| Tue 7 Dec 2010, 7:05 | | GDO - Gold One International Limited - Ventersburg Project Resource Upgrade |
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GDO
GDO
GDO - Gold One International Limited - Ventersburg Project Resource Upgrade
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")
VENTERSBURG PROJECT RESOURCE UPGRADE
- Indicated resource at Ventersburg increases by 70%
- Resource drilling ongoing at Ventersburg
- Ventersburg pre-feasibility study on track for the first quarter of 2011
Gold One International Limited (ASX and JSE: GDO) is pleased to announce a 70%
increase in the Ventersburg indicated resource to 20.42-million tonnes at 3.70
grams per tonne for 2.45-million ounces of gold. This increase is largely a
result of the success of Ventersburg`s 2009 and 2010 surface exploration
drilling campaigns. Previously Ventersburg had an indicated resource of 8.73-
million tonnes at 5.12 grams per tonne for 1.44-million ounces of gold.
Inferred resources have decreased by 22% from 13.48-million tonnes at 4.24
grams per tonne for 1.84-million ounces of gold, to 13.44-million tonnes at
3.31 grams per tonne for 1.44-million ounces. The area now has a total
resource of 33.86-million tonnes at 3.55 grams per tonne for 3.89-million
ounces.
At Ventersburg, the A Reef horizon forms the primary gold target and extends
from a depth in the indicated resource area of approximately 350 metres to
1,100 metres below surface at an average dip of 17 degrees to the north-west.
The additional drilling information has significantly increased the total area
considered for the indicated resource estimation and has also allowed for
confident geological modelling, facilitating the definition of higher grade
(payshoot) areas relative to lower grade areas.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
Gold One President and CEO Neal Froneman comments: "The substantial increase
in the indicated resource represents a significant milestone in advancing the
Ventersburg project and demonstrates Gold One`s objective of moving our
resources into production, as we have successfully done at Modder East. We
look forward to continued strong results from the current drilling programme
at Ventersburg and the results of the pre-feasibility study which are due
during the first quarter of 2011. Given a successful outcome of the pre-
feasibility, Ventersburg will then be advanced to a full feasibility study."
Ventersburg resource estimation
The resource estimation considered four distinct geological domains (refer to
resource table below). Domains 1 and 3 represent higher grade payshoot areas,
while domain 2 represents a lower grade domain. Domain 4 comprises the
inferred resource, which represents an extension to the more densely drilled
indicated resource area. On the basis of the enhanced modelling in the
indicated resource, domain 4 is interpreted as containing both high and low
grade areas (extension of indicated domains 1 and 2); however, the amount of
data is insufficient to confidently estimate these areas separately. On the
basis of this interpretation and modelling, the inferred resource grade
decreased resulting in the 22% decrease in the inferred resource.
Classification Domain Cut-off Tonnes Gold Grade Ounces
(cm.g/t) (Million) (g/t) (Million)
Indicated 1 350 4.88 4.52 0.72
2 350 1.26 2.21 0.09
3 350 14.29 3.55 1.64
Total 20.42 3.70 2.45
Indicated
Inferred 4 250 13.44 3.31 1.44
Total Inferred 13.44 3.31 1.44
Total Resource 33.86 3.55 3.89
Signed-off by Dr. I.C. Lemmer, independent resource consultant to Gold One,
audited by SRK Consulting (SA) (Proprietary) Limited.
Numbers may not appear additive due to rounding.
The decrease in the indicated resource grade is largely the result of a
reduced cut-off from 400 centimetre grams per tonne to 350 centimetre grams
per tonne as well as the delineation of higher and lower grade domains, with
the lower grade areas having been incorporated into the total resource
estimate. Although the more confident domain delineation has reduced overall
resource grade, it will allow the known higher grade areas to be more
accurately targeted during mine planning associated with economic studies.
Modelling of selective mining practices, associated with increases in mined
grade, can now be performed more confidently on the new resource. This
resource underpins a pre-feasibility study on Ventersburg currently being
conducted by Turgis Consulting (Proprietary) Limited, which will be completed
during the first quarter of 2011.
