| Wed 11 Apr 2012, 7:05 | | GDO - Gold One International Limited - 2012 March Quarter Group Gold |
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GDO
GDO
GDO - Gold One International Limited - 2012 March Quarter Group Gold
Production
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
ISIN: AU000000GDO5
OTCQX International: GLDZY
("Gold One" or the "company")
2012 March Quarter Group Gold Production
Gold One advises that a total of 61,625 ounces of gold was produced during the
March 2012 quarter. Gold production for the quarter was 85% higher than
production achieved during the December 2011 quarter, and 9% or 6,375 ounces
less than the quarterly forecasted gold production detailed in the December
quarterly announcement released on 31 January 2012. Production for the March
quarter now includes the producing Cooke Underground and Randfontein Surface
operations acquired from the shareholders of Rand Uranium Proprietary Limited
via a transaction that closed on Friday, 6 January 2012.
Gold ore volumes at all operations were negatively impacted by a slower than
anticipated start up following the Christmas break.
Gold production at the Modder East Operations was 8% or 2,872 ounces lower
than forecast primarily due to the loss of nine production shifts during the
quarter. The lost shifts resulted from the Congress of South African Trade
Unions (COSATU) protected strike, the unprotected strike action of 500
employees following disciplinary action taken against six employees, and a
further seven lost shifts due to mine-wide safety stoppages imposed by the
Department of Mineral Resources.
Gold production at the Cooke Underground Operations was 11% or 2,829 ounces
lower than forecast largely due to lower than anticipated production volumes
and grade. Increasing grade flexibility remains a key focus area of the
planned two year turnaround programme and importantly, development rates have
been maintained at a high level during the first quarter in order to increase
long term flexibility.
Gold production at the Randfontein Surface Operations was 8% or 674 ounces
lower than forecast largely due to lower volumes delivered to the plant as a
result of temporary reclamation issues.
The table below provides an operational breakdown of the first quarter`s
production. Further details will be provided in the company quarterly report,
due for release at the end of April 2012.
March 2012 March 2012 Variance
Quarter Quarter
Actual (oz) Guidance (oz)
Modder East 31,128 34,000 -2,872 -8%
Operations
Cooke Underground 23,171 26,000 -2,829 -11%
Operations
Randfontein Surface 7,326 8,000 -674 -8%
Operations
Total 61,625 68,000 -6,375 -9%
Gold One President and CEO Neal Froneman comments: "The loss of nine
production shifts at Modder East during this quarter is unfortunate. These
disruptions together with the slow start up post the Christmas break has had a
significant impact on Modder East`s quarterly production. Without these
unforeseen delays I am confident that we would have, at a minimum, achieved
our production forecast. At the Cooke Operations the results of the
implementation of the two year turnaround strategy are becoming evident and
although these do not immediately reflect in the production output, I am
confident in meeting the June quarterly guidance for the Cooke operations.
The focus at the Cooke section remains on increasing development and reducing
external waste."
ENDS
Issued by Gold One International Limited
www.gold1.co.za
Johannesburg
11 April 2012
JSE Sponsor
Macquarie First South Capital (Pty) Limited
Neal Froneman
President and CEO
+27 11 726 1047 (office)
+27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Grant Stuart
Investor Relations
+27 10 591 5219 (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 International Limited ("Gold One") is a dual listed (ASX/JSE: GDO)
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, continues to ramp up production. Gold sold for 2011 amounted to 123,179
ounces, exceeding the company`s stated target of 120,000 ounces and reflecting
an increase of 85% compared to 2010.
At the beginning of 2012, the group expanded further with the acquisition of
the Cooke 1,2 and 3 Underground Operations and the Cooke surface assets
(Randfontein Surface Operations) located in the West Rand, 30 kilometers 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.
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: 11/04/2012 07:05:04 Produced by the JSE SENS Department.
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