net Cash Flow (after tax) ($M)

1,283

NPV

5.0%

(pre-tax) ($M)

1,027

NPV

5.0%

(after tax) ($M)

671

IRR (after tax) (%)

18.1

Payback (years)

3.6

Unit Operating Costs

LOM Cash Operating Costs (mining, processing & site G&A) ($/oz gold)

544

LOM All-In Sustaining Costs (“AISC”) (Cash Operating Costs + royalties,
corporate G&A, selling costs and silver credits, and excluding
pre-production capital costs) ($/oz gold)

648

LOM All-in Cost (AISC and pre-production capital costs) ($/oz gold)

882

Average LOM mining cost ($/t mined)

2.16

Average LOM processing cost ($/t processed)

5.61

Based on the positive results from the PEA, B2Gold believes that the Gramalote Project has
the potential, to become a large low-cost open pit gold mine, subject to completion of ongoing
infill drilling and the results of a final feasibility study expected by the end of 2020. The
Gramalote Project has several key infrastructure advantages, including:

•

Reliable water supply – high rainfall region and located next to the Nus River

•

Adjacent to a national highway, which connects directly to Medellin and to a major river
with port facilities, capable of bringing supplies by barge to within 70 kilometres of
the site

•

Proximity to the national electricity grid with ample low-cost power and stable record
of hydroelectric power

•

Skilled labor workforce within Colombia

In addition, B2Gold expects the Gramalote Project to benefit from several key operational
advantages, including:

•

Excellent metallurgical characteristics of the ore, which results in high recovery rates
at low processing costs

•

Relatively low strip ratio in the mine (1.9:1)

•

Ability to mine and process higher grade ore in the initial years of the mine life resulting
in improved project economics

The PEA is subject to a number of assumptions and risks, including among others, that a
Modified Environment Impact Study and a Modified Project Implementation plan will be
approved within the required timeline, all required permits and other rights will be obtained in
a timely manner, the Gramalote Project will have the support of the local government and
community, the regulatory environment will remain consistent and no material increase will
have occurred to the estimated costs.

Economic Sensitivities

Gramalote is a large, low grade, low cost project and sensitive to the gold price, as
demonstrated in the following table:

Gold Price

($/ounce)

NPV

($M)

After Tax IRR

(%)

Pre Tax

Post Tax

$1,250 $783

$497

15.2%

$1,300 $905

$585

16.7%

$1,350 $1,027

$671 18.1%

$1,400 $1,150

$757 19.4%

$1,450 $1,272

$842 20.7%

$1,500 $1,394

$928 21.9%

$1,550 $1,516

$1,014

23.2%

$1,600 $1,638

$1,099

24.3%

$1,650 $1,761

$1,185

25.5%

Project Next Steps

B2Gold and AngloGold have agreed on a budget for the feasibility study on the Gramalote
Project of approximately $37 million through the end of 2020. This budget will fund 42,500 metres
of infill drilling to convert existing Inferred Mineral Resources to the Indicated category,
and 7,645 metres of geotechnical drilling for site infrastructure. The Company currently
expects to complete all drilling by the end of May 2020. In addition, the budget will fund
feasibility work including an updated Mineral Resource estimate, detailed mine planning,
ongoing environmental studies, additional metallurgical test work, engineering and detailed
economic analysis.

The Gramalote joint venture will continue to advance resettlement programs, establish
coexistence programs for small miners, work on health, safety and environmental projects and
continue to work with government and local communities on social programs. B2Gold, as
manager, plans to continue the feasibility work with the goal of B2Gold completing a final
feasibility study by December 31, 2020. Due to the amount of work completed by AGA over
the past several years, including extensive testing programs, the work with local communities
and small miners, and the high level of engineering performed in 2017 for an internal study,
the work remaining to reach final feasibility is not extensive. The main work program for
feasibility is infill drilling to confirm and upgrade the Inferred Mineral Resources to the Indicated
category.
The Environmental Impact Study and Project Implementation Plans for the Gramalote Project
have been fully approved by the National Authority of Environmental Licenses of Colombia.
Due to the desired modifications to the processing plant and infrastructure locations, a
Modified Environment Impact Study and a Modified Project Implementation plan were
submitted and are currently in the final approval process. If the final economics of the feasibility
study are positive and the joint venture makes the decision to develop Gramalote as an open-pit
gold mine, B2Gold would utilize its proven internal mine construction team to build the mine
and mill facilities and operate the mine on behalf of the joint venture.

Qualified Persons

Tom Garagan, Senior Vice President of Exploration at B2Gold, a qualified person under
NI 43-101, has approved the scientific and technical information regarding exploration matters
and the Mineral Resource estimate contained in this news release.

Bill Lytle, Senior Vice President, Operations at B2Gold, a qualified person under NI 43-101,
has approved the scientific and technical information related to operations matters contained
in this news release. Mr. Lytle has visited the Gramalote Project several times since 2009 and
has reviewed the mining operations and has reviewed the technical aspects of the PEA that
form the basis for this release.

About B2Gold Corp.

B2Gold is a low-cost senior gold producer headquartered in Vancouver, Canada. Founded in
2007, today, B2Gold has three operating gold mines and numerous exploration and
development projects in various countries including the Philippines, Namibia, Mali and
Colombia. In 2020, B2Gold forecasts consolidated gold production of between 1,000,000
and 1,055,000 ounces.

Ends

Johannesburg

JSE Sponsor: The Standard Bank of South Africa Limited

CONTACTS

Media

Chris Nthite +27 11 637 6388/+27 83 301 2481

cnthite@anglogoldashanti.com

General inquiries

media@anglogoldashanti.com

Investors

Sabrina Brockman +1 646 880 4526/ +1 646 379 2555

sbrockman@anglogoldashanti.com

Yatish Chowthee +27 11 637 6273 / +27 78 364 2080

yrchowthee@anglogoldashanti.com

Fundisa Mgidi +27 11 637 6763 / +27 82 821 5322

fmgidi@anglogoldashanti.com

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 and forecasts 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 report on Form 20-F
for the year ended 31 December 2018, which has been filed with the United States Securities and Exchange
Commission (SEC). 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.

The financial information contained in this document has not been reviewed or reported on by the Company’s
external auditors.

Non-GAAP financial measures

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.

Website:

www.anglogoldashanti.com

END

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: January 21, 2020

By:

/s/ M E SANZ PEREZ

Name: M E Sanz Perez
Title:

EVP: Group Legal, Commercial & Governance