Wrap Text
Quarterly Activities Report Quarter Ended 30 June 2013
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”)
Quarterly Activities Report
Quarter Ended 30 June 2013
June 2013 Quarter Highlights
- Record production of 68,208 ounces, reflecting a 10% increase on the March 2013 quarter and an 8%
increase on the previous production record
- LTIFR of 1.12; an improvement from the March 2013 quarter LTIFR of 1.78
- Revenue of US$ 79.8 million
- Group cash operating cost of US$ 1,071/oz.
- Conclusion of the pre-feasibility study for the West Rand surface joint venture with Sibanye Gold
September 2013 Quarter Outlook
- September 2013 quarter production forecast of 75,000 ounces
- 32,250 ounces from Modder East Operation
- 34,000 ounces from Cooke Underground Operation
- 8,750 ounces from Randfontein Surface Operation
June 2013 Quarter Key Performance Data
(Average Exchange Rate of ZAR 9.47/US$ 1)
(March 2013 Quarter Average Exchange Rate of ZAR 8.94/US$ 1)
Group Group
Cooke 1-4 Randfontein
Modder East Performance Performance
Underground Surface
Operation June 2013 March 2013
Operation Operation
Quarter Quarter
Ore Mined
205 458 t 291 843 t
Underground
Mined Grade 5.01 g/t 4.95 g/t 0.442 g/t
Milled Tonnes 199 924 t 288 553 t 860 272 t
Recovered Grade 4.32g/t 3.42 g/t 0.313 g/t
Gold Recovery 94% 95% 71%
Gold Produced 27 786 oz 31 760 oz 8 662 oz 68 208 oz 61 853 oz
Cash Operating
US$ 638/oz US$ 1 421/oz US$ 1 174/oz US$ 1 071/oz US$ 1 047/oz
Cost 1
Total Cost 2 US$ 809/oz US$ 1 615/oz US$ 1 270/oz US$ 1 244/oz US$ 1 246/oz
Average Gold Price
US$ 1 134/oz US$ 1 251/oz US$ 1 272/oz US$ 1 221/oz US$ 1 625/oz
Received
Gross Cash Margin US$ 496/oz US$ -170/oz US$ 98/oz US$ 150/oz US$ 578/oz
Group
US$ 16.8 US$ 16.9
Development and
million million
Capital Expenditure
Group Gold US$ 79.8 US$ 95.79
Revenue 3 million million
Notes:
1 Cash operating cost refers to all costs directly associated with mining activities, mine administration, processing and refining.
2 Total cost refers to the sum of the cash operating cost, depreciation and royalties. Capital expenditure, finance costs and
corporate costs are excluded from total cost.
3 Deliveries were effected in to the gold hedge contracts from all the operations thus lower than market gold price were achieved.
1. CEO Review
The quarter under review was characterised by a sharp decline in the gold price, which has placed pressure
on the gold industry as a whole. At Modder East high operating margins have ensured that the operation
remains robust even in a lower gold price environment. Operational profitability is expected to improve
further as Modder East reaches steady state production levels later this year, further reducing unit operating
costs. The Cooke Underground Operation is strongly focused on achieving its turnaround strategy and the
realisation of uranium co-production. Post the significant restructuring at the Cooke Underground Operation
late last year, the operation is better positioned for improved performance.
To further bolster production, for the past two quarters we have implemented operational and structural
measures necessary to ensure that the company both operates sustainably in a lower gold price
environment and improves operational efficiency in the long term. The Cooke Underground Operation has
increased labour capacity to equip new high grade mining areas where innovative mining techniques have
enabled access to previously abandoned mining areas. While some of these measures negatively impacted
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costs for the quarter under review, the benefits of their implementation are anticipated during the
remainder of the year.
The June 2013 quarter saw the Gold One Group achieve its highest ever quarterly production of 68,208
ounces, equaling a 10% increase on the previous quarter’s production and reflecting the steady build up
across the company’s operations. The production ounces for the quarter were marginally below our forecast
of 70,750 ounces.
While labour build up at Modder East has progressed slower than planned, I am pleased to report that the
quarter under review was characterised by continual operational improvements and higher than planned
labour efficiencies following the successful sustainable recruitment of critical skills. The first output from the
secondary crushing plant has been incorporated into the production circuit and the plant is forecast to be
fully utilised towards the end of the September 2013 quarter, when it will contribute to steady state
production volumes. As such Modder East is forecasting 32,250 ounces for the September 2013 quarter; a
16% increase on the June 2013 quarter. The Modder East Operation is not expected to be affected by the
current industry-wide wage negotiations as Modder East is not a member of the Chamber of Mines. In
addition, a two year wage agreement valid until the end of 2014 is in place at the operation.
I am pleased with the sustained improvement at the Cooke Underground Operation, where productivity
improvements resulted in a 7% increase in gold produced. A continued focus on operational efficiencies saw
an overall 3% improvement in the mine call factor quarter-on-quarter, a 32% increase in gold kilograms from
vamping operations and an 8% increase in total development. To mitigate against the current volatile gold
price environment, additional production opportunities in higher grade areas and vamping operations have
been identified at each of the Cooke Underground Operation’s four shafts, and continued focus on
maintaining mining above the paylimit has remained in place across the operation.
The Cooke Underground Operation may be affected by the current mining sector wage negotiations by
reason of the fact that Gold One acquired the operation through the 100% acquisition of Rand Uranium (Pty)
Limited, which is a member of the Chamber of Mines. While it is Gold One’s view that negotiations can be
concluded in a mutually beneficial and peaceful manner, contingency plans have been put in place to
manage any labour disruptions that may occur.
The Randfontein Surface Operation has continued to deliver a strong performance with the June 2013
quarter’s production amounting to 8,662 ounces. This is a strong achievement considering the production
disruptions from strike action at the Harmony Gold Mining Company Limited’s (“Harmony Gold”) Doornkop
Plant during the quarter under review, which necessitated Cooke Underground ore, normally treated under
a toll arrangement through the Doornkop Plant, being diverted and treated at the Cooke Gold Plant,
displacing surface feed material. The operation’s focus has remained on the Cooke Gold Plant Optimisation
Project, which will see the Cooke Gold Plant improve economies of scale by converting from mechanical
reclamation to hydraulic reclamation and increasing throughput capacity from 300,000 to 400,000 tonnes
per month. The project will also have a direct impact on cost reduction by reducing unit operating costs by
some 40%. The expansion and commissioning of the plant are on track for completion during the December
2013 quarter.
