| Mon 11 Oct 2010, 7:05 | | GDO - Gold One International Limited - Record production for Gold One - Gold |
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GDO
GDO
GDO - Gold One International Limited - Record production for Gold One - Gold
One resources increase to 20 million ounces
Gold One International 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
OTCQX International: GLDZY
ISIN: AU000000GDO5
("Gold One" or the "company")
RECORD PRODUCTION FOR GOLD ONE - GOLD ONE RESOURCES INCREASE TO 20 MILLION
OUNCES
Gold One is pleased to announce that gold production for the September 2010
quarter amounts to 19,470 ounces - a 58% increase relative to the June 2010
quarter total of 12,287 ounces. Gold production for the September quarter is
in line with guidance provided of between 18,000 and 20,000 ounces.
The build-up in production levels at Modder East continues to steadily
increase. September was another record month with group monthly gold
production of 7,482 ounces, which amounts to an annualised production rate of
approximately 90,000 ounces. Recovered grades at Modder East increased from
6.44 g/t in the June quarter to 6.78 g/t in the September quarter, while
metallurgical recoveries were maintained at 96%.
Gold production for the December 2010 quarter is expected to reflect further
increases as additional mining panels become available and associated volume
throughput steadily increases. Operational and financial details for the
September quarter will be provided in the quarterly report, to be released
toward the end of October 2010. The quarterly report will also provide
production guidance for the December quarter.
Megamine`s resources upgrade
The company is pleased to also announce a 115% increase in the audited
resources of its Megamine assets. The indicated resources have increased from
0.31-million ounces (2.98-million tonnes at 3.21 g/t), to 3.02-million ounces
(21.55-million tonnes at 4.36 g/t). Inferred resources have increased from
5.58-million ounces (50.64-million tonnes at 3.46 g/t) to 9.63-million ounces
(64.62-million tonnes at 4.64 g/t). Resources are determined and quoted in
accordance with the South African Code for Reporting of Mineral Resources and
Mineral Reserves (SAMREC) and would not be materially different if quoted in
accordance with the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC). The detailed resource declaration
is contained in the table below. Megamine, located east of Johannesburg,
comprises Gold One`s operating Sub Nigel mine and the Vlakfontein, West
Vlakfontein and Spaarwater prospecting areas, totalling 16,056 hectares. The
majority of the Megamine resource (83%) comprises the Main Reef, estimated to
a maximum depth of approximately 2,500 metres below surface, while the balance
includes the Big Pebble Marker Reef (BPM), estimated between depths of
approximately 500 metres and 1,200 metres, below surface.
Following the Megamine resources upgrade, Gold One`s total resource base has
increased to 20.42-million ounces, including 7.08-million ounces in the
indicated category (59.11-million tonnes at 3.73 g/t) and 13.34-million ounces
(97.34-million tonnes at 4.26 g/t) in the inferred category.
The substantial increase in the Megamine resource base is the result of
intensive desktop studies, which were completed over the past year. Together
with the company`s geological advisers, Shango Solutions (Pty) Ltd, Gold One
has collected, collated and verified a significant historical database
inclusive of data from Gold Fields Limited, a previous owner of the largest
portion of Megamine. This database comprises approximately 150,000 data
points including, but not exclusively, 41,000 reef elevation co-ordinates,
97,000 underground reef samples and 125 exploration boreholes. This
additional information has facilitated the creation of a regional 3D
geological model as well as confident sedimentological and grade distribution
models, all of which have underpinned the updated resource estimate.
Gold One President and CEO Neal Froneman commented, "I am delighted with our
continued growth in gold output and the substantial increase in the Gold One
resource base. Both of these achievements provide an excellent foundation for
Gold One to now progress the Megamine strategy of creating value for our
shareholders, without detracting from Gold One`s shallow depth focus."
Tonnes Grade Gold
Content
(Mt) (g/t) (Moz)
Indicated Sub Nigel: Main Reef1 2.91 3.25 0.30
West Vlakfontein/Spaarwater: 18.64 4.53 2.71
Main Reef2
Total Indicated3: 21.55 4.36 3.02
Inferred Sub Nigel: Main Reef1 1.64 4.39 0.23
West Vlakfontein/Spaarwater: 47.42 4.77 7.28
Main Reef2
West Vlakfontein/Vlakfontein: 15.56 4.25 2.12
Big Pebble Marker2
Total Inferred3: 64.62 4.64 9.63
Total Indicated and Inferred3: 86.17 4.57 12.65
1 Signed-off by Minxcon, independent resource consultants to Gold One
Audited by SRK Consulting
Depletion undertaken by Gold One
Quoted at a cut-off of 160 cmg/t
2 Signed-off by Dr I.C. Lemmer, independent resource consultant to Gold
One
Audited by SRK Consulting
Quoted at a cut-off of 250 cmg/t
3 Total resources may not appear additive due to rounding
The Main Reef has been extensively mined throughout the East Rand Goldfield
and is currently being extracted at Gold One`s Sub Nigel operation. The
defined Main Reef resources represent the strike and down-dip extensions to
the previously mined Vlakfontein and Sub Nigel operations to a depth of
approximately 2,500 metres below surface. The BPM, part of the Kimberley Reef
Horizons, has been mined previously in other parts of the Witwatersrand Basin
but not in the East Rand. These resources have been defined on the basis of
surface exploration boreholes only and occur at depths between 500 metres and
1,200 metres below surface. The extension of the BPM resource is projected to
surface within the Megamine prospecting and mining area and represents a
substantial exploration target. In addition to the Main Reef and BPM, the
UK9a Reef (occurring some 30 metres above the BPM), which has been mined
extensively in the eastern portions of the East Rand, has also been modelled
and recognised as a significant exploration target. This exploration target
occurs from surface level to depths of 1,000 metres.
