Wrap Text
Quarterly Activities Report - Quarter Ended 30 September 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”)
30 October 2013
Quarterly Activities Report
Quarter Ended 30 September 2013
September 2013 Quarter Highlights
- Second consecutive quarter of record gold production – 71,740 ounces – reflecting a 5% increase on
previous quarter’s production record
- Record quarterly production for the Cooke Underground Operations of 35,660 ounces; a 12% increase
on the previous quarterly record and a 5% increase on guidance despite the impact of strike action
- Cooke Underground Operation and Randfontein Surface Operation were cashflow positive before capital
expenditure
- LTFIR of 0.86; an improvement on the previous quarter’s LTIFR of 1.12 and within the group’s benchmark
of 1.0
- Revenue of US$ 91.4 million; a 15% improvement on the previous quarter
- Group cash operating cost of US$ 1,044/oz; a 3% improvement on the previous quarter
- Two year wage agreement successfully negotiated for the Cooke 1-3 Underground and Randfontein
Surface Operations
- Successful conclusion of the West Rand Tailings Retreatment Project pre-feasibility study and decision
to proceed to definitive feasibility study
- Planned merger of the Cooke Underground and Randfontein Surface Operations into Sibanye Gold for a
17% interest in Sibanye Gold
- Pamodzi East Rand Operations transaction goes unconditional
December 2013 Quarter Outlook
- December 2013 quarter production forecast of 68,550 ounces
- 27,000 ounces from Modder East Operation
- 32,800 ounces from Cooke Underground Operation
- 8,750 ounces from Randfontein Surface Operation
September 2013 Quarter Key Performance Data
(Average Exchange Rate of ZAR 9.98/US$ 1)
(June 2013 Quarter Average Exchange Rate of ZAR 9.47/US$ 1)
Group Group
Performance Performance
September 2013 June 2013
Quarter Quarter
Gold Produced 71 740 oz 68 208 oz
Cash Operating Cost 1 US$ 1 044/oz US$ 1 071/oz
Total Cost 2 US$ 1 291/oz US$ 1 244/oz
Average Gold Price Received US$ 1 315/oz US$ 1 221/oz
Gross Cash Margin US$ 271/oz US$ 150/oz
Group Development and Capital Expenditure US$ 20.2 million US$ 16.8 million
3
Group Gold Revenue US$ 91.4million US$ 79.8 million
Notes:
1
Cash operating cost refers to all costs directly associated with mining activities, mine administration, processing and refining.
2
The group’s total cost includes corporate, exploration and non-production entities’ costs.
3
Deliveries were effected into the gold hedge contracts from all operations and thus a lower than market gold price was achieved.
1. CEO Review
The September 2013 quarter has been extremely busy and productive with the Gold One Group producing a
total of 71,740 ounces of gold. The Cooke Underground Operation and Randfontein Surface Operation both
exceeded gold production guidance by 5% and 3% respectively, while Modder East’s production remained
consistent with the previous quarter but was below guidance despite a significant increase in underground
tonnages.
During the quarter the cash operating cost reduced by 3% from US$ 1,071/oz to US$ 1,044/oz. This decrease
is especially pleasing considering that the quarter included higher than average electricity costs relating to
annual increases and higher winter tariffs as well as annual wage increases, which applied to all employees
at the Cooke Underground and Randfontein Surface Operations. Wages increased by 8% for Category 3 and
4 employees and rock drill operators and 7.5% for all other employees with effect from 1 July 2013.
Safety for the group, measured according to the lost-time injury frequency rate per 200,000 hours worked
(“LTIFR”), was 0.86 for the September 2013 quarter. This compares favourably to the June 2013 quarter’s
LTIFR of 1.12 and was within the group’s benchmark of 1.0. The Gold One Group’s progressive LTIFR for the
first three quarters of 2013 was 1.22. Gold One is committed to achieving injury-free operations and best
practices are continually entrenched across all operations.
The sustained focus on quality mining and the productivity improvements at the Cooke Underground
Operation have been pleasing. The benefits of the turnaround strategy and focus on mining above the
paylimit have resulted in a 12.3% increase in gold produced, resulting in a record high of 35,660 ounces
despite a three day strike during the quarter. It is estimated that approximately 1,550 ounces were lost as a
result of the strike. Adjusting for the production lost during the strike would have resulted in the Cooke
Underground Operations achieving approximately 37,210 ounces, which would have equated to 9.4% above
guidance and a 17% quarter-on-quarter improvement.
