| Tue 18 May 2010, 11:00 | | GDO - Gold One International - Gold One`s Modder east mine officially opened |
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GDO
GDO
GDO - Gold One International - Gold One`s Modder east mine officially opened
Gold One International Limited
(Previously BMA Gold Limited)
Registered in Western Australia under the Corporations Act,
2001 (Cth) with registration number ACN: 094 265 746
(Registered in South Africa as an external company with
registration number 2009/000032/10)
ISIN: AU000000GDO5
Share Code on the ASX/JSE: GDO
OTCQX International: GLDZY
("Gold One" or the "company")
GOLD ONE`S MODDER EAST MINE OFFICIALLY OPENED
Gold One is pleased to announce that the company today, 18 May 2010, officially
opened its flagship Modder East mine (`Modder East`) near Johannesburg, South
Africa. The opening comes less than a week after Modder East celebrated the
milestone of producing its first tonne of gold.
Speaking at the opening ceremony, President and Chief Executive Officer Neal
Froneman highlighted that the occasion came, to the day, on the fourth
anniversary of the first sod being turned at Modder East on 18 May 2006, which
saw the start of the construction of this new era gold mine on the East Rand
portion of the Witwatersrand (`Wits`) basin. The East Rand has produced over a
quarter of all the gold ever to come from South Africa. Modder East is the
first new mine to be built in the region in 28 years, having so far provided
direct employment opportunities for over 1000 people. Modder East distinguishes
itself from most of the other gold mines in South Africa, on the basis of its
shallow nature (300 metres deep).
Froneman cited the decision by the company to invest ZAR26 million (A$4 million)
into the rehabilitation of the Sub Nigel number one shaft and turn it into a
purpose built training centre complete with underground classrooms that provide
on-the-job training, as a major highlight on the journey to creating the Modder
East of today. The on-the-job training has ensured a smooth start-up of the
mine. Over 750 people have so far graduated from Gold One`s training centre,
armed with lifelong skills that are transferable and constitute a vital
component to an industry that deals with finite resources.
Major milestones achieved at Modder East in the past year include the start of
production and the first pour of gold from underground in July 2009, culminating
in the declaration of commercial and continuous production by the company less
than six months after mine start-up.
Modder East is currently producing gold at an annualised rate of 60,000 ounces
with Gold One forecasting to produce between 85,000 and 100,000 ounces of gold
in 2010. Average cash costs are expected to be below US$400/oz. Phase One of
the mine has a life of eight years and production is set to peak at 150,000 to
180,000 ounces of gold a year.
Froneman commented "I am delighted to have witnessed today`s opening, and would
like to, once again, express my sincere gratitude to the employees and
shareholders who have made this all possible. Stakeholders, from government to
our trusted suppliers, have played an integral part to ensure new life is
breathed into the Wits East Rand gold basin. I look forward to celebrating many
more milestones at Modder East and believe that this unique mine will lay a
solid foundation for the growth ambitions of Gold One."
Issued by Gold One International Limited
Website: www.gold1.co.za
Johannesburg
18 May 2010
JSE Sponsor
Macquarie First South Advisers (Pty) Ltd
For further information contact:
Neal Froneman Ilja Graulich Carol Smith
President and CEO VP: Corporate Affairs Investor Relations
+27 11 726 1047 +27 11 726 1047 +27 11 726 1047
(office) (office) (office)
+27 83 628 0226 +27 83 604 0820 +27 82 338 2228
(mobile) (mobile) (mobile)
neal.froneman@gold1.co. ilja.graulich@gold1.co. carol.smith@gold1.co.za
za za
About Gold One:
Gold One 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.
Modder East is the first new mine to be built in the region in 28 years and
distinguishes itself from most of the other gold mines in South Africa, due to
its shallow nature (300 metres to 500 metres below surface), having to date
provided direct employment opportunities for over 1000 people.
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`894`985 shares.
Date: 18/05/2010 11:00:02 Produced by the JSE SENS Department.
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