After the strike action experienced at Modder East last year and the resultant slower than anticipated
operational build up, the ramp up to steady state production has been negatively impacted and is now
expected during the September 2013 quarter. In light of this and a recent assessment of our mining grade
paylimits in line with lower gold prices, we have reviewed our annual production guidance. At present we
anticipate 2013 production guidance to remain within 10% of the original estimate of 300,000 ounces,
assuming that no labour disruptions occur during the ongoing gold sector wage negotiations.
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During the quarter it was with the deepest regret that we reported the fatal injury on 23 May 2013 of our
colleague, Mr Hlahla Natshi, a winch driver, who died as a result of a fall of ground incident at the Cooke 3
Shaft at the Cooke Underground Operation. We extend our heartfelt condolences to Mr Natshi’s family and
friends.
Safety for the group, measured according to the lost-time injury rate per 200,000 hours worked (“LTIFR”),
was 1.12 for the June 2013 quarter. This compares to the March 2013 quarter’s LTIFR of 1.78 and remains
above the group’s benchmark of 1.0. The Gold One Group’s 2013 progressive LTIFR to the end of June was
1.43. Gold One is committed to achieving injury-free operations and best practices are continually
entrenched across all operations. Thorough and sustainable safety practises remain key managerial focuses.
Gold One is continuing to progress its extensive internal project pipeline. Particularly pleasing is the progress
we are making on the Cooke Pillar Project, where the mining of historical high grade pillars using a novel
mining methodology has impacted positively on operational margins at the Cooke 2 Shaft and is currently
being rolled out at Cooke 3. We are also pleased with the progress of the proposed Sibanye Gold Limited
(“Sibanye Gold”) and Gold One surface tailings material joint venture. The pre-feasibility study has been
concluded and is currently being reviewed with results expected to be publicly released during the
September 2013 quarter. The company remains focused on ensuring that its projects are prioritised
according to those that maximise company value and, particularly, provide short term operational flexibility
during the current volatile gold price environment.
During the quarter under review the company experienced an increase in electricity costs relating to annual
and winter tariff increases. Despite this increase, unit cash costs benefited from exchange rate movements
and remained steady at US$ 1,071/oz. Management has embarked on a drive to increase production levels
across all operations and maintain focus on cost management, thereby reduce non-value adding activities.
During the quarter under review the Pamodzi East Rand acquisition agreement announced by Gold One on
17 April 2012 was progressed. Through its subsidiaries New Kleinfontein Mining Company Limited and
Goliath Gold Mining Limited (“Goliath Gold”), Gold One plans to acquire, inter alia, selected surface assets
and prospecting rights over the areas covered by the mining rights held by Grootvlei Proprietary Mines
Limited, Consolidated Modderfontein Mines 1979 Limited and Nigel Gold Mining Company (Pty) Limited
(“the Pamodzi East Rand Operations”). During the previous quarter the completion date for all conditions
precedent to the acquisition was extended to 31 July 2013.
On 18 July 2013 our strategic partner BCX Gold Investment Holdings Limited (“BCX Gold”) reaffirmed its
commitment to the future of Gold One by increasing its holding in Gold One’s issued share capital from
88.77% to 90.03%. In terms of Chapter 6A of the Corporations Act 2001, BCX Gold has acquired a six month
right, but not an obligation, to compulsorily acquire any remaining Gold One shares.
2. Financial Review
Schematics:Gold One Group Quarterly 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 June 2013 quarter amounted to US$ 79.8 million from the sale of 65,362 ounces
at an average price of US$ 1,221/oz. This is compared to group gold revenue for the March 2013 quarter of
US$ 95.79 million from the sale of 57,860 ounces at an average price of US$ 1,625/oz. Revenue achieved was
lower than that of the March 2013 quarter due to deliveries of 43,925 ounces into the gold hedge book at a
price of US$ 1,109/oz and deliveries of 21,437 ounces into the spot market at a price of US$ 1,450/oz. There
were no deliveries into the hedge book during the March 2013 quarter. For comparative purposes, had there
been no hedge deliveries during the quarter under review, revenues would have been US$ 91.9 million at
the average spot market gold price of US$ 1,406/oz.
Of the 43,925 ounces delivered into the gold hedge book, 586 ounces of gold were delivered into the Franco
Nevada Corporation in terms of a 7% life of mine gold royalty inherited during the acquisition of Ezulwini
Mining Company. Ounces delivered in terms of this royalty arrangement are delivered at a price of US$
400/oz.
At the end of the June 2013 quarter the outstanding gold hedge book amounted to 52,888 ounces, to be
delivered at an average price of US$ 1,227/oz.
5|Page
Cashflow from Mining Operations
Cooke Randfontein Total
Modder East
Cashflow Underground Surface June 2013
Operation
(Unaudited) Operation Operation Quarter
(US$ Million)
(US$ Million) (US$ Million) (US$ Million)1
Gold Sales 2 40.8 39.6 11.5 91.9
Payment to Operating
Suppliers and -17.7 -45.1 -10.2 -73.0
Employees
Operating Cashflow 23.1 -5.5 1.3 18.9
Development and -5.9 -7.4 -2.6 -15.9
Capital Expenditure3
Other Non-Production
-2.4 -2.7 0.4 -4.7
Costs 4
Cashflow from 14.8 -15.6 -0.9 -1.7
Operations
Notes:
1. The ‘Total June 2013 Quarter’ column represents mining operations only.
2. Gold sales represent revenue at spot prices. During the quarter gold sales were negatively impacted due to gold delivered into the
gold hedge acquired as part of the Rand Uranium acquisition. This hedge will be fully delivered during the September 2013
quarter.
3. Development and capital expenditure excludes US$ 0.9 million relating to project capital.
4. Other non-production costs represent general, administrative and exploration costs.
Payments to operating suppliers and employees totalled US$ 73.0 million for the quarter, resulting in an
operating cashflow of US$ 18.9 million for the group calculated at spot gold prices. The Modder East, Cooke
Underground and Randfontein Surface operations contributed US$ 23.1 million, -US$ 5.5 million and US$ 1.3
million to this cashflow respectively on this basis. In addition to the operational expenditure, US$ 7.6 million
was spent on group exploration projects and corporate expenses.
Group development and capital expenditure totalled US$ 15.9 million with the Modder East, Cooke
Underground and Randfontein Surface operations’ expenditures totalling US$ 5.9 million, US$ 7.4 million
and US$ 2.6 million respectively. Other group capital projects amounted to US$ 0.9 million for the quarter.