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The September 2013 quarter saw, for the first time since the acquisition of Rand Uranium Proprietary
Limited (“Rand Uranium”) in January 2012, the Cooke Underground Operation, together with Randfontein
Surface Operation, report a positive cash contribution before capital of US$ 0.89 million.
It is extremely pleasing to note that since the acquisition of Rand Uranium, total development rates have
increased by 25% when comparing the average development rates achieved during the March 2012 quarter
to those achieved during the September 2013 quarter. Development at the Cooke Underground Operation
remains a priority in order to improve mining flexibility; a key deliverable for the future success of the shafts.
The impact of the two year turnaround strategy at the Cooke 1-3 Underground Operations is now being
realised, with a sustained decrease in cash operating costs having been achieved. During the September
2013 quarter, cash operating cost reduced to US$ 1,008/oz, from US$ 1,288/oz in the June 2013 quarter.
Clear evidence of the sustained reduction in cash cost and improvement in production since the acquisition
of the operation can be seen in the graphic below.
Schematics:Cooke 1-3 Underground Quarterlu Production and cash cost
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Although the quarterly cash cost for Cooke 4 increased quarter-on-quarter from US$ 1,805/oz to US$
2,104/oz, this cost included wage equalisation costs and increased winter electricity tariffs. While July and
August 2013 production at Cooke 4 was similar to preceding months, the continued focus on improving
mining quality, combined with enhancements on the backfill plant at the operation, supported a 48%
month-on-month increase in production during September 2013 and these levels of production have been
sustained into the first half of October 2013.
In line with the Cooke Underground Operation’s co-product strategy to target the production of uranium to
both increase mining flexibility and reduce gold unit operating costs, the company spent a total of US$ 1.9
million during the quarter on the Cooke Underground Operation’s Uranium Project. This capital has
predominantly been spent on the opening up and equipping of underground gold and uranium mining areas
and, as a result, the Cooke 3 uranium section delivered its first production in October 2013 with additional
production from Cooke 4 anticipated in November 2013. The uranium extraction plant will be fully
commissioned in January 2014.
The Randfontein Surface Operation performed well with the September 2013 quarter’s production
amounting to 9,054 ounces; exceeding guidance for the quarter by 3%. During the quarter, production at the
Randfontein Surface Operation benefited from the successful commissioning of the hydraulic reclamation of
slimes. The introduction of the hydraulically reclaimed slime has resulted in a 5% increase in tonnes milled
from 860,272 tonnes to 907,211 tonnes. The recovered grade remained stable at 0.310 grams per tonne,
while metallurgical recoveries increased from 71% to 72%.
The September 2013 quarter saw the Randfontein Surface Operation report a positive cash contribution
before capital of US$ 1.0 million. During the quarter there was an overall reduction in cash cost from US$
1,174/oz to US$ 1,165/oz for the Randfontein Surface Operation largely as a result of the introduction of
lower cost hydraulically reclaimed tonnages into the plant. The reduced costs experienced to date from the
commissioning of the hydraulic reclamation production section, together with on-going cost reduction
initiatives, have provided confidence that the unit cost reduction forecast of some 40% will be realised as
tonnages ramp up from 300,000 tonnes per month to 400,000 tonnes per month following the full
commissioning of the Cooke Optimisation Project (“COP”), which is anticipated for the December 2013
quarter. The Department of Mineral Resources (“DMR”) recently approved the amendments to the
Environmental Management Plan (“EMP”) for the project.
Production from Modder East remained relatively constant quarter-on-quarter at 27,026 ounces. The Black
Reef underground recovered grade decreased from 4.32 grams per tonne to 3.60 grams per tonne. The
decrease in recovered grades, despite the near constant average broken grade, is expected to be of a
temporary nature and is covered in detail in the Modder East section of this report.
It is pleasing to report that the quarter under review was characterised by sustained operational
improvements at Modder East and higher than planned labour efficiencies following the successful
sustainable recruitment of critical skills. The secondary crushing plant, constructed to increase processing
capacity from 70,000 tonnes per month to 100,000 tonnes per month, continues to operate smoothly and
will accommodate the expected continued build up of ore from underground operations.
