| Tue 19 Apr 2011, 7:05 | | GDO - Gold One International Limited - Quarterly Activities Report - Quarter |
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GDO
GDO
GDO - Gold One International Limited - Quarterly Activities Report - Quarter
Ended 31 March 2011
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")
Quarterly Activities Report
Quarter Ended 31 March 2011
March 2011 Quarter Highlights
- 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
- Total development for the March quarter increased by 16% to 1,369 metres
with 81,920 square metres of reserves now available for mining
- 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
June Quarter Outlook
- On track for June quarter production guidance of 28,000 ounces
- Modder East and Modder North drilling will continue
- The results of the Ventersburg pre-feasibility study will be released once
the potential impact of the recent shallow surface drilling results has
been reviewed
March Quarter 2011 Key Performance Data
(Average Exchange Rate of ZAR 6.98 / US$ 1)
(December 2010 Quarter Average Exchange Rate of ZAR 6.93 / US$ 1)
March 2011 Quarter Modder Sub Total December 2010
East Nigel Quarter
Ore Mined 124 395 t 3 940 t 128 335 111 681 t
Underground t
Mined Grade 8.69 g/t 3.57 g/t 8.53 g/t 6.36 g/t
Milled Tonnes 123 608 t 1 483 t 125 091 114 372 t
t
Recovered Grade 6.55 g/t 3.45 g/t 6.51 g/t 5.84 g/t
Gold Recovery 97% 92% 96% 95.7%
Gold Produced 26 023 oz 165 oz 26 188 21 480 oz
oz
Modder East Cash US$ 472/oz US$ 467/oz
Cost*
Group Development US$ 10.39 million US$ 9.08
and Capex million
Group Gold Revenue US$ 35.42 million US$ 29.20
million
Average Gold Price US$ 1 384/oz US$ 1 370 /oz
Received
*Cash cost refers to all costs directly associated with mining activities, mine
administration, processing and refining.
1. CEO`s Review
Gold One has had a positive start to 2011 with the company exceeding its public
production guidance targets for the March quarter. This has laid the foundation
for a strong June quarter as well as for the remainder of the year.
The increased production output was a result of increased volume and grade from
the Modder East operation. 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 amounting to 26,023 ounces from Modder East.
Cash cost for the quarter remained steady at US$ 472/oz despite the strong
exchange rate of ZAR 6.98 / US$ 1. Total cost** for the quarter under review 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.
Modder East`s strong operational performance resulted in 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.
Total development for the March quarter increased by 16% to 1,369 metres,
compared to 1,176 metres in the previous quarter. Mining flexibility continues
to increase with current on-reef development having opened up some 81,920 square
metres of reserves that are now available for mining. This equates to about
seven months of mining at planned mining rates.
Gold One maintained an excellent safety performance although there was a
regression in the lost-time injury frequency rate per 200,000 hours ("LTIFR"),
which increased to 1.83; still well below the Australian and South African
averages.
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$ 62
million.
Following the end of the quarter, the company also received formal notification
that is has been granted a Water Use Licence for Modder East. This is a
significant achievement as very few mines in South Africa possess this licence.
Despite the 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.
**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.
2. Financial Review
2.1. Overview
Cash Flow (Unaudited) March Dec 2010
2011 Quarter
Quarter (US$
(US$ Million)
Million)
Gold Sales 35.42 29.20
Payment to Operating Suppliers -13.84 -11.77
and Employees
Operating Cash Flow 21.58 17.43
Development and Capital -10.39 -9.08
Expenditure
Cash Flow from Operations 11.19 8.35
Exploration -1.66 -1.30
Corporate Overheads -0.72 -1.23
Bond Interest Payments -1.27 -1.27
Debt Facility Transaction -0.42 -2.20
Costs
Net Cash Flow 7.12 2.35
Opening Cash in Bank and Gold 11.55 9.20
Receivables
Closing Cash in Bank and Gold 18.67 11.55
Receivables
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. After development and capital of US$ 10.39 million, the group
generated a net cash flow of US$ 11.19 million from operations. This is 34%
higher than the December 2010 quarter.
