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GDO
GDO
GDO - Gold One International Limited - Correction - Quarterly Activities
Report: Quarter Ended 30 June 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")
QUARTERLY ACTIVITIES REPORT: QUARTER ENDED 30 JUNE 2010
JUNE QUARTERLY HIGHLIGHTS:
- Excellent safety performance with a progressive lost time injury
frequency rate of 0.29
- 12,287 ounces of gold produced for the quarter
- Positive group operating cash flow of US$ 8.2 million
- US$ 488 per ounce cash costs at Modder East
- Record June operational month with Modder East gold production of 5,981
ounces and cash costs of US$ 434 per ounce
- Successful conclusion to five week strike resulting in a three year wage
agreement
- US$65 million debt facility term sheet and arranging mandate executed, to
provide facility to redeem convertible notes
- September quarter gold production remains on track for 25,000 ounces,
with full year production on track for 85,000 - 100,000 ounces
JUNE 2010 KEY PERFORMANCE DATA
(Average exchange rate of ZAR 7.58/US$ 1)
June 2010 Quarter Modder East Sub Nigel Total
Ore mined underground (tonnes) 53,883 9,182 63,065
Mined grade (g/t) 7.57 4.35 7.10
Milled tonnes 55,857 9,599 65,456
Recovered grade (g/t) 6.44 2.34 5.84
Gold recovery 96.7% 92.0% 96.4%
Gold produced (ounces) 11,565 722 12,287
Modder East cash cost US$ 488/oz - -
Group development and capex US$ 8.3 million
Group gold revenue US$ 14.8 million
Average price received US$ 1,202/oz
For the release with pictures and schematics, please refer to the company`s
website hosted at www.gold1.co.za
1 CEO`s REVIEW
I am delighted to advise that since settling the National Union of
Mineworkers ("NUM") strike, which resulted in a three year wage
agreement, Modder East has continued its ramp up in production with June
providing a record month in terms of both gold production (5,981 ounces
of gold) and cash operating costs (US$ 434 per ounce). Equally important
is that this was achieved without compromising our safety record which
currently stands at a progressive lost time injury frequency rate
("LTIFR") of 0.29, significantly below the Australian average of 1,
against which Gold One measures safety performance.
The ramp up in production at Modder East is progressing as planned and
the quality of the orebody continues to be reflected in the grades being
intersected underground. With the establishment of the first new panels
in the No. 2 Raise Line at Modder East, the Company is positioned to
continue its planned ramp up to meet the production guidance of 25,000
ounces for the third quarter and 85,000 to 100,000 ounces for the year.
The No. 2 Raise Line will support an additional 45 panels in total, of
which 20 will be established during 2010, contributing towards the
planned production build up.
During the quarter, Gold One achieved several significant milestones,
including the finalisation of a three year wage agreement, pouring of the
first tonne of gold and the execution of an arranging mandate and term
sheet relating to a US$ 65 million debt facility with two leading
international banks, Absa Capital (a division of Absa Bank Limited) and
BNP Paribas.
While Modder East remains the Company`s primary focus, there has also
been significant progress made on our exploration projects. This
includes the continuation of successful drill intersections at our
exploration program at Ventersburg, the completion of an underground
sampling program at our Boundary Project and the completion of a revised
geological model for the Megamine Project. The results of the
exploration activities are currently being utilised to upgrade resources
for all these projects, and will include pre-feasibility studies at both
Ventersburg and the Boundary Project. The updated resources are expected
to be completed during the third and fourth quarters of 2010
respectively.
With continued ramp up at Modder East and the progression of our project
pipeline, the Company continues to be well positioned for growth and to
deliver on our strategic objectives.
2 OPERATIONAL REVIEW
2.1 Overview
For the quarter under review, Gold One produced 12,287 ounces of gold, of
which 717 ounces were on hand as inventory at the end of the quarter.
This production is in line with guidance of 10,000 to 14,000 ounces. The
total gold sold amounted to 12,195 ounces, which included inventory sales
of 625 ounces of gold carried over from the March quarter.