The September 2013 quarter saw the Modder East Operation generate a positive cash contribution before
capital of US$ 15.58 million. Cash operating cost increased marginally quarter-on-quarter from US$ 638/oz
to US$ 703/oz.
Gold One is continuing to progress its internal project pipeline. The company remains focused on ensuring
that its projects are prioritised according to those that maximise company value and, in particular, provide
short term operational flexibility during the current volatile gold price environment. The company has
continued its surface exploration drilling at both the Zuurbekom (down-dip extension to Cooke 1 Shaft) and
Modder North (adjacent to the Modder East Operation) projects. The drilling results from these projects will
be incorporated into updated mineral resource estimates to be completed during the December 2013
quarter. The feasibility study and detailed design of a Backfill Plant to be constructed at the Cooke 1-3
Underground Operation is due to be completed during the December 2013 quarter. This Backfill Plant is a
fundamental aspect of the company’s Pillar Extraction Project at the Cooke 1-3 Underground Operation and
is anticipated to increase mining flexibility. Finally, during the quarter under review, the pre-feasibility study
for the West Rand Tailings Retreatment Project (“WRTRP”) was completed. This project is assessing the
economic extraction of gold and uranium from the retreatment of historical and current tailings. A further
objective of the project remains the redeposition of the residues in accordance with modern sustainable
deposition practices.
The quarter under review also included some very successful corporate activity, the milestones of which
included:
- The signing of a two year wage agreement for the Cooke Underground and Randfontein Surface
Operations.
- The announcement of a planned merger of the Cooke Underground and Randfontein Surface
Operations into Sibanye Gold Limted (“Sibanye Gold”), for a 17% interest in Sibanye Gold.
- The Pamodzi East Rand Operations transaction going unconditional.
During the quarter a dispute was declared by the National Union of Mineworkers (“NUM”) at the
Commission for Conciliation, Mediation and Arbitration (“CCMA”) after the parties were unable to reach
agreement at the Chamber of Mines of South Africa’s gold sector wage negotiations. Four days of industrial
action at the Cooke 1, 2 and 3 shafts and Randfontein Surface Operation followed although the disruption
only negatively impacted the underground operations with an estimated resulting loss of production of
approximately 1,550 ounces. Following extensive negotiation, a two year wage agreement was signed with
NUM for the Cooke Underground and Randfontein Surface Operations. The wage agreement was concluded
peacefully and constructively and management looks forward to the Cooke Underground and Randfontein
Surface Operations’ uninterrupted focus on production.
On 21 August 2013 an exciting development in the evolution of the company was announced through the
planned merger of the Cooke Underground and Randfontein Surface Operations into Sibanye Gold for a 17%
interest in Sibanye Gold, making Gold One a potential strategic shareholder of Sibanye Gold. Gold One is to
merge its 74% shareholding in Rand Uranium – being the Cooke 1-3 Underground Operation and
Randfontein Surface Operation – and Ezulwini Mining Company Proprietary Limited (“Ezulwini”) – being the
Cooke 4 Underground Operation – in exchange for a 17% interest in the fully diluted share capital of Sibanye
Gold through the issue of new ordinary shares. In recognition of the strategic relationship established
through the proposed transaction, Gold One shall also be entitled to nominate three individuals for election
by the Sibanye Gold shareholders as directors of Sibanye Gold, to serve as non-executive directors on the
Sibanye Gold Board.
The integration of Gold One’s West Rand assets with Sibanye Gold will allow for regional operating synergies
to be realised in both the underground operation and the surface operation where the WRTRP joint
feasibility study is already underway. By obtaining a strategic stake in the equity of Sibanye Gold through a
relative valuation merger of the Rand Uranium and Ezulwini assets, Gold One will acquire a stable dividend
stream from the combined Sibanye Gold operations and retain exposure to the Rand Uranium and Ezulwini
assets’ growth values.
