anglogold ashanti...13 anglogold ashanti: geology context 25km ¹ 2016 agam mineral leases 2017 agam...

AngloGold Ashanti

EXLAURENTIAN VISION PARTNERSHIP

January 23, 2019

2

AngloGold Ashanti

1. Company

2. Minnesota Programo Geology Context

o Drilling

o Progress

o Sustainability issues

3. Other Issues

AngloGold Ashanti

Operations

Exploration Projects

Global portfolio

Third largest gold producer

Corporate headquarters in Johannesburg, SA

Quebradona

mining.com

4

AngloGold Ashanti North America/Minnesota

Nevada

Minnesota

Denver

AngloGold Ashanti Minnesota (AGAM) is a subsidiary

of AngloGold Ashanti North America Inc.

North America corporate office based in Denver, CO

AGA have been present in North America for 25+ years

Formerly owned Cripple Creek & Victor, and Jerritt

Canyon

Rebuilding exploration portfolio with a focus on stable

and mature jurisdictions

Why Minnesota?

• Structurally complex terrane w/ similarities to

eastern-Wawa & Abitibi architecture

• No competitor activity

• Opportunity to acquire a large land position –

100% AGAM

• Underexplored search space, extensive glacial

overburden

• Excellent state-acquired or generated open-file

datasets

• Evidence for mineralizing systems in existing open

file datasets

¹

5

AngloGold Ashanti: Sustainability

6

AngloGold Ashanti: Sustainability

7

AngloGold Ashanti: Sustainability

AGA Sustainability Focus – Material Issues

8

AngloGold Ashanti: Sustainability

AGA Sustainability Focus – Material Issues

AngloGold Ashanti: Sustainability

10

AngloGold Ashanti: Geology Context

Abitibi District >160Moz

Hemlo District >25Moz

Red Lake District >37Moz

Pickel Lake District >3Moz

Beardmore-Geraldton

District >4Moz

Cameron Lake/

Rainy River >10Moz

Hammond Reef >7Moz

Moss Lake >3Moz

• >200Moz Au discovered within

the Wawa-Abitibi

• (MN) Western-Wawa

Subprovince comprised of

Archean supracrustals

• MN geology (stratigraphy) is

analogous to eastern-Wawa &

Abitibi Subprovince

• Favorable tectonic setting

• Extensive glacial overburden =

underexplored search space

(opportunity)

• Limited historic exploration

activity (opportunity)

11

AngloGold Ashanti: Geology Context

Quetico

Subprovince

Wabigoon

Subprovince

50km ¹

Wawa SubprovinceDuluth Intrusive

Complex

12

AngloGold Ashanti: Geology Context

13

AngloGold Ashanti: Geology Context

25km

¹

2016 AGAM mineral leases

2017 AGAM mineral leases

2015 nomination of 1 township in Koochiching County

2016 successful bid of 33 mineral leases (11,600acres)

2016 nomination of 12 townships in Koochiching/St Louis/Itasca County’s

2017 successful bid on 237 mineral leases (94,500acres)

Considerations – private surface ownership, environmentally sensitive areas, population centers,

multiple use lands

14

Schematic block model for glaciated terrains

Schematic dispersal train for gold-in-till

AngloGold Ashanti: Geology Context

15

Schematic block model for glaciated terrains

Schematic dispersal train for gold-in-till

AngloGold Ashanti: Geology Context

Logic behind Selection of Drilling Site(s)1. The investigative steps to optimize the exploration context prior to drilling site

selection include:

• Regional Data Integration:

• Identify Localized Areas of Interest (within lease land)

1. Once target areas are selected, AGAM considered the need of ‘seeing’ through the

glacial cover to the basal till and underlying geology. Based on this challenge,

AGAM has selected the method of rotosonic drilling for sample acquisition.