The period being reported on was negatively affected by the five week
strike by members of NUM. The strike took place from the 23 March 2010
and concluded on 28 April 2010, with four of the five weeks occurring
during the quarter under review. In addition, following the resolution
of the strike, a three week production build up to pre strike levels
effectively resulted in only half a quarter of normal production. Whilst
the Company endeavoured to avoid the strike, the aggregate post strike
agreement with NUM was in line with the pre strike wage offer, and of
significance, the Company was able to secure a three year wage agreement.
A milestone for the Company was achieved on 12 May 2010, with the pouring
of its first tonne of gold. Importantly, production through the strike
period and the subsequent ramp up was achieved with an excellent safety
performance, reflected in a progressive LTIFR for 2010 of 0.29. In
addition the Sub Nigel underground training centre has to date achieved
300 days without a Lost Time Injury.
For the second consecutive quarter, the metallurgical plant has
maintained recoveries of 96%, providing confidence that the original
feasibility recoveries of 88% can be consistently exceeded. Recoveries
are anticipated to be maintained at 96% with the commissioning of the
gravity circuit, planned for the September quarter of 2010. The gravity
circuit should also ensure that these recovery levels are maintained as
production volumes increase.
Despite the lower production (7% decrease in group ounces from the March
quarter), cash costs at Modder East were steady at US$ 488 per ounce. As
a result of the reduced production during the strike period and
subsequent build up during May, June was the only month during this
quarter of uninterrupted production. At Modder East, 5,981 ounces were
produced in June (an increase in annualised production from
60,000
ounces to
72,000 ounces) at cash costs of US$ 434 per ounce. The cash
cost considers an average exchange rate of ZAR7.58/US$1. At the budgeted
exchange rate of ZAR 8.41/US$1, which was based on analyst consensus
forecasts, the equivalent cash costs would have been US$ 391 per ounce,
in line with our 2010 target of less than US$400 per ounce.
Cash on hand and receivables at the end of June were US$ 8.6 million.
During the quarter under review, the Company generated US$ 8.2 million of
operating cashflow. Gold One capital expenditure was US$ 8.3 million.
2.2 Modder East
Production statistics for the Modder East operation are illustrated in
the table below, highlighting production of 11,565 ounces of gold during
the quarter. The 7% decrease in production is directly related to the
strike and the associated build up period following the strike.
June 2010 Quarter Modder East
Ore mined underground (tonnes) 53,883
Mined grade (g/t) 7.57
Milled tonnes 55,857
Recovered grade (g/t) 6.44
Gold recovery 96.7%
Gold produced 11,565 oz
Modder East cash cost US$ 488/oz
Relative to the March quarter, the underground tonnes mined decreased by
18% and the mined grade decreased by 10%. During the strike period, the
operational focus was on continuing mechanised on-reef development, while
slowing down stoping operations. This negatively impacted the total
mined grade due to the increased dilution associated with development
ore. During April, approximately 50% of mined tonnes were derived from
diluted development ore in comparison to less than 20% during May and
June, resulting in reduced mined and recovered grades for the month of
April. This has since returned to pre-strike levels, with recovered
grades during June attaining 7.76 g/t.
(Histogram - for the release with pictures and schematics, please refer
to the company`s website hosted at www.gold1.co.za)
The in-situ grades continue to reflect the high quality of the Modder
East resource, maintaining levels between 13 g/t and 15 g/t (over a reef
width of 100 to 130 centimeters) during the quarter. As described in
detail in the previous quarterly report, a decision was made to consider
a best mining cut on selected areas of the Buckshot Pyrite Leader Zone
(`BPLZ`) due to the prevalence of higher than anticipated grade in the
immediate footwall. Stoping widths were increased to in excess of 1.5
metres on certain panels. Although this has significantly reduced the
mined grade as compared to the in-situ BPLZ grade, it has enabled Modder
East to economically bring to account additional resources not originally
planned, at a time when spare capacity is available in the plant.
The total tons milled were 55,857, a 1% decrease relative to the March
quarter. During the strike, the Company was able to focus its efforts on
cleaning ore in stopes that was not being mined resulting in the tonnage
milled being higher than the tonnage mined.
(Histogram - for the release with pictures and schematics, please refer
to the company`s website hosted at www.gold1.co.za)
2.2.1 Development
During the quarter, a total of 345 metres of primary on reef development
was achieved, an increase of some 245% on the previous quarter, and 502
metres of off reef development were completed. The average BPLZ
thickness sampled over the reef development is 123 centimetres at an
average grade of 1,119 cmg/t (or 9.07 g/t over the in-situ reef width).
