Wrap Text
Quarterly Activities Report
Quarter Ended 31 December 2012
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”)
31 January 2013
Quarterly Activities Report
Quarter Ended 31 December 2012
December 2012 Quarter Highlights
- 57,584 ounces gold production; 2% below forecast
- Cooke 1,2 and 3 Underground Operations return to operational profitability
- Cooke 4 commences production following month long suspension
- Positive cashflow from operations of US$ 3.17 million; an improvement of US$ 12.36 million from
previous quarter
- Group operating cashflow of US$ 15.53 million
- Group cash cost decreases by 6% from previous quarter to US$ 1,296/oz
- Gold Fields and Gold One West Rand Tailings Joint Venture pre-feasibility study initiated
- Chris Chadwick appointed as acting CEO
March 2013 Quarter Outlook
- March 2013 quarter production forecast of 63,500 ounces:
- 25,000 ounces from Modder East Operation
- 30,000 ounces from Cooke Underground Operation
- 8,500 ounces from Randfontein Surface Operation
2013 Production Outlook
- 2013 annual production forecast of 300,000 ounces:
- 135,000 ounces from Modder East Operation
- 130,000 ounces from Cooke Underground Operation
- 35,000 ounces from Randfontein Surface Operation
December 2012 Quarter Key Performance Data
(Average Exchange Rate of ZAR 8.20 / US$ 1)
(September 2012 Quarter Average Exchange Rate of ZAR 8.25 / US$ 1)
Group Group
Cooke 1-4 Randfontein
Modder East Production Production
Underground Surface
Operation December September
Operation Operation
2012 Quarter 2012 Quarter
Ore Mined
151 563 t 211 549 t
Underground
Mined Grade 6.69 g/t 5.31 g/t 0.457 g/t
Milled Tonnes 137 229 t 211 749 t 887 396 t
Recovered Grade 4.87 g/t 3.64 g/t 0.338 g/t
Gold Recovery 95% 94% 74%
Gold Produced 23 201 oz 1 24 750 oz 9 633 oz 57 584 oz 59 642 oz
Cash Cost2 US$ 747/oz US$ 1 926/oz US$ 1 081/oz US$ 1 296/oz US$ 1 381/oz
Total Cost3 US$ 1 001/oz US$ 2 218/oz US$ 1 135/oz US$ 1 535/oz US$ 1 587/oz
Average Gold Price
US$ 1 668/oz US$ 1 334/oz US$ 1 334/oz US$ 1 487/oz US$ 1 570/oz
Received
Gross Cash Margin US$ 921/oz -US$ 592/oz US$ 253/oz US$ 191/oz US$ 189/oz
Group Development US$ 15.57 US$ 18.48
and Capital Expenditure million million
US$ 91.76 US$ 87.89
Group Gold Revenue
million million
Notes:
1
Includes 1,705 ounces from the treatment of 27,413 tonnes of low grade development ore, mud, mill rejects and UK9A development
ore at an average recovered grade of 1.93 grams per tonne.
2
Cash cost refers to all costs directly associated with mining activities, mine administration, processing and refining.
3
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.
2012 Annual Key Performance Data
(Average Exchange Rate of ZAR 8.07 / US$ 1)
(2011 Average Exchange Rate of ZAR 7.25 / US$ 1)
Group
Cooke 1-3 Cooke 4 Randfontein Production
Modder East
2012 Financial Year Underground Underground Surface 2012
Operation
Operation Operation Operation Financial
Year
Ore Mined
467 197 t 1 045 633 t 74 386 t
Underground
Mined Grade 7.08 g/t 4.62 g/t 4.56 g/t
Milled Tonnes 474 754 t 961 802 t 82 951 t 3 286 633 t
Recovered Grade 6.00 g/t 3.17 g/t 3.18 g/t 0.268 g/t
Gold Recovery 95% 95% 82% 72%
Gold Produced 97 958 oz 98 451 oz 8 493 oz1 36,853 oz 241 755 oz
Cash Cost3 US$ 686/oz US$ 1 558/oz US$ 3 051/oz2 US$ 1 137/oz US$ 1 192/oz
Total Cost4 US$ 904/oz US$ 1 783/oz US$ 3 210/oz2 US$ 1 189/oz US$ 1 388/oz
Average Gold Price
US$ 1 668/oz US$ 1 299/oz US$ 1 610/oz US$ 1 299/oz US$ 1 460/oz
Received
Gross Cash Margin US$ 982/oz US$ -259/oz US$ -1 441/oz US$ 162/oz US$ 268/oz
Group Development US$ 66.99
and Capital Expenditure million
US$ 353.79
Group Gold Revenue
million
Notes:
1
Cooke 4 includes 7,281 ounces produced in August 2012 and September 2012 and 1,212 ounces produced in December 2012.
2
Cash and total cost reflect costs incurred from August 2012 to December 2012 despite no production for October 2012 and
November 2012 while operations at the shaft was suspended.
3
Cash cost refers to all costs directly associated with mining activities, mine administration, processing and refining.
4
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.
1. CEO’s Review
For the December 2012 quarter the Gold One Group produced a total of 57,584 ounces of gold; 2% lower
than forecast. The Randfontein Surface Operation and the Cooke Underground Operation exceeded
guidance by 7% and 8% respectively, despite the suspension of production at Cooke 4 for the majority of the
quarter. Modder East’s production for the quarter was 14% below guidance primarily as a result of the
ongoing production build up at the operation post the illegal industrial action that took place during June
2012.
Sadly the year ended with three mine related fatalities, and we extend our heartfelt condolences to the
families and friends of our colleagues Ms Mbatha, Mr Myburgh and Ms Mokhele. The mine teams at the
Modder East and Cooke Underground Operations have re-affirmed their commitment to Gold One’s motto
that ‘nothing is so important that it cannot be done safely’.