General and administration costs for the quarter decreased when compared to the
previous quarter due to fewer transaction costs payable on the establishment and
cancellation of the US$ 65 million debt facility for the once-off put bond
option. These once-off transaction costs amounted to US$ 0.42 million over the
March quarter, compared with the previous quarter`s cost of US$ 2.20 million.
The final payments of US$ 0.9 million of these debt facility costs are expected
to be paid during the June quarter of 2011.
Gold One ended the 2011 March quarter with US$ 18.67 million of cash on hand and
gold receivables (including restricted cash of US$ 5.29 million), compared to an
end of December 2010 quarter cash on hand and receivables balance of US$ 11.55
million (including restricted cash of US$ 5.4 million). The quarterly interest
payment of US$ 1.27 million on the company`s 501 convertible bonds was made in
March.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
3. Operational Review
3.1. Overview
Gold production for the March 2011 quarter amounted to 26,188 ounces relative to
guidance of 25,000 ounces. This represents a 22% increase relative to the
December 2010 quarter`s 21,480 ounces and is largely attributable to a 29%
increase in reef tonnes broken at Modder East during the quarter.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
3.2. Modder East
Modder East March 2011 Quarter December 2010 Quarter
Ore Mined Underground 124 395 t 96 332 t
Mined Grade 8.69 g/t 6.94 g/t
Milled Tonnes 123 608 t 96 916 t
Recovered Grade 6.55 g/t 6.49 g/t
Gold Recovery 97% 96%
Gold Produced 26 023 oz 20 211 oz
Modder East Cash Cost US$ 472/oz US$ 467/oz
The steady build up seen at Modder East during the latter half of 2010 continued
into the March 2011 quarter with gold production increasing by 29% from 20,211
ounces to 26,023 ounces. This is attributable to a 29% increase in underground
tonnes mined, associated with an increase in the number of available mining
panels and increased mining efficiencies.
The plan below illustrates the extent of mining undertaken at Modder East during
the March 2011 quarter (indicated in green) compared to the end of the December
2010 quarter. Mining in the Raise Line 1 area continued steadily with some
panels mining out against the shoreline, as planned. Continued mining from Raise
Line 2, combined with development and initial ledging and stoping in Raise Line
3, will form the basis of a continued increase in production output throughout
2011. Limited production from Raise Line 3 also commenced during the quarter and
will continue to increase steadily as more panels become available. On-Reef
development in Raise Line 3 is on schedule, supporting this planned production
increase.
The eastern portion of Raise Line 1 has been designated to house the training
centre that is currently located at Sub Nigel. As discussed in the December
2010 Quarterly Activities Report, the training centre is in the process of being
moved to Modder East. Although Sub Nigel will ultimately form part of Goliath
Gold, the training centre will continue to be available to Gold One as required.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
Average mined in-situ grades for the Black Reef remained in line with
expectations at 9.45 grams per tonne over an average stoping width of 144
centimetres during the March 2011 quarter. Final diluted mined grade (including
gully and on-reef development dilution) increased to 8.69 grams per tonne. On-
reef development completed during the quarter represents the subsequent areas to
be mined. Assay values over a total of 335 metres of sampled on-reef development
were obtained at an average grade of 9.59 grams per tonne over an optimised
mining width of 127 centimetres. These grades are consistent with grades
currently being mined and confirm the anticipated and modelled grades of future
mining areas. In addition, the exposed portion of the underlying Blanket Facies
was sampled at an average grade of 1.07 grams per tonne.
