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GOLD ONE INTERNATIONAL LIMITED - Ezulwini to be Integrated into Cooke Underground Operations Significant Value Unlock Underway

Release Date: 03/08/2012 07:05
Code(s): GDO     PDF:  
Wrap Text
Ezulwini to be Integrated into Cooke Underground Operations
Significant Value Unlock Underway

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”) 



                                                                                      
Ezulwini to be Integrated into Cooke Underground Operations
Significant Value Unlock Underway

Gold One is pleased to announce that, further to the announcement on 23 July 2012, the acquisition of First Uranium 
Limited, the holding company of Ezulwini Mining Company (Pty) Limited (“Ezulwini”), was completed on 1 August 2012
for a purchase price of US$ 70 million following the receipt of the closing documents and the payment of the
purchase price.

US$ 65 million of the purchase price was paid to First Uranium Corporation (“First Uranium”) and the
balance of US$ 5 million (“the Deferred Payment”) has been placed in an interest-bearing trust account
where it will be held in accordance with the provisions of the acquisition agreement for a period of six
months (“the Escrow Period”). Should there be no breach of a material warranty during the Escrow Period,
then the Deferred Payment will be released to First Uranium at the end of the Escrow Period.

Ezulwini will form part of the Cooke Underground Operations, which will continue to be headed by Syd
Caddy. Prior to joining Gold One in 2009 Syd was the chief operating officer of First Uranium and as such has
an intimate understanding of the Ezulwini asset. Syd was also the consulting engineer for JCI Limited (“JCI”),
which previously owned the Cooke 1,2 and 3 shafts (“Cooke shafts”) as well as Ezulwini. Under JCI’s
ownership Ezulwini was known as the North Shaft of Western Areas Gold Mine where, together with the
Cooke shafts, it formed part of the Western Areas Randfontein Estates complex.

Gold One President and CEO Neal Froneman comments: “It is extremely satisfying for me to see yet another
key component of our strategy coming together in such a short time. With our operating team’s extensive
knowledge of each of the operations, we are well placed to exploit the synergies across the complex and to
integrate Ezulwini into the Cooke Underground Operations.”

A comprehensive turnaround programme will be implemented at Ezulwini to enhance revenue and reduce
cost, much like the turnaround programmes that have already been implemented at Cooke Underground
and Randfontein Surface operations. A turnaround team has already been appointed and a high level
analysis phase has been initiated. The team’s current focus is on the implementation of common services,
which is a key component in the realisation of synergies across the Cooke shafts, Ezulwini and the
Randfontein Surface operations.

With access to Ezulwini’s gold and uranium processing facility Gold One can look towards unlocking the full
value of the underground uranium resources across the Cooke complex. In the near term the company can
also begin capitalising on a gold and uranium co-product strategy as certain sections of Cooke 2, Cooke 3 and
Ezulwini have significant uranium resources present in unmined ground as well as in a number of high
tonnage pillars. A reconnaissance of the underground area has found the development area to be in very
good condition although, apart from rail tracks, all other infrastructure such as air, water, and power have
been removed and will need to be reinstalled. A study compiled in 2009 by TWP Projects (Pty) Limited on the
combined gold and uranium opportunities at the Cooke shafts is currently being reviewed in line with
updated resource models and the newly integrated gold and uranium plants. This study is expected to be
completed during the December 2012 quarter.

A capital programme to recommission the Ezulwini uranium plant, which is currently on care and
maintenance, during the March 2013 quarter has been initiated. The capital will be spent in two phases, the

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first of which will see the first 50,000 tonne per month module operating at full capacity and will require
approximately ZAR 15 million (US$ 2 million). The second phase will see the commissioning of the plant at
an additional capital cost of approximately ZAR 22 million (US$ 2.95 million).

Ore will initially be trucked to Ezulwini until such time as the permanent ore transport arrangements have
been implemented. A detailed study investigating various transport alternatives is well underway and is
expected to be completed by the end of the year. ?

ENDS

Johannesburg
3 August 2012

JSE SPONSOR
Macquarie First South Capital (Pty) Limited


For and on behalf of Gold One:

Corporate Advisor:
Qinisele Resources (Pty) Limited

Australian Corporate Advisor:
Hartleys Limited

South African Legal Advisor:
Edward Nathan Sonnenbergs Incorporated

Australian Legal Counsel:
Ashurst LLP

Canadian Legal Counsel:
Stikeman Elliot LLP

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     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 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) and
continues 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 1,416,527,115 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.

Date: 03/08/2012 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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