| Thu 27 May 2010, 7:05 | | GDO - Gold One - Further prospecting right granted at Ventersburg and drilling |
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GDO
GDO
GDO - Gold One - Further prospecting right granted at Ventersburg and drilling
update
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")
FURTHER PROSPECTING RIGHT GRANTED AT VENTERSBURG AND DRILLING UPDATE
(For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za)
Gold One is pleased to announce that the company has been granted a further
prospecting right at its Ventersburg exploration project in the Free State
region in South Africa.
This new prospecting right (indicated as Ventersburg 4 on the accompanying
diagram) covers an area of almost 5 square kilometres (494 hectares), and brings
the total Ventersburg Prospecting area to 135 square kilometres (13,510
hectares). The A-Reef horizon at Ventersburg, which forms the primary gold
target, extends from a depth of 400 metres to 1,000 metres below surface at an
average dip of 17 degrees to the northwest. The shallow nature of the reef is in
line with Gold One`s corporate strategy of developing and mining shallow, high
margin, low-risk assets.
Gold One is also pleased to announce that the company has received assay results
from its first drill hole completed in the current campaign (AFO-039). This
borehole targeted the projected payshoot extension to the south and intersected
a thick (3.37 metres), well developed A-Reef conglomerate channel (payshoot) at
a depth of 555 metres below surface. The borehole comprised an original
intersection and two short deflections. The average grade of the three
intersections yielded 2.40g/t over 3.37 metres including 1.13 metres at 4.17g/t.
The latter represents a selected mining cut (determined from the top of the reef
contact down) at which resources are determined.
In addition, the company has successfully intersected the A-Reef in a second
borehole (AFO-043). Similar to the borehole reported on above, the second
borehole was sited based on the updated geological model and drilled in the
projected payshoot extension to the south of a regional fault structure. Well
developed and channelized A-Reef was intersected at a depth of 579 metres below
surface, some 150 metres shallower than anticipated. This second successful
reef intersection has provided further confidence in the geological model
developed, confirming the channelized nature of the orebody. Assay results of
this borehole are still outstanding.
This drilling is part of a campaign of 16 drill holes aimed at delineating the
Ventersburg payshoot extensions, which remain open to the north and south, and
more confidently defining localised high grade payshoots through infill
drilling. This campaign will be utilised to update the existing JORC/SAMREC
resource at Ventersburg, which currently comprises an indicted 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. Updated
resources will be incorporated into a pre-feasibility study being undertaken by
Gold One at Ventersburg, which follows a positive scoping study, the results of
which were announced in April 2010.
Gold One President and Chief Executive Officer Neal Froneman commented "With the
drilling campaign continuing, the Ventersburg resource continues to meet and
exceed expectations, and we firmly believe that Ventersburg will be our next
flagship project. In the interim, our focus continues to be the production ramp-
up at the Modder East mine, while finalising the components of our new debt
facility, which is progressing well."
Issued by Gold One International Limited
Website : www.gold1.co.za
For further information contact:
Neal Froneman Ilja Graulich
President and CEO VP: Corporate Affairs
+27 11 726 1047 (office) +27 11 726 1047 (office)
+27 83 628 0226 (mobile) +27 83 604 0820 (mobile)
neal.froneman@gold1.co.za ilja.graulich@gold1.co.za
Carol Smith Robert Williams
Investor Relations Farrington National Sydney
+27 11 726 1047 (office) +61 2 9332 4448 (office)
+27 82 338 2228 (mobile) +61 422 327 621 (mobile)
carol.smith@gold1.co.za robert.williams@farrington.com.au
Parktown, Johannesburg
27 May 2010
Sponsor
Macquarie First South Advisers (Pty) Limited
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
Securities 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.
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: 27/05/2010 07:05:02 Produced by the JSE SENS Department.
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