3.2.1. Development
During the December 2010 quarter, development was focused on increasing total
off-reef development while maintaining sufficient on-reef development to sustain
the planned production ramp up. This strategy was maintained during the March
2011 quarter. Trackless off-reef development for the quarter increased by 63% to
880 metres compared to 541 metres in the previous quarter, while on-reef
development totaled 368 metres. Total development for the March quarter
increased by 16% to 1,369 metres, compared to 1,176 metres in the previous
quarter. Mining flexibility continues to increase with current on-reef
development having opened up some 81,920 square metres of reserves that are now
available for mining. This equates to about seven months of mining at planned
mining rates.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
3.2.2. Stoping and Ledging
The March 2011 quarter saw a sustained month-on-month increase in square metres
mined, resulting in a 47% quarter-on-quarter increase. This was due to a
combination of an increase in the number of panels mined as well as enhanced
stoping efficiencies associated with established mining panels.
The March quarter commenced with mining of 40 panels of which 10 were at a
ledging (establishment) stage. During the quarter, additional panels were
brought into production, while in the northern portions of the orebody others
stopped as planned against the extremities of the shoreline resulting in a total
of 45 mining panels being available for mining at the end of the quarter. Of
these 45 panels, 15 are still at an early ledging phase. Six of the ledging
panels are situated within North 3. The majority of new panels were added in
the Raise Line 2 area and Eastern portions of Raise Line 1.
Mining efficiencies (illustrated as face advance in the graph below)
continuously improved, resulting in an enhanced 23% quarter-on-quarter increase
in average stope face advance. The impact of an increased number of faces
combined with enhanced mining efficiencies resulted in a 29% quarterly increase
in tonnage mined.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
3.2.3. Modder East Processing Plant
Metallurgical plant efficiencies remained consistent during the quarter under
review with recoveries of 96.5% being achieved for Modder East ore. Although
Modder East recovered grades marginally increased to 6.55 grams per tonne, these
grades were negatively impacted (relative to the grade mined) by the treatment
of low grade stockpiled material at the beginning of the quarter as well as lock
up in the Knelson Concentrator at the end of the quarter, which was only
produced in early April 2011. Incorporating these aspects, the estimated
recovered grade at Modder East for the quarter would have been 7.21 grams per
tonne.
The gravity circuit (Knelson Concentrator), which was successfully commissioned
in November 2010, recovered 49% of the total gold produced during the quarter,
in line with the design specifications of the unit. This circuit has facilitated
increased recoveries and during the upcoming quarter management will focus on
optimising costs.
3.3. Sub Nigel
Following essential maintenance and repair work performed on the Sub Nigel
winder, Sub Nigel mined a total of 3,940 tonnes of which 1,483 tonnes were
milled, resulting in gold production of 165 ounces for the March 2011 quarter.
The balance of the Sub Nigel tonnes has been stockpiled at Modder East for later
batch processing.
Sub Nigel March 2011 December 2010
Quarter Quarter
Ore Mined Underground 3 940 t 15 349 t
Mined Grade 3.57 g/t 2.74 g/t
Milled Tonnes 1 483 t 17 456 t
Recovered Grade 3.29 g/t 2.26 g/t
Gold Recovery 92% 92%
Gold Produced 165 oz 1 269 oz
4. Exploration and Projects
4.1. Modder East
Following the successful 2010 surface exploration drilling campaign at Modder
East (boreholes DD65-DD69), it was decided to continue exploration activities in
the north-eastern portion of the Shoreline Facies of the Black Reef. This
drilling programme commenced during the March quarter and initially considered
an additional three boreholes (DD70-DD72), totaling 868 metres amounting to a
total exploration cost of US$ 0.14 million. Further drilling will be planned
pending final assay results.
Borehole DD70 has been completed with two deflections. Due to faulting, one
deflection did not contain any developed Black Reef, while the other two
intersections both contained Black Reef Channel Facies with one also hosting a
thin Buckshot Pyrite Leader Zone ("BPLZ"). The current interpretation of this
intersection is that it is in very close proximity to the Shoreline Facies.
This will be confirmed once all assay results have been returned. Similar
results were obtained in DD71, where a poorly developed BPLZ was intersected.
