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GDO
GDO
GDO - Gold One International - Quarterly Activities Report 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")
QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 MARCH 2010
MARCH 2010 QUARTERLY HIGHLIGHTS:
Zero lost time injuries ("LTI") for the quarter
Operating cash flow of US$ 7.3 million for the quarter
21% increase in gold output with 13,208 ounces of gold produced for the quarter
Modder East mine ("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 project ("Ventersburg") scoping study
MARCH 2010 KEY PERFORMANCE DATA
(Average exchange rate of ZAR 6.80/A$ 1 and ZAR 7.53/US$ 1)
March 2010 quarter Modder East*
Ore mined underground 65,497
Mined grade (g/t) 8.41
Milled tonnes 56,409
Recovered grade (g/t) 6.86
Gold recovery 96%
Gold produced 12,443 oz
Modder East cash cost US$ 480/oz
March 2010 quarter Group
Group development and capital US$ 5.6m
expenditure
Group gold revenue US$ 14.4 million
Average price received US$ 1,107/oz
Note: An additional 765 ounces of gold were produced during the quarter from
low grade Modder East development ore (704 ounces) and Sub Nigel ore (61
ounces).
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
1 CHIEF EXECUTIVE OFFICER`S REVIEW
It is with great pleasure that I begin this report by advising that Gold One
achieved zero LTI`s for the quarter. We ascribe this achievement to our daily
mining philosophy of "nothing is so important that it cannot be done safely",
and to an in-house training program which assures competence and alignment with
the company`s philosophies and strategies. This approach is supported by all
employees and reinforced at all of the company`s regular meetings.
Revenue for the company for the quarter was US$ 14.4 million, and cash operating
costs were US$ 7.1 million, resulting in operating cash flow of US$ 7.3 million.
Development and capital expenditure for the quarter across the Modder East and
Sub Nigel projects was US$ 5.6 million.
Cash on hand at the end of the quarter was US$ 8.9 million, compared to an end
of December 2009 quarter ("4Q2009") cash balance of US$ 13.4 million. The
company paid US$ 4.2 million to redeem convertible bonds while also paying
interest on the bonds for the quarter of around US$ 1.3 million. Excluding the
payments made in respect of the convertible bonds, Gold One was cash flow
positive during the quarter.
Ramp up at Gold One`s flagship Modder East operation continued during the
quarter, and I am pleased to report that the company produced 13,208 ounces of
gold, of which 12,583 ounces were sold within the quarter ending on 31 March
2010 ("1Q2010"). Inventory on hand at the end of the quarter of 625 ounces was
dispatched to the refinery on 6 April 2010, following the Easter long weekend.
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.
Graph 1
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
Average cash costs of US$ 480/oz were achieved at Modder East in a strong South
African Rand ("ZAR") environment, where the average exchange rate for the
quarter was ZAR 7.53/US$ 1, versus budgeted exchange rates of ZAR 8.41/US$ 1,
which was based on analyst consensus forecasts. Cash costs for Modder East
would have been US$ 430 per ounce based on budgeted exchange rates which is in
line with the guidance provided.
The increase in gold production was primarily as a result of a 29% increase in
volume mined (total of 79,176 tonnes) and a 9% increase in volume treated, which
totalled 72,800 tonnes made up of 56,409 tonnes from Modder East, 4,387 tonnes
from low grade Modder East development ore and 12,004 tonnes from Sub Nigel.
Graph 2
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
As a result of further plant optimisation, gold recoveries have increased from
92% to 96%.
Graph 3
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
The recovered grade at Modder East underground was steady at 6.86g/t compared to
6.88g/t in the previous quarter.
Graph 4
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
The quality of the orebody continued to be reflected in the high on reef
development grades. During the quarter, a total of 99.6 metres of on reef
development was completed with 71 metres having been sampled. Over the 71
metres, the average Buckshot Pyrite Leader Zone ("BPLZ") thickness is 75
centimetres at an average grade of 1,239 cmg/t (or 16.5 g/t over the in-situ
reef width, equating to 12.4 g/ton over a 100 centimetre mining width). In
addition, the exposed portion of the underlying Blanket Facies was sampled at an
average grade of 1.1 g/t.
Gold One has made good progress in refinancing the company`s convertible bonds.
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.