Apart from ongoing development capital at the Cooke Underground Operation, the Cooke Gold Plant
Optimisation Project is in progress and is expected to be completed by the end of December 2013. The
remaining committed capital on this project amounts to US$ 13.6 million.
Cash balances including restricted cash at the end of June 2013 quarter amounted to US$ 28.0 million. This
decreased from the cash on hand at the end of the March 2013 quarter of US$ 77.7 million due to
repayment of the Investec Bank Limited (“Investec”) loan facility amounting to US$ 13.6 million, as well as
changes in working capital and project capital expenditure.
The June 2013 quarter reflected debt of US$ 214.4 million (principal amount of US$ 204.6 million and
interest of US$ 9.9 million). This debt comprises shareholder loans received amounting to US$ 147.9 million
and an Investec facility amounting to US$ 66.6 million.
6|Page
3. Group Operational Review
June 2013 March 2013
Variance
Quarter Actual Quarter Actual
Gold One Group 68 208 oz 61 853 oz 6 355 oz 10%
June 2013 June 2013
Variance
Quarter Actual Quarter Guidance
Modder East Operation 27 786 oz 30 000 oz 2 214 oz -7 %
Cooke Underground Operation 31 760 oz 32 000 oz 240 oz -1 %
Randfontein Surface Operation 8 662 oz 8 750 oz 88 oz -1 %
Total 68 208 oz 70 750 oz 2 542 oz -4 %
3.1. Modder East Operation
June 2013 March 2013
Modder East Operation
Quarter Quarter
Ore Mined Underground 205 458 t 166 612 t
Mined Grade 5.01 g/t 5.85 g/t
Milled Tonnes (Black Reef) 199 924 t 156 934 t
Recovered Grade 4.32g/t 4.44 g/t
Gold Recovery 94.2% 95%
Gold Produced 27 786 oz 23 159 oz 1
Cash Operating Cost 2 US$ 638/oz US$ 614/oz
Notes:
1 Includes 738 ounces from the treatment of 8,177 tonnes of low grade development ore, mud and mill rejects at an average
recovered grade of 2.81 grams per tonne.
2 Cash operating cost refers to all costs directly associated with mining activities, mine administration, processing and refining.
Schematics: Modder East - Milled Tonnage Profile and Recovered Grade as well as 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 LTIFR for the year as at the end of the June 2013 quarter amounted to 0.26. The
LTIFR for the June 2013 quarter alone was 0.16, reflecting an improvement on the operation’s March 2013
quarter LTIFR of 0.38. This achievement was particularly pleasing in light of the continued labour build up
and the employment of labour new to the industry.
Labour build up progressed slower than planned during the quarter due to the extensive attention given to
the potential socio-economic impacts that could result from recruiting labour outside of the local sending
areas. A careful balance has therefore been maintained between the sourcing of skills from areas outside of
the operation’s local municipalities and the training of novice labour sourced from within local areas.
Notwithstanding the slower build up in labour numbers, careful screening and selection, coupled with the
company’s in-house underground training centre, resulted in higher than planned labour efficiencies when
expressed in the familiar industry benchmark of square metres per total employee costed (TEC), as depicted
in the graph on page 9 of this report. Total employees costed includes all labour employed on site, whether
employed directly by the company or indirectly in the form of specialist contractors. The improvement in
overall efficiencies resulted from the introduction of additional labour in the mining sections and the
improved efficiencies of the operation’s more established mining teams
These improvements in efficiencies resulted in an increase in the key measurable of output, namely square
metres mined, as illustrated in the graph on page 9 of this report, from 35,760 square metres for the March
2013 quarter to 47,424 square metres for the June 2013 quarter. This equates to a 32.6% quarter-on-quarter
improvement.
The increase in square metres mined resulted in mined tonnages increasing from 166,612 tonnes for the
March 2013 quarter to 205,458 tonnes for the June 2013 quarter.
As a result, overall gold production at Modder East amounted to 27,786 ounces for the quarter, being 20%
higher than the March 2013 quarter, although 7%, or 2,214 ounces, below the forecasted 30,000 ounces.
The strong production performance for the June 2013 quarter can be attributed to continual operational
improvements and the successful sustainable recruitment of critical skills.
Schematics: Modder East - Square Metres Mined as well as Square Metres/ Total Employee Costed
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Modder East’s continuous improvement was clearly evident during the quarter with total tonnes (reef and
waste rock) trammed for the June 2013 month reaching 111,013 tonnes or 93% of the operation’s planned
steady state tramming target.
Schematics: Modder East - Total Tonnes Trammed
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Total production volumes for reef mined during the June 2013 quarter amounted to 205,458 tonnes at an
average grade of 5.01 grams per tonne. Of the 205,458 tonnes, 200,118 tonnes of Black Reef were mined at
an average grade of 5.08 grams per tonne, of which 174,459 tonnes were attributable to stoping production
at an average grade of 5.64 grams per tonne and 25,658 tonnes were attributable to trackless reef
development tonnes at 1.27 grams per tonne. The balance of the tonnage, being 5,340 tonnes at an average
grade of 2.51 grams per tonne, was attributed to development and ledging on the UK9A Kimberly Reef.
The Black Reef recovered grade for the quarter was 4.32 grams per tonne; 2.7% lower than that achieved in
the March 2013 quarter. The marginal reduction in overall mined and recovered grades is in line with the
operational plan and is the result of increased volumes from stoping coming from areas more distal to the
shoreline. Volumes from stoping increased significantly during the quarter and were a direct result of the
improved efficiencies following the continued success in recruitment and training of the skills necessary to
break additional stope tonnes. The higher grade stoping tonnes increased by 23.5% when compared to the
previous quarter.
The decline in recovered grade, together with the annual increase in electricity tariffs from April 2013 and
the winter season electricity tariff adjustment from June 2013, had a negative impact on the cash operating
cost for Modder East increasing it to US$ 638/oz for the quarter under review.
Total on-reef development decreased marginally by 6.1% from the March 2013 quarter’s 514 metres to 483
metres for the June 2013 quarter. On-reef development is expected to reach a steady state of 600 linear
metres per quarter during the September 2013 quarter.
Mechanised off-reef development remained steady at 674 metres during the June 2013 quarter.
Mechanised off-reef development is expected to reach steady state of 900 metres per quarter during the
September 2013 quarter.
