| Tue 24 Jan 2012, 7:06 | | GDO - Gold One International - Gold One International Limited and Gold Fields |
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GDO
GDO
GDO - Gold One International - Gold One International Limited and Gold Fields
Limited to investigate a joint venture for retreatment of West Rand Surface
Tailings Deposits
Gold One International Limited
Registered in Western Australia under the Corporations Act, 2001
(Cth) with registration number ACN: 094 265 746
(Registered in South Africa as an external company
with registration number 2009/000032/10)
ISIN: AU000000GDO5
Share Code on the ASX/JSE: GDO
OTCQX International: GLDZY
("Gold One" or the "company")
Gold One International Limited and Gold Fields Limited to Investigate a Joint
Venture for Retreatment of West Rand Surface Tailings Deposits
Gold One and Gold Fields Limited (JSE, NYSE, NASDAQ Dubai: GFI) ("Gold Fields")
are pleased to announce that they have entered into a Memorandum of
Understanding ("MOU") to investigate the viability of concurrently reprocessing
their combined surface tailings deposits, located on the West Rand region of
South Africa`s Witwatersrand Basin. Gold One and Gold Fields currently operate
mines in the West Rand, a region with a long history of gold and uranium mining.
In terms of the MOU, Gold One and Gold Fields (collectively, the "parties") will
jointly investigate the feasibility of establishing a Joint Venture into which
both parties will contribute surface assets for retreatment. These assets are
expected to comprise in excess of 700 million tonnes and represent over 60% of
the total tailings material in the region. The parties aim to complete a
detailed scoping study by the middle of this year, following which a decision
will be taken on whether to progress the study to a feasibility level.
Should the Joint Venture proceed, the intention is to reclaim and retreat the
historical tailings material and current tailings to recover residual gold,
uranium and sulphur. A key objective of the project will be to address the re-
deposition of the residues in accordance with modern sustainable deposition
practices, ultimately supporting mine closure in an environmentally sustainable
manner.
In 2010, Gold Fields completed extensive economic studies on its Tailings
Treatment Project ("TTP"), which is a low-grade gold and uranium recovery
project focusing on the existing tailings storage facilities and the current
underground mining horizons of Gold Fields` West Rand operations, Kloof
Driefontein Complex ("KDC") and South Deep. As at December 2010, Gold Fields
declared a mineral resource of 475.6 million tonnes at its tailings storage
facilities, which includes gold mineral resources of 4.5 million ounces and
uranium mineral resources of 53.6 million pounds*.
Gold One advised Gold Fields that on 9 January, 2012, it completed the
acquisition of Rand Uranium (Pty) Limited ("Rand Uranium"). Furthermore, as
part of the Rand Uranium transaction, Gold One established the Randfontein
Surface Operations, which are currently processing approximately 300,000 tonnes
of tailings material per month through the Cooke Gold Plant. Gold One also
advised that it had commenced with a review of its Cooke Uranium Project.
Rand Uranium had earlier completed a comprehensive definitive feasibility study
on the processing of the Cooke Tailings Deposit for the extraction of both gold
and uranium (including 70% of detailed and already completed engineering
design). The primary focus of the feasibility study is the construction of a
uranium metallurgical plant to treat the Cooke Tailings Deposit. In addition,
during the December 2011 quarter, Gold One stated that it commenced assessing
the potential treatment of several other surface tailings deposits that exist on
the mining and prospecting licenses acquired from Rand Uranium.
The combined consideration of the Gold One, Rand Uranium and Gold Fields
studies, as well as the possibility of utilising existing and planned
metallurgical plant infrastructure, will allow the companies to significantly
fast-track a joint economic assessment of the reprocessing of the combined
tailings deposits.
Gold One President and Chief Executive Officer Neal Froneman comments: "I am
excited about the opportunity of forging a strategic relationship with Gold
Fields. Economic recovery of gold and uranium from historical tailings deposits
has been successfully demonstrated in other districts of the Witwatersrand
Goldfields. The combination of our extensive technical studies and the quality
of assets that would be pooled into the partnership presents an exciting
prospect for the Joint Venture and growth of Gold One`s surface business.
Importantly, the economically sustainable retreatment of the existing tailings
deposits will also have a positive environmental impact, benefiting all
stakeholders in the district in which we operate."
Gold Fields Chief Executive Officer Nick Holland comments: "This is an exciting
opportunity to investigate the feasibility of extracting value from our
substantial surface resources on the West Rand. Gold Fields already has projects
in place to retreat our tailings and the MOU with Gold One allows us to further
explore a relatively low risk opportunity to extract value from Gold Fields`
surface resources that is not inherent in our share price."
* As declared by Gold Fields in its integrated annual report for the six months
ended 31 December 2010 (page 129) released on 31 March 2011, and as undertaken
by the Mineral Resource Managers designated as Competent Persons (or recognised
mining professionals) on each of the tailing storage facilities in terms of the
South African Code for Reporting of Exploration Results, Mineral Resources and
Mineral Reserves (SAMREC), the details of whom are set out by Gold Fields in its
Mineral Resources and Mineral Reserves Overview as at December 2010 (page 23).
Johannesburg
24 January 2012
For and on behalf of Gold One:
JSE Sponsor:
Macquarie First South Capital (Pty) Limited
ENDS
Issued by Gold One International Limited
www.gold1.co.za
Neal Froneman
President and CEO
+27 11 726 1047 (office)
+27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Grant Stuart
VP Investor Relations
+27 11 726 1047 (office)
+27 82 602 5992 (mobile)
grant.stuart@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 dual listed mid-tier mining group with gold operations and gold
and uranium prospects across Southern Africa. Gold One remains focused on
developing and mining low technical risk, high margin precious metal resources
in diversified jurisdictions. The company`s flagship Modder East gold mine,
commissioned in 2009, distinguishes itself from most other gold mines in South
Africa owing to its shallow nature (300 to 500 metres below surface)
andcontinues to ramp up production, having produced 123,179 ounces in 2011.
At the beginning of 2012, the group expanded further with the acquisition of
Rand Uranium (Pty) Limited consisting of the Cooke Underground Operations and
the Randfontein Surface Operations located in the West Rand, 30 kilometres from
Johannesburg. The Cooke underground operations continue to deliver in line with
expectations and are currently the subject of a turnaround intervention.
Through Gold One`s purchase of Rand Uranium (Pty) Limited, the group has also
acquired one of the world`s most advanced uranium projects, which envisages
recovering uranium, gold and sulphur from the Cooke Tailings Dam and underground
ores.
The Gold One group is majority-owned by a consortium comprising Baiyin Non-
Ferrous Group Co. Limited, the China-Africa Development Fund, and Long March
Capital Limited and has an issued share capital of 1,415,302,711 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.
Date: 24/01/2012 07:06:56 Produced by the JSE SENS Department.
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