Notwithstanding the regrettable fatalities, production normalised at Modder East and Cooke 4 following the
disruptions caused by illegal industrial action during June 2012 and October 2012 respectively. As was
reported by the company last year, a two year wage agreement for Modder East was signed with the
National Union of Mineworkers (“NUM”) on 31 October 2012. Since the signing of the two year wage
agreement labour relations at Modder East have been amicable and Management and NUM are continuing
to work closely together. Although record labour efficiencies were achieved at Modder East during
December 2012, the skill sets required for steady state production levels must be recruited timeously and
this will remain Management’s focus going forward.
While the Cooke Underground Operation had a challenging finish to the year the restructuring process at
Cooke 1-3 was completed during the December 2012 quarter, reducing the labour complement by
approximately 750 people. This restructuring will facilitate the continued operational turnaround strategy
and has already brought about the Cooke 1-3 Operations’ return to profitability during the December
month. Despite the disruptions caused by the restructuring process and safety stoppages, the operation
exceeded production guidance for the quarter with the recovered grade improving by 15% from 3.16 grams
per tonne to 3.64 grams per tonne.
At Cooke 4 a memorandum of understanding was entered into with both NUM and the Congress of South
African Trade Unions (“COSATU”) on 12 November 2012, which saw the lifting of Cooke 4’s operational
suspension and a restructuring of the Cooke 4 Operation, resulting in a labour complement reduction of
approximately 650 people. This, together with the December 2012 quarter’s restructuring at Cooke 1-3, has
facilitated an appropriate cost structure for all four shafts. The continued integration of Cooke 4 into the
Cooke Underground complex will further enhance the operation’s cost profile as well as allow for the
uranium co-product strategy to be actively progressed.
The Randfontein Surface Operation has continued to deliver a strong performance with annual production
amounting to 36,853 ounces – 2,853 ounces above the guidance estimate for the year – despite the initial
challenges faced during the March 2012 quarter. The Randfontein Surface Operation’s focus is now on the
Cooke Gold Plant Optimisation Project, which will see the Cooke Gold Plant increase throughput capacity
from 300,000 tonnes per month to 400,000 tonnes per month. The expansion is on track for completion
during the December 2013 quarter.
On 29 November 2012 Gold One announced the resignation of CEO Neal Froneman and the appointment of
myself, Chris Chadwick, as acting CEO. I will also continue to act as CFO. Neal, who was instrumental in the
creation of Gold One in 2009, has been appointed as CEO of Sibanye Gold Limited (“Sibanye Gold”), which
will hold the South African assets (excluding South Deep) previously belonging to Gold Fields Limited (“Gold
Fields”). Neal leaves a legacy of delivery, empowerment and entrepreneurship within Gold One, and the
strong platform and management team that Neal created will continue to stand Gold One in good stead as
we work towards achieving our strategy.
The reconstitution of the Gold One Board was announced on 30 December 2012 following the expiry of the
one year transition period prescribed in the transaction implementation agreement with BCX Gold
Investment Holdings Limited (Gold One’s majority shareholder’s special purpose vehicle). The Gold One
Board has been streamlined to include seven directors, four of whom will be independent, and will continue
to be chaired by Yalei Sun.
Despite the challenges of 2012 the operations ended the year positively and are positioned to continue
improving performance throughout 2013. At Modder East focus will remain on further recruiting employees
to build up to steady state production levels, while at the Cooke Underground Operation focus will remain
on the integration of Cooke 4, the turnaround of the integrated complex, and the exploitation of the
uranium co-product strategy. The Randfontein Surface Operation, having demonstrated an ability to
maintain strong production levels, is embarking on an exciting growth plan through the Cooke Gold Plant
Optimisation Project.
In addition the company will be focusing on progressing its extensive internal project pipeline as well as the
proposed Gold Fields and Gold One Joint Venture investigating the potential to exploit the low risk and high
margin characteristics of the surface tailings assets across the West Rand. Albeit that the Gold Fields assets
are not yet officially part of Sibanye Gold’s asset portfolio, we are already engaged in talks with key Sibanye
Gold representatives to progress the surface retreatment study.
For 2013 Gold One will focus on optimising current operational performance in a safe and responsible
manner and delivering on our internal project growth, and I have every confidence that our operations are
strongly positioned to achieve this.
2. Financial Review
Graph: Gold One Group Gold Sales and Revenue
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Group gold revenue for the December 2012 quarter amounted to US$ 91.77 million from the sale of 61,734
ounces at an implied average price of US$ 1,487/oz. This was up marginally from the revenue achieved for
the September 2012 quarter and comprised 14,777 ounces of gold sold into the spot market at an implied
average price of US$ 1,687/oz, and 46,957 ounces delivered into the hedge book at an implied average price
of US$ 1,359/oz. The aforementioned hedge ounces include ounces sold to the Franco Nevada Corporation
(“Franco Nevada”) in terms of the Franco Nevada gold royalty, which was inherited with the acquisition of
Cooke 4 and where 7% of gold produced from Cooke 4 is delivered to Franco Nevada at a fixed price of
US$ 400/oz.
Cooke Randfontein Total
Modder East Surface September
Cashflow Underground December 2012
Operation Operation 2012 Quarter
(Unaudited) Operation Quarter
(US$ Million) (US$ Million) (US$ Million)
(US$ Million) (US$ Million)
Gold Sales 42.75 35.28 13.74 91.77 87.89
Payment to
Operating
-18.32 -47.51 -10.41 -76.24 -80.08
Suppliers and
Employees
Operating
24.43 -12.23 3.33 15.53 7.81
Cashflow
Development
and Capital -4.82 -7.03 -0.51 -12.36 -17.00
Expenditure
Cashflow from
19.61 -19.26 2.82 3.17 -9.19
Operations
The Cooke Underground and Randfontein Surface Operation’s hedge book totalled 48,696 ounces at 31
December 2012 at an average deliverable price of ZAR 10,019/oz. During the September 2012 quarter Gold
One entered into a short term tactical hedge to deliver 21,000 ounces during the December 2012 quarter.
