KEY FACTS:

FREQUENTLY ASKED QUESTIONS

THE PROJECT

Q: What is the Tropicana Gold Project (TGP)?
A: TGP is a joint venture project between AngloGold Ashanti Australia Ltd (AGAA) and Independence Group NL (IG). 

Q: What is the proposed design concept for the TGP?
A: The joint venture partners are carrying out a Feasibility study based on conventional open cut mining, utilising conventional carbon-in-leach gold processing. The project will comprise a site access road, water supply area and operational area.  The operational area will contain the mining area, processing plant, village, airstrip and power station. The preferred site access route will utilise an existing road from Kalgoorlie to the Pinjin Station and then a new private road will be established linking the operational area

Q: What is a Feasibility Study?
A: A Feasibility Study aims to demonstrate an optimal case for the technical and economic viability of an investment opportunity, enabling a development decision to be made.

Q: When will the Feasibility Study start?
A: Approval of the Feasibility Study occurred in July 2009 and work commenced immediately. 

Q: When is it likely that the TGP will commence?
A: Based on the current schedule and subject to obtaining all environmental approvals, along with financial, and board approval by both JV partners, construction is expected to commence in the second half of 2010.

Q: How many years will the project run? 
A: The operational phase of the project is expected to run for at least 10 years.

Q: What is the expected timing of the first gold pour?
A: On current timelines we anticipate the first gold pour to occur in 2013.

Q: What is the expected annual gold production?
A: Annual gold production is anticipated to be between 330,000 and 410,000 oz/annum, with production dependent on the grade and tonnage of ore processed each year.

Q: What is the anticipated capital expenditure?
A:  The Feasibility study will better define capital expenditure, however, in mid 2009 the capital costs were estimated to be approximately A$520 million for the treatment plant and infrastructure (excluding capital for a mining fleet). The final capital requirements will vary with issues such as the owner vs. contract mining decision and the final power solution adopted for the project.
 
Q: What are the power options for the project?
A: The JV has considered diesel, gas, grid and solar thermal power options. Given the distances from the nearest power source, grid power is not economically viable.  Solar power requires additional engineering studies to assess economic and technical viability and would require the Australian Government to fully support the project's Renewable Energy Demonstration Program grant application to be financially viable. The consideration of gas is contingent on the availability and cost of natural gas and the cost of the pipeline.

Q: What is the economic benefit of the project to the local community and WA?
A: The proposed project will provide employment and where practicable will source goods and services from local businesses. It will also generate royalties and taxes for the State and Federal Governments. A study by Compelling Economics has estimated that during the construction phase the project would contribute A$836 million (direct, indirect and consumption effect) to the WA economy, and create 2,322 jobs. The study found that during the operational phase, the TGP would contribute a further A$825 million (direct, indirect and consumption effect) into the WA economy and support 1,197 jobs. The workforce during the operational phase would number approximately 400.

MANAGEMENT STRUCTURE

Q: What is the ownership structure of the Tropicana Gold Project?
A:  The TGP is owned by AngloGold Ashanti Australia Ltd with 70% and Independence Group NL with 30%. AGAA is Manager of the joint venture.

EMPLOYMENT & BUSINESS OPPORTUNITIES

Q: How do I apply for a job at the mine?
A: We are not anticipating opening any employment opportunities until well into 2010, assuming all approvals occur as scheduled.  Advice on TGP employment will be posted on the Tropicana JV website (www.tropicanajv.com.au) closer to the time when project approvals are expected.

Q: Will local businesses have the opportunity to participate in the TGP?
A:  The TGP owners fully intend to provide opportunities to local business to participate in the project start up and operational phases. We recommend interested businesses register their interest on the TGP JV website at www.tropicanajv.com.au. Regular updates will be posted on this site.

Q: Will employees working at the project be fly-in fly-out or residential in Kalgoorlie?
A:  Due to the remote location (330 km from Kalgoorlie, 290 km from Laverton), it would not be possible to operate other than with a fly-in fly-out work force.