During the quarter, given that the company now has greater tangibility having
moved from a developer to a producer, management implemented a well planned
communication strategy, aimed at increasing the visibility of the Gold One
investment proposition. In line with the company`s strategy of increasing
liquidity, the Johannesburg Stock Exchange ("JSE") listing was amended from a
primary to a secondary listing. I am also pleased to advise that Gold One is
covered and researched by five analysts and brokers, each with a buy or
outperform recommendation.
Subsequent to quarter end, Gold One released the positive outcome of an
independent scoping study on its Ventersburg project, which demonstrated an 11
year mine life peaking at 157,000 ounces per annum. Drilling at Ventersburg has
since re-commenced. 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 drilling program is aimed at delineating
the extensions of these payshoots.
It is unfortunate that the industrial action by the National Union of Mine
Workers ("NUM") has entered its fourth week, with approximately 800 semi-skilled
employees (Category A and B) on strike. The company`s position was well
considered prior to the strike and during the strike our offer has remained
consistent and significant. The strike plan developed by the company is based
on utilising approximately 200 employees comprising supervisors and skilled
employees outside of the NUM bargaining unit to continue with mechanised on reef
development and the removal of underground accumulations. These employees have
consistently over delivered on the strike plan of 500 tonnes per day of 5g/t of
ore. This amount of production is sufficient to cover current costs as the rule
of "no work no pay" is being enforced. Unfortunately, the reduced production
will have an impact on the June quarter targets ("3Q2010"). Guidance will be
provided once there is clarity around the conclusion of the industrial action.
The morale amongst the non-striking employees remains high and the company is of
the considered opinion that the strike plan can be maintained indefinitely, if
need be.
The NUM recognises the importance of the company being able to maintain
production and has unfortunately resorted to unlawful conduct to disrupt
production. The conduct includes sabotage of power supply systems, preventing
employees outside of the bargaining unit from entering and leaving the mining
operations and causing malicious damage to property. The company has formally
placed on record that it reserves the right to claim damages from NUM and any of
its members who cause damage to company property.
The company remains concerned regarding the welfare of its employees and is well
aware that the majority of the striking employees do not support the strike, and
continually make requests to management to return to work. Until the company
can ensure that these employees will not be victimised by the union it
unfortunately cannot accede to these requests at present. The company has
formally called upon NUM to prevent the striking employees from behaving in an
unlawful manner and will not hesitate to launch an urgent application to the
Labour Court to interdict NUM and its members from all acts of violence,
intimidation, sabotage of any form and blockading of access and egress to and
from the mining operations should NUM fail to control its members.
Our immediate priority is to resolve the impasse around the wage dispute with
NUM. We will, however, continue to focus on Modder East delivery and
restructuring of the balance sheet by replacing the convertible bond with a
corporate debt facility.
2 OPERATIONAL REVIEW
2.1 Safety
Gold One had a zero LTI March 2010 quarter, a significant achievement which
signals the first injury free quarter for the company. The last recorded LTI at
Sub Nigel was in October 2009.
2.2 Modder East
2.2.1 Production
Total group production for the quarter was 13,208 ounces, 12,443 ounces of which
were produced from the Modder East underground operations, a 21% increase
compared to the 10,323 ounces produced in the December 2009 quarter. This was
despite the negative impact of wage negotiations throughout the quarter and
industrial action.
A breakdown of milled tonnages and grade as measured for the quarter is as
follows:
- 56,409 tonnes of ore were milled from Modder East at a recovered grade of
6.86g/t for 12,443 ounces;
- 12,004 tonnes of ore from the Sub Nigel training centre were treated at a
recovered grade of 1.82 g/t yielding 704 ounces; and
- 4,387 tonnes were fed to the crusher from the lower grade stockpiled ore as
a result of underground clean-ups, which at a recovered grade of 0.43g/t yielded
61 ounces.
2.2.2 Development
A significant milestone in the build-up of this year`s production was the
commencement of development of the North 2 ("N2") raiseline.
The intersection at N2 is the first reef intersection achieved from the Decline
West, confirming the decision taken to start this new decline, which did not
form part of the original feasibility study. A total of 55 metres have been
developed on the N2, with the first 27 metres sampled at 2,122cmg/t over a width
of 129 centimetres yielding a grade of 16.45g/t.