This hedge was entered into in order to lock in a portion of the revenue for the remaining period of the 2012
year, and was fully extinguished during the quarter under review.
Payments to operating suppliers and employees totalled US$ 76.24 million for the quarter, resulting in an
operating cashflow of US$ 15.53 million. The Modder East and Randfontein Surface Operations contributed
US$ 24.43 million and US$ 3.33 million to this cashflow respectively. The Cooke Underground Operation
consumed US$ 12.23 million of this operating cashflow. The Cooke Underground Operation made a positive
contribution for the December 2012 month and is expected to contribute positively to the group cashflow in
the short term following the restructuring and the continued implementation of the operation’s turnaround
strategy.
The quarter under review marked the third consecutive quarter in which the Randfontein Surface Operation
contributed positively to the group cashflow and this is expected to continue into 2013 as the Cooke Gold
Plant Optimisation Project is implemented.
Group development and capital expenditure totalled US$ 15.57 million with the Modder East, Cooke
Underground and Randfontein Surface Operation’s expenditures totalling US$ 4.82 million, US$ 7.03 million
and US$ 0.51 million respectively. The Randfontein Surface Operation’s projects, including the Cooke Gold
Plant Optimisation Project, incurred US$ 3.21 million in capital expenditure.
Positive cashflow from operations for the December 2012 quarter therefore totalled US$ 3.17 million, which
is a US$ 12.36 million improvement from the September 2012 quarter loss of US$ 9.19 million.
Gold One ended the quarter under review with a cash balance of US$ 85.30 million (including restricted cash
of US$ 37.25 million) and excluding gold receivables amounting to US$ 8.88 million. This compares to a cash
balance of US$ 97.57 million (including restricted cash of US$ 30.76 million) and gold receivables of
US$ 11.84 million at the end of the September 2012 quarter, reflecting a 13% quarter-on-quarter decrease
in the cash balance. The decrease in the cash balance is largely due to US$ 3.18 million paid out in
retrenchment costs at the Cooke Underground Operation as well as interest and capital repayments made
on the Gold One Group’s loans. An additional shareholder loan of US$ 22 million was received during the
quarter under review and was provided in order to reduce the capital owing on the Investec facility and
provide Gold One with additional working and project capital. A portion of the loan will be used to procure
long lead capital items planned for the Cooke Gold Plant Optimisation Project.
At quarter-end Gold One reflected debt of US$ 226.34 million (principal amount of US$ 221.21 million and
interest of US$ 5.13 million). This debt is made up of shareholder loans received amounting to US$ 124.88
million and an Investec facility amounting to US$ 101.46 million. A capital payment of US$ 12.58 million
against the Investec facility was made in early October 2012 and another capital payment of US$ 13.17
million was made post the quarter under review in early January 2013. Interest payments to date on the
Investec facility and shareholder loans have amounted to US$ 5.21 million and US$ 3.81 million respectively.
3. Group Operational Review
December 2012 September 2012
Variance
Quarter Actual Quarter Actual
Gold One Group 57 584 oz 59 642 oz -2 058 -4%
December
December 2012
2012 Quarter Variance
Quarter Actual
Guidance
Modder East Operation 23 201 oz 27 000 oz -3 799 -14%
Cooke Underground Operation 24 750 oz 23 000 oz 1 750 8%
Randfontein Surface Operation 9 633 oz 9 000 oz 633 7%
Total 57 584 oz 59 000 oz -1 416 -2%
3.1. Modder East Operation
December 2012 September 2012
Modder East
Quarter Quarter
Ore Mined Underground 151 563 t 84 393 t
Mined Grade 6.69 g/t 6.87 g/t
Milled Tonnes (Black Reef) 137,229 t 87 452 t
Recovered Grade 4.87 g/t 5.17 g/t
Gold Recovery 95% 95%
Gold Produced 23 201 oz1 17 136 oz2
Cash Cost3 US$ 747/oz US$ 770/oz
Notes:
1
Includes 1,705 ounces from the treatment of 27,413 tonnes of low grade development ore, mud, mill rejects and UK9A
development ore at an average recovered grade of 1.93 grams per tonne.
2
Includes 2,587 ounces produced through the treatment of 25,159 tonnes of low grade development ore, mill rejects and mud
at an average recovered grade of 3.20 grams per tonne.
3
Cash cost refers to all costs directly associated with mining activities, mine administration, processing and refining.
Graphs: Modder East Milled Tonnage Profile and Recover Grade and Modder East Quarterly Production and Cash Cost
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Modder East’s progressive lost-time injury frequency rate per 200,000 hours worked (“LTIFR”) for the 2012
year amounted to 0.79, reflecting an improvement on the operation’s 2012 LTIFR as at the end of the
September 2012 quarter of 1.05.
Unfortunately the Modder East Operation closed the 2012 year on a sad note when Ms Daleen Mbatha, a
pump attendant, passed away in hospital following a trackless mobile machinery related incident.
During October 2012 Management successfully concluded negotiations with NUM and employee bodies for
a new two year wage agreement for Modder East, effective for the period from 1 January 2013 to 31
December 2014 and applicable to all Paterson band A and B employees regardless of union affiliation.
Following the signing of the agreement all labour previously employed by Jongingozi Outsourcing (Pty)
Limited, a contract mining company that acted as a post-strike intermediary between the company and
labour, have been employed by Modder East. Management is pleased to report that labour relations have
remained amicable and Management and NUM are working closely together.