2. With a geological context established and a sample methodology selected, the

logic of final drill site selection is guided by several objectives:

Project Planning and Management

In order to explore efficiently across a large geologic terrane that has significant glacial

cover, AGAM has focused on disciplined project planning and management. The

elements of this program are:

1. Focused geological compilation, analysis, and interpretation. By maximizing the

pre-drilling compilation and analysis, it provides the optimized drill siting. Also, it

provides the context to interpret the results and makes changes to the model.

2. Drill site priorities and value.

3. Selection of rotosonic to rapidly test basal till and bedrock conditions.

4. Flexibility to change geological models based on drill data.

5. Focus on winter drill season to reduce access issues in wetlands etc.

6. Rapid logging to provide feedback to the on-going drill program and to improve

drill hole siting in next phases.

Based on the geological and glacial sediment logging and selective assay analysis of the

rotosonic core, AGAM will review the next exploration steps.

Drilling Incentive Grant (DIG)

16

AngloGold Ashanti: Drilling

¹Winter 2017 - 27 roto-sonic holes completed (of 33 permitted)

17

AngloGold Ashanti: Drilling

¹Winter 2018 - 68 roto-sonic holes completed (of 86 of permitted)

18

AngloGold Ashanti: Drilling

¹Winter 2018 - 2019 - 59 roto-sonic holes completed (of 133 of permitted)

19

AngloGold Ashanti: Drilling

¹Winter 2017 - 27 roto-sonic holes completed (of 33 permitted)

Winter 2018 - 68 roto-sonic holes completed (of 86 of permitted)

Winter 2018 - 2019 - 59 roto-sonic holes completed (of 133 of permitted)

Total Drilling: ~14,550 ft

Continued campaign to advance targets

Drill rig set-up

Typical configuration of drill rigs and support vehicles

Typical configuration of drill rigs with core

Access through ice for water

Super sack used to collect

sloughing sediments from

drill rods for easy removal

later

Typical access track

Typical access track and

snow mobile trailTypical access track

Typical access track

Bore hole

Bore holes: supplemental cement

addition planned to compensate for

settling.

Minor clean scheduled.

Typical bore holes after rig moved

off: Super sack removal and minor

clean-up scheduled.

27

Project generation terrane selection during 2015

2016 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Reconnaissance target generative work

Township lease nominationlate-2015

Airborne magneticsurvey

33 mineral leases awarded‘Celina Project’

winter roto-sonic drilling (Celina)

2017 lease bid auction

2017

Township lease nomination for 2017

237 mineral leases awarded

Open file review & DNR Core library

Regional targeting

AngloGold Ashanti: Progress

winter roto-sonic drilling (Aegir, Ran, Freyja)

28

2018 2020Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Fall roto-sonic drilling (1-2 targets)

winter roto-sonic drilling(4 target areas/infill)

2019

Township lease nomination for 2018?

mineral leases awarded?

Regional reconmapping/sampling

AngloGold Ashanti: Progress

winter roto-sonic drilling (Aegir, Ran, Freyja)

Regional reconmapping/sampling

Fall roto-sonic drilling (1-2 targets)

winter roto-sonic drilling

Negotiated lease application

Negotiated lease application?

29

AGAM have invested ~US$3M (late-2016 to mid-2018)

Strong focus on money going into the ground, use of local

businesses, development and training of local employees

In-ground spend includes

• direct drilling related costs

• environmental and reclamation work

• airborne geophysical surveys etc.

