| Mon 19 Apr 2010, 7:24 | | GDO - Gold One Reports 21% Increase In Quarterly Gold Production Operating |
|
GDO
GDO
GDO - Gold One Reports 21% Increase In Quarterly Gold Production, Operating
Cash Flow Of Zar 54.9 Million (Us$ 7.3 Million) And Modder East Cash Costs Of
Us$ 480/Oz, For The Quarter Ended 31 March 2010
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" or the "group")
GOLD ONE REPORTS 21% INCREASE IN QUARTERLY GOLD PRODUCTION, OPERATING CASH
FLOW OF ZAR 54.9 MILLION (US$ 7.3 MILLION) AND MODDER EAST CASH COSTS OF US$
480/OZ, FOR THE QUARTER ENDED 31 MARCH 2010
Gold One is pleased to report another milestone quarter with strong operating
cash flows as the company continues to ramp up production at its flagship
Modder East mine ("Modder East"). In addition all of Gold One`s operations
recorded a zero Lost Time Injury ("LTI") March 2010 quarter.
The quarterly highlights are:
- Zero LTI for the quarter
- Operating cash flow of ZAR 54.9 million (US$ 7.3 million) for the quarter
- 21% increase in gold output with 13,208 ounces of gold produced for the
quarter
- Modder East cash costs US$ 480/oz for the quarter
- Gold recoveries increased by 4.3% to 96% for the quarter
- Consistent recovered grade of 6.86g/t for Modder East
- Two banks shortlisted to provide US$ 65m credit facility to redeem
convertible bonds
- Positive outcome to Ventersburg scoping study
These achievements should be viewed in the context of the distractions around
wage negotiations and the resultant industrial action experienced at Modder
East from 23 March 2010 onwards.
Revenue for the company for the quarter was ZAR 108.4 million (US$ 14.4
million), and cash operating costs were ZAR 53.5 million (US$ 7.1 million),
resulting in an operating cash flow of ZAR 54.9 million (US$ 7.3 million).
Development and capital expenditure for the quarter for both Modder East and
Sub Nigel was ZAR 42.2 million (US$ 5.6 million).
Cash on hand at the end of the quarter was ZAR 67 million (US$ 8.9 million),
compared to an end of December 2009 quarter cash balance of ZAR 100.9 million
(US$ 13.4 million). The company paid ZAR 31.6 million (US$ 4.2 million) to
redeem convertible bonds while also paying interest on the bonds for the
quarter of around ZAR 9.8 million (US$ 1.3 million). Excluding the payments
made in respect of the convertible bonds, Gold One was cash flow positive
during the quarter.
Gold One has made good progress in refinancing the company`s convertible bond.
One South African bank and one international bank have been shortlisted to
finalise and implement a facility on a syndicated basis, and it is anticipated
that final credit committee approved term sheets will be in place by the end
of May 2010.
Commented Gold One President and Chief Executive Officer Neal Froneman: "The
past quarter has been another solid foundation block in the build-up to full
production at our flagship Modder East mine. I am very pleased with the
group`s delivery and the quality of the Modder East asset. The safety
achievements are very significant and we ascribe this achievement to our in-
house training program at Sub Nigel, which assures competence and alignment
with the company`s philosophies and strategies. Our immediate priority is to
resolve the impasse around the wage dispute with the National Union of
Mineworkers and the implementation of a corporate debt facility."
(Average exchange rate of ZAR 6.80/A$1 and ZAR 7.53/US$1 used throughout)
Issued by Gold One International Limited
Website : www.gold1.com.au
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.za ilja.graulich@gold1.co.za carol.smith@gold1.co.za
Parktown, Johannesburg
19 April 2010
JSE 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.
This News Release does not constitute investment advice. Neither this News
Release nor the information contained in it constitutes an offer, invitation,
solicitation or recommendation in relation to the purchase or sale of
securities in any jurisdiction.
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: 19/04/2010 07:24:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