Overall gold production at Modder East for the quarter was 14% or 3,799 ounces below the quarter’s
forecast of 27,000 ounces, primarily due to the slower than anticipated post-strike labour recruitment that
aimed to replace labour dismissed as a result of the illegal strike that began on 4 June 2012. Labour
recruitment and training have been recognised as key challenges facing the operation for 2013 and must be
overcome if the mine is to achieve its 2013 production plan. A number of initiatives have been introduced to
address these challenges, including internal promotional training, the use of recruitment companies, and the
engagement of social community structures to enable the responsible introduction of externally sourced
labour and their families into the local community.
Although production was below forecast, continued operational improvement during the quarter resulted in
a strong December performance despite the South African national holidays.
Graphs: Modder East Quarterly Total Development Metres and Modder East December 2012 Quarter Tonnes
Broken per Total Employee Costed
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Commitment from all stakeholders was clearly evident during the quarter with Modder East delivering its
third highest production numbers for the year during December across the key operational areas of stoping
and development.
Total production volumes for reef mined at Modder East during the December 2012 quarter amounted to
151,563 tonnes at an average grade of 6.69 grams per tonne. This is an 80% increase in tonnage when
compared to the previous quarter and is in line with company expectations following recruitment post the
illegal strike action. 150,114 tonnes of Black Reef were mined during the quarter of which 126,117 tonnes
were attributable to stoping tonnes at an average grade of 7.50 grams per tonne, 22,968 tonnes were
attributable to trackless reef development tonnes at 2.64 grams per tonne, and 1,029 tonnes were
attributable to conventional reef development tonnes at 4.16 grams per tonne.
Despite a reduced recovered grade the cash cost for the quarter decreased by 3% from US$ 770/oz for the
September 2012 quarter to US$ 747/oz for the December 2012 quarter. This is largely due to the
combination of increased tonnage and reduced seasonal electricity tariffs.
A total of 32,482 square metres was mined during the December 2012 quarter compared to the 14,906
square metres mined during the September 2012 quarter, equating to a 118% quarter-on-quarter
improvement. Stoping width decreased from 132 centimetres to 122 centimetres at the end of the
December quarter, associated with a channel width of 74 centimetres. Total on-reef development increased
marginally by 2% from 489 metres at the end of the September 2012 quarter to 501 metres at the end of the
December 2012 quarter.
During the quarter 332 metres of mechanised off-reef development were achieved, reflecting a 38%
quarter-on-quarter increase following the 241 metres of mechanised off-reef development achieved during
the September 2012 quarter. Total trackless development for the December 2012 quarter was 708.8 metres
compared to 659.9 metres for the previous quarter; a 7% quarter-on-quarter increase. Conventional
development increased by 63% for the quarter, totalling 123.9 metres compared to 76 metres for the
September 2012 quarter. At the end of the December 2012 quarter 354,226 square metres were ava
for mining, compared to 294,081 square metres at the end of the September 2012 quarter. This translates to
approximately 30 months of mining at current quarter production rates.
For the quarter under review 164,642 tonnes were milled and treated at the Modder East Metallurgical
Plant, reflecting a 46% quarter on quarter increase. Tonnes treated included 137,229 tonnes of Black Reef
with the balance comprising 13,745 tonnes of low grade development ore from the Middle Kimberley Reef
horizons, 776 tonnes of UK9A development ore generated from on-reef development on the UK9A Reef
horizon, and 12,892 tonnes of mud and mill rejects. Metallurgical recoveries remained consistent at 95%.
3.2. Cooke Underground Operation
Cooke 1-3 Cooke 4 Cooke 1-4 Cooke 1-3 Cooke 4
December 2012 December 2012 December 2012 September 2012 August and
Quarter Quarter Quarter Quarter September 2012
Ore Mined
197 763 t 13 786 t 211 549 t 288 113 t 60 600 t
Underground
Mined Grade 5.32 g/t 5.19g/t 5.31 g/t 4.27 g/t 4.41 g/t
Milled Tonnes 198 027 t 13 722 t 211 749 t 255 310 t 69 229 t
Recovered
3.70 g/t 2.75g/t 3.64 g/t 3.13 g/t 3.27 g/t
Grade
Gold Recovery 94% 95% 94% 95% 96%
Gold Produced 23 538 oz 1 212 oz 24 750 oz 25 701 oz1 7 281 oz
Cash Cost US$ 1534/oz US$ 4886/oz US$ 1 926/oz US$ 1 717/oz US$ 1 863/oz
Notes:
1
Includes 30 ounces produced at the Cooke Underground Operation by the treatment of 695 tonnes of low grade
development ore and sludge at a recovered grade of 1.35 grams per tonne.
Graphs: Cooke Underground Tonnage Profile and Recovered Grade as well as Cooke Underground Quarterly Production and Cash Cost
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
At the end of the December 2012 quarter the Cooke Underground Operation’s progressive LTIFR for the
2012 year amounted to 1.69, while the LTIFR for the quarter alone was 1.74.
Regrettably there were two incidents during the quarter wherein employees lost their lives. At Cooke 4, on 9
December 2012, Mr Myburgh was electrocuted after coming into contact with a live 6.6 kilovolt busbar in an
underground substation and on the night of 10 December 2012, Miss Mokhele, a miner, was struck by a rock
in a fall of ground incident and passed away later in hospital. The team at the Cooke Underground Operation
has reaffirmed its commitment to all safety endeavours.
Gold production for the December 2012 quarter amounted to 24,750 ounces; 8% above the forecast of
23,000 ounces. This was produced from 211,749 tonnes milled at an average recovered grade of 3.64 grams
per tonne. The lower gold output, when compared to the previous quarter, was largely due to the drop in
milling throughput from 324,539 tonnes to 211,749 tonnes, which was mainly a result of the illegal industrial
action and subsequent suspension of the Cooke 4 Shaft during October 2012 and the elimination of marginal
and unpay mining through the reduction of 25 stoping crews at Cooke 1-3.