Following extensive time and effort invested over the past 18 months, the Pamodzi East Rand Operation’s
acquisition agreement announced by Gold One and its subsidiary Goliath Gold Mining Limited (“Goliath
Gold”), in which Gold One holds a 72% controlling interest, went unconditional following the granting of the
third and final prospecting right pertaining to the acquisition agreement to purchase the underground
deposits and selected surface assets of Pamodzi Gold East Rand Proprietary Limited (“Pamodzi”). The final
payment of US$ 6.3 million is expected to be made during the December 2013 quarter once transfer of the
surface rights acquired by Gold One is completed. The greater East Rand Basin has been largely devoid of
any systematic exploration programmes over the past few decades. Gold One and Goliath Gold’s current
exploration activities at their respective Modder North and Megamine projects have demonstrated the
prospective nature of the unmined East Rand deposits. With the closing of the transaction Gold One is now
able to embark on exploring and delineating the down-dip Kimberley Reef extension to Modder East, which
has the potential to increase Modder East’s current mine life of 10 years. This area can potentially be
accessed utilising Modder East’s existing infrastructure and remains disconnected from the flooded historical
mine voids.
5|Page
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 September 2013 quarter increased to US$ 91.4 million from the sale of 69,486
ounces at an average achieved price of US$ 1,315/oz. This is compared to group gold revenue for the June
2013 quarter of US$ 79.8 million from the sale of 65,362 ounces at an average price of US$ 1,221/oz. The
increase in revenue was attributed to the improvement in production from the Cooke Underground and
Randfontein Surface Operations and a higher effective average gold price of US$ 1,315/oz for the quarter.
During the quarter, the group delivered 6,602 ounces into the Rand Uranium hedge. The balance of ounces
remaining outstanding on this hedge at 30 September 2013 amounted to 4,065 ounces. This hedge will be
fully delivered into by 31 December 2013.
Payments to operating suppliers and employees totalled US$ 74.9 million for the quarter, resulting in an
operating cashflow of US$ 16.5 million for the group.
Group development and capital expenditure totalled US$ 20.2 million, which includes US$ 6.5 million at the
Randfontein Surface Operation in relation to COP, which will increase throughput capacity from 300,000 to
400,000 tonnes per month and is forecast to reduce unit costs by some 40%. This capital expenditure
programme is largely completed and will reduce as the plant is commissioned during the December 2013
quarter, before the anticipated closing of the proposed transaction with Sibanye Gold.
Included in the US$ 20.2 million for development and capital expenditure was US$ 2.6 million spent on
exploration projects and expansion projects at Cooke. This expenditure included the Uranium Project at US$
1.9 million, the Zuurbekom Project at US$ 0.4 million and the Backfill Pillar Project at US$ 0.2 million. Other
project expenditure totalled US$ 0.1 million.
Gold One ended the quarter under review with a cash balance of US$ 28.6 million (including restricted cash
of US$ 7.8 million) and excluding gold receivables amounting to US$ 8.9 million. This compares to a cash
6|Page
balance of US$ 28.0 million (including restricted cash of US$ 19.5 million) and gold receivables of US$ 10.2
million at the end of the June 2013 quarter. The marginal increase in the cash balance is despite the interest
and capital repayment of US$ 10.1 million made on the Gold One Group’s loans during July 2013.
Final payment for the acquisition of the Pamodzi East Rand Operations assets (described in the Group
Development Section of this quarterly report) will be upon transfer of the properties to Gold One, which is
expected during the December 2013 quarter. The outstanding payment amounts to US$ 6.3 million (ZAR 63
million), of which US$ 5.9 million (ZAR 58.5 million) is payable by Gold One and the balance by Goliath Gold.
At 30 September 2013 the debt position of the group was US$ 218.2 million (principal amount of US$ 207.0
million and interest of US$ 11.2 million). This debt comprises shareholder loans received amounting to US$
167.1 million with the remaining balance on the Investec Bank Limited term facility amounting to US$ 51.1
million. As part of the planned merge of the Cooke Underground and Randfontein Surface Operations into
Sibanye Gold, the latter will assume debt of US$ 61.2 million from Gold One.
Cashflows for the quarter were abnormally impacted by hedge pricing and in particular the inherited Rand
Uranium hedge and the strike action that impacted on the Cooke Underground and Randfontein Surface
Operations. Capital expenditure on expansion projects for the quarter is also deemed to have been
abnormal and therefore, in order to show normalised cashflows, (excluding the abnormalities discussed
above) the following table is presented.