APPROVALS

Q: When will you have all the approvals?
A: We envisage that the Environmental Protection Act and the Commonwealth EPBC Act approvals will be obtained by mid 2010.

COMMUNITY CONSULTATION

Q: Have you been in consultation with a wide range of community groups?
A: Consultation with some key community groups has been underway for several years. A full spectrum of stakeholder consultation commenced very early in 2008, well before the project was referred to the WA EPA, which occurred later in that year.

Q: How will I find out what is going on? 
A: By registering on the Tropicana Joint Venture Website for email alerts.  www.tropicanajv.com.au

Q: Will you hold more public meetings? 
A: We intend to hold several additional meetings as the project progresses; the next meeting is planned for the third quarter in 2009

TRAFFIC

Q: Will there be an increase in heavy haulage traffic flow if the TGP goes ahead?
A: The traffic travelling the road via Pinjin will be limited to essential supplies and consumables required to operate the project.

ENVIRONMENT GENERAL

Q: How much clearing will be required by the proposed project?
A:  The project could clear up to 3,940ha if it reaches its maximum economic potential, if a solar thermal power station is established and if no in-pit dumping occurs.  It is likely that some in-pit dumping will occur and it is possible that, due to changing economic circumstances, the pit may not reach 400ha.  The 3940 ha represents the upper limit of clearing. Actual clearing will be limited to what is required to establish the mine and to access the ore.  This footprint also includes over 1200ha of clearing associated with the establishment of a site access road, communication lines / towers and a water supply area.

WATER MANAGEMENT

Q: How deep is the aquifer that will be used for mining operations?
A: The aquifer we plan to use is a regionally extensive confined aquifer at least 100m below surface.  Extraction of water from the aquifer is not expected to have any impact on any local water dependent ecosystems.

Q: Are there any other water users nearby?
A: There are currently no other water users near the Minigwal Trough or the operational area.

Q: Will you be recycling any water?
A: Waste water generated by the site desalination plant will be used in the processing circuit and water recovered from the leach / tails thickeners and off the tailing storage facility will also be used in the processing circuit.  Water collected in the mining area following rain events will also be used onsite for mining or processing activities.  Consideration is also being given to recycling grey water generated at the village back through the sewage system.

GREENHOUSE FOOTPRINT

Q: What will the greenhouse footprint be for the site?
A:  Assuming a mill throughput rate of 7Mtpa and a diesel power station, the project will generate 330Kt CO2-e / annum.

Q: What greenhouse reduction strategies have been considered?
A: A number of initiatives have been incorporated into the project design to reduce greenhouse emissions. The project has incorporated HPGR technology (high pressure grinding rolls), which are more energy efficient, into the crushing circuit and is incorporating direct dumping into the crusher hopper to reduce re-handling.  The mining fleet is optimised to reduce vehicle numbers and hence fuel consumption.

Q: If the TGP goes ahead, what is planned for the mine at the end of its life?
A: The project will be rehabilitated to blend into the surrounding environment.  The waste material landform will be limited in height by the natural environment.  The outer slopes of the landform will be a similar gradient to the slope of the dunes in the local area averaging an angle of 15? and will not have any benches.  The landforms will be covered with at least 1m of growth medium with the aim of establishing a vegetation cover similar to the adjacent area. The mine pits will be bunded off to prevent accidental access by people and to restrict terrestrial fauna access.  The pits will slowly fill with saline water that seeps in from the adjacent areas following rains and from the adjacent saline aquifers.

Q: Are you planning to use standard Goldfields rehabilitation practises for the site?
A: We are looking at the natural environment adjacent to the project and incorporating information from other areas with a similar environment to develop the most appropriate rehabilitation technique for our situation.  Rehabilitation practises will be progressively implemented and trialled over the life of the project to refine the best approach for Tropicana.

VILLAGE / ACCOMMODATION

Q: Where will workers be housed?
A: Workers will be housed onsite in a purpose-built mine village.  The site will be a four hour drive from Kalgoorlie so daily commuting is not possible.