Dar es Salaam — The Geita Gold Mine (GGM), an open cast mine with three pits which is located in Northwest Tanzania, near the shores of Lake Victoria has recorded a drop production of gold by 9% to 66,215 ounces.

According to GGM's first quarter, 2013 updates, gold production for the first quarter was 66,215 ounces against a budget of 72,801 ounces, making production 9% lower than budgeted.

The statement said that direct cash operating costs were $1. 103/oz compared to the set budget of $1.070/oz, up by 3%.

'This is a result of a decrease in gold production and the failure to achieve cost savings to match the reduction in the mining tonnages,' the GGM said in a first quarter report of 2013.

AngloGold Ashanti which owns GGM has invested $600m in Geita Gold Mine since 2000. It currently employs 3,541 people, both directly and indirectly, with a further 155 casuals and apprentices.

'Approximately 95% of these employees are Tanzanian,' it said. The report said that GGM has paid $683 million in direct contributions to the Tanzanian government through taxes and royalties since 2000.

In 2012, the report quotes 'our contributions totaled $213.8 million, a significant increase since 2011, where $101.1m was paid in direct contributions.'

The increase was a result of good gold grades, the high gold price and a business improve-ment programme.

Regarding exploration, a total of 74 diamond holes and 115 RC holes were drilled.

Significant assay results were received during the quarter from Nyankanga, Geita Hill West, Geita Hill East, Ridge 8,Matandani and Kukuluma.

Regional scale mapping by the exploration team continued in the Nyamulilima Terrain and along the southern edge of the Geita Greenstone Belt, while pit mapping at the Star and Comet, Ridge 8, Roberts, Kukuluma, Geita Hill and Nyankanga deposits is continuing with associated development of 3D models.

'The work to develop and refine the geological models for these areas continues, with improved understanding on the controls of mineralization,' the GM said.

GGM is proud to have maintained its ISO 14001 certification which will remain valid until June, 2016. ISO 14001 is a set of standards used by organizations for designing and implementing an effective environmental management system. It reads in part, 'There were no reportable environmental incidents during the first quarter except for minor incidents related to oil spillage and which did not pose an environmental threat.'

AngloGold Ashanti, a South Africa based, has 21 operations in 10 countries on four continents, as well as several exploration projects in both the established and new gold producing regions of the world.