| Mon 14 Mar 2011, 8:13 | | GDO - Gold One International Limited - Gold One on track to exceed First |
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GDO
GDO
GDO - Gold One International Limited - Gold One on track to exceed First
Quarter Production Target
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")
GOLD ONE ON TRACK TO EXCEED FIRST QUARTER PRODUCTION TARGET
- First quarter production on track to exceed 25,000 ounce guidance
- Current production levels provide solid foundation for meeting 2011
target of 120,000 ounces
- 47 panels available for mining on the back of increased development
- Creation of Goliath Gold once White Water Resources shareholder approval
is obtained on 22 March
(For the release with schematics please refer to the company`s website:
www.gold1.co.za)
Gold One is pleased to provide an interim operational update for the first
quarter of 2011 to date.
PRODUCTION
During the first quarter of 2011, production rates at Gold One`s Modder East
mine have continued to build off the solid base that was established during
the latter half of 2010. During January and February 2011, Gold One produced
18,154 ounces of gold. On an annualised basis, production rates have increased
from approximately 85,000 ounces per annum (based on the 2010 December
quarter`s production) to 109,000 ounces per annum (based on production from
the first two months of 2011).
The increase in gold output is a result of a continuous increase in the
tonnage mined as well as an increase in recovered grades. A total of 47
panels (13 of which are in ledging phase) were being mined at the end of
February 2011, compared to 40 panels at the beginning of 2011. This increase
in the number of total panels mined resulted in a significant increase in
square metres mined and corresponding tonnages. During January and February
2011, the reef tonnes mined increased from 32,294 tonnes in December 2010 to
37,163 tonnes in January and 40,815 tonnes in February 2011. January and
February reflect a 15% and 26% increase respectively on December`s reef tonnes
mined.
While in-situ grades continue to confirm the geological and resource modelling
undertaken to date, mined and recovered grades have increased during the
quarter so far. This is largely the result of stope widths reducing
significantly (i.e. reducing dilution). In addition, the gravity circuit has
resulted in metallurgical recoveries increasing to approximately 97%.
To maintain flexibility and to support the continued ramp up in production at
Modder East, development is continuing to increase with more than 450 meters
of total development achieved in February 2011. Development will continue to
increase as the number of development ends (attack points) increase.
EXPLORATION
Following the successful 2010 drilling campaign at Modder East, a decision was
taken to continue drilling in the north-eastern portion of the Black Reef
orebody. This continued surface exploration programme commenced during January
2011 and will initially comprise three boreholes with a step-out of 100 metres
to 150 metres to the north, east and south-east of those boreholes completed
in 2010. The first of these boreholes has been successfully completed and
intersected the Black Reef, although no assay results have been received to
date. A further update on this drilling programme will be provided in the
first quarter`s quarterly activities report, due to be released in April 2011.
Drilling has also continued at the Ventersburg project. The Ventersburg pre-
feasibility study is continuing and is on track to be completed during this
quarter.
As described in the December 2010 Quarterly Report, re-sampling of underground
workings at Modder North was completed during 2010 and was utilised in
verifying historic sampling results and refining existing geological models.
This work also identified a prospective down-dip extension to the mined-out
areas of Modder North, which will form the target of a surface exploration
drilling campaign during this year. Here, the targeted Main Reef occurs at
depths between 300 metres and 700 metres below surface. Drilling is planned to
commence at Modder North in April 2011.
CORPORATE ACTIVITIES
On 25 February 2011, Gold One announced that shareholders of White Water
Resources Limited ("White Water Resources") will be voting on 22 March 2011 on
the acquisition of Gold One`s 12.65 million ounce Megamine asset (including
3.02-million ounces at 4.36 grams per tonne in the indicated category and 9.63-
million ounces at 4.64 grams per tonne in the inferred category) resulting in
a reverse takeover of White Water Resources by Gold One. Once shareholder
approval for the transaction is received, Gold One will become a 71%
shareholder in Goliath Gold (the renamed White Water Resources) and will
assume managerial and operational control over Goliath Gold the following day,
being 23 March.
Gold One President and CEO Neal Froneman comments: "I am exceptionally pleased
with the start we have had in 2011 and the fact that we have continued to
maintain production growth momentum. With a strong gold price and our constant
focus on costs, we remain confident in meeting our 2011 earnings guidance. We
have built a strong foundation for growth."
Parktown, Johannesburg
14 March 2011
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
JSE Sponsor
Issued by Gold One International Limited
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 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 807,299,165shares.
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 (SACNASP), membership number 400051/04. Dr Stewart is also a
member of the Geological Society of South Africa (GSSA) and Senior Vice
President: 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 ASX
Announcements Platform and the Stock Exchange News Service (SENS) on 11
October 2010 (Megamine), 7 December 2010 (Ventersburg), and 15 December 2010
(Modder East).
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: 14/03/2011 08:13:03 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.