*excludes salaries of AGA employees

AngloGold Ashanti: Progress

30

AngloGold Ashanti: Sustainability

Lease process and milestones

Permitting

Engagement

31

Lease Process

1.Nominate parcels/Bid Unit Book

2.Bid/Award

3.Prospectus on AGA

4.SEC approval

AngloGold Ashanti: Lease

32

LAND

CLASS

SURFACE

OFFEREDKOOCHICHING TOTAL TOTAL

Tax Lands Yes 2,938 2,938

4,046Tax Lands No 1,109 1,109

School Yes 6,628 6,628

7,188School No 560 560

NReg No 114 114 114

Tax Lands/

NREG Min/

SchoolVariable 280 280 280

11,629 11,629

AngloGold Ashanti: Lease

33

AngloGold Ashanti: Project Permitting

2016-2017

PHASE I: ‘CELINA’ in Koochiching County

• Mineral exploration (2 applications/approval; lease-wide)

• Roto-sonic drilling (1 application/approval; 31 boring locations)

2017-2018

PHASE II: ‘RAN’ ‘AEGIR’ ‘FREYJA’ in Itasca County and St. Louis County

• Mineral exploration (2 applications/approvals; lease-wide)

• Roto-sonic drilling (3 applications/approvals; 85 boring locations)

2018-2019 (approved)

PHASE IIa: ‘KNARR’ and ‘RAN’ in Itasca County

• Roto-sonic drilling (1 application; 27 boring locations)

2018-2019 (approved)

PHASE III: ‘MAGNI’ ‘KNARRWEST’ and ‘RAN III’ ‘AEGIR II’ in Itasca County and St.

Louis County

• Roto-sonic drilling (4 applications; 106 boring locations)

34

AngloGold Ashanti: Project Permitting

¹Winter 2017 - 27 roto-sonic holes completed (of 33 permitted)

Winter 2018 - 68 roto-sonic holes completed (of 86 of permitted)

Winter 2018 - 2019 - 59 roto-sonic holes completed (of 133 of permitted)

Total Drilling: ~14,550 ft

Continued campaign to advance targets

35

AngloGold Ashanti: Project Permitting

PHASE I, II, & II – Koochiching, Itasca, and St. Louis Counties

Type Agency Scope Status & Requirements

Phase I & II Exploration Plans DNR Permissions to conduct surface and shallow exploration

activities on AGAM leases in Koochiching, Itasca, and St.

Louis Counties.

2016-2018 Submitted to and

approved by DNR. Last one expires

in December 2018.

Phase I Exploration Plan (1

application)

DNR Permission to conduct rotosonic drilling activities (at 31

boring locations) on AGAM leases in Koochiching County.

2016-2017 Submitted to and

approved by DNR. Expired April

2017.

Phase II Exploration Plans (3

applications)

DNR Permission to conduct rotosonic drilling activities (at 85

boring locations) on AGAM leases in Itasca and St. Louis

Counties County.

2017-2018 Submitted to and

approved by DNR. Expired April

2018.

Phase III Exploration Plans (5

applications)

DNR Permission to conduct rotosonic drilling activities (at 133

boring locations) on AGAM leases in Itasca, Koochiching,

and St. Louis Counties County.

2018-2019 Submitted to and

approved by DNR. Expires in 2019.

Drilling Notice of Intent MDH Notice of Intent to drill a bore hole. 2016-2019 Submitted to MDH.

Bore hole plugging form MDH Submission to MDH the required bore hole plugging

documentation.

2017-2019 Submitted to MDH.

Trail use Permit Koochiching

County

Permission to access to county tax-forfeit lands for

exploratory bore holes to selected AGAM leases in

Koochiching County.

2016-2017. Submitted to and

approved by Koochiching County

Application for

Access Permit

Koochiching

County

Permission to cross county road right-of-ways to access

exploratory drill sites to selected AGAM leases in

Koochiching County.

2016-2017. Submitted to and

approved by Koochiching County

Special Use/Trail

use Permits

Itasca County Permission to access to county tax-forfeit lands for

exploratory bore holes to selected AGAM leases in Itasca

County.

2016-2019. Submitted to and

approved by Itasca County

36

AngloGold Ashanti: Project Permitting

PHASE I, II, & III – Koochiching, Itasca, and St. Louis Counties

Resource AGAM

Stakeholder (s)Strategy Time

Special FeaturesDNR

Avoid disturbance or impacts through review of available surveys

and delineations and adjustment of exploratory activities

2016 to

present

Bats and other receptorsDNR

Habitat awareness and seasonal work strategy to avoid impacts to

breeding and hibernations.