Management’s intervention to reduce unpay mining resulted in a 20% quarter-on-quarter increase in broken
grade from 4.41 grams per tonne to 5.31 grams per tonne, and a 15% quarter-on-quarter increase in
recovered grade from 3.16 grams per tonne to 3.64 grams per tonne. This increase in grade and production
facilitated a decrease in the unit cost of production at Cooke 1-3. Unit costs reduced by 11% to
US$ 1,534 /oz during the quarter under review.
The full benefits of the cost restructuring initiatives are expected to manifest during 2013.
Square metres mined at Cooke 1-3 decreased from 36,264 m2 in the September 2012 quarter to 22,974 m2
during the December 2012. At Cooke 4 only 3,241 m2 were mined during the December 2012 quarter
compared to the 11,581 m2 mined during the September 2012 quarter.
Vamping tonnage decreased by 36% over the quarter, from 41,073 tonnes down to 26,154 tonnes, as a
result of the elimination of marginal vamping. No vamping took place at Cooke 4 for the quarter under
review. A dedicated project leader has since been appointed to head up the vamping operation with the
objective of generating vamping reserves across Cooke 1-4.
Total development for Cooke 1-4 for the quarter amounted to 4,415 metres, which was 1,538 metres lower
than the September 2012 quarter. The suspension of the Cooke 4 Operation during the quarter resulted in
75% of this shortfall. For Cooke 1-3 reef development for the quarter was 6% or 156 metres below the
September 2012 quarter’s reef development mainly due to labour disruptions associated with the
restructuring.
During the quarter under review on-reef development for Cooke 1-3 generated 12,495 payable square
metres, which was 54% of the total square metres mined. This was largely as a result of planned raise holing
dates being delayed until quarter one 2013 as a result of labour disruptions.
The Cooke Underground Operation produced 24,750 ounces for the quarter, which was 8% above quarter
guidance, from the treatment of 211,749 tonnes. Gold production at Cooke 1-3 reduced by 8% quarter-on-
quarter from 25,701 ounces to 23,538 ounces. The 37% reduction in square metres mined was offset by the
higher grades due to elimination of marginal unpay mining. The decline in gold output at Cooke 4 from 7,281
ounces to 1,212 ounces was a direct result of the illegal industrial action.
Tonnage for the quarter from the Cooke 1-3 Shafts was treated at both the Doornkop Plant and the Cooke
Gold Plant. Total tonnage through the Doornkop Plant amounted to 185,279 tonnes, producing 21,802
ounces of gold at a yield of 3.66 grams per tonne. Recovery at the Doornkop Plant remained steady at 94.3%
for the quarter under review.
The total Cooke 1-3 tonnage treated at the Cooke Gold Plant for the quarter was 13,039 tonnes, which
produced 1,737 ounces at an average recovered grade of 4.14 grams per tonne.
During the start-up of the Cooke 4 Operation towards the end of December 2012 tonnage sourced from
accumulations and blasting was hoisted and treated at the Cooke 4 Gold Plant. Treated tonnes for the
December 2012 quarter amounted to 13,722 tonnes and yielded 1,212 ounces of gold from a recovered
grade of 2.75 grams per tonne. Restarting the Cooke 4 Gold Plant after the lifting of the suspension of the
operation resulted in an initial lock up of gold in the plant circuit, which resulted in the reduction in the
recovered grades.
3.3. Randfontein Surface Operation
December 2012 September 2012
Randfontein Surface Quarter Quarter
Reclaimed Grade 0.457 g/t 0.468 g/t
Milled Tonnes 887 396 t 856 501 t
Recovered Grade 0.338 g/t 0.346 g/t
Residue Grade 0.119 g/t 0.122 g/t
Gold Recovery 74% 74%
Gold Produced 9 633 oz 9 524 oz
Cash Cost US$1 081 /oz US$ 1 148 /oz
Graphs: Randfontein Surface Tonnage Profile and Recovered Grade as well as Randfontein Surface Quarterly Production and Cash Cost
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
At the end of the December 2012 quarter the Randfontein Surface Operation’s progressive LTIFR for the
2012 year was recorded at 1.08. The LTIFR for the quarter alone was 0.7 with zero accidents having been
reported in the last two months of the year; a significant improvement on the previous quarter’s LTIFR of
1.46.
During the quarter under review the Cooke Gold Plant produced 11,370 ounces, of which 9,633 ounces were
attributable to the reclamation of Dump 20 sand and slime as well as the Cooke 2 hydraulically reclaimed
slime. This reflects a marginal increase of 1% when compared to the previous quarter, principally as a result
of the higher reclaimed tonnage and plant throughput. The Cooke 2 slime consists largely of the washings
from a previous waste crushing plant to produce aggregate. The fines are hydraulically reclaimed at a rate of
65,000 tonnes per month, supplementing the tonnage and grade from Dump 20. The Cooke 2 slime
contributed approximately 25% of the 9,633 ounces for the quarter, of which approximately 20% was
contributed during the December 2012 month.
A total of 887,396 tonnes was treated from surface sources during the December 2012 quarter, reflecting an
increase of 4% or 30,894 tonnes when compared to the September 2012 quarter. The average head grade
for the quarter remained steady at 0.46 grams per tonne. Gold recovery was consistent at 74%. The residue
grades decreased to 0.119 grams per tonne due to the optimisation of the high shear reactor and the
improvement of the grind at the Cooke Gold Plant.
Cash unit costs reduced from US$ 1,148 per ounce for the September 2012 quarter to US$ 1,081 per ounce
for the December 2012 quarter. The decrease in unit costs resulted largely from the higher volumes, lower
seasonal electricity tariffs, improved reagent consumption, and the lower costs associated with the
hydraulically reclaimed Cooke 2 slime.