In addition, the exposed portion of the underlying Blanket Facies was
sampled at an average grade of 0.6 g/t. Grades obtained in the No. 2
Raise Line, where future mining is focused, are averaging 1,066 cmg/t
over a 111 centimetres width (9.63 g/t)
It should be noted that due to the nature of the Black Reef orebody at
Modder East, the operation is able to generate significantly more minable
reserves (square meter area available for stoping) per development meter
than the average South African mine. This is due to the flat dipping
nature of the orebody and the shallow depth which requires less support
pillars. As a result:
- A total of 43m2 of reserves are generated per total development
metre in comparison to a South African industry average of
approximately 20m2.
- 60m2 of reserves are generated per off-reef development metre in
comparison to a South African industry average of 30m2
- 156m2 of reserves are generated per reef development metre relative
to a South African industry average of 125m2.
Due to these factors, Modder East is able to optimise its ramp up,
requiring less development metres to access an equivalent amount of
reserves.
2.2.2 Ledging and Stoping
A minimum of 75 panels are required to maintain steady state operations
of 100,000 tonnes per month for an annualized gold production of 150,000
to 180,000 ounces per annum. The Company is, however, initially targeting
to have at least 85 panels available for production to provide sufficient
flexibility. A total of 12 new mining panels were opened up between April
and June 2010, of which 6 provided replacement panels for earlier panels
mined out against the shoreline. Importantly, new panels are now being
opened up along the No. 2 Raise Line, from where the next phase of
increased output at Modder East is planned. During June, a total of 26
panels were being mined with an additional 4 panels opened at quarter end
in the No. 2 Raise Line, bringing the total panels currently mined to 30.
A further 6 panels are planned to be opened during the September quarter
in the No. 2 Raise Line providing the basis of increased output at the
operation. By the end of 2010, in excess of 50 panels are expected to be
available for mining, supporting a monthly production in excess of 50,000
tonnes at the planned stoping widths combined with ledging panels and on
reef development.
The increased experience of the stoping teams in the established panels
is reflected in the face advances achieved. Although the average face
advance attained in June was 8.9 metres, the figure below illustrates
that in the established mining faces, advances well in excess of 10
metres per month were attained, with lower advances in new panels and
those mining selectively against the shoreline. Ledging panels refer to
new panels being established for mining which are planned at lower face
advances and commonly advances are only considered over a portion of the
month. Of the 26 panels mined in June, 9 were ledging panels and the
remaining 17 stoping panels, 10 of which exceeded a face advance of 10
metres per month. As additional panels continue to be established, the
average face advance rates are anticipated to increase.
(Histogram - for the release with pictures and schematics, please refer
to the company`s website hosted at www.gold1.co.za)
2.2.3 Modder East Processing Plant
The metallurgical plant continues to exceed assumed bankable feasibility
study parameters with recoveries of 96% for the second consecutive
quarter. The commissioning of the secondary crushing plant was planned
for this quarter, but due to construction delays during the strike will
now be completed in the September quarter. Considering the secondary
crusher increases the milling rate from 70,000 tonnes per month to
100,000 tonnes per month, the commissioning delay has had no adverse
impact on production. Similarly the commissioning of the gravity circuit
is now also planned to be completed during the September quarter.
2.3 Sub Nigel
Notwithstanding the strike period, production at Sub Nigel increased from
704 ounces in the March quarter to 722 ounces in the June quarter. The
major contributor to this performance was a 29% increase in recovered
grade, related to a significant increase in mined grade.
June 2010 Quarter Sub Nigel
Ore mined underground (tonnes) 9,182
Mined grade (g/t) 4.35
Milled tonnes 9,599
Recovered grade (g/t) 2.34
Gold recovery 92%
Gold produced 722 oz
Between April and June, 9,182 tonnes, at 4.35 g/t were mined compared to
9,292 tonnes at mined grade of 2.0 g/t for the March quarter. The
opening up of previously unmined areas at Sub Nigel, which has exposed
reef at significantly enhanced grades has had a positive impact on both
the production and profitability of the operation, while still achieving
its primary role as a training centre for Modder East mining teams.
