Tuesday, 28th February 2006 (2985 views)

AngloGold Ashanti, the world's second largest gold miner, has boosted its position in China by investing $2 million in Dynasty Gold Corporation.

The private placement hands it a nine per cent stake in Canada-based Dynasty - which has a 70 per cent holding in three gold projects in northwest China.

The agreement will also see the duo form a broader alliance in which AngloGold Ashanti has the right to enter joint ventures on the two more lucrative projects.

AngloGold believes Dynasty's Red Valley and Wild Horse properties could each hold as much as four million ounces of gold.

Work on both projects is still at a "very early stage", according to AngloGold's Eric Roth, although the $2 million will be used to further exploration.

He told the Business Standard that the investment would help to delineate the ore body and start drilling programmes.

South Africa-based AngloGold expects gold production to hit between 5.8 million and 6.1 million in 2006. Only Barrick Gold has a larger production capacity.

 

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