| Wed 14 Apr 2010, 7:05 | | GDO - Gold One International Limited - Positive scoping study at Ventersburg |
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GDO
GDO
GDO - Gold One International Limited - Positive scoping study at Ventersburg
project
Gold One International Limited
(Previously BMA Gold Limited)
Registered in Western Australia under the Corporations Act, 2001 (Cth)
Registration number ACN: 094 265 746
Registered as an external company in the Republic of South Africa
Registration number: 2009/000032/10
Share code on the ASX/JSE: GDO
ISIN: AU000000GDO5
OTCQX International: GLDZY
("Gold One" or the "company")
POSITIVE SCOPING STUDY AT VENTERSBURG PROJECT
RESOURCE DRILLING RESUMES
Gold One is pleased to announce the results of an independent scoping study on
its Ventersburg Project. The scoping study was undertaken by Turgis Consulting
(Pty) Limited (`Turgis`), independent consultants to Gold One, which also
completed the feasibility work on Gold One`s flagship Modder East mine.
- Ventersburg Project Scoping Study completed by independent consultant
Turgis Consulting confirms:
- 11 year life of mine (`LOM`) from shallow (-465m) underground mine
- Steady state production of eight years peaking at 157,000 ounces per
annum
- Low LOM cash costs of US$379/ounce at a ZAR:US$ exchange rate of 8.81
- Expected capital cost of ZAR1.9 billion (A$285 million, US$ 215
million*)
- Free milling ore allowing for conventional carbon-in-leach (`CIL`)
extraction
- Current indicated resource of 8.73 million tonnes at an average grade of
5.12 g/t resulting in 1.44 million ounces of gold plus an additional 13.48
million tonnes at an average grade of 4.24 g/t (1.84 million ounces of
gold) in the inferred resource category
- Geological modeling has indicated that the channelised areas associated
with higher grades (`payshoots`), targeted for selective mining, remain
open to the north and south of the defined resource area
- Resource upgrade anticipated in third quarter of 2010
- Full pre-feasibility study to be conducted during 2010 incorporating
upgraded resource
- First gold production targeted for 2015
- Ventersburg drilling resumes with first intersection confirming geological
model
Commenting on the release of the scoping study, President and Chief Executive
Officer Neal Froneman said: "I am extremely pleased with the outcome of this
study, which will now lead into a full pre-feasibility study and further
resource delineation drilling. This is the same approach we took in the
development of our successful Modder East operation. Our confidence in this
project remains high and we believe Ventersburg could be a major stepping stone
in the internal growth profile of our company. We look forward to a resource
update in the second half of the year."
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
Situated in the Free State Goldfield of the Witwatersrand Basin, the Ventersburg
project has an existing indicated resource of 8.73 million tonnes at an average
grade of 5.12 g/t resulting in 1.44 million ounces of gold. An additional 13.48
million tonnes at an average grade of 4.24 g/t (1.84 million ounces of gold) has
been defined in the inferred resource category. A resource upgrade as a result
of recent drilling is expected during the third quarter of 2010.
The scoping study considers a planned production rate of 80,000 ore tonnes per
month that are processed on site through a standard CIL process plant. Due to
the inherent channelised nature of the orebody, several options from non-
selective (larger volumes mined at lower grade) to selective mining options were
investigated. The project financial modeling indicates that it is most
sensitive to revenue (i.e. grade and gold price) and thus, selective mining of
the orebody, targeting payshoots, is expected to provide the highest value
proposition.
For the purposes of the scoping study a total mine life of 11 years was
considered of which eight will be at steady state production of 1 million metric
tonnes per annum. The average head grade mined over the life of the operation
will be 4.6 g/t for 1.44 million ounces of gold (1.36 million ounces recovered),
peaking at 157,000 recovered ounces per annum. It is feasible that production
could commence during 2015.
The estimated total capital cost is ZAR1.9 billion (A$285 million, US$215
million*) and cash costs over the life of the mine are estimated at US$379/ounce
at a ZAR:US$ exchange rate of ZAR/US$ 8.81. The shallow nature of Ventersburg
(from 465 metres) ensures low capital and cash costs.
The mine design and layout utilised for the scoping study is typical of South
African gold mines, allowing for suitable benchmarking of working and capital
costs. In addition, and where applicable, benchmarking of costs and performance
to the existing Modder East mine were made. The scoping study considered a twin
vertical shaft system for primary access to the orebody with secondary
development based on conventional tracked development. The existing Modder East
metallurgical plant was used to benchmark processing and construction costs. Due
to the shallow nature of the orebody (no deeper than 1,000 metres below surface)
refrigeration is not required, however, high volumes of ventilation air were
included due to known high methane concentrations. Mining takes place using
conventional breast stoping.