One of the 2013 key focus areas for the Randfontein Surface Operation is the Cooke Gold Plant Optimisation
Project, which was initiated at the beginning of 2012. The project’s objective is to extend the Cooke Gold
Plant’s nameplate capacity from 300,000 tonnes per month to 400,000 tonnes per month to achieve
improved economies of scale, reduce plant operating costs, and secure an alternative deposition site to the
Cooke Dump. The principal opportunity that has been identified is to change the surface reclamation
strategy from a sand-only mechanically reclaimed source to a combination of hydraulically reclaimed slimes
and mechanically reclaimed sand, thereby reducing reclamation costs and plant milling costs. The tailings
residue will be deposited into abandoned open pits, which will provide deposition capacity until
approximately 2018.
During the December 2012 quarter significant progress was made with the project’s engineering design and
costing. The pipeline route and specialist environmental studies, which are pursuant to the pit deposition
amendment applications for the increased tonnage to be deposited to the various open pits owned by the
company, were concluded. During the quarter under review submissions were also made to obtain
authorisation to proceed with construction in early 2013 and orders were placed for long lead time items.
4. Development and Exploration Projects
Modder North
During the December 2012 quarter diamond drilling was completed on five exploration boreholes at
Modder. Assay results for two additional boreholes (MN6 and MN30) were also received and are illustrated
in the table below.
Dip Corrected
Depth (m)
BH_ID REEF Bottom Channel
Thickness g/t 2 cm.g/t
Contact
(cm) 1
MN6 Ma i n Reef 473.82 31 0.04 1
MN6 1D Ma i n Reef 473.92 28 4.54 125
MN6 2D Ma i n Reef 473.84 31 6.98 216
MN30 BSPL 160.48 97.63 0.17 4
MN30_3D BSPL 154.46 19.70 1.49 29
MN30_4D BSPL 154.72 20.68 0.88 18
MN30 Ma i n Reef 458.75 25 1.63 41
MN30_1D Ma i n Reef 458.75 23 3.21 74
MN30_2D Ma i n Reef 458.81 41 1.66 68
Diamond drilling on two additional boreholes and percussion drilling of seven new holes will commence
during the March 2013 quarter. A total of 1,892 diamond drilling metres was drilled during the quarter
under review at a total cost of US$ 0.44 million
While all borehole intersections of the Main Reef have illustrated mineralised Main Reef, variations in
borehole grades, including variations between individual deflection grades within a single borehole, are
noticeable. This variable mineralisation is consistent with a highly channelised orebody. Modelling of
underground data has facilitated further refinement of known higher grade channels and will be utilised to
further refine the exploration drilling programme.
During 2012 a total of 28 boreholes were completed for Main Reef including 2,712 metres of percussion
drilling, 104.3 metres of PQ size diamond drilling, and 9,517.4 metres of NQ size diamond drilling. On the
basis of these drilling results the company plans to undertake a resource estimation during the March 2013
quarter, which will underpin a prefeasibility study due to commence during the June 2013 quarter.
Ventersburg
The December 2012 quarter marked the end of the infill drilling campaign at Ventersburg and three holes
were completed. A total of 1,536 metres was drilled during the quarter at a cost of US$ 0.24 million. Total
project expenditure for the quarter was US$ 1.1 million, including work undertaken on the feasibility study.
Schematic: Ventersburg Resource Area and 2012 Drilling Focus
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Results for boreholes AFO047, AFO055, AFO079 and AFO082, which were outstanding from the previous
quarter, were completed during December together with borehole AFO086 and are shown in the table
below. AFO047, AFO055 and AFO079 were drilled to follow the extension of the A Reef to the south, while
AFO086 in the northeast intersected inter-channel facies reef. The possibility of better developed A Reef still
exists to the north. AFO082, an infill borehole drilled into the main high grade channel, was confirmed with
encouraging results giving an average grade of 5.09 grams per tonne over a channel width of 286
centimetres.
Summary of Latest Results Received During the December 2012 Infill Drilling Programme
Depth True Gold Uranium
BHID Reef in Width Grade Value Grade Value
metres (cm)¹ (g/t)² (cmg/t)³ (kg/t)² (cmkg/t)³
AFO047 A Reef 423.86 257 1.59 410 0.045 11.473
AFO047D1 A Reef 423.96 265 1.79 473 0.042 11.120
AFO047D2 A Reef 424.12 243 1.89 459 0.050 12.107
AFO047D3 A Reef 423.52 297 1.53 455 0.041 12.235
265 1.69 449 0.044 12
AFO055 A Reef 454.19 124 1.01 125 0.062 7.657
AFO055D1 A Reef 454.07 128 0.79 101 0.064 8.163
AFO055D2 A Reef 454.02 127 0.83 104 0.070 8.824
AFO055D3 A Reef 453.91 124 1.53 190 0.075 9.324
126 1.04 130 0.068 8
AFO079 A Reef 650.31 197 2.72 536 0.078 15.350
197 2.72 536 0.078 15
AFO082 A Reef 603.57 276 4.49 1238 0.133 36.764
AFO082D1 A Reef 603.76 263 5.56 1463 0.153 40.257
AFO082D3 A Reef 604.61 319 5.22 1666 0.172 54.766
286 5.09 1456 0.154 44
AFO086 A Reef 691.35 96 1.90 181 0.084 8.034
AFO086D1 A Reef 691.04 79 2.78 220 0.099 7.858
AFO086D2 A Reef 691.30 101 1.99 201 0.086 8.651
AFO086D3 A Reef 690.64 98 2.71 265 0.126 12.390
93 2.32 217 0.099 9
Notes:
¹ Channel thicknesses represent the true, dip corrected thickness of the reef rounded off to the nearest centimetre. Dip corrections
are undertaken based on dip measurements from core bedding angles.