DD72 did not intersect developed Black Reef, suggesting that the palaeohigh
feature intersected in DD65 continues to the DD72 position.
Once all of the assay results have been received, the Black Reef and associated
exploration model for the north-eastern extent of Modder East will be updated
and a decision as to further exploration drilling will be made.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
4.2. Ventersburg
During the quarter under review, an additional four boreholes were drilled at
Ventersburg comprising 1,907 metres at a total cost of US$ 0.75 million. This
drilling targeted the shallower eastern portion of the A Reef where the orebody
remains open and the extension of the A Reef payshoot has been projected. In
addition, this drilling will refine the A Reef subcrop position in the south-
eastern portion of the property. Assay results for three boreholes (and
associated deflections) were received as indicated in the table below.
Encouragingly, the assay results, particularly from boreholes AFO52 and AFO53,
confirmed the extension of the modelled higher grade eastern payshoot. This
area also represents the shallower portion of the A Reef orebody at Ventersburg,
typically occurring at depths less than 600 metres below surface.
The pre-feasibility study undertaken by Turgis Consulting (Pty) Limited was
completed at the end of the March quarter. The company is currently reviewing
this study, particularly given the potential impact of the recent shallower reef
intersections in the eastern portion of Ventersburg. The results of the pre-
feasibility study will be released during the second quarter once the potential
impact of the recent shallow surface results has been considered.
BH_ID REEF Depth Depth Dip Corrected
Intersected Intersected
From (m) To (m)
Channel g/t 2 cm.g/t
Thickness
(cm) 1
AFO052_Orig A-REEF 660.07 660.67 57 10.33 590
UITSIG
AFO052_1D A-REEF 653.92 654.61 66 13.96 926
UITSIG
AFO052_2D A-REEF 654.89 655.57 65 10.36 677
UITSIG
AFO053_Orig A-REEF 532.62 533.31 66 5.64 372
UITSIG
AFO053_2D A-REEF 534.83 535.53 67 8.14 542
UITSIG
AFO053_3D A-REEF 533.70 534.38 65 7.75 501
UITSIG
AFO54_Orig A-REEF 416.93 420.30 304 2.56 777
UITSIG
AFO54_1D A-REEF 416.93 420.10 287 3.27 940
UITSIG
AFO54_3D A-REEF 417.15 420.35 297 1.46 433
UITSIG
1Channel thickness represents the true, dip corrected thickness of the reef. Dip
corrections are undertaken based on dip measurements from core bedding angles.
2Represents the average grade over the true thickness of the total reef,
calculated using a weighted average of assayed grade from individual samples
over the total channel thickness (individual sample lengths are typically
between 15 centimetres and 30 centimetres).
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
4.3 Megamine
As reported during the December quarter of 2010, Gold One reached an agreement
to acquire control of White Water Resources, an investment holding company,
through the sale of Megamine in exchange for approximately 1.04 billion White
Water Resources shares valued at ZAR 0.25 each. Gold One would thereafter own
71% of the issued share capital of the enlarged White Water Resources, which is
to be renamed Goliath Gold. On 22 March 2011, White Water Resources`
shareholders overwhelmingly approved the proposed acquisition of Gold One`s
Megamine assets and the subsequent change of company name, thus creating,
Goliath Gold.
Gold One continued its exploration activities at Megamine, targeting both the
Kimberley and Main Reef horizons. During February 2011, surface exploration
drilling commenced on the Spaarwater property, where two diamond drill boreholes
are currently in progress. During the quarter, 1,159 metres were drilled at
Megamine at a total exploration cost of US$ 0.53 million.
The first borehole, SPNR1, intersected the Main Reef (also referred to as the
Nigel Reef) at the anticipated depth of 622 metres below surface. Further
confirmation of the reef elevation model created for the Main Reef was received
when the second borehole (SPNR2) intersected Main Reef close to the predicted
depth at 437.60 metres below surface. Deflection drilling on both of these
boreholes is currently underway and assay results have not yet been received.