Modder Cooke 1-3 Cooke 4 Randfontein Total
Cashflow
East Underground Underground Surface September
Assumptions
Operation Operation Operation Operation 2013 Quarter 1
Ounces Produced 27 026 oz 28 618 oz 2 8 592 oz 9 054 oz 73 290 oz
Average Gold Price 3 US$ 1 333/oz
Cooke 1-3 Cooke 4 Randfontein Total
Modder East
Cashflow Underground Underground Surface September
Operation
(Unaudited) Operation Operation Operation 2013 Quarter
(US$ Million)
(US$ Million) (US$ Million) (US$ Million) (US$ Million)
Gold Revenue 36.03 38.15 10.89 4 12.07 97.13
Payment to
Operating (19.00) (27.29) (18.08) (10.55) (74.92)
Suppliers and
Employees
Operating 17.03 10.86 (7.19) 1.52 22.21
Cashflow
Development
and Capital (5.69) (3.16) (2.31) (0.05) (11.21)
Expenditure 5
Other Non-
Production (1.98) (0.25) 0.10 (0.06) (2.19)
Costs/Income 6
7|Page
Cashflow from 9.36 7.45 (9.40) 1.41 8.81
Operations
Notes:
1.
The ‘Total September 2013 Quarter’ column represents mining operations only.
2.
Production includes an estimated 1,550 ounces lost due to strike action at Cooke 1-3.
3.
Effective spot price achieved for gold sold during the quarter.
4.
Includes 598 ounces delivered into the Franco Nevada hedge inherited as part of the acquisition of Ezulwini Mining Company.
5.
Excludes capital for exploration and expansion projects including the Uranium Project, Zuurbekom Project, the Backfill Pillar
Project and COP.
6.
Other non-production costs and income represent general, administrative and exploration costs.
3. Group Operational Review
September 2013 June 2013
Variance
Quarter Actual Quarter Actual
Gold One Group 71 740 oz 68 208 oz 3 532 oz 5.2%
September 2013 September 2013
Variance
Quarter Actual Quarter Guidance
Modder East Operation 27 026 oz 32 250 oz -5 224 oz -16.2 %
Cooke Underground Operation 35 660 oz 34 000 oz 1 660 oz 4.9 %
Randfontein Surface Operation 9 054 oz 8 750 oz 304 oz 3.5 %
Total 71 740 oz 75 000 oz -3 260 oz -4.3 %
3.1. Cooke Underground Operation
On 21 August 2013 Ms Maria Mathuloe, a miner, was fatally injured while destroying old explosives at the
Cooke 3 Operation. As a precautionary measure the company immediately issued an instruction to suspend
all blasting operations. A full investigation was conducted by the DMR and its findings will be made public
upon completion of the enquiry, scheduled for late October 2013.
The Cooke Underground Operations’ management team extends its heartfelt condolences to the family,
friends and colleagues of the late Ms Mathuloe.
The Cooke Underground Operation’s progressive LTIFR for the quarter was 1.77. Mass inspections were
conducted by the DMR during the quarter with special emphasis on explosives control. No significant non-
conformities were identified during these audits.
September
September 2013 September 2013
2013 June 2013
Quarter Quarter
Quarter Quarter
(Cooke1-3) (Cooke 4)
(Cooke 1-4)
Ore Mined Underground 196 142 t 81 730 t 277 872 t 291 843 t
Mined Grade 5.23 g/t 4.51g/t 5.02 g/t 4.95 g/t
Milled Tonnes 199 787 t 82 031 t 281 818 t 288 553 t
Recovered Grade 4.21 g/t 3.26 g/t 3.94 g/t 3.42 g/t
Gold Recovery 96% 96% 96% 95%
Gold Produced 27 068 oz 8 592 oz 35 660 oz 31 760 oz
8|Page
Cash Operating Cost 1 US$ 1 008/oz US$ 2 104/oz US$ 1 272/oz US$ 1 421/oz
Total Cost 2 US$ 1 229/oz US$ 2 845/oz US$ 1 618/oz US$ 1 615/oz
Average Gold Price Received US$ 1 365/oz US$ 1 295/oz US$ 1 347/oz US$ 1 251/oz
Gross Cash Margin US$ 357/oz US$ (809)/oz US$ 75/oz US$ (170)/oz
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.