The continued wider than anticipated reef packages experienced at the northern
end of the shoreline has also meant that mechanised development was able to
continue in the current mining areas off the North 1 ("N1") raiseline, allowing
faster access to the Eastern portions of the N2 raiseline. This development
flexibility improves the confidence of meeting reef development targets required
for opening up the requisite mining panels to meet the 2010 reef production
plan. Footwall development is 90 metres from the North 3 raiseline, the last
raiseline planned to be intersected in 2010, where 450 metres of development is
planned in 2010.
Schematic 1
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
During the quarter, a total of 99.6 metres of on reef development was completed.
At the time of reporting, 71 metres of the development had been sampled and
assays returned. Over the 71 metres, the average BPLZ thickness is 75
centimetres at an average grade of 1,239 cmg/t (or 16.5 g/t over the in-situ
reef width, equating to 12.4 g/t over a 100 centimetre mining width). In
addition, the exposed portion of the underlying Blanket Facies was sampled at an
average grade of 1.1 g/t.
2.2.3 Ledging and Stoping
In total, 24 panels have been opened up, which is roughly one third of the total
required at steady state production which should be achieved in the middle of
2011. Face advances for the quarter are tabulated below. March numbers include
only the first three weeks of production prior to the start of the industrial
action.
Jan Feb March Q1
NR panels >14m FA 1 3 4 8
NR panels 12-14m FA 1 2 3 6
NR panels 10-12m FA 4 5 3 12
Total stoping panels 14 17 20 51
Max FA for the month 15.8 19.3 13.6
% Stope panels >14m 7.1 17.6 20.0 15.7
% Stope panels >12m 14.3 29.4 35.0 27.5
% Stope panels >10m 42.9 58.8 50.0 51.0
Due to the prevalence of higher than expected grade in the immediate footwall of
the BPLZ, combined with a thicker and higher than forecast grade in the BPLZ , a
decision was made on the basis of 6 metre face advance sampling to increase the
stoping width for a best mining cut on a panel by panel basis. This included
mining a portion of the lower grade Blanket Facies but at the same time
maintaining the average forecast mining grade. As a result of the strategy,
stoping widths were increased to approximately 1.7 metres on certain panels
which is greater than the designed width of 1 metre. While this has impacted on
face advance and head grade, it enabled Modder East to bring to account
additional resources not originally planned. This makes good commercial sense
while the processing plant has spare capacity as lower grade footwall ore is not
displacing higher grade BPLZ ore. The company will continue to evaluate this
opportunity on a panel by panel basis.
2.2.4 Modder East Processing Plant
Recoveries for the quarter from Modder underground increased to 96% compared to
the previous quarter`s average of 92%. Metallurgical test work undertaken by
the metallurgical team, aimed at better understanding of the BPLZ (Black Reef)
has led to a better balancing of the oxygen and cyanide mix used in the
extraction process. The company has also initiated test work aimed at
undertaking the benefits of installing oxygen reactors.
Due to the reduction in cyanide and oxygen consumption, process plant working
costs per tonne in the quarter were reduced by over US$ 3.58/t, with total
working costs coming in at US$ 20.9/t, which are again in line with the
feasibility numbers assumed, when adjusted for volume.
As reported in the last quarterly update, the company has decided to install a
gravity circuit in the metallurgical plant. This Knelson concentrator has been
ordered and commissioning is also scheduled for the middle of the June quarter.
The gravity circuit will ensure that as production increases, recoveries remain
high. The Knelson concentrator will also result in reduced operating costs and
lower residence times while also reducing gold lock-up due to the free-milling
nature of the ore. The company`s test work shows that some 40% of the Black
Reef is free-milling.
Gold One is on track with the construction of the secondary crushing circuit,
which will increase the plant nameplate capacity from the current 70,000 tonnes
per month to 100,000 tonnes per month, which is required for full production in
the middle of 2011. Commissioning of this circuit is also scheduled to take
place in the second half of 2010.
2.3 Sub Nigel
The Sub Nigel training facility has to date trained 382 members, all of which
have been transferred to the Modder East operations. Sub Nigel`s mining is
mainly as a result of crews receiving on the job training before being
transferred to the Modder East operations. Yields have increased as planned from
greater flexibility underground as higher grade panels have become available.
For the quarter, Sub Nigel mined 9,292 tonnes, at 2.0g/t (December quarter 2009:
13,751 tonnes at mined grade of 1.68g/t), while milled tonnes were 12,004 at a
recovered grade of 1.82g/t. The mine produced 704 ounces for the quarter versus
445 in the December 2009 quarter, a 58% increase.
