| Tue 26 Jul 2011, 7:58 | | GDO - Gold One - Solid Operational Performance for Gold One for June 2011 |
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GDO
GDO
GDO - Gold One - Solid Operational Performance for Gold One for June 2011
Quarter
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")
Solid Operational Performance for Gold One for June 2011 Quarter
- 28,511 ounces of gold production resulting in the net cash flow from
operations increasing quarter on quarter by 39% to US$ 15.59 million
- Cash and gold receivables balance increased quarter on quarter by 35% to
US$ 25.13 million
- Introduction of strategic partner and cash offer of A$ 0.55 per share
- Successful offer to acquire gold producer Rand Uranium for US$ 250 million
- Excellent safety results with a lost-time injury-free quarter
- Positive progress of projects including confirmation of a high grade
payshoot extension at Ventersburg and positive Black Reef intersection at
Modder North
Gold One is pleased to report another quarter of continued production growth
with 28,511 ounces of gold having been produced. This gold production represents
an 8.9% increase relative to the March 2011 quarter`s production of 26,188
ounces and also exceeds the quarter`s guidance of 28,000 ounces. Total
production for the first half of 2011 therefore amounts to 54,699 ounces. With
the continued production ramp up on track, the company is well positioned to
achieve its annual gold production target of 120,000 ounces.
The strong operational performance was achieved during a time when Gold One`s
South African operations had a lost-time injury-free quarter, which has, in
turn, reduced the progressive lost-time injury frequency rate per 200,000 hours
("LTIFR") for 2011 to 0.86; significantly below the Australian LTIFR benchmark
of one.
Operating cash flow for the quarter increased significantly, amounting to US$
24.95 million. After development and capital expenditure of US$ 9.36 million,
the group generated a net cash flow from operations of US$ 15.59 million; 39%
higher than the previous quarter`s US$ 11.19 million.
Gold One ended the first half of 2011 with US$ 25.13 million of cash on hand and
gold receivables (including restricted cash of US$ 5.28 million), compared to an
end of March 2011 quarter cash on hand and receivables balance of US$ 18.67
million (including restricted cash of US$ 5.29 million).
Gold One President and CEO Neal Froneman comments: "The company has continued to
build on the solid foundation that it has established throughout this year. For
the September 2011 quarter, 34,000 ounces of gold production is being targeted
and all necessary development and infrastructure is in place to ensure
achievement of the company`s annual gold production target of 120,000 ounces."
Exploration and Projects
The company has also made good progress with several of the initiatives in its
project pipeline. At Ventersburg, the pre-feasibility study that was completed
at the end of the March 2011 quarter underwent extensive review by the company
during the June 2011 quarter. Following the review, it was anticipated that the
pre-feasibility study could potentially be optimised and enhanced through the
addition of shallower resources that could facilitate more rapid orebody access.
In this regard, a possible shallow extension to the eastern most payshoot was
modelled and drilling to date has yielded favourable results. This drilling is
planned to be completed by the beginning of the December 2011 quarter and the
updated pre-feasibility study is anticipated to be completed by the end of this
year. At Megamine, desktop studies undertaken during 2010 have continued with a
particular focus on the Wit Nigel property, being the southern property
contiguous to Megamine comprising the prospecting right belonging to Goliath
Gold Mining Limited, formerly White Water Resources Limited. This information,
combined with the current surface exploration drilling programme, will be
utilised to extend the existing Megamine geological models into the adjacent Wit
Nigel prospecting area.
The 2011 drill programme at Modder East has been concluded, which, when
considered in conjunction with the drilling undertaken during the December 2010
quarter, will result in additional resources in the northeastern portion of
Modder East. The results of this drilling will be incorporated into the updated
Modder East resource statement anticipated to be published during the December
2011 quarter.
Corporate Development
On 28 April, 2011, Gold One announced that it had made a binding offer to
acquire 100% of Rand Uranium (Proprietary) Limited for US$ 250 million and on 16
May, 2011, Gold One also announced that it had signed a Transaction
Implementation Agreement that could result in a change of control with a
consortium of Chinese investors becoming Gold One`s long term strategic partner
and major shareholder ("Jintu transaction").
The Rand Uranium transaction is progressing well, with the conditions precedent
all currently on track to be fulfilled on or before the dates stipulated in the
amended sale of shares agreement. The notice of meeting and explanatory
memorandum regarding the subscriptions relating to the Jintu transaction are
expected to be issued in due course; this issue will trigger the opening of the
offer. The general meeting of Gold One shareholders is expected to be held in
late August or early September 2011 to approve, inter alia, the subscription.
Gold One President and CEO Neal Froneman comments: " hareholders have indicated
strong support for both the Rand Uranium and Chinese consortium transactions. I
am confident that these transactions, combined with further progress and
development within the company`s current project pipeline, will continue to
create significant shareholder value. In addition, it is especially pleasing to
report that, despite the major corporate initiatives undertaken during this
quarter, the company has continued to perform above expectations operationally,
suggesting that the strategy of establishing a solid foundation and clear role
clarity between operational and corporate development functions prior to
considering external growth, has been successful."
Parktown, Johannesburg
26 July 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 1,500 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.
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: 26/07/2011 07:58:47 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.