² Represents 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).
³ Centimetre grams per tonne (gold accumulation) and centimetre kilograms per tonne are calculated using the true dip corrected
thickness of samples multiplied by the grade of individual samples.
The final drilling results were used to update the 2011 resource estimate and the updated resource
statement is currently being reviewed, after which it will undergo an external audit by SRK Consulting (South
Africa) (Pty) Limited during the March 2013 quarter and underpin the feasibility study due for completion
during the September 2013 quarter. The resource model will be used to refine the underground mine layout
and scheduling required for the finalisation of the feasibility study.
The Ventersburg feasibility study is continuing to make good progress and specialist studies, including
geohydrology and geotechnical studies, have been completed. In addition metallurgical test work is
currently being completed as well as infrastructure designs for the metallurgical plant, vertical shafts, water
treatment plant and surface infrastructure.
Tulo
During the quarter under review the primary focus at Tulo was the mapping, trenching and sampling of a
prominent two kilometre quartz vein outcrop, which forms the southern portion of a 20.5 kilometre
magnetic lineament that was identified during a high resolution helicopter-borne geophysical survey. To
date 47 trenches have been excavated along two kilometres of strike in the southernmost part of the
magnetic lineament.
Of these trenches 40 have exposed quartz veining, which was sampled and delivered to Performance
Laboratories (Pty) Limited in South Africa for analysis. The assay results for this sampling are expected
during the March 2013 quarter.
Expenditure at Tulo for the December 2012 quarter amounted to US$ 0.28 million, with expenditure for the
year amounting to US$ 1.3 million.
Gold Fields West Rand Tailings Joint Venture
Following Gold Fields’s unbundling of its South African assets (excluding South Deep) into Sibanye Gold, the
proposed Gold Fields West Rand Tailings Joint Venture previously reported by Gold One is planned to
continue with Sibanye Gold. The positive outcome of the joint scoping study and the significant amount of
technical and economic work that has already been undertaken by the companies have facilitated fast-
tracking to a joint pre-feasibility assessment, and a positive decision has been taken in this regard. During
the pre-feasibility assessment a comprehensive metallurgical test work programme will be carried out on
Gold One’s Millsite and Old 4 Dam tailings facilities and further strategic phasing of capital and scheduling of
available feed material will also be optimised. The outcome of the pre-feasibility study is expected during
the September 2013 quarter.
Cooke Shaft Backfill Project
Significant opportunities have been identified at the Cooke Underground Operation to mine historical gold
bearing pillar areas. These areas could be selectively extracted considering high margin and lower volume
operations and would impact positively on total mine profitability and mining flexibility. The feasibility study
considering the implementation of backfill at the Cooke 2 and Cooke 3 shafts is well advanced.
At Cooke 2 the reserve scheduling of the Venterdorp Contact Reef (“VCR”) pillar extraction and the UE7
footwall benching target has been completed, indicating an initial target in excess of 80,000 ounces of
recoverable gold. Further detailed investigations into adjacent VCR and UE7 areas at Cooke 2 are currently
being conducted. At Cooke 3 A1 pillar re-mining and A2 Reef horizon potential are also being investigated.
Preliminary backfill plant designs have been completed and detailed design will commence during the March
2013 quarter. Indicative construction periods are anticipated to be between eight and 12 months after the
receipt of environmental authorisation. GCS (Pty) Limited has been appointed as the environmental
consultant and the environmental process, including engagement with landowners pertaining to the pipeline
servitude, has commenced.
Cooke Uranium Project
The feasibility study for the Cooke Uranium Project targeting the priority Area 2 at Cooke 3 has been
completed, including the extraction of the water pillar that forms part of the Cooke 3 resource. The mining
of the water pillar area will take place from the Cooke 4 Shaft as this resource is below Cooke 3 Shaft
infrastructure.
Mine design and scheduling have been completed and modelled at forecast uranium prices and exchange
rates. In terms of a co-product strategy, uranium mining attracts the incremental cost of transport and
treatment, while gold mining attracts all other associated mining and processing costs. This has the benefit
of potentially increasing mining reserves and improving profitability. The opening up and re-equipping of
access to the Cooke 3 priority Area 2 has been scheduled for the March and June 2013 quarters with mining
planned to commence during the September 2013 quarter. It is envisaged that gold and uranium bearing ore will initially be trucked and processed at Cooke 4 until such time as permanent ore transport arrangements
will initially be trucked and processed at Cooke 4 until such time as permanent ore transport arrangements have been implemented.
A detailed study investigating various transport alternatives is well underway.
Phase 1 of the Cooke 4 Uranium Plant upgrade is in the final stages of feasibility. Once complete, this
upgrade will see the 50,000 uranium tonne per month module operating at full capacity at an estimated
capital cost of ZAR 13 million (US$ 1.55 million) of capital expenditure.
5. Outlook
Group Production Guidance
Total annual gold production for 2013 is forecast at 300,000 ounces.
Total group gold production for the March 2013 quarter is forecast at 63,500 ounces.
The production outlook for the Modder East Operation for the March 2013 quarter is forecast at 25,000
ounces. During the March 2013 quarter the company will continue to recruit the necessary skills to ramp up
production at Modder East and envisages that recruitment will continue throughout most of the quarter.
The production forecast for the Cooke Underground Operation’s March 2013 quarter is 30,000 ounces,
which includes production from Cooke 4. This reflects a 21% increase on the output achieved for December
2012 following the lifting of the suspension at Cooke 4 and the restructuring of Cooke 1-3. The restructure
and turnaround initiatives are expected to position the Cooke Underground Operation for increased output
throughout 2013.
For the Randfontein Surface Operation the production outlook for the March 2013 quarter is expected to
remain stable at 8,500 ounces.
