AngloGold Ashanti (NYSE:AU) Wins Approval for Tropicana

While already securing approval from Western Australia environment minister Donna Faragher for the Tropicana gold project, AngloGold Ashanti (NYSE:AU) was awaiting the decision by its partner Independence Group NL to approve the project to go ahead.

The board of Independence Group NL has green-lighted the project, and all that is left is the approval from the federal minister for sustainability, which is expected by the end of 2011.

AnglogGold has a 70 percent stake in the project and Independence Group the remaining 30 percent.

Tropicana is being touted as the most important major gold find in over a decade in Australia, and over the first three years of the project should produce from a range of 470,000 ounces to 490,000 ounces of gold at a cash cost of $568 an ounce to $588 an ounce.

This was the first-fruits of the exploration program of Anglogold, and CEO Mark Cutifani was ecstatic.

He said, "This is a clear demonstration of the impact an innovative, results-driven exploration program can have on organic growth. It's
gratifying to be developing our own projects at a time when so many majors are forced to pay huge premiums to fill their project pipelines."

The huge premiums he's referring to is the need acquire to expand at a time when mining company valuations have skyrocketed.

Tropicana will increase the gold production of AngloGold Ashanti in Australia to 600,000 ounces a year by 2014.