Total trackless development for the quarter under review reflected a 2.1% quarter-on-quarter decrease,
amounting to 1,085 metres compared to the previous quarter’s 1,110 metres.
At the end of the June 2013 quarter 434,568 square metres were available for mining, compared to 413,530
square metres at the end of the March 2013 quarter. This translates to in excess of two years of mining at
current and planned production rates. The increase in square metres available for mining is also attributable
to the operation’s focus on mechanised on-reef development to create continued mining flexibility.
The additional underground rock storage facilities commissioned during the March 2013 quarter have
enabled the underground separation of Black Reef generated in stopes from Black Reef generated in
trackless reef development ends. This in turn has facilitated optimisation of the feed grade through the
Modder East Metallurgical Plant and led to 9,259 tonnes of trackless on-reef development ore being
stockpiled at the end of the June 2013 quarter at an estimated grade of 2.03 grams per tonne.
Due to the increasing ore volumes from the Black Reef horizon, no low grade material was processed during
the June 2013 quarter. The low grade material originating from footwall development traversing the lower
and middle Kimberley reef horizons amounted to 59,000 tonnes at an average grade of 0.55 grams per
tonne, while the low grade ore has been stockpiled for future use.
The secondary crushing plant, constructed to increase processing capacity from 70,000 tonnes per month to
100,000 tonnes per month, was commissioned during the quarter under review using low grade
development ore and is forecast to be fully utilised at the end of the September 2013 quarter. Underground
production is expected to approach steady state volumes during the September 2013 quarter.
For the quarter under review 199,924 tonnes were milled and treated at the Modder East Metallurgical
Plant, reflecting a substantial increase of 27% on the 156,934 treated during the March 2013 quarter.
Tonnes treated included 199,924 tonnes of Black Reef. Metallurgical recoveries were marginally lower at
94.2%.
3.2. Cooke Underground Operation
June 2013 March 2013
Cooke Underground Operation
Quarter Quarter
Ore Mined Underground 291 843 t 279 402 t
Mined Grade 4.95 g/t 5.17 g/t
Milled Tonnes 288 553 t 256 109 t
Recovered Grade 3.42 g/t 3.62 g/t
Gold Recovery 95% 94%
Gold Produced 31 760 oz 29 784oz 1
Cash Operating Cost 2 US$ 1 421 /oz US$ 1 350 /oz
Notes:
1 Includes 12 ounces produced at the Cooke Underground Operation from the treatment of 1,483 tonnes of low grade
development ore and sludge at a recovered grade of 0.26 grams per tonne.
2 Cash operating cost refers to all costs directly associated with mining activities, mine administration, processing and
refining.
Schematics: Cooke Underground - Quarterly Tonnage Profile and Recovered Grade as well as 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
On 23 May 2013 Mr Hlahla Natshi, a winch driver, was fatally injured as a result of a fall of ground incident at
the Cooke 3 Shaft. As a precautionary measure the company immediately issued an instruction to suspend
all stoping operations at Cooke 3 until further notice. A full investigation was conducted by the Department
of Mineral Resources, which issued an instruction in terms of Section 54 of the Mine Health and Safety Act
1996, applicable to all steep mining areas, impacting 10 panels at the shaft. The Section 54 instruction was
lifted on 7 June 2013.
11 | P a g e
Following the fatal accident two steep stope panels have been permanently stopped at Cooke 3 and a new
steep mining standard has been implemented.
The Cooke Underground Operation’s progressive LTIFR for the quarter amounted to 1.58, compared to the
operation’s LTIFR for the March 2013 quarter of 2.63. The operation’s safety task team, which comprises
representatives from management and organised labour, has had a positive impact on safety across all four
shafts. Additional safety initiatives have also been introduced, including the concept of a ‘safety shift’ where
the operation’s entire mine overseer and engineering sections attend safety training for a full day.
Gold production for the June 2013 quarter amounted to 31,760 ounces; 1% below the forecast of 32,000
ounces. This was produced from 288,553 tonnes milled at an average recovered grade of 3.42 grams per
tonne. Gold produced increased by 7% over the quarter from 29,784 ounces produced during March 2013 to
31,760 produced during June 2013. The increase in production can be attributed to the sustained efficiency
and productivity improvements that have resulted from the operational restructure and reduction of just
over 1,100 employees, completed at the end of 2012. The operation’s mine call factor improved by 3.1%
during the June 2013 quarter, amounting to 77.8%.
Total development for the June 2013 quarter was 5,460 metres compared to the previous quarter’s 5,038
metres, despite development at Cooke 2 being negatively impacted by the stopping of non-critical
development ends and the movement of those crews into high grade mining areas.
Gold from vamping increased by 32% from 88 kilograms for the March 2013 quarter to 116 kilograms for the
June 2013 quarter. Vamping tonnes and grade increased from 26,760 tonnes at 3.29 grams per tonne for the
March 2013 quarter, to 31,061 tonnes at 3.73 grams per tonne for the quarter under review.
During the quarter under review the company experienced an annual electricity increase of 8% from April
2013 and a winter tariff increase of 53% from June 2013. Additional operational costs were also incurred due
to the movement of crews and the equipping of new mining areas. This was undertaken to ensure an
optimal mining mix to cater for a reduced gold price environment, the benefits of which are anticipated to
yield greater production in the upcoming quarters. For the quarter under review a unit cash cost of US$
1,421 per ounce was achieved across the Cooke Underground Operations.
At the Cooke 1-3 shafts tonnages mined increased by 10% quarter-on-quarter. Despite the increase in
electricity costs, unit operating costs across Cooke 1-3 remained steady at ZAR 1,418/t (US$ 150/t)
compared to ZAR 1,394/t (US$ 160/t) achieved in the March 2013 quarter. At Cooke 4 operating costs for
the quarter reduced by 7% from ZAR 1,805/t (US$ 202/t) to ZAR 1,673/t (US$ 177/t) despite the effective
increase in electricity tariffs. This improvement in Cooke 4’s operating cost was largely the result of
increased mining volumes. It is anticipated that a continued improved performance from the Cooke Backfill
Plant will support increasing mining volumes and underpin a decrease in the unit operating costs per tonne
across Cooke 4.
