AngloGold Ashanti Limited (ASX:AGG) says its Tropicana Gold Project in Kalgoorlie remains on schedule to begin production in the December quarter this year.
Since the project’s approval in November 2010, Tropicana’s Mineral Resource has grown by 2.8 million ounces to reach 118 million tonnes.
AngloGold says the potential for extensions to the known ore zones and the discovery of additional ore within range of the Tropicana processing plant remains high.
The company has increased its capex forecast for the project by 11 per cent to between $820 and $845 million.
CEO Mark Cutifani says the higher forecast is a result of increases in construction labour costs, with the project currently 55 per cent complete.
AngloGold generated a net profit of $1.57 billion in the first half of its 2012 financial year.
AGG Price at posting:
$5.31 Sentiment: None Disclosure: Held