Gold production for the September 2013 quarter amounted to a record 35,660 ounces; a 12% quarter-on-
quarter improvement and 5% above the guidance of 34,000 ounces. For the year to date the Cooke
Underground Operation has produced 1,204 ounces in excess of the respective period’s guidance forecast of
96,000 ounces. The September 2013 quarter’s production was produced from 281,818 tonnes milled at a
record average recovered grade of 3.94 grams per tonne, being 16% above the average recovered grade
achieved since the acquisition of the operation.
Cooke 1-3 Underground Operation
Despite a three day production loss amounting to some 1,550 ounces following strike action at the Cooke
1-3 Underground Operation, the operation produced a record 27,068 ounces reflecting a 15% quarter-on-
quarter improvement. This increase in production, combined with a continued focus on quality mining and
the realisation of cost enhancements associated with the turnaround strategy at the operation, has
facilitated a significant quarter-on-quarter decrease in unit operating costs.
Year to Date 30
Cooke 1-3 Underground March 2013 June 2013 September 2013
September
Operation Quarter Quarter Quarter
2013
Mined Grade 5.18 g/t 4.93 g/t 5.23 g/t 5.11 g/t
Milled Tonnes 186 997 t 205 254 t 199 787 t 592 038 t
Recovered Grade 3.68 g/t 3.58 g/t 4.21 g/t 3.82 g/t
Gold Produced 22 095 oz 23 601 oz 27 068 oz 72 764 oz
Cash Operating Cost 1 US$ 1 310/oz US$ 1 288/oz US$ 1 008/oz US$ 1 191/oz
Cash Operating Cost incl.
US$ 1 498/oz US$ 1 555/oz US$ 1 118/oz US$ 1 378/oz
Sustaining Capital 2
Notes:
1.
Cash operating cost refers to all costs directly associated with mining activities, mine administration, processing and refining.
2.
Excludes exploration and project capital.
Schematics:Cooke 1-3 Underground Quarterly Tonnage Profile Grade and Recovered Grade and Querterly Production and cash Cost
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
The 3,467 ounce increase in gold production over the quarter under review can be largely ascribed to an
increased yield over the quarter of 18% from 3.58 grams per tonne to 4.21 grams per tonne. Milled tonnes
were only marginally lower than the previous quarter’s despite the strike action following a dispute declared
by NUM at the CCMA after the parties were not able to reach agreement at the Chamber of Mines. Four
days were lost at the three shafts and five days were lost at the Doornkop Plant, where the ore from Cooke
1-3 is treated.
The improved recovered grades can be attributed to both a continued focus on quality mining operations
(Cooke 1-3 recorded a 10% increase in the mine call factor up to 86% for the quarter) as well as the
implementation of a secondary extraction method. The extraction method utilises a new support innovation
known as Castle Packs for hanging wall support that allows for the safe extraction of selected higher grade
pillars. Following the success of secondary extraction, initially trialled at Cooke 2, labour capacity was
increased in order to equip new high grade sections in previously abandoned mining areas at Cooke 2 and is
currently being rolled out at Cooke 3. Cooke 2 mined 152 metres face length of secondary extraction mining
during the September 2013 quarter and expects to mine 184 metres in the December 2013 quarter. During
the quarter under review, the tonnage generated by this method at Cooke 2 was 5,924 tonnes at an average
grade of 8.20 grams per tonne. Cooke 3 is still ramping up the secondary extraction areas and mined 30
metres of face length, generating 330 tonnes at a grade of approximately 6.00 grams per tonne. This will
increase to 100 metres during the December 2013 quarter.
Schematics:Cooke 1-3 Quarterly Mine Call Factor
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
At Cooke 1-3, gold from vamping increased by 15% from 3,643 ounces for the June 2013 quarter to 4,176
ounces for the September 2013 quarter. Vamping tonnes and grade increased from 30,427 tonnes at 3.72
grams per tonne for the June 2013 quarter, to 32,133 tonnes at 4.04 grams per tonne for the quarter under
review.
The Cooke Underground Operation’s Uranium Project is expected to present significant upside to the
operation by increasing reserves and mining flexibility, as well as reducing unit operating costs. At Cooke 3
five underground areas are currently being equipped to support a build up in production from the shaft. The
first panel is currently being stoped and ore from this panel is being stockpiled on surface with the
anticipation of 4,500 tonnes of ore being stockpiled by the end of the December 2013 quarter to support the
commissioning of the Cooke 4 Uranium Plant in January 2014.