Tonnage for the quarter from the Cooke 1-3 shafts was treated at both the Harmony Gold Doornkop Plant
and Gold One’s Cooke Gold Plant. During the quarter under review Harmony Gold experienced a two-day
strike at the Doornkop Plant, following which ore from Cooke 1-3 was diverted and treated at the Cooke
Gold Plant. A total of 197,867 tonnes was treated at the Doornkop Plant, yielding 22,609 ounces of gold at a
recovered grade of 3.55 grams per tonne. Recovery at the Doornkop Plant increased over the quarter from
94% to 95%, with residues decreasing to 0.177. The total Cooke 1-3 tonnage from underground ore treated
at the Cooke Gold Plant for the quarter was 7,387 tonnes, which produced 993 ounces at an average
recovered grade of 4.18 grams per tonne.
Cooke 4 Shaft tonnage for the quarter was treated through the Cooke 4 Gold Plant and amounted to 83,299
treated tonnes, which yielded 8,159 ounces of gold from a recovered grade of 3.05 grams per tonne.
Recovery at the Cooke 4 Gold Plant amounted to 96%; an improvement of 1% from the previous quarter.
The residue grade decreased quarter-to-quarter from 0.172 grams per tonne to 0.126 grams per tonne.
3.3. Randfontein Surface Operation
June 2013 March 2013
Randfontein Surface Operation Quarter Quarter
Reclaimed Grade 0.442 g/t 0.426 g/t
Milled Tonnes 860 272 t 895 492 t
Recovered Grade 0.313 g/t 0.309 g/t
Residue Grade 0.129 g/t 0.117 g/t
Gold Recovery 71% 73%
Gold Produced 8 662 oz 8 910 oz
Cash Operating Cost US$ 1 174 /oz US$ 1 155 /oz
1 Cash operating cost refers to all costs directly associated with mining activities, mine administration, processing and
refining.
Schematics: Randfontein Surface - Tonnage Profile and Recovered Grade as well as 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 June 2013 quarter the Randfontein Surface Operation’s progressive LTIFR for the 2013 year
was 0.19, a substantial improvement on the operation’s 2012 LTIFR of 1.08. While a LTIFR of 0.00 was
achieved for the March 2013 quarter, the LTIFR for June quarter was 0.41 with one lost-time injury having
been reported during April.
During the quarter under review the Cooke Gold Plant produced 9,655 ounces, of which 8,662 ounces were
attributable to the Randfontein Surface Operation and were produced from the mechanical reclamation of
Dump 20 sand and hydraulically reclaimed Cooke 2 slime. This reflects a decrease of 2.8% compared to the
previous quarter’s gold produced, principally as a result of the lower reclaimed and treated tonnages and
lower recovery.
A total of 860,272 tonnes was treated from surface sources during the June 2013 quarter, reflecting a
decrease of 35,221 tonnes when compared to the March 2013 quarter. The average head grade for the
quarter increased from 0.426 grams per tonne to 0.442 grams per tonne, while the residue grade increased
from 0.117 grams per tonne to 0.129 grams per tonne, resulting in recoveries of 71% compared to the
previous quarter’s 73%.
The Randfontein Surface Operation’s unit cash operating cost marginally increased to US$ 1,174/oz for the
June 2013 quarter. The increase in unit cash operating costs was due largely to increases in electricity costs
for the winter season and an increase in lime consumption, which increased quarter-on-quarter due to the
increased acidity of the Dump 20 sand. Management is investigating various initiatives to reduce lime
consumption, including more efficient introduction of lime into the Cooke Metallurgical Process Plant. It is
anticipated that lime costs will reduce further as slime is introduced into the plant in place of waning Dump
20 sand material.
During the September 2013 quarter the operation will focus on mechanical reclamation of the depleting
Dump 20 sand resource and the commencement of hydraulic reclamation of the Lindum slimes.
Preparations will also continue for the commencement of hydraulic reclamation of the Dump 20 slime
resource underlying the sand during the December 2013 quarter. The Dump 20 slime is expected to be the
operation’s primary reclamation source for the next four years following the commissioning of the Cooke
Optimisation Project.
The Cooke Optimisation Project involves increasing the capacity of the Cooke Gold Plant from some 300,000
tonnes per month to 400,000 tonnes per month and converting from mechanical reclamation to hydraulic
reclamation, with the reclaimed slurry being pumped to the Cooke Gold Plant. Operating costs are expected
to reduce by some 40% as a result of the improved economy of scale arising from the plant’s increased
throughput, while the reclamation of the finer slime material is expected to reduce milling costs. The use of
hydraulic reclamation is anticipated to reduce reclamation costs. The total project capital cost is estimated
to be US$ 24.3 million (ZAR 230 million), of which US$ 3.8 million (ZAR 79 million) had been incurred as at
the end of the quarter under review. The project is on track for scheduled commissioning in the December
2013 quarter.
4. Development and Exploration Projects
4.1. Modder North
During the June 2013 quarter a pre-feasibility study commenced considering various access options to
Modder North as well as operational synergies with the existing Modder East Operation, and is expected to
be completed by the March 2014 quarter.
A total of 3,996 diamond drill metres and 1,110 percussion drill metres were completed at Modder North
during the quarter under review, the status of which are indicated in Figure 4.1. Diamond drilling on MN36,
MN51, MN55, and MN56 was completed, while drilling on MN48, MN53, MN54 and MN63 commenced and
will continue during the September 2013 quarter. Percussion drilling on MN45, MN60, MN61, WG2 and
MNBR5-7 was also completed. Total exploration costs during the quarter amounted to US$ 0.62 million.
Schematics: Completion Status of the Drilling Programme at the Modder North Project
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Four shallow boreholes, namely MNBR1-4, were drilled in the vicinity of MN3, specifically targeting the well
developed and mineralised Black Reef that was intersected in MN3. Although the Black Reef was intersected
in these four boreholes, it was not as well developed as in the original MN3 intersection. The company is
awaiting the assay results of these intersections.
SRK Consulting (SA) (Pty) Limited (“SRK Consulting”) has audited an interim Main Reef mineral resource
estimate for Modder North. This resource estimate was based on three boreholes from the historic HME
series and 26 boreholes from the current MN series, which were completed up to December 2012, and
formed the basis for the commencement of the pre-feasibility study. Subsequent drilling post the initial
resource declaration has provided additional Main Reef intersections that are expected to positively impact
the original resource estimate. The current drilling programme is planned to be completed towards the end
of November 2013, after which an updated mineral resource estimate will be compiled. This updated
resource estimate will be used to complete the pre-feasibility study. Three drill rigs are currently on-site and
are expected to continue during the September 2013 quarter.
