| Thu 17 Jun 2010, 7:17 | | GDO - Gold One International Limited - Modder Gold production ramp-up on |
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GDO
GDO
GDO - Gold One International Limited - Modder Gold production ramp-up on
track - 11 new production faces to be added by quarter end
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")
MODDER GOLD PRODUCTION RAMP-UP ON TRACK - 11 NEW PRODUCTION FACES TO BE ADDED
BY QUARTER END
(For the release with graphs, please refer to the Company`s website:
www.gold1.co.za)
Gold One is pleased to announce that production ramp-up at the company`s
flagship Modder East gold mine ("Modder") is continuing as planned, and that
the build up rate required to attain this year`s gold production targets is
being achieved.
The continuous ramp up in gold production is being achieved by the opening up
of additional mining faces through ongoing reef development. Six mining
faces (panels) have mined out against the northern side of the shore line
with current output being achieved from the mining of 18 panels, a further 11
panels will be available by the end of the quarter, which will provide
significantly more mining flexibility in the third quarter. Six of the new
panels are situated in the new North 2 Raise, where gold values remain
consistent with the high gold grades experienced near the shoreline. Off
reef development is now approaching the North 3 Raise, where first reef
development is expected to start during the third quarter.
At full production, 75 panels will be in operation, and reef development is
on target to have 50 panels available at year end. The steady increase in
available panels provides the platform for a sustainable increase in output,
supporting the forecast build up rate.
Production at Modder is now consistently outperforming levels attained prior
to the five week strike that occurred between 23 March and 28 April 2010.
Ramp-up to pre-strike levels was achieved by the end of May, some four weeks
after the end of the strike. The graph below illustrates that ramp-up is
continuing at a steady rate, with the Company currently producing at an
average of over 200 ounces of gold per day. Recoveries remain strong, and
continue to exceed 96%.
Gold One maintains its production guidance of more than 10,000 ounces for the
current quarter. September quarter production is expected to be approximately
25,000 ounces, and total 2010 production guidance remains between 85,000 -
100,000 ounces of gold.
(For the release with graphs, please refer to the Company`s website:
www.gold1.co.za)
Gold One President and Chief Executive Officer Neal Froneman commented "I am
pleased that production is back at levels prior to the strike and that the
build-up to attain this year`s production is going well, especially at times
when the US$ gold price is reaching an all time high. The company is
continuing its progress with the re-financing of a corporate debt facility,
and expects that a term-sheet with the preferred lenders will be signed
within the next fortnight."
Issued by Gold One International Limited
Website: www.gold1.co.za
Parktown, Johannesburg
17 June 2010
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
JSE Sponsor
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 Derek Besier
Investor Relations Farrington National Sydney
+27 11 726 1047 (office) +61 2 9332 4448 (office)
+27 82 338 2228 (mobile) +61 421 768 224 (mobile)
carol.smith@gold1.co.za derek.besier@farrington.com.au
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: 17/06/2010 07:17:01 Produced by the JSE SENS Department.
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