2016 to

present

Cultural resources

DNR; Bois Forte

Discussion with Bois Forte tribe and DNR to understand issues.

Awareness and reporting of any suspected cultural or archaeology

sites to DNR and tribe.

2016 to

present

Invasive Weed

ManagementDNR; County

Where required, AGAM has BMP to wash and clean trucks when

moving between sites to avoid tracking invasive weed species

between sites. Employee awareness of invasive weed species. Also,

winter drilling limited spreading of weeds of between sites.

2016 to

present

ForestryDNR; County

Coordination with Koochiching, Itasca, and St. Louis Counties in the

event of tree removal will clearing access to drill locations.

2016 to

present

Wetlands

DNR; County

Avoiding wetland impacts through careful siting of drill pads and

drill trails on upland areas where possible and conducting

exploratory operations during the winter season.

2016 to

present

Surface and ground water

impacts

DNR; MDH

Borehole plugging carried out typically within 1 day of hole

completion, pursuant to MDH regulations. Placement of cement at

base of the bore hole and then bentonite grout (from the bottom

up) consistent with MDH regulations, was the dominant method to

seal the holes.

2017 to

present

ENVIRONMENTAL RESOURCE MANAGEMENT (PRESENT, RECENT, AND PAST EXAMPLES)

37

AngloGold Ashanti: Project PermittingPHASE I, II & III – Koochiching, Itasca, and St. Louis Counties

Type Agency Scope Status & Requirements

Bore hole plugging

form

MDH Submission to MDH the required bore hole plugging

documentation.

2017-2019 Submitted to MDH.

Timber

reconciliation

County; DNR Payment for trees (>5” MBH) felled on access trails to

boring locations

2017-2018 Payment to land

managers based on fee schedule

and # of trees felled.

Bore hole pad

reclamation

DNR Ensure bore hole location is remediated as needed. 2017 Completed.

2018 Completed.

2019 Completed.

38

AngloGold Ashanti: Project Permitting

BATS

SNOWMOBILE

INVASIVE WEEDS

39

AngloGold Ashanti: Project Permitting

OLD GROWTH

TROUT STREAM

HISTORICAL/CULTURAL

40

AngloGold Ashanti: Project Engagement

STAKEHOLDER ENGAGEMENT

WHO:

• COUNTY & TOWNSHIPS (ROADS, LAND, FORESTRY,

EMERGENCY SERVICES)

• STATE AGENCIES (DNR, MDH)

• TRIBAL GROUPS (BOIS FORTE), VENDORS, UTILITIES, PRIVATE

LANDHOLDERS, IRRRB, MINNESOTA LAND TRUST, FORESTRY

COMPANIES, INDUSTRY ASSOCIATIONS, NGOS, MEDIA

41

AngloGold Ashanti: Project Engagement

STAKEHOLDER ENGAGEMENT

HOW:

• Meetings, Updates, ‘Open Door Policy’

WHEN:

• PRIOR – meeting to present overview of company, leases, and

objective. Also provide applications and approvals

• DURING – Updates and invitations to visit operations.

• AFTER – Summary report, if appropriate (County, Forestry

companies)

42

AngloGold Ashanti: Project Engagement

STAKEHOLDER ENGAGEMENT

REACTIONS:

• MAJORITY POSITIVE

• DISCUSSIONS WITH PRIVATE LANDHOLDERS AND TRIBAL

GROUPS, INFRMATION AND COORDINATION WITH

RECREATIONAL USE GROUPS

EMPLOYED STAKEHOLDER ENGAGEMENT STRATEGY EARLY

43

AngloGold Ashanti: Beyond Au

• Cu-Mo-Au system in Colombia

• Ag in Argentina

44

AngloGold Ashanti

THANK YOU.

QUESTIONS?