Mineral Resource Statement for the Main Reef on the Modder North Project
at a Cut-off Grade of 218 cmg/t as at 31 December 2012
Tonnes Gold Grade Gold Content
Classification Reef Type
(Mt) (g/t) (Moz)
Indicated Main Reef 2.378 3.44 0.264
Inferred Main Reef 3.894 3.09 0.386
Total Main Reef 6.272 3.22 0.650
1. Mineral resources are not mineral (ore) reserves and do not have demonstrated economic viability. Mineral resources are
reported in accordance with SAMREC guidelines (estimates would be identical if reported in accordance with JORC standards)
2. Cut-off values were calculated using a gold price of ZAR 450,000/kg (US$ 1,750/oz and ZAR 8:US$1).
3. Signed-off by Dr Carina Lemmer, independent resource consultant to Gold One, and audited by SRK Consulting.
Assay results received during the June 2013 quarter for the Modder North drilling programme are indicated
in the table below. In the main target area additional boreholes holes MN54-MN56 intersected a well-
developed Main Reef conglomerate. Assay results for these boreholes are expected during the September
2013 quarter.
Assay Results Received for Modder North During the June 2013 Quarter
Dip Corrected
Depth (m) Bottom Channel
BH_ID REEF 2
Contact Thickness g/t cm.g/t
1
(cm)
MN33 Main Reef 435.35 66.3 4.79 318
MN33_1D Main Reef 435.18 67.3 1.56 105
MN33_2D Main Reef 435.61 64.4 2.28 146
MN49 Main Reef 474.65 85.9 0.57 49
MN49_1D Main Reef 474.67 89.1 0.45 40
MN4_2D Main Reef 474.72 87.1 0.58 50
MN25 Main Reef 462.55 100.4 1.23 123
MN25_1D Main Reef 463.59 105.4 1.33 140
MN25_ 2D Main Reef 463.63 98.2 2.13 209
MN24 Main Reef 454.88 74.9 7.15 535
MN24_1D Main Reef 456.21 59.4 9.23 548
MN24_ 2D Main Reef 455.03 63 9.17 578
MN24 Buckshot Pyrite Leader Zone 156.38 79.8 0.27 21
MN24 3D Buckshot Pyrite Leader Zone 156.28 64.6 0.44 29
MN24 4D Buckshot Pyrite Leader Zone 156.57 97.8 0.32 31
Notes:
1 Channel thickness represents the true, dip corrected thickness of the reef.
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.
4.2. Ventersburg
The Ventersburg feasibility study has been completed and the document is currently under review. All
planned drilling activities at Ventersburg have been completed and no further drilling is contemplated for
2013. Selected long lead environmental baseline studies that are required for the application of a mining
licence are continuing.
Although the feasibility study has largely confirmed many of the outcomes of the pre-feasibility study, under
current economic circumstances the project does not sufficiently justify capital development. The primary
differences between the feasibility and pre-feasibility study include:
- Increased capital costs largely due to inflation as well as increases in shaft sinking and main
infrastructure development costs.
- On the basis of recently completed projects, the feasibility study has been more conservative on the
time required to commission and achieve full production. This has primarily been included into more
conservative shaft sinking and development rates. The time to reach steady state production has
been increased by eight months relative to the pre-feasibility study.
- Reduced plant recoveries. After extensive metallurgical test work, the predicted plant recovery
factor was reduced from 95% to 93% 16 | P a g e
- Additional hydrological investigations have indicated that water quality is expected to be high and
no significantly high inflow quantities are anticipated. This has allowed for a reduction in the water
treatment plant capital and operating costs.
- Despite the additional infill drilling, which provided higher resolution for geological modelling,
scheduled grades and forecast production volumes remained largely unchanged.
The company will continue to assess the feasibility study with a view to considering both potential regional
synergistic benefits that could be realised and the potential for expanding the total mineral resource base to
extend the current life of mine.
4.3. Tulo
The primary focus at Tulo during the quarter under review has been 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 has been sampled where
possible. Sample analysis has been undertaken by Performance Laboratories (Pty) Limited in South Africa.
The detailed sample results are illustrated below.
Dip Corrected
Trench_ID REEF Quartz Vein Width (cm) g/t cm.g/t
KT1 Quartz_Vein 156 0.14 22
KT2 Quartz_Vein 613 1.61 986
KT2A Quartz_Vein 51 0.04 2
KT3 Quartz_Vein 25 0.51 13
KT12A Quartz_Vein 141 0.68 96
KT14 Quartz_Vein 171 2.39 410
KT15 Quartz_Vein 59 0.90 53
KT16 Quartz_Vein 181 2.55 461
KT17 Quartz_Vein 29 9.92 286
KT18 Quartz_Vein 29 0.35 10
KT20 Quartz_Vein 217 8.80 1913
Dip Corrected
Trench_ID REEF Quartz Vein Width (cm) g/t cm.g/t
KT23 Quartz_Vein 35 27.55 974
TR20 Quartz_Vein 135 0.25 33
TR20A Quartz_Vein 52 2.67 138
TR21 Quartz_Vein 70 1.64 115
TR22 Quartz_Vein 181 0.48 87
TR23 Quartz_Vein 65 0.08 5
TR24 Quartz_Vein 30 0.27 8
TR24A Quartz_Vein 30 0.12 4
TR25 Quartz_Vein 25 0.31 8
TR25A Quartz_Vein 25 0.06 1
TR7* Quartz_Vein 73 2.34 171
TR8A* Quartz_Vein 115 0.25 28
TR11* Quartz_Vein 52 1.91 99
TR12* Quartz_Vein 59 0.50 29
TR14* Quartz_Vein 95 10.47 995
TR19* Quartz_Vein 95 0.46 44
TR26* Quartz_Vein 74 0.39 29
* In these trenches, artisanal miners damaged trench sidewalls by attempting to undertake small
scale mining activities. While three trenches had to be abandoned for sampling purposes, the
remaining could still be sampled. These samples are considered sufficiently accurate to be
representative of the grade of the sampled quartz vein, however since sampling could not
extend into the adjacent host rock, these samples may not be considered suitable for future
resource estimation purposes.
The sampled trenches indicate a continuous vein system over a strike length of 2 kilometres. Average
sampling results taken from all trenches, indicate an average grade of 2.43 grams per tonne over an average
vein width of 103 centimetres (excluding samples from trenches damaged by illegal miners, the average
grade is 2.53 grams per tonne with an average vein width of 111 centimetres).