The upgraded resource will form the basis of an economic scoping study on
Megamine. This study will consider the opportunities of using existing shaft
infrastructure to access the shallower BPM and UK9a orebodies, while
simultaneously considering new and efficient infrastructure for the Main Reef.
Surface exploration drilling, intended to enhance and upgrade the existing
resource, is planned to commence during 2011. Gold One is confident that it
has created both sufficient value and critical mass, allowing the company to
spin these assets out in a manner that will attain its strategic initiatives
and provide maximum benefit to current Gold One shareholders.
Group resources and reserves
As reported in the June quarterly report, a surface exploration drilling
programme was undertaken at Modder East to refine the shoreline position in
areas planned to be mined during 2011 and 2012. The initial drill programme
considered three surface exploration boreholes, all of which successfully
intersected BPLZ Facies of the Black Reef, and was completed during August
2010. Mineral resources and accompanying ore reserves for Modder East are
currently being updated on the basis of this new information and will be
completed and disclosed during the fourth quarter of 2010. The three surface
exploration boreholes have indicated an extension to the high grade Black Reef
shoreline in the eastern portions of Modder East. A second phase of drilling
has commenced since to further define this shoreline extension, details of
which will be provided in the September quarterly report.
Mineral Resources at the company`s Ventersburg project have also been updated
in line with the results from the 2010 surface exploration drill programme.
These updated resources are currently under review by an independent party,
SRK Consulting, and will be published during the fourth quarter of 2010. The
upgraded resources will also underpin the pre-feasibility study currently
being undertaken at Ventersburg by Turgis Consulting.
Gold One has concluded an underground re-sampling programme at its East Rand
Boundary Project, which considers the shallow (less than 500 metres below
surface) portions and extensions of the historically mined Main Reef on the
New Kleinfontein, Turnbridge and Modder North properties. The purpose of this
exploration programme was to verify historical underground sampling values.
The results are being incorporated into updated geological models and will be
used to enhance existing resources anticipated to be completed during the
fourth quarter of 2010.
Froneman commented "I am excited about how our projects have advanced over the
past 12 months and combined with the continued build up in production at
Modder East, the company is well positioned to enhance value for our
shareholders both through cash flow generation and continued growth by turning
our projects to account."
Parktown, Johannesburg
11 October 2010
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
JSE Sponsor
Issued by Gold One International Limited
Website: www.gold1.co.za
For further information contact:
Neal Froneman Ilja Graulich
President and CEO Investor Relations
+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 International Limited is a gold producer listed on the financial
markets operated by the Australian Securities Exchange (ASX) and the
Johannesburg Stock Exchange (JSE), issuer code GDO. Its flagship operation is
the newly built Modder East mine on the East Rand, some 30km from
Johannesburg. Modder East is the first new mine to be built in the region in
28 years and distinguishes itself from most other gold mines in South Africa
because of its shallow nature (300m to 500m below surface). To date the mine
has provided direct employment opportunities for over 1,000 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 East mine to full
production. Its other projects and targets include Ventersburg and
Bothaville, both of which are located in the Free State Goldfields, the Tulo
concession in Mozambique, and the Etendeka greenfield project in Namibia. Gold
One has an issued share capital of 806,268,333 shares.
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 International Limited 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
realisation 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, permits or financing or in the completion of development or
construction activities, economic and financial market conditions; political
risks; 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, who has a doctorate in geology and who is a professional natural
scientist registered with the South African Council for Natural Scientific
Professions (SACNSP). Dr Stewart is also a member of the Geological Society of
South Africa (GSSA) and the vice president of geology for Gold One, with which
he is a full-time employee. He has 10 years` experience which is relevant to
the style of mineralisation 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 (JORC Code) and the
South African Code for Reporting of Exploration Results, Mineral Resources and
Mineral Reserves (SAMREC Code). 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 Gold One`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, prepared by the
South African Mineral Resource Committee (SAMREC), under the auspices of the
South African Institute of Mining and Metallurgy (SAIMM), 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, prepared by the Joint Ore
Reserves Committee (JORC) of the Australasian Institute of Mining and
Metallurgy (AusIMM), the Australian Institute of Geoscientists (AIG) and the
Minerals Council of Australia (MCA). (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 fossilised 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 drillholes 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 drillholes 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 drillholes. 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 Gold One 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: 11/10/2010 07:05:04 Produced by the JSE SENS Department.
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