| Tue 19 Apr 2011, 7:06 | | GDO - Excellent March 2011 Quarter for Gold One |
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GDO
GDO
GDO - Excellent March 2011 Quarter for Gold One
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")
Excellent March 2011 Quarter for Gold One
- Total development for the March quarter increased by 16% to 1,369 metres
with 81,920 square metres of reserves now available for mining March
quarter production exceeds guidance, up 22% to 26,188 ounces
- Net cash flow from operations increased by 34% to US$ 11.19 million
- Cash and gold receivables balance increased by 62% to US$ 18.67 million
- Modder East cash cost steady at US$ 472/oz
- 12% improvement in Modder East recovered grade to 6.55 grams per tonne
- Plant recoveries maintained at 96.5%
- Continued drilling at Ventersburg confirms shallow extension of modelled
higher grade payshoot
- Shareholders of White Water Resources overwhelmingly approve the
creation of Goliath Gold
Gold One is pleased to report that the company has exceeded production
guidance for the March quarter, achieving a 22% increase in gold output to
26,188 ounces.
The increased production output is a result of increases in volume and grade
from Modder East. Reef tonnes broken improved by 29% to 124,395 tonnes while
tonnes treated increased by 27% to 123,608 tonnes. Recovered grades
increased to 6.55 grams per tonne, resulting in a 29% increase in gold
production from Modder East to 26,023 ounces.
The cash cost* for the quarter remained steady at US$ 472/oz despite the
strong exchange rate of ZAR 6.98 / US$ 1. The total cost** for the quarter
was US$ 659/oz, which compares favorably against 2010`s annual total cost
number of US$ 686/oz. For 2011, Gold One has budgeted a cash cost of US$
417/oz and a budgeted total cost of US$ 614/oz at a budgeted exchange rate of
ZAR 7.69 / US$ 1.
Group gold revenue for the quarter was 21% higher than the previous quarter,
totalling US$ 35.42 million. This increase is the result of increased output
and a slightly higher gold price of US$ 1,384/oz received, versus the average
gold price received in the previous quarter of US$ 1,370/oz.
Group cash operating costs were US$ 13.84 million, resulting in a positive
operating cash flow of US$ 21.58 million and a group net cash flow of US$
7.12 million. The end of quarter cash balance increased by 62% to US$ 18.67
million, compared to the previous quarter`s US$ 11.55 million.
Gold One President and CEO Neal Froneman comments: "I am delighted with the
excellent start the company has achieved for 2011. This sets a firm base for
the remainder of the year. Despite the very significant number of public
holidays over the Easter period, the outlook for the June quarter remains
positive with the company anticipating an increase in production output to
28,000 ounces. Our annual target of 120,000 ounces at average cash costs of
US$ 417/oz remains firmly intact."
A further highlight during the quarter was White Water Resources Limited`s
(JSE: WWR) shareholders overwhelmingly approving the acquisition of Gold
One`s Megamine assets and the subsequent change of company name to Goliath
Gold Mining Limited. This was a crucial step toward the creation of Goliath
Gold; a new gold exploration and development company. Gold One will
ultimately hold a 71% stake in the new company, which as at 31 March 2011,
had a market value of A$ 61.9 million.
Following the end of the quarter, the company received formal notification
that is had been granted a Water Use Licence for Modder East. This is a
significant achievement with very few mines in South Africa having obtained
this licence to date.
During the June 2011 quarter, the first phase of Modder East`s exploration
programme is expected to be completed and, pending the outcome of drilling
results, may be continued and/or the findings thereof incorporated into an
updated resource and reserve estimation. The surface exploration drilling
programme at Modder North will commence following the drilling at Modder
East. The results of the Ventersburg pre-feasibility study will be released
during the second quarter once the potential impact of recently completed
shallow surface drilling results has been considered.
*Cash cost refers to all costs directly associated with mining activities,
mine administration, processing and refining.
**Total cost refers to the sum of the cash cost, depreciation and royalties.
Capital expenditure, finance costs and corporate costs are excluded from
total cost.
ENDS
Issued by Gold One International Limited
www.gold1.co.za
Parktown, Johannesburg
19 April 2011
JSE SPONSOR
Macquarie First South Advisers (Pty) Limited
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 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 807,350,406 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 (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) and in the 2010 Annual Report released on
28 February 2011.
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: 19/04/2011 07:06:33 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.