The trench sampling results, combined with trench and surface mapping, will be utilised to define priority
drill targets. Where deemed appropriate the company is also considering ground magnetic surveys to refine
the definition of structural discontinuities associated with potentially mineralised quartz veins.
During the quarter under review expenditure at Tulo for the June 2013 quarter amounted to US$ 0.25
million.
4.4. West Rand Tailings Joint Venture
The West Rand Tailings Joint Venture Project with Sibanye Gold progressed according to schedule with the
pre-feasibility study being concluded at the end of the quarter. The pre-feasibility study was initiated in
January 2013 following the successful outcome of the scoping study that demonstrated extensive value and
risk reduction synergies. These synergies underpin an opportunity to extract significant value from both
parties’ surface resources. The surface scope includes the reclamation and retreatment of historical and
current tailings including that of the South Deep current arisings to recover residual gold, uranium and
sulphur. A further objective of the project remains the redeposition of the residues in accordance with
modern sustainable deposition practices.
Since the initiation of the pre-feasibility study six months ago the project’s achievements have included the
completion of the drilling and evaluation work on all of the Gold One tailings dams and the generation of a
mineral resource model. The metallurgical test work was also advanced considerably, supporting novel
technologies used to enhance the metallurgical recoveries. One of the key risks of the project, informed by
the significant amount of technical and economic work that has already been completed by both companies,
is the significant upfront capital investment that has the ability to dampen the economics of the project. In
mitigation of the risks, the pre-feasibility study has evaluated the utilisation of existing surface and
underground infrastructure, as well as the strategic phasing of capital and an assessment of ways in which
the scheduling of available feed material can be optimised.
The study is currently undergoing internal review, following which the results will be released during the
September 2013 quarter.
4.5 Zuurbekom Project
The Zuurbekom exploration project, adjacent to the Cooke 1 and 2 shafts of the Cooke Underground
Operation, is exploring for potential down-dip extensions to the higher grade UE1A Reef that has been the
primary orebody of the Cooke shafts. Figure 4.5.1 illustrates the locality of the Zuurbekom surface
exploration boreholes relative to the existing mining infrastructure. The boundaries of Cooke 1 and 2 are
shown in relation to domains 6 (in green) and 9 (in yellow), which extend into the Zuurbekom Project.
Schematics: Locality of the Zuurbekom Surface Exploration Boreholes
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
During the June 2013 quarter a number of exploration activities on the Zuurbekom property progressed:
- Four of the eight exploration holes with deflections were progressed and were close to completion
by the end of the quarter. A total of 3,500 metres was drilled. The UE1A reef intersections were
logged, prepared for sampling and submitted to an assay laboratory for evaluation. The assay results
are expected during the September 2013 quarter.
- Opening-up and equipping of the 101 Zuurbult Haulage No.2 East, the easternmost mining extension
of Cooke 1, continued with the objective of facilitating an underground exploration and
development programme in addition to the planned surface exploration drilling programme.
Development is on schedule to commence during December 2013.
- Permission was received from the Department of Mineral Resources to advance through the Cooke
1 Eastern boundary with exploratory development. Mine designs are being finalised with
development planned to commence in the September 2013 quarter.
4.6 Cooke Shaft Backfill Project
Substantial secondary mining opportunities have been identified at the Cooke Underground Operation
targeting higher grade gold bearing pillar and secondary reef areas. These areas could be selectively
extracted at higher margins due to above average reserve grades, which would positively impact on overall
mine profitability and mining flexibility. The project considering the implementation of backfill at the Cooke
2 Shaft has achieved a pre-feasibility level of confidence and is being progressed to feasibility level.
Further detailed investigations into contiguous Ventersdorp Contact Reed (“VCR”) and UE7 Reef resource
areas at Cooke 2 are currently being conducted in order to identify additional secondary extraction
opportunities. In order to increase resource confidence of exploration target areas ‘short hole exploration’
(maximum 3.0 metre boreholes) will target identified areas in the UE7 horizon with the intention of
confirming the resource potential through an exploration campaign. These results are expected during the
September 2013 quarter.
Detailed backfill plant designs are in progress and the development of a revised environmental management
programme in support of commissioning the backfill plant is underway.
4.7 Cooke Underground Uranium Project
The Cooke Underground Uranium Project considers the re-commissioning of the Cooke 4 Uranium Plant to
treat uranium bearing ore from the Cooke 3 and Cooke 4 shafts. The feasibility study, targeting ore
containing economically viable gold and uranium at Cooke 3, has been completed and includes the
extraction of the water pillar that forms part of the Cooke 3 resource. The mining of the water pillar area,
however, will take place from the Cooke 4 Shaft as this resource is below Cooke 3 Shaft infrastructure.
The commencement of the uranium project will allow the Cooke Underground Operation to implement the
co-product mining strategy, whereby the mining and recovery of both gold and uranium will have the
benefit of increasing mining reserves and improving profitability.
Although the mining of uranium is anticipated to commence in early 2014, continuous review of the project
will be undertaken in light of the volatile commodity prices currently being experienced. 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 have been implemented.
Phase 1 of the Cooke 4 Uranium Plant upgrade has commenced and will continue during the September
2013 quarter, with completion of the upgrade expected during the December 2013 quarter for start-up in
early 2014. The upgrade will allow the 50,000 tonne per month module of the uranium plant to be
commissioned at an estimated total capital cost of US$ 1.5 million. A second 50,000 tonne per month
module in the uranium plant will remain on care and maintenance until underground mining volumes of
mixed gold and uranium ore have sufficiently increased above the 50,000 tonne per month level. The
construction of the Cooke 4 ore receiving facility will continue to enable processing flexibility of Cooke 1-3
underground ore at the Cooke 4 Uranium Plant.
5. Outlook
Group Production Guidance
Total group gold production for the September 2013 quarter is forecast at 75,000 ounces; a 6% increase on
production guidance for the June 2013 quarter and a 10% increase on the June quarter’s production of
68,208 ounces.
The Modder East Operation’s production outlook for the September 2013 quarter is 32,250 ounces,
reflecting a 16% increase on the June 2013 quarter. During the September 2013 quarter the company will
continue to integrate and stabilise new labour as well as fully utilise the Modder East Metallurgical Plant’s
secondary crusher with the objective of achieving steady state production during the September 2013
quarter.
Production outlook for the Cooke Underground Operation’s September 2013 quarter is 34,000 ounces,
reflecting a 7% increase on the June 2013 quarter. This increase is anticipated as a result of the focus on
increasing production from ore historically remaining in mined out areas (vamping) as well as the immediate
access to the mining of historical high grade pillars using novel technology.