3 EXPLORATION UPDATE
3.1 Ventersburg
On 13 April 2010, the company released details of an independently conducted
scoping study* of its Ventersburg project. The highlights of the positive
scoping study are:
11 year life of mine ("LOM") from shallow (-465m) underground mine;
Steady state production of 8 years peaking at 157,000 ounces per annum;
Low LOM cash costs of US$ 379/ounce at a ZAR:US$ exchange rate of ZAR 8.81/US$1;
Expected capital cost of US$ 215 million; and
Free milling ore allowing for conventional carbon-in-leach extraction.
Schematic 2
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
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 ten 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. The company is awaiting assay results. 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.
*In the scoping study, 70% of the planned production comprises existing South
African Code for Reporting of 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.
For the same reasons, the valuation provided should be considered as indicative
of the economic potential of the project, rather than a definitive project
valuation.
Mega Mine
Gold One`s Mega Mine portfolio contains three well known mining areas, namely
Vlakfontein, West Vlakfontein, Spaarwater and portions of Sub Nigel. The
prospecting rights secured over these properties make up a contiguous
prospecting rights area of 160km2 (16,058 Ha). The area under consideration has
SAMREC/ JORC compliant resources of 5.58 million ounces (comprising 50.64
million tons at a grade of 3.46 g/t) in the inferred category and 310,000 ounces
(comprising 2.98 million tons at a grade of 3.21 g/t) in the indicated category.
Gold One has initiated a geological modelling study, based on extensive amounts
of historic mining and exploration data in the area.
The modelling will include an updated structural and sedimentological model that
is aimed at a better understanding of the Main Reef (located at depths of less
than 2,500 metres below surface) and associated mineralisation distribution. In
addition, the Big Pebble Marker ("BPM"), located at approximately 600 metres
below surface, as well as the UK9a (occurring approximately 25 metres above the
BPM) will also be considered and included in the modelling.
A scoping study is also targeted to be completed by the middle of Q3 2010.
Importantly, the Mega Mine complex is not linked to the East and Central Rand
Water Basin. The desktop study will enhance geological understanding and
associated resource estimations for the Mega Mine project, in turn facilitating
strategic initiatives envisaged for this project, and the best value creation
for Gold One shareholders.
One of the options currently being pursued is the spinning out of the Mega Mine
project into a separately listed vehicle. The main driver of this strategy is
to ensure that Gold One`s shareholders receive maximum value for all of the
company`s gold assets.
Schematic 3
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
3.3 East Rand Boundary Project
Gold One is continuing its evaluation of the East Rand Boundary Project ("ERB")
This includes the shallow (less than 500 metres below surface) portions and
extensions of the historically mined Main Reef on the company`s New
Kleinfontein, Turnbridge and Modder North properties. These reef horizons are
above the water table and are unaffected by the flooding in the East Rand Basin.
Underground access to these areas has been achieved and resampling of remnant
and unmined areas is currently being undertaken, with resource delineation and a
pre-feasibility study to be completed during December 2010 quarter ("Q42010").
It is envisaged that production from one or more of these areas could be
achieved by the second half of 2011.
4 FINANCIAL REVIEW
Revenue for the company for the quarter was US$ 14.4 million, and cash operating
costs were US$ 7.1 million, resulting in operating cash flow of US$ 7.3 million.
Development and capital expenditure for the quarter across the Modder East and
Sub Nigel projects was US$ 5.6 million.
Gold One ended 1Q2010 with US$ 8.9 million, compared to an end of December 2009
quarter cash balance of US$ 13.4 million. The company repaid US$ 4.2 million in
bonds while also paying interest on the bonds for the quarter of around US$ 1.3
million. Excluding the payments relating to the convertible bonds, Gold One was
cash flow positive during the quarter.
4.1 Refinancing of the convertible bonds
In the December 2009 quarterly report, Gold One reported that it had proactively
initiated a process to pursue the implementation of a bank debt facility and had
engaged Rothschild as advisers with regards to this process. The facility is
intended to provide Gold One with sufficient liquidity to meet the potential
obligation arising from the put option at the election of the convertible
bondholders in December 2010.
In December 2009 Gold One shortlisted four banks to arrange a senior secured
debt facility based on an extensive "Request For Proposals" process. These
banks were provided with due diligence materials and conducted due diligence
site visits in January and February 2010. Final, non-binding proposals, some of
which were credit committee approved, were received from all four banks in
February 2010.