In addition to the surface exploration drilling, desktop studies are ongoing and
are focused on modelling controls on palaeoflow and channelisation trends in the
East Rand. It is envisaged that this study will assist in refining the proposed
exploration strategy.
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
* Phase 1 and 2 drilling strategies defined for Main (Nigel) Reef. Yellow
diamonds mark planned boreholes targeting the Main Reef. White hatched polygons
mark projected payshoots.
4.4 East Rand Boundary Project
As previously described, Gold One`s East Rand Boundary Project is evaluating the
shallow (less than 500 metres below surface) Main Reef potential of Gold One`s
New Kleinfontein, Turnbridge and Modder North properties. The resource estimate
for Turnbridge is currently being updated by SRK Consulting considering the
potential implications of a change in water level in the flooded underground
Main Reef workings due to the cessation of pumping in East Rand Basin by Aurora
at Grootvlei. Following the completion of the resource estimate, the pre-
feasibility study will be finalized.
The preliminary drilling programme for the Modder North property, which
comprises an initial four boreholes, has been finalised on the Main Reef. This
exploration area is targeting down-dip extensions to previously shallow mined
out Main Reef and thus represents an unmined Main Reef target. As such, it is
unaffected by changes in the water levels in historically mined out areas.
Modder North`s drilling programme will commence during the June quarter.
5. Outlook
The continued build up in production levels at Modder East during the March 2011
quarter has provided the company with a solid foundation to achieve its forecast
2011 annual production of 120,000 ounces at an average cash cost of US$ 417/oz.
Forecast production for the remainder of 2011 remains unchanged at:
- June 2011 quarter - 28,000 ounces
- September 2011 quarter - 34,000 ounces
- December 2011 quarter - 33,000 ounces
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 impact of the recently confirmed shallower extensions of the higher grade
payshoot at Ventersburg on the pre-feasibility study will be investigated.
Pending the results of this investigation and continued successful exploration,
the pre-feasibility study may require updating to incorporate these findings.
6. Capital Structure
As at 31 March 2011, the company had an issued share capital of 807,299,165
shares and 87,862,030 outstanding share options. As of the release of this
report, the company has 807,350,406 shares in issue, of which 430,917,366
(53.3%) are held on the Australian register and 376,433,040 (46.7%) are held on
the South African register (see graphs below).
(For the release with pictures and schematics, please refer to the Company`s
website: www.gold1.co.za)
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.
BOARD OF DIRECTORS
Mark Wheatley* (Chairman), Neal Froneman (CEO), Christopher Chadwick (CFO), Izak
Marais (COO), Barry Davison*, Ken Dicks*, William Harris*, Sandile Swana*, Ken
Winters*
*Non-executive Directors
CORPORATE DIRECTORY
REGISTERED OFFICE
Level 3
100 Mount Street
NORTH SYDNEY NSW 2060
Telephone: +61 2 9963 6400
Facsimile: +61 2 9963 6499
JOHANNESBURG REPRESENTATIVE OFFICE
45 Empire Road, First Floor,
Parktown, 2193
Gauteng, South Africa
Telephone: +27 11 726 1047
Facsimile: +27 11 726 1087
Company Secretaries
- K M Pickering
- P B Kruger
Registrars
Registries Limited
Level 7
207 Kent Street
Sydney
NSW
Australia
2000
Tel: +61 2 9290 9600
South African Transfer Secretaries
Computershare Investor Services
70 Marshall Street
Johannesburg
2001
Level 1 ADR Sponsor
The Bank of New York Mellon
Depositary Receipts Division
101 Barclay St, 22nd Floor
New York, New York 10286
USA
Tel: +1 212 815 3700
Fax: +1 212 571 3050
Auditors
PricewaterhouseCoopers
201 Sussex StreetSydney, NSW 1171Australia
Telephone: +61 2 8266 0000
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 07:05:32 Produced by the JSE SENS Department.
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