AngloGold's global exploration strategy seeks both to extend the life of existing operations (brownfields exploration) and to establish new mines (greenfields exploration) capable of providing double-digit returns on investment. This strategy is achieved through cost-effective, focused exploration in geological terrains most likely to host significant gold deposits. The more isolated the prospect is from existing operations, the less existing infrastructure development or the higher the country and other risks associated with the project, the more significant the deposit must be to meet AngloGold's investment criteria.

During 2001, AngloGold once again focused its exploration programme in countries where operations are already in place, namely Argentina, Australia, Brazil, Tanzania, Mali, South Africa and the USA. The exceptions were highly prospective areas in Alaska, Canada and Peru.

Exploration expenditure amounted to $32m, of which $6m was spent on increasing near- and in-mine mineral resources. Exploration expenditure in 2002 will be in the region of $50m (R548m). As the industry consolidation continues, and as fewer and fewer junior companies are able to finance new exploration projects, the role of the major companies in sustaining exploration activities becomes more imperative in the search for growth and replacement ounces.

• In Australia, exploration was restructured to provide a greater focus in the Yilgarn and Tanami areas in Western Australia and the Northern Territory, with the aim of discovering mineral resources synergistic with existing mines or of a suitable scale to warrant AngloGold investment at greenfields sites.

  At Sunrise Dam, drilling on the Western Shear and Watu structures indicated that a further cutback is warranted at the southern end of the pit to mine additional ounces outside the existing infrastructure. To the north of the existing pit, drilling on the Mako lode returned significant intercepts of 7m at 72.2g/t and 10m at 57.6g/t. Mineral Resource increases from exploration in 2001 amounted to some 0.4Moz.

  At the Sickle Project, located approximately 55km north of Sunrise Dam, a small oxide resource has been established. Drilling results during the year included 15m at 3.3g/t and 11m at 6.6g/t.

  At Coyote, in the Tanami region, drilling defined the high-grade Buggsy-Gonzalez structure over a strike length of 800m to a depth of 250m. Significant intercepts included 19m at 21.2g/t and 11m at 75.6g/t. In addition, the Sylvestor structure, which runs parallel to the Buggsy-Gonzalez structure, returned values of 11m at 5.98g/t. Greenfields exploration continued to search for satellite deposits around the Coyote Project with positive results at the Pebbles and Rabies Projects. Further drilling will take place during 2002.
   

• In Africa drilling at the Sadiola mine generated an additional 0.8Moz of attributable Inferred Resource of which 0.6Moz was from sulphide drilling in the deeper ore. Drilling around the pit edges has defined additional attributable Mineral Resources of 0.3Moz. Drilling will continue in 2002.

  At Morila, airborne geophysics and follow-up drilling indicated positive results in the Donba Corridor, including intercepts of 33m at 3.3g/t and 23m at 1.74g/t. Further drilling will take place in 2002. Drilling around the pit edges has defined an additional attributable mineral resource of 0.3Moz.

  Exploration for satellite deposits within the Geita mine licence area in Tanzania delineated 0.2Moz of Indicated Resources at 2.19g/t at Chipaka at an approximate cost of $2/oz. Other encouraging results obtained in the Geita concession area were intercepts of 5m at 13.31g/t at Samena, 5m at 16g/t at Prospect 30 and 39m at 7.08g/t at Geita Hill.

  Greenfields exploration continued in southern Mali and around Lake Victoria in Tanzania. In Mali, airborne geophysics has generated excellent targets for follow-up work during 2002. In Tanzania, the majority of existing projects proved to be uneconomic and further work is subject to the results of desktop studies to identify prospective areas.
   

• In North America, greenfields exploration in Canada intersected encouraging mineralisation at the Red Lake Joint Venture. Follow-up drilling on targets derived from an airborne geophysical survey will continue during 2002. In Alaska, the exploration programme focused on target refinement and drill plans for 2002.

  Brownfields exploration at the CC&V Joint Venture focused on ore reserve development to meet the approved production expansion. Detailed technical studies are in progress to establish drill targets for future resource expansion. At Jerritt Canyon, exploration focused on resource definition drilling to meet the LOM plan.
   

• In South America exploration focused on near-mine resource generation at Serra Grande and Morro Velho in Brazil. This will continue in 2002, with an additional focus on Cerro Vanguardia in Argentina.

  Based on existing results at Amapari in the Amapa region of Brazil, a feasibility study will be completed in 2002.

  At Corrego do Sítio in the Iron Quadrangle, situated about 40km east of Morro Velho, 0.1Moz of oxide was delineated and the potential for significant sulphide ore at depth will be tested by ramp development during 2002.

  Greenfields exploration in South America was restricted to Peru where three of the four target areas yielded positive results from rock sampling and drill programmes. Exploration will continue during 2002.
   

• In South Africa drilling focused on establishing new mineral resources at the Goedgenoeg area (west of Tau Lekoa) and to delineate high-grade mineral resources at Moab Extension (south western extension of Moab Khotsong). Drilling at Weltevreden (adjacent to the Tau Lekoa mine) was postponed pending an economic assessment to mine low-grade mineral resources from surface down to 600m. The best intersections to date from the VCR at Goedgenoeg are 29.6g/t over 258.7cm, equivalent to 7,657cm.g/t from drillhole G43 and 25.4g/t over 271.9cm equivalent to 6,893cm.g/t from drillhole G46. The best intersection of Vaal Reef at Moab Extension was in drillhole MGR6 which returned values of 144.3g/t over 14.1cm equivalent to 2,033cm.g/t and 125.5g/t over 16.3cm, equivalent to 2,040cm.g/t.