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.

AngloGold Ashanti (NYSE:AU) Down on Great Gold Day

AngloGold Ashanti (NYSE:AU) was one of the few poor gold performers on Friday, on a day which broke another record at the close of $1,256.50, an increase of $11.30 on the day.

The news yesterday that they were going to focus on developing mining projects outside Australia because of the 40 percent super tax, seems to have overshadowed the rest of the good news related to gold.

This isn't necessarily looked upon as a negative in the long term, but it will probably extend the period of time for AngloGold to increase its gold reserves, as it had been looking to the Tropicana gold project in western Australia to boost it reserves, but now has relegated that to the back burner and is looking to other properties to develop.

AngloGold lost a penny in New York to close on Friday at $44.79.