In total, 71 boreholes have been considered for the geological modelling and
associated resource estimation. These boreholes comprise 36 historically
drilled holes, 15 of which occur within the delineated indicated resource area
and 4 within the inferred resource area. The remaining 35 boreholes have been
drilled by Gold One since 2007, 18 of which have been drilled since the
previous 2009 resource estimate. Surface exploration drilling is ongoing at
the project with an initial aim of delineating the south-eastern limit of the
orebody (subcrop position). Infill drilling is planned to further enhance
resource confidence.
Gold One`s total resource
The increase in the Ventersburg resource has increased Gold One`s total
resource base to 21.04-million ounces of gold, including 8.10-million ounces
in the indicated resource category (70.8-million tonnes at 3.55 grams per
tonne), and 12.94-million ounces in the inferred category (97.31-million
tonnes at 4.13 grams per tonne).
Gold One International Consolidated Mineral Resource Statement1
Tonnes Grade Gold
Content
Indicated (Mt) (g/t) (Moz)
Modder East 2 28.83 2.84 2.63
Megamine 3 21.55 4.36 3.02
Ventersburg 4 20.42 3.70 2.45
Total Indicated: 70.80 3.55 8.10
Inferred
Modder East 2 14.98 2.16 1.04
New Kleinfontein and 4.27 6.00 0.83
Turnbridge 5
Ventersburg 4 13.44 3.31 1.44
Megamine 3 64.62 4.64 9.63
Total Inferred: 97.31 4.13 12.94
Total Indicated and Inferred: 168.11 3.89 21.04
1 Resources are reported in accordance with SAMREC guidelines
(estimates would be identical if reported in accordance with
JORC standards)
2 Signed-off by Minxcon (Proprietary) Limited, independent
resource consultants to Gold One, audited by SRK Consulting (SA)
3 Signed-off by Dr I.C. Lemmer and Minxcon, independent resource
consultants to Gold One, audited by SRK Consulting (SA)
4 Signed-off by Dr I.C. Lemmer, independent resource consultant
to Gold One, audited by SRK Consulting (SA)
5 Signed-off by Camden Geoserve Close Corporation, independent
resource consultant to Gold One, audited by SRK Consulting (SA)
Possible Ventersburg joint venture
The Ventersburg project comprises four separate prospecting rights known as
Ventersburg 1, 2, 3 and 4. Gold One originally acquired the mineral rights in
respect of the Ventersburg 1 prospecting area (indicated in the figure below)
from a subsidiary of Gold Fields Limited. In terms of the agreement between
Gold One and Gold Fields, the latter has an option to acquire a beneficial
interest in Ventersburg 1.
Gold One has since applied for, and been granted, the prospecting rights to
Ventersburg 2, 3 and 4. The agreement between Gold One and Gold Fields
concerns Ventersburg 1 only and does not extend to Ventersburg 2, 3 and 4.
In terms of the agreement regarding Ventersburg 1, Gold One will be solely
responsible for the exploration programme and associated costs at Ventersburg
1, the execution and costs of a feasibility study, and the decision whether or
not to construct a mine. In the event that the Gold One board decides to
construct a mine, Gold Fields will have an option to acquire up to a 51%
beneficial interest in Ventersburg 1.
Should Gold Fields elect to exercise the option, it will reimburse Gold One
75% of the costs of the Ventersburg 1 exploration programme and feasibility
study -- or a pro rata sum should it elect to acquire less than 51%. In
addition, Gold One and Gold Fields will establish a joint venture for both the
construction and the operation of the mine and all related costs and profits
will be shared in proportion to the companies` respective holdings. Should
either company at any time fail to contribute accordingly, that company`s
interest will be diluted.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
Issued by Gold One International Limited
www.gold1.co.za
Parktown, Johannesburg
07 December 2010
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
JSE Sponsor
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 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 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 owing
to its shallow nature (300 metres to 500 metres 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 806,875,987 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 Senior Vice
President of Business Development 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: 07/12/2010 07:05:38 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.