As part of the scoping study, optimisations in terms of production rates have
not yet been considered. Furthermore, while high level trade-off studies were
undertaken, the potential benefits of mechanised mining and alternative orebody
access options have not yet been fully evaluated. These optimisations will be
analysed during the pre-feasibility study. In addition, the pre-feasibility
study will utilise an upgraded Ventersburg resource.
In the scoping study, 70% of the planned production comprises existing South
African Code for Reporting Exploration Results, Mineral Resources and Mineral
Reserves (`SAMREC`)/ Australasian Joint Ore Reserves Committee (`JORC`)
compliant indicated resources, while the remaining 30% is made up of inferred
resources and assumed reef extensions. Due to the inclusion of inferred and
assumed extension resources, the mine plan and associated scheduling cannot be
considered as mineral (ore) reserves as per the SAMREC and JORC definitions, and
financial valuations should be considered indicative of the project potential
rather than a definitive project valuation.
ONGOING EXPLORATION
Based on the 2009 drilling campaign, geological modeling has indicated that the
payshoots, targeted for selective mining, remain open to the north and south.
The current and future exploration program is aimed at delineating the
extensions of these payshoots, thereby increasing the total indicated resource
base to support a LOM in excess of 10 years.
At Ventersburg the A-Reef horizon forms the primary exploration target and
extends from a depth of 400 metres to 1,000 metres below surface at an average
dip of 17 degrees to the northwest. The first borehole drilled during the new
campaign was sited in the projected payshoot extension to the south and
intersected A-Reef at the expected depth of 551 metres below surface. The
intersected reef comprises a thick channel conglomerate facies that is well
mineralised in the form of pyrite. This intersection has confirmed both the
geological structural and sedimentological models. The orebody considered during
the scoping study is bounded to the northwest by the northeast trending Virginia
Fault. West of this fault, drilling has confirmed that the reef is up thrown to
shallower depths (approximately 500 metres below surface), and this northern
payshoot extension will be further delineated during the current drill program.
In addition to delineating the payshoot extensions, infill drilling is also
planned during 2010. This drilling will consider a narrower drill hole spacing
within known higher grade areas to more confidently define localised high grade
payshoots. This in turn will provide a higher confidence grade model to support
the selective mining techniques considered during the scoping study.
*ZAR/A$ exchange rate of 6.66 and ZAR/US$ exchange rate of 8.81
Issued by Gold One International Limited
Website : www.gold1.co.za
For further information contact:
Neal Froneman Ilja Graulich Carol Smith
President and CEO VP: Corporate Affairs Investor Relations
+27 11 726 1047 (office) +27 11 726 1047 (office) +27 11 726 1047 (office)
+27 83 628 0226 (mobile) +27 83 604 0820 (mobile) +27 82 338 2228 (mobile)
neal.froneman@gold1.co.z ilja.graulich@gold1.co.z carol.smith@gold1.co.za
a a
Parktown, Johannesburg
14 April 2010
Sponsor
Macquarie First South Advisers (Pty) Limited
ABOUT GOLD ONE:
Gold One International Limited is a gold producer listed on the financial
markets operated by ASX Limited (the Australian Securities Exchange) and JSE
Limited (the Johannesburg Stock Exchange) (issuer code GDO). Its flagship
operation is the newly built shallow Modder East mine on the East Rand, some 30
kilometres from Johannesburg. Gold One also owns the nearby existing Sub Nigel
mine, which is used primarily as a training centre in the build-up of the Modder
mine to full production. Its other projects and targets include Ventersburg and
Bothaville, both in the Free State goldfields, the Tulo concession in Mozambique
and the Etendeka greenfields project in Namibia. Gold One has an issued share
capital of 805,239,940 shares.
FORWARD-LOOKING STATEMENT:
This release includes certain "forward-looking statements" and "forward-looking
information". All statements other than statements of historical fact included
in this release including, without limitation, statements regarding future plans
and objectives of Gold One are forward-looking statements (or forward-looking
information) that involve various risks, assumptions and uncertainties. There
can be no assurance that such statements will prove to be accurate and actual
values, results and future events could differ materially from those anticipated
in such statements. Important factors could cause actual results to differ
materially from Gold One`s expectations. Such factors include, among others, the
actual results of exploration activities, actual results of reclamation
activities, the estimation or realization of mineral reserves and resources, the
timing and amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of Modder East and new
deposits, availability of capital required to place Gold One`s properties into
production, the ability to obtain or maintain a listing in South Africa,
Australia, Europe or North America, conclusions of economic evaluations, changes
in project parameters as plans continue to be refined, future prices of gold and
other commodities, possible variations in ore grade or recovery rates, failure
of plant, equipment or processes to operate as anticipated, accidents, labour
disputes and other risks of the mining industry, delays in obtaining
governmental approvals, political risks, permits or financing or in the
completion of development or construction activities, economic and financial
market conditions, Gold one`s hedging practices, currency fluctuations, title
disputes or claims limitations on insurance coverage. Although Gold One has
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as
anticipated, estimated or intended.