During the quarter a total of 6 teams were placed at Modder East from the
Sub Nigel training centre.
3 EXPLORATION AND PROJECTS
3.1 Modder East
Mining over the previous 12 months at Modder East has added significant
new data to facilitate an updated resource and reserve estimate. The
grades encountered underground in the area mined to date have generally
exceeded modeled grades in areas close to the shoreline, and have
correlated well to values intersected in surface borehole drilling,
thereby increasing confidence in the resource model. Mining has also
been undertaken over some 300 metres along the shoreline. This has
highlighted local variations in the interpreted shoreline position
relative to that interpreted from the surface drilling. In line with
this new interpretation, a decision was taken to undertake the drilling
of an additional 3 surface boreholes to refine the shoreline position in
areas planned to be mined during 2011 and 2012. To date 2 of the 3
planned boreholes have successfully intersected the BPLZ facies of the
Black Reef, allowing for a more refined position of the shoreline to be
interpreted. Assay data for these boreholes is still outstanding. This
drilling commenced in June 2010 and is planned to be completed in August
2010.
3.2 Ventersburg
Following the release of the Ventersburg scoping study results on 13
April 2010, the Company has continued with the exploration drilling
program. During the 2010 drilling campaign, 5 boreholes have been
completed totaling 3,062 metres of which 1,864 metres were drilled in
the current quarter. All of the boreholes completed to date have
successfully intersected the targeted A-Reef conglomerate horizon,
enhancing confidence in the geological and grade models. 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. The shallow nature of the reef is in line with Gold One`s
corporate strategy of developing and mining shallow, high margin, low
technical risk assets.
The recent exploration boreholes have been utilized to upgrade the
geological models for the project and extend the boundaries of the
existing indicated resource areas through targeted drilling for modeled
higher grade payshoot extensions. The results of the program will be
incorporated into an updated resource estimate for Ventersburg which is
expected to be completed during the September quarter of 2010. In
parallel with the ongoing drilling, the completed scoping study is being
upgraded to a pre-feasibility level, which will also consider the updated
resource estimate.
The Company announced in May 2010, that it had been granted a further
prospecting right at its Ventersburg exploration project. The new
prospecting right (referred to as Ventersburg 4) covers an area of
almost 5km2, and brings the total Ventersburg prospecting area to 135km2.
(Map - for the release with pictures and schematics, please refer to the
company`s website hosted at www.gold1.co.za)
3.3 Megamine
Gold One`s Megamine portfolio includes several well known mining areas,
namely Vlakfontein, West Vlakfontein, Spaarwater and portions of Sub
Nigel and 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 3.21 g/t) in
the indicated category.
The Company has initiated a geological modelling study, based on
extensive amounts of historic mining and exploration data in the area.
An updated and refined 3D structural model of the primary target, the
Main Reef, as well as secondary targets including the Big Pebble Marker
and the UK9a conglomerates has been completed. The Main Reef is located
at depths of less than 2,500 metres below surface while the Big Pebble
Marker is located at approximately 600 metres below surface in the
initial target area (the UK9a occurs approximately 25 metres above the
Big Pebble Marker).
The newly collated and interpreted information is also being used to
update geological models to better define grade distribution and payshoot
trends. This information will form the basis of an updated resource
estimate which is expected to be completed towards the end of 2010. On
the basis of this modelling, combined with a scoping study currently
being undertaken on the project area, the Company is considering
strategic options regarding the development of this project.
East Rand Boundary Project
The Company is continuing its evaluation of the East Rand Boundary
Project (`ERBP`). 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.
Re-sampling at the Turnbridge property has been completed with in excess
of 2,000 samples being collected for some 567 complete sample sections
from the historic underground workings. This new information is being
utilised to update the existing inferred resource with a view to
completing a pre-feasibility study on an indicated resource base. Re-
sampling has now commenced at the Modder North property with similar
objectives to enhance and increase resources. The updated resource
estimation and pre-feasibility study are planned to be completed during
the December quarter of 2010. It is envisaged that production from one
or more of these areas could be achieved by the second half of 2011.
4 FINANCIAL REVIEW
4.1 Overview
Revenue for the Company for the quarter was US$ 14.8 million, and cash
operating costs were US$ 6.6 million, resulting in operating cash flow of
US$ 8.2 million. Development and capital expenditure for the quarter
across the Modder East and Sub Nigel projects was US$ 8.3 million.
