AngloGold Annual Report 2001 - Mineral Resources and Ore Reserves

Mineral Resources and Ore Reserves

AngloGold had Ore Reserves of 68.3Moz and Mineral Resources of 346.8Moz as of 31 December 2001. An agreement has been reached to sell the Free State operations, which comprise 9.0Moz of Ore Reserves and 65.1Moz of Mineral Resources.

Mineral Resources and Ore Reserves are reported in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code) and the South African Code for the Reporting of Mineral Resources and Mineral Reserves (the SAMREC Code).

During the year

AngloGold had five major capital projects in progress that, together, contribute nearly 15Moz to the 2001 Ore Reserve, while the Boddington Expansion advanced development project contributes another 3.6Moz. Asset sales of Deelkraal and Elandsrand in 2001 and the Free State in 2002 improve AngloGold's cost and risk profile, while reducing Ore Reserves and Mineral Resources.

Mineral Resources

Mineral Resources decreased by 51.0Moz to 346.8Moz at the end of 2001. Components of this net change include:

A significant reduction because for the first time all Mineral Resources were constrained by a $350/oz revenue assumption. This was accompanied by an increase in average gold grade.
Ongoing exploration programmes adding some 2.5Moz of Mineral Resources.
The sale of Deelkraal and Elandsrand account for 25.1Moz.
Depletions as a result of gold production account for 6.9Moz.a

Ore Reserves

Ore Reserves, estimated using a gold price of $300/oz, show a year-on-year decrease of some 19.3Moz to 68.3Moz.
The reduction in reserves relates principally to the following:

Depletions as a result of gold production account for 6.9Moz.
The sale of Elandsrand and Deelkraal account for 7.4Moz.
The removal from Ore Reserves at Moab Khotsong below 101 level accounts for 4.5Moz.

Based on the gold price and exchange rates at the beginning of 2002, South African Ore Reserves could increase by 9Moz or 15% of the total AngloGold Ore Reserve (excluding the Free State), depending on technical, economic and other modifying factors. Of the 9Moz, some 3.5Moz are expected to be added from Moab Khotsong below 101 level and the remainder from other underground operations. Other potential projects in the West Wits and Vaal River areas look attractive at prevailing higher rand gold prices and are being reassessed. An increase in the gold price or weakening rand in the future would lead to a further increase in the South African Ore Reserves.

Globally, AngloGold will continue to pursue a strategy of increasing value-adding reserves through expansion projects, brownfields and greenfields exploration and the acquisition of new assets.

Competent persons

Competent Persons, designated in terms of the JORC and SAMREC Codes and taking corporate responsibility for the reporting of AngloGold's Mineral Resources, are:

V A Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MAusIMM, 16 years' experience.
M F O'Brien, BSc (Hons) (Geology), Pr.Sci.Nat., MAusIMM, 22 years' experience.

Designated competent persons taking corporate responsibility for the reporting of Ore Reserves are:
B W Guenther, BSc (Mining Engineering), MAusIMM, 21 years' experience.
D L Worrall, ACSM, MAusIMM, 21 years' experience.
J van Zyl Visser, BSc (Mineral Resource Management), PLATO, 15 years' experience.

The Competent Persons are employed by AngloGold Limited and have consented to the inclusion of the Mineral Resources and Ore Reserves information in this report.

Notes

Supplementary information containing a detailed breakdown of the Mineral Resources and Ore Reserves, together with plans of the South African operations, is provided in the annual report section of the AngloGold website (www.anglogold.com) and may be downloaded as PDF files using Adobe Acrobat Reader. This information is also obtainable from the AngloGold offices at the addresses given on the inside back cover of the report.