For the Randfontein Surface Operation, the production outlook for the September 2013 quarter is
maintained at 8,750 ounces as the Cooke Gold Plant is prepared ahead of the commissioning of the Cooke
Optimisation Project.
Group Development Outlook
Pamodzi East Rand Operations
During the quarter under review significant progress was made with regards to the acquisition agreement
announced by Gold One on 17 April 2012. Through its subsidiaries New Kleinfontein Mining Company
Limited and Goliath Gold Mining Limited (“Goliath Gold”), Gold One plans to acquire, inter alia, selected
surface assets and prospecting rights over the areas covered by the mining rights held by Grootvlei
Proprietary Mines Limited, Consolidated Modderfontein Mines 1979 Limited and Nigel Gold Mining
Company (Pty) Limited (“the Pamodzi East Rand Operations”). During the previous quarter the completion
date for all conditions precedent to the acquisition was extended to 31 July 2013.
6. Capital Structure
As at the release of this report the company has 1,421,538,989 shares on issue, of which 1,357,070,438
(95.5%) are held on the Australian register and 64,468,551 (4.5%) are held on the South African register. The
company has 34,669,326 unlisted options in issue.
Schematics: Randfontein Surface - June 2013 Quarter ASX Trading Statistics and June 2013 Quarter JSE Trading Statistics
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
ENDS
Johannesburg
31 July 2013
Sponsor
Macquarie First South Capital (Pty) Limited
Issued by Gold One International Limited
www.gold1.co.za
Christopher Chadwick CFO and Acting CEO +27 11 726 1047 (office) +27 71 681 6450 (mobile) chris.chadwick@gold1.co.za
Grant Stuart VP: Investor Relations +27 11 726 1047 (office) +27 82 602 5992 (mobile) grant.stuart@gold1.co.za
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, and is 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.)
The Modder East Operations have continued to ramp up in production and produced 97,958 ounces of gold at an average cash
operating cost of US$ 686/oz during 2012. This was derived from 474,754 Black Reef milled tonnes at an average recovered grade of
6.00 grams per tonne as well as the milling of 139,887 tonnes of low grade development ore and waste with an average recovered
grade of 1.43 grams per tonne. The Modder East Metallurgical Plant maintained recoveries of 95% for 2012.
At the beginning of 2012, the Gold One Group expanded with the acquisition of Rand Uranium (Pty) Limited, which comprised the
Cooke 1, 2 and 3 Underground Operations and the Cooke surface assets (now known as the Randfontein Surface Operations) located
in the West Rand, 30 kilometres from Johannesburg. Through Gold One’s purchase of Rand Uranium (Pty) Limited, the company has
also acquired one of the world’s most advanced uranium projects, which envisages recovering uranium, gold and sulphur from the
above surface Cooke Tailings Dam. The Cooke Tailings Facility has a code compliant resource of 0.8 million ounces of gold and 34
million pounds of uranium. This exciting opportunity is being further explored with Sibanye Gold Limited as part of a larger surface
retreatment strategy on the West Rand.
During mid-2012 Gold One also completed its transaction with the 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 (now known as Cooke 4) is contiguous to the company’s Cooke
23 | P a g e
Underground and Randfontein Surface operations and forms part of the Cooke Underground Operations. Access to the uranium
production facility allows for near term production of uranium from underground ore mined at Cooke. In addition, the sharing of
services between Cooke 4 and Cooke 1-3 facilitates a reduction in operating costs.
For the 2012 year, the Cooke 1-3 Underground Operations produced 98,451 ounces at an average cash operating cost of
US$1,558/oz. This production was derived from the treatment of 961,802 milled tonnes at an average recovered grade of 3.17 grams
per tonne as well as the treatment of 39,650 milled tonnes of low grade development and waste material at an average recovered
grade of 0.34 grams per tonne. Plant recoveries for the operation were 95% for 2012.
Since Gold One assumed managerial control, Cooke 4 produced gold in the months of August, September and December only due to
illegal industrial action that temporarily halted the operation during October and November. For the three months 8,493 ounces
were produced. Total production for 2012 comprised 82,951 milled tonnes at an average recovered grade of 3.18 grams per tonne.
Due to the fact that the metallurgical plant was stopped for two months during the illegal industrial action, plant recoveries averaged
82% over the reporting period.
For the 2012 year the Randfontein Surface Operations produced 36,853 ounces from 3,286,633 milled tonnes at an average cash
operating cost of US$1,137/oz. Recovered grades during the year averaged 0.349 grams per tonne, with a gold recovery rate of 72%.
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.
Perth Registered Address Registrars
79 Broadway, Nedlands, Western Australia, 6009 Boardroom Limited
PO Box 3438, Nedlands, Western Australia, 6009 Level 7
Telephone +61 8 6389 2688 207 Kent Street
Facsimile +61 8 6389 2588 Sydney
NSW
Johannesburg Corporate Office Australia
Constantia Office Park, Bridgeview House, Ground Floor 2000
Corner 14th Avenue and Hendrik Potgieter Street Tel: +61 2 9290 9600
Weltevreden Park, 1709, Gauteng, South Africa
Telephone: +27 11 726 1047 South African Transfer Secretaries
Fax: +27 11 726 1087 Computershare Investor Services
70 Marshall Street
Issued Capital Johannesburg
1,421,538,989 shares on issue 2001
Options (unlisted: 34,669,326
ADR ratio: 1 ADR = 10 ordinary shares Level 1 ADR Sponsor
The Bank of New York Mellon
Stock Exchange Listings Depositary Receipts Division
ASX/JSE Limited: GDO 101 Barclay St, 22nd Floor
OTCQX International: GLDZY New York, New York 10286
USA
Directors Tel: +1 212 815 3700
- C Chadwick (CFO and Acting CEO) Fax: +1 212 571 3050
- Y Sun (Chairman)
- A Liu (Independent Non-Executive Director) Auditors
- R Chan (Independent Non-Executive Director) PricewaterhouseCoopers Incorporated
- M Solomon (Independent Non-Executive Director) 201 Sussex Street
- C Zhou ( Non-Executive Director) Sydney, NSW 1171
Company Secretaries Australia
- K Hogg (Australia) (effective 15 January 2013) Telephone: +61 2 8266 0000
- P B Kruger (South Africa)
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
24 | P a g e
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 resource 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.]
25 | P a g e
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.
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