Group Development Outlook
Pamodzi East Rand Operations
On 17 April 2012 Gold One announced that the company had entered into an acquisition agreement through
its subsidiaries New Kleinfontein Mining Company Limited and Goliath Gold Mining Limited to acquire
prospecting rights over the areas covered by the mining rights held by The Grootvlei Proprietary Mines
Limited, Consolidated Modderfontein Mines 1979 Limited and Nigel Gold Mining Company (Pty) Limited
(“the Pamodzi East Rand Operations”) (“PERO”) for a total of ZAR 70 million. The prospecting applications
have been formally accepted by the Department of Mineral Resources and it is expected that the approval
process will be completed by July 2013.
The anticipated completion of all conditions precedent to the acquisition of PERO has therefore been
extended to 31 July 2013 by mutual agreement, and can be extended further by mutual agreement.
Hong Kong Listing
The company continues to review the timing of a listing on the Hong Kong stock exchange. In the interim
the group will focus on building up the Modder East Operation to steady state production, completing the
two year turnaround at the Cooke Underground Operation, integrating Cooke 4 into the Cooke Underground
Operation, and growing production at the Randfontein Surface Operation.
6. Capital Structure
As at the release of this report the company has 1,416,538,989 shares on issue, of which 1,365,227,955
(96.4%) are held on the Australian register and 51,311,034 (3.6%) are held on the South African register. The
company has 42,236,326 unlisted options in issue.
Graphs:ASX Trading Statistics since October 2012
JSE Trading Statistics since October 2012
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
ENDS
Johannesburg
31 January 2013
JSE Sponsor
Macquarie First South Capital (Pty) Limited
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 (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, 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 the Cooke 1, 2 and 3 Underground Operations and the
Cooke surface assets (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.
During mid-2012 Gold One also completed its transaction with First Uranium Corporation and acquired 100% of the Ezulwini Mining
Company (Pty) Limited, giving the company access to gold and uranium processing plants with nameplate capacities of 200,000 and
100,000 tonnes per month respectively. Ezulwini (Cooke 4) is contiguous to the company’s Cooke Underground and Randfontein
Surface operations. Access to the uranium production facility will allow for near term production of uranium from underground ore
mined at Cooke. In addition, the sharing of services between Ezulwini and the Cooke Underground Operations will facilitate a
reduction in operating costs. An integrated plan has been developed which will see Ezulwini being incorporated into the greater
Cooke Underground Operations as Cooke 4 Shaft.
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 1,416,538,989 shares.
Office Details - P B Kruger (South Africa)
Sydney Head Office
Level 3, 100 Mount Street, Registrars
North Sydney, NSW 2060 Boardroom Limited
Australia Level 7
PO Box 1244 North Sydney NSW 2059 207 Kent Street
Telephone: +61 2 9963 6400 Sydney
Fax: +61 2 9963 6499 NSW
Australia
Johannesburg Corporate Office 2000
Constantia Office Park, Bridgeview House, Ground Floor Tel: +61 2 9290 9600
Corner 14th Avenue and Hendrik Potgieter Street
Weltevreden Park, 1709, Gauteng, South Africa South African Transfer Secretaries
Telephone: +27 11 726 1047 Computershare Investor Services
Fax: +27 11 726 1087 70 Marshall Street
Johannesburg
Issued Capital 2001
1,416,538,989 shares on issue
Options (unlisted: 42,236,326) Level 1 ADR Sponsor
ADR ratio: 1 ADR = 10 ordinary shares The Bank of New York Mellon
Depositary Receipts Division
Stock Exchange Listings 101 Barclay St, 22nd Floor
ASX/JSE Limited: GDO New York, New York 10286
OTCQX International: GLDZY USA
Tel: +1 212 815 3700
Directors Fax: +1 212 571 3050
- C Chadwick (CFO and Acting CEO)
- Y Sun (Chairman) Auditors
- A Liu (Independent Non-Executive Director) PricewaterhouseCoopers Incorporated
- R Chan (Independent Non-Executive Director) 201 Sussex Street
- M Solomon (Independent Non-Executive Director) Sydney, NSW 1171
- C Zhou ( Non-Executive Director) Australia
Company Secretaries Telephone: +61 2 8266 0000
- K Hogg (Australia) (effective 15 January 2013)
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 Persons’ Statement
The information in this release that relates to exploration results, mineral resources or ore reserves is based on information
compiled by the following Competent Persons 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”):
The overall Competent Person for the Gold One group is 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 is Executive Vice President:
Technical Services for Gold One, with which he is a full-time employee, and has 13 years’ experience 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 JORC Code and the SAMREC Code.
The Competent Person for the Ventersburg Project is Mr Quartus Meyer, who has a master’s degree in science (geology) and who is
a professional natural scientist registered with SACNASP, membership number 400063/88. Mr Meyer is Vice President: Exploration
for Gold One, with which he is a full-time employee, and has 26 years’ experience 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 JORC Code and the SAMREC Code.
The Competent Person for the Modder East Operations is Mr Evan Cook, who has a bachelor’s degree in technology (geology) and
who is a professional natural scientist registered with SACNASP, membership number 400162/07. Mr Cook is the Mineral Resources
Manager: Modder East Operations for Gold One, with which he is a full-time employee, and has 14 years’ experience 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 JORC Code and the SAMREC Code.
Dr Stewart and Messrs Meyer and Cook consent to the inclusion in this release of the matters based on information compiled by
themselves, Gold One employees, Rand Uranium employees and the companies’ consultants in the form and context in which they
appear for the purposes of both the JORC Code and the SAMREC Code.
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 in the Gold One 2011 Annual Report, released on 29
February 2012 on the ASX MAP, JSE SENS and the Gold One website. The company’s resource statements are also available on the
Gold One website.
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: 31/01/2013 07:05:00 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.
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