Ore reserves (as at 31 December 2001)

Metric
Imperial

Contained Contained

Tonnes Grade gold Tons Grade gold

Mt g/t t Mt oz/t Moz

Africa* Proved 22.3 3.20 71.4 24.6 0.093 2.3

Probable 43.2 3.96 171.2 47.6 0.115 5.5

Sub-total 65.6 3.70 242.6 72.3 0.108 7.8

Australia* Proved 50.3 1.44 72.6 55.4 0.042 2.3

Probable 99.3 1.20 119.5 109.5 0.035 3.8

Sub-total 149.6 1.28 192.1 164.9 0.037 6.2

North America* Proved 81.4 1.32 107.0 89.7 0.038 3.4

Probable 63.2 1.10 69.7 69.7 0.032 2.2

Sub-total 144.5 1.22 176.8 159.3 0.036 5.7

South Africa (excluding Proved 62.1 3.05 189.2 68.5 0.089 6.1

Free State) Probable 209.7 4.52 947.8 231.2 0.132 30.5

Sub-total 271.8 4.18 1,137.0 299.6 0.122 36.6

Free State ¹ Proved 5.9 8.09 47.5 6.5 0.236 1.5

Probable 31.5 7.42 233.8 34.7 0.217 7.5

Sub-total 37.4 7.53 281.3 41.2 0.220 9.0

South America* Proved 7.0 8.06 56.6 7.7 0.235 1.8

Probable 5.2 7.52 39.0 5.7 0.219 1.3

Sub-total 12.2 7.83 95.6 13.4 0.228 3.1

Totals Proved 229.0 2.38 544.4 252.4 0.069 17.5

Probable 452.1 3.50 1,581.1 498.4 0.102 50.8

Total 681.1 3.12 2,125.4 750.8 0.091 68.3

* Reserves attributable to AngloGold.

1 An agreement was reached to sell the Free State operations effective from 1 January 2002.

Mineral resources ²(as at 31 December 2001)

Metric Imperial

Contained Contained

Tonnes Grade gold Tons Grade gold

Mt g/t t Mt oz/t Moz

Africa**
Measured
34.1 2.73 92.9 37.6 0.079 3.0

Indicated 102.4 2.56 261.8 112.9 0.075 8.4

Inferred 86.4 1.98 170.9 95.2 0.058 5.5

Sub-total 222.8 2.36 525.6 245.6 0.069 16.9

Australia** Measured 67.1 1.34 89.7 74.0 0.039 2.9

Indicated 147.5 1.19 175.4 162.6 0.035 5.6

Inferred 94.1 1.10 103.4 103.7 0.032 3.3

Sub-total 308.7 1.19 368.5 340.3 0.035 11.8

North America** Measured 105.3 1.27 133.3 116.1 0.037 4.3

Indicated 87.5 1.26 110.3 96.5 0.037 3.5

Inferred 54.3 1.29 69.9 59.9 0.038 2.2

Sub-total 247.1 1.27 313.5 272.4 0.037 10.1

South Africa (excluding Measured 311.7 1.68 523.2 343.6 0.049 16.8

Free State) Indicated 643.0 4.60 2,956.9 708.8 0.134 95.1

Inferred 462.5 7.82 3,614.9 509.8 0.228 116.2

Sub-total 1,417.2 5.01 7,095.0 1,562.2 0.146 228.1

Free State ¹ Measured 21.2 9.87 208.8 23.4 0.288 6.7

Indicated 385.5 3.65 1,406.8 424.9 0.106 45.2

Inferred 287.4 1.42 408.0 316.8 0.041 13.1

Sub-total 694.0 2.92 2,023.6 765.0 0.085 65.1

South America** Measured 19.9 4.83 96.2 21.9 0.141 3.1

Indicated 19.7 4.75 93.3 21.7 0.138 3.0

Inferred 45.6 5.93 270.6 50.3 0.173 8.7

Sub-total 85.2 5.40 460.2 93.9 0.158 14.8

Totals Measured 559.3 2.05 1,144.1 616.5 0.060 36.8

Indicated 1,385.5 3.61 5,004.4 1,527.3 0.105 160.9

Inferred 1,030.4 4.50 4,637.8 1,135.8 0.131 149.1

Total 2,975.1 3.63 10,786.4 3,279.5 0.106 346.8

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