Gold One recently selected two of these banks, one South African and one
International, to finalise and implement the facility on a syndicated basis.
The successful close of the facility will be subject to agreeing final terms and
conditions with the banks as well as the banks obtaining final internal
approvals. It is anticipated that final and credit committee approved term
sheets will be in place by the end of May 2010. For avoidance of doubt, the
proposed facility does not contain an equity component.
5 OUTLOOK
Gold One is delighted to have achieved another strong quarter of production in
the build up to full production in 2011 at our flagship Modder East mine and
management remains confident on its ability to deliver on its plans.
Unfortunately the industrial action being experienced will have an impact on the
June 2010 quarter`s production, which will be clarified once there is certainty
regarding the conclusion of the impasse.
Highlights for the June 2010 quarter are expected to be:
Resolution of wage dispute and resumption of full production at Modder East
Receipt of final credit committee approved term sheets in respect of bank
financing to replace convertible bonds
Commissioning of the Knelson concentrator
Continued resource drilling at Ventersburg
Ongoing active marketing to promote the Gold One investment proposition
Exchange rate fluctuations have an effect when reporting financial results.
Although the company`s operational cost base is mostly ZAR based, the company
also reports costs in United States Dollars ("US$"). Cost guidance numbers for
the year 2010 are based on budgeted exchange rates of ZAR 8.41/US$ 1, while the
average exchange rate for the quarter was ZAR 7.53/US$ 1. This current 10.4%
difference in forecast and actual exchange rate results in quite significant
variations when reporting cash costs in US$/oz.
As the company has now completed the first quarter of commercial production,
Gold One has been advised that it will transition in reporting status from an
explorer to a producer with the commencement of the next quarterly report, due
in July 2010.
6 CAPITAL STRUCTURE
As at 31 March 2010, the company had 805,239,940 shares in issue of which
413,843,823 (51.39%) were held on the Australian register and 391,396,117
(48.61%) on the South African register. Following the recent quarterly
rebalance of the Australian Securities Exchange ("ASX") indices, Gold One was
added as a constituent to the ASX All Ordinaries index effective, 19 March 2010.
On 11 March 2010, Gold One shareholders approved a amendment of the company`s
listing status on the JSE Securities Exchange from a primary to a secondary
listing.
ASX trading statistics for the quarter ended 31 March 2010
Graph 5
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
JSE trading statistics for the quarter ended 31 March 2010
Graph 6
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
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 +27 11 726 1047 (office)
(office)
+27 83 628 0226 (mobile) +27 83 604 0820 +27 82 338 2228 (mobile)
(mobile)
neal.froneman@gold1.co.za ilja.graulich@gold1.co. carol.smith@gold1.co.za
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.
Office details:
Sydney Head Office
Level 3, 100 Mount Street North Sydney NSW
2060
PO Box 1244 North Sydney NSW 2059
Telephone: +61 2 9963 6400
Fax: +61 2 9963 6499
Johannesburg Corporate Office
45 Empire Road, First Floor
Parktown, 2193
Gauteng, South Africa
Telephone: +27 11 726 1047
Fax: +27 11 726 1087
Issued capital
804,239,940 shares in issues
Options (listed and unlisted): 60,631,254
ADR ratio 1:10
Stock Exchange Listings
ASX /JSE Limited: GDO
OTCQX International: GLDZY
Directors
NJ Froneman (President and CEO)
CD Chadwick (Chief Financial Officer)
MK Wheatley (non-executive Chairman)
BE Davison (non-executive Director)
KV Dicks (non-executive Director)
WB Harris (non-executive Director)
S Swana (non-executive Director)
KJ Winters (non-executive Director)
PB Kruger (Company Secretary)
Australian Registrars
Registries Limited
Level 7
207 Kent Street
Sydney
NSW
Australia
2000
Tel: +61 2 9290 9600
South African Transfer Secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street
Johannesburg
2001
Level 1 ADR sponsor
The Bank of New York Mellon
Depositary Receipts Division
101 Barclay St, 22nd Floor
New York, New York 10286 USA
Tel: +1 212 815 3700
Fax: +1 212 571 3050
Web site: www.adrbny.com
Auditors
PricewaterhouseCoopers
201 Sussex Street
Sydney, New South Wales 1171
Australia
Telephone: +61 2 8266 0000
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 07:21:02 Produced by the JSE SENS Department.
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information disseminated through SENS.