The Company ended the second quarter 2010 with US$ 8.6 million of cash on
hand and receivables (received from the Rand Refinery on 1 July 2010),
compared to an end of March 2010 quarter cash balance of US$ 8.9 million.
An interest payment of US$1.27 million on the Company`s 501 convertible
bonds was made in June 2010.
4.2 Refinancing of the convertible bonds
On 23 June 2010, the Company announced that it had executed an arranging
mandate and term sheet for a US$ 65 million debt facility with two
leading international banks, Absa Capital (a division of Absa Bank
Limited) and BNP Paribas. The signing of the term sheet follows several
months of financial, legal, and technical due diligence by both banks in
relation to Gold One and its Modder East mine, which will serve as
security for the debt facility.
The detailed term sheet will form the basis of the final legal agreements
which are expected to be executed in the coming quarter. The debt
facility is subject to the completion of suitable loan and security
documentation, remaining technical and legal due diligence and includes
conditions precedent usual for facilities of this nature.
The US$ 65 million facility will ensure Gold One has the capacity to
refinance all its convertible bonds, should some or all of the
bondholders exercise their once-off put option in December 2010.
5 OUTLOOK
The successful build up in production levels since the strike,
culminating in a record production month for June, has set the platform
for continued ramp up at Modder East, largely supported by the increase
in face length and panel numbers in the No. 2 Raise Line. As such, the
production guidance of 25,000 ounces for the September quarter and 85,000
to 100,000 ounces for 2010 remains intact. The Company is confident of
meeting its cost targets of less than US$400 per ounce for the year,
particularly given the excellent cost performance in June.
A key milestone to be attained during the quarter is the finalisation of
the agreement with Absa Capital and BNP Paribas relating to the US$ 65
million debt facility. The Company is confident that final legal
agreements and completion of suitable loan and security documentation
will be concluded during the upcoming quarter.
The Company will be undertaking updates on resources and reserves of all
of its major projects during the September and December quarters. These
results will be released once finalised and audited by an independent
engineer.
- On the basis of the newly acquired drilling information at Modder
East, combined with information received during underground mining,
the resources and reserves for Modder East are expected to be
updated during the September quarter of 2010.
- On the basis of the additional data collected and utilized for
enhanced geological interpretation, the Company will be updating
resources on the Megamine project.
- On the basis of the recent underground sampling program, an updated
resource estimate at the Turnbridge property of the Boundary Project
will be undertaken during the September quarter. This will be
combined with the results of the current sampling at Modder North
and form the basis of a pre-feasibility study to be completed during
the December quarter. It is anticipated that findings and updated
resources of the Megamine and Boundary Projects will be released to
the market during the December quarter of 2010.
- The Ventersburg resources are currently being upgraded based on the
new drilling information from the 2010 drill program. These results
will be made public at the end of the September quarter 2010.
6 CAPITAL STRUCTURE
As at 30 June 2010, the Company had 806,268,333 shares in issue of which
427,413,094 (53%) were held on the Australian register and 378,855,239
(47%) on the South African register. During the quarter, the Company
received a substantial holder notification that Baker Steel Capital
Managers LLP had increased its holding in the Company to 69,784,160
shares or 8.70% of the total issued share capital.
Investor relations will continue to focus on maintaining the increased
levels of contact achieved over the past six months with institutions in
Australasia. This will include utilising the Paydirt Down Under
Conference in early September as a platform for investor communication
activity in Australia. In addition, the Company will also be attending
the Denver Gold forum at the end of September to meet with North American
shareholders with a view to expanding the Company`s reach in these areas.
ASX trading statistics for the quarter ended 30 June 2010
(Combination chart - 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 30 June 2010
(Combination chart - 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.co.za
Parktown
28 July 2010
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
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
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
806,268,333 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
806,268,333 shares in issues
Options (listed and unlisted: 85,806,927)
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)
Registrars
Registries Limited
Level 7
207 Kent Street
Sydney
NSW
Australia
2000
Tel: +61 2 9290 9600
South African Transfer Secretaries
Computershare Investor Services
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: 28/07/2010 07:28:01 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.
