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AngloGold Buys New Gold Mine |
| AngloGold Ashanti has entered into an agreement with Eldorado Gold Corporation to acquire 100 percent of Eldorado’s indirectly wholly-owned Sao Bento Mineracao S.A. |
While the Sao Bento mine, located in Minas Gerais in Brazil, was closed down by Eldorado a year and a half ago, it lies in close proximity to AngloGold’s proposed Corrego do Sitio operation and the principal reason behind AngloGold's purchase would appear to be access to the Sao Bento process plant, which had been kept on a care and maintenance basis by Eldorado.
At Corrego do Sitio, AngloGold Ashanti is currently investigating the viability of exploiting the potential sulphide ore resources of the underground ore bodies.
Prior to the acquisition of Sao Bento, it was expected that Corrego do Sitio would produce approximately 100,000 ounces of gold annually over a 14-year life with production scheduled to commence in mid-2011.
The acquisition of Sao Bento provides AngloGold Ashanti with the potential to double the scale, and considerably enhance the potential, of the Corrego do Sitio project.
It is expected that the transaction will close early in the fourth quarter of this year.
Commenting on the transaction, Ron Largent, AngloGold's Executive Vice President America’s commented:
“The Sao Bento assets have the potential to double the scale, and therefore significantly enhance the potential of the Corrego do Sitio project.
As such AngloGold Ashanti's annual gold production from Brazil could increase by some 200,000 ounces.
“The acquisition of Sao Bento forms an important contributor to the growth of our Brazilian operations and further enhances the position of AngloGold Ashanti in Brazil's Iron Quadrangle." |
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