Any forward-looking statements in this release speak only at the time of issue.
There can be no assurance that such statements will prove to be accurate as
actual values, results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Gold One does not undertake to update
any forward-looking statements that are included herein, or revise any changes
in events, conditions or circumstances on which any such statement is based,
except in accordance with applicable securities laws and stock exchange listing
requirements.
COMPETENT PERSON
The information in this release that relates to exploration results, mineral
resources or ore reserves is based on information compiled by Dr. Richard
Stewart, PhD, Pr.Sci.Nat., Vice President, Geology, Gold One, who is a Member
of the Geological Society of South Africa. Dr Stewart is a full-time employee
of Gold One. He has 10 years experience which is relevant to the style of
mineralization and type of deposit under consideration and to the activity which
he is undertaking, to qualify as a Competent Person for the purposes of both the
2004 Edition of the `Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves` and the `South African Code for Reporting of
Mineral Resources and Mineral Reserves`. Dr Stewart consents to the inclusion in
this release of the matters based on information compiled by Gold One employees
and it`s consultants in the form and context in which they appear. Further
information on the company`s resource statement is available in the pre-listing
statement of Gold One International Limited issued on 19 December 2008.
SAMREC and JORC TERMINOLOGY
In addition, this release uses the terms "indicated resources" and "inferred
resources" as defined in accordance with the SAMREC Code (South African Code for
Reporting of Mineral Resources and Mineral Reserves prepared by the South
African Mineral Resource Committee) (SAMREC) under the auspices of the South
African Institute of Mining and Metallurgy effective March 2000 or as amended
from time to time and where indicated in accordance with the Canadian National
Instrument 43-101 - Standards for Disclosure for Mineral Projects. The terms
"indicated resources" and "inferred resources" are also defined in the 2004
Edition of the JORC Code (Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves) prepared by the Joint Ore Reserves
Committee of The Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia (JORC). The use of
these terms in this release is consistent with the definitions of both the
SAMREC Code and the JORC Code.
A mineral reserve (or ore reserve in the JORC Code) is the economically
mineable part of a measured or indicated resource demonstrated by at least a
preliminary feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant factors that
demonstrate at the time of reporting that economic extraction can be justified.
A mineral reserve includes diluting materials and allows for losses that may
occur when the material is mined. A proven mineral reserve (or proved ore
reserve in the JORC Code) is the economically mineable part of a measured
resource for which quantity, grade or quality, densities, shape and physical
characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and
economic parameters to support production planning and evaluation of the
economic viability of the deposit. A probable mineral reserve (or probable ore
reserve in the JORC Code) is the economically mineable part of an indicated
mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and economic parameters to
support mine planning and evaluation of the economic viability of the deposit.
A mineral resource is a concentration or occurrence of natural, solid, inorganic
or fossilized organic material in or on the earth`s crust in such form and
quantity and of such a grade or quality that it has reasonable prospects for
economic extraction. The location, quantity, grade, geological characteristics
and continuity of a mineral resource are known, estimated or interpreted from
specific geological evidence and knowledge. A measured mineral resource is that
part of a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters to support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough to confirm both geological and grade continuity. An
indicated mineral resource is that part of a mineral resource for which
quantity, grade or quality, densities, shape and physical characteristics can be
estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed. An inferred mineral resource is that part
of a mineral resource for which quantity and grade or quality can be estimated
on the basis of geological evidence and limited sampling and reasonably assumed,
but not verified, geological and grade continuity. The estimate is based on
limited exploration and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. Mineral
resources which are not mineral reserves do not have demonstrated economic
viability. Investors are cautioned not to assume that all or any part of the
mineral deposits in the measured and indicated resource categories will ever be
converted into reserves. In addition, "inferred resources" have a great amount
of uncertainty as to their existence and economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral resource will be
ever be upgraded to a higher category. Under South African and Australian
rules, estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies or economic studies except under
conditions noted in the SAMREC Code and the JORC Code, respectively
Investors are cautioned not to assume that all or any part of an inferred
resource exists or is economically or legally mineable. Exploration data is
acquired by the Corporation and its consultants under strict quality assurance
and quality control protocols.
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Date: 14/04/2010 07:05:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
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employees and agents accept no liability for (or in respect of) any direct,
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