| Wed 10 Nov 2010, 7:05 | | GDO - Gold One International - High Grade Modder East exploration intersection |
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GDO
GDO
GDO - Gold One International - High Grade Modder East exploration intersection
confirms extension of High Grade Shoreline
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")
HIGH GRADE MODDER EAST EXPLORATION INTERSECTION CONFIRMS EXTENSION OF HIGH GRADE
SHORELINE
Gold One is pleased to announce that the results of its drilling programme at
its flagship Modder East mine have confirmed an extension to the high grade
shoreline. The confirmation follows from positive assay values received from the
remaining two surface exploration boreholes drilled during the 2010 exploration
drilling campaign in the north eastern portion of the Black Reef orebody. The
two boreholes intersected high grade shoreline, with DD68 containing 177.1 grams
per tonne over a channel thickness (true thickness) of 72 centimetres and DD69
containing 37.3 grams per tonne over 56 centimetres equating to 127.2 grams per
tonne and 20.9 grams per tonne over a 1 metre mining width, respectively. The
shoreline represents the highest grade area of the Buckshot Pyrite Leader Zone
(BPLZ) of the Black Reef. In addition to the BPLZ intersection, the underlying
Channel Facies in borehole DD69 intersected 6.0 grams per tonne over a channel
thickness of 427centimetres, confirming the high grade channel intersection
obtained in DD66. The detailed results are contained in the table below.
An initial drilling campaign comprising three surface boreholes (DD65, DD66 and
DD67) was undertaken at Modder East, aimed at refining the shoreline position in
areas planned to be mined during 2011 and 2012. The detailed results of this
drilling have been discussed in Gold One`s September quarterly report*, which
also contains a plan indicating the borehole localities to which readers have
been referred.
The third borehole drilled (DD66) successfully intersected well mineralised BPLZ
Facies with a grade in the original intersection of 22.7 grams per tonne over a
channel thickness of 47 centimetres and a second deflection of 19.7 grams per
tonne over 42 centimetres, equating to 10.7 grams per tonne and 8.3 grams per
tonne over a 1 metre mining thickness, respectively. Given the successful
intersection of DD66, the two further boreholes (DD68 and DD69) were drilled
during September and October 2010, approximately 100m east and northeast of
DD66. In addition to the original intersections of DD68 and DD69 discussed
above, a deflection was drilled per borehole, the results of which are still
outstanding and will be reported once received.
The drilling results of DD65 to DD67 have been considered in an updated resource
estimate for Modder East, which has been completed and is currently under review
by an independent party, SRK Consulting. The results of this estimate will be
published during the fourth quarter of 2010. The results from boreholes DD68
and DD69 have not been included in the resource estimate.
The geological model for the north eastern portion of the BPLZ is currently
being reviewed in the light of these exploration results and will underpin a
continued exploration programme aimed at defining the extent of the identified
shoreline extension. This drilling programme is planned to commence in January
2011, the results of which will be incorporated into the 2011 resource update.
Gold One President and Chief Executive Officer Neal Froneman comments: "I am
delighted with the results of the first phase of Modder East`s exploration
programme. This drilling has confirmed the continuous nature of our orebody and
indicated that the high grade shoreline we are currently mining extends to the
north eastern areas of our mine. I look forward to the results of the next
phase of our exploration programme and the potential impact it may have on our
medium term mining plans."
BH_ID Reef Depth Dip Corrected Remarks
Intersected
(m) Channel grams cm g/t grams per
thickness per tonne over
(cm)1 tonne2 100cm
mining
width3
DD65_D0 BPLZ 265.26 28 0.16 4 0.04 Intersected
palaeohigh
DD65_D1 BPLZ 266.1 28 0.25 7 Intersected
palaeohigh
DD66_D0 BPLZ 262.38 47 22.69 1,066 10.66
DD66_D0 Channel 262.85 516 4.65 2,399
Facies
DD66_D1 BPLZ 261.73 42 19.67 826 8.26
DD66_D1 Channel 262.15 569 4.25 2,418
Facies
DD67_D0 BPLZ 308.05 205 0.08 16 0.16 Intersected
Boulder
DD67_D0 Channel 309.16 210 0.45 94
Facies
DD67_D1 BPLZ 308.54 203 0.12 24 0.24 Intersected
Boulder
DD67_D1 Channel 310.63 198 1.12 222
Facies
DD67_D2 BPLZ 309.62 200 0.92 184 1.84 Intersected
Boulder
DD67_D2 Channel 311.68 177 0.23 41
Facies
DD68_D0 BPLZ 262.29 72 177.14 12,723 127.23
Channel 263.01 553 0.59 328
Facies
DD69_D0 BPLZ 261.89 56 37.32 2,085 20.85
Channel 262.45 427 6.00 2563
Facies
1 Channel thickness represents the true, dip corrected thickness, of the
BPLZ/Channel Facies. Dip corrections are undertaken based on dip measurements
from core bedding angles, which typically vary between 1 and 4 degrees.
2 Represents the average grade over the true thickness of the total BPLZ/Channel
Facies calculated using a weighted average of assayed grade from individual
samples over the total channel thickness (individual sample lengths are
typically between 15cm and 30cm)
3 Represents the average grade over a mining thickness of 100cm, diluted at 0.0
grams per tonne. Resources are determined and quoted over a minimum 100cm
mining cut.
*September quarterly report can be obtained from the company`s website
www.gold1.co.za
Parktown, Johannesburg
10 November 2010
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
JSE Sponsor
Neal Froneman President and CEO
+27 11 726 1047 (office) +27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Ilja Graulich Investor Relations
+27 11 726 1047 (office) +27 83 604 0820 (mobile)
ilja.graulich@gold1.co.za
Carol Smith Investor Relations
+27 11 726 1047 (office) +27 82 338 2228 (mobile)
carol.smith@gold1.co.za
Derek Besier Farrington National Sydney
+61 2 9332 4448 (office) +61 421 768 224 (mobile) derek.besier@farrington.com.au
About Gold One
Gold One is a gold producer listed on the financial markets operated by the ASX
Limited and the JSE Limited, issuer code GDO. Its flagship operation is the
newly built shallow Modder East mine on the East Rand, some 30 km 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 owing to
its shallow nature (300 m to 500 m below surface). To date Modder East has
provided direct employment opportunities for over 1,100 people. Gold One also
owns the nearby existing Sub Nigel mine, which is used primarily as a training
centre in the build-up of Modder East to full production. Gold One`s other
projects and targets include Ventersburg 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 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, who has a doctorate in geology and who is a professional natural
scientist registered with the South African Council for Natural Scientific
Professions (SACNASP), membership number 400051/04. 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 2007 Edition of 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 and in the resource statements released by
Gold One on the Stock Exchange News Service (SENS) on 11 and 13 October 2010
concerning the company`s Megamine and Goliath Gold Mining Limited respectively.
Date: 10/11/2010 07:05:11 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.
