AngloGold Ashanti Commences Drilling at Organullo Gold Project in Argentina

Drilling Commences at Organullo Gold Project

AngloGold Ashanti plc (NYSE: AU), through its subsidiary AngloGold Argentina Exploraciones S.A., has officially commenced a Phase I drilling program at the Organullo Gold Project in Salta Province, Argentina. This initial program will consist of 10 drill holes totaling approximately 6,000 meters, marking a significant advancement in the exploration of this potentially large-scale gold system. First drill results from the Organullo project are anticipated in the first quarter of 2026.

Project Details and Strategic Partnership

AngloGold Ashanti is operating under an option agreement with Latin Metals Inc. (TSXV: LMS, OTCQB: LMSQF), which grants the major gold producer the ability to earn up to an 80% interest in Latin Metals' Organullo, Ana Maria, and Trigal Gold projects. This strategic partnership underscores Latin Metals' "prospect generator model," designed to minimize risk and dilution while maximizing discovery potential by leveraging major mining companies to fund exploration.

The Organullo project is recognized as a high-priority greenfields exploration target, with AngloGold Ashanti targeting a "multi-million-ounce, Tier 1 discovery." This objective is supported by a technical analogy to Gold Fields Limited's Salares Norte deposit, which boasts a proven and probable reserve of 3.4 million ounces grading 5.36 g/t gold. The drilling will focus on three previously unexplored, advanced argillic alteration zones identified along a 6-kilometer strike length, with geophysical anomalies, structural interpretation, and geochemical data further supporting the potential for significant gold mineralization.

Latin Metals recently expanded its land position by securing rights to the Malena VII mining property, contiguous with the previously acquired Malena VI and the existing Organullo gold project. This consolidation extends the prospective structural corridor, creating new opportunities for target generation adjacent to established anomalies and is included in the option agreement with AngloGold Ashanti. The approval of Latin Metals' Social & Environmental Impact Report (SEIR) by Salta Province mining authorities has permitted up to 11,900 meters of diamond drilling, paving the way for this systematic exploration effort.

Market Implications and Corporate Performance

For Latin Metals Inc., the commencement of drilling by a major partner like AngloGold Ashanti represents a pivotal milestone that could generate increased investor interest and speculative activity. The prospect of a major gold discovery could substantially enhance the company's valuation and provide significant upside for shareholders.

AngloGold Ashanti plc, currently valued at $35.4 billion, demonstrates robust financial health. According to InvestingPro analysis, the company holds a "GREAT" rating, supported by a strong current ratio of 2.99 and impressive revenue growth of 54.6% over the last twelve months. The stock has delivered a remarkable 207.7% return year-to-date, reflecting strong market performance and investor confidence. While the immediate market reaction to the drilling initiation may be contained given the early exploration stage, a successful outcome at Organullo could significantly contribute to AngloGold Ashanti's future production profile and long-term reserve base, aligning with its global expansion strategies.

Expert Perspective

Keith Henderson, President & CEO of Latin Metals, emphasized the project's significance, stating:

"Organullo is one of the most compelling untested gold exploration targets in South America and a high priority greenfields exploration project for AngloGold Ashanti. We are pleased to see AngloGold Ashanti moving the project into the drilling phase, which represents a significant milestone for the Project and for Latin Metals shareholders. This drill program will provide the first real test of this potentially large-scale gold system."

Outlook and Future Catalysts

Investors will keenly await the initial drill results from Organullo, expected in Q1 2026. Positive indications of significant gold mineralization could serve as a powerful catalyst for both Latin Metals Inc. and AngloGold Ashanti plc. Successful delineation of a "Tier 1" resource would not only validate Latin Metals' exploration model but also bolster AngloGold Ashanti's strategic pipeline of growth projects in mining-friendly jurisdictions like Argentina. Future developments will likely involve further drilling phases, resource estimation, and continued assessment of the project's economic viability and potential contribution to global gold supply.