For the quarter under review, a unit cash cost of US$ 1,008/oz was achieved across the Cooke 1-3
Underground Operation. The most significant contributing factor to the reduction in unit cost has been the
18% improvement in grade and the resulting increase in production of 3,467 ounces. In addition, the unit
cost per tonne mined also decreased to ZAR 1,373/t (US$ 138/t) from ZAR 1,460/t (US$ 154/t). This cost
reduction was achieved despite an approximate 45% increase in winter electricity tariffs and payroll
increases (wages increased by 8% for Category 3 and 4 employees and rock drill operators and 7.5% for all
other employees, effective 1 July 2013). Effective cost management on consumables resulted in a further 6%
reduction in the US dollar operating cost per ounce in the September 2013 quarter. The effect of these
stringent cost control measures since the acquisition of the operation can be seen in the graph below.
Schematics:Cooke 1-3 Querterly Cost Trends
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
11 | P a g e
Notes:
1.
Cash operating cost reflects cost of sales excluding depreciation and royalty tax. By implication it excludes any
corporate, exploration and non-operational costs, but includes Social and Labour Plan costs as part of normal operating
costs.
2.
Total costs include sustaining capital costs and cash operating costs as per above.
Tonnage for the quarter from the Cooke 1-3 shafts was treated at the Harmony Gold Doornkop Plant, Gold
One’s Cooke Gold Plant and Gold One’s Cooke 4 Gold Plant. A total of 195,306 tonnes was treated at the
Doornkop Plant, yielding 26,331 ounces of gold at a recovered grade of 4.19 grams per tonne. Residue
grades from the Doornkop Plant over the quarter increased in line with expectation from 0.177 grams per
tonne to 0.197 grams per tonne as a result of increasing head grade. The total Cooke 1-3 tonnage from
underground ore treated at the Cooke Gold Plant for the quarter was 4,461 tonnes, which produced 514
ounces at an average recovered grade of 3.59 grams per tonne. The total Cooke 1-3 tonnage from
underground ore treated at the Cooke 4 Gold Plant for the quarter was 22 tonnes, which produced 222
ounces at an average recovered grade of 331.94 grams per tonne.
Cooke 4 Underground Operation
Cooke 4 is nine months into its planned turnaround strategy and although marginal quarter-on-quarter
improvements were initially achieved, a substantial increase in production was realised during September
2013 and is continuing into October 2013. This has largely been the result of increased placement of backfill
and a focus on quality mining in higher grade areas. This resulted in a 13% improvement in the mine call
factor for the operation to 74% for the quarter.
Cooke 4
Jan Feb Mar Apr May Jun Jul Aug Sep
Underground
2013 2013 2013 2013 2013 2013 2013 2013 2013
Operation
Mined Grade (g/t) 5.07 5.36 5.08 5.43 4.95 4.68 4.00 4.70 4.81
Milled Tonnes (t) 25 592 21 865 23 137 26 121 28 778 28 400 29 963 21 991 30 077
Recovered Grade
3.77 3.48 2.87 3.01 3.19 2.93 2.65 3.45 3.72
(g/t)
Gold Produced (oz) 3 105 2 449 2 135 2 531 2 955 2 673 2 552 2 440 3 600
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Cash Operating Cost
1 1 416 2 400 1 880 2 372 1 633 1 490 2 787 2 457 1 531
(US$/oz)
Cash Operating Cost
incl. Sustaining 1 475 2 444 2 013 2 424 1 806 1 881 2 962 2 782 1 678
2
Capital (US$/oz)
Notes:
1.
Cash operating cost refers to all costs directly associated with mining activities, mine administration,
processing and refining.
2.
Excludes exploration and project capital.
Schematics:Cooke 4 Underground Quarterly Tonnage Profile Grade and Recovered Grade and Querterly Production and cash Cost
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Ounces Cash Cost
Although the operation recorded a 5% increase in gold produced for the quarter, this increase was largely
due to the increased production during the September month. Production in this month amounted to 3,600
ounces; 38% higher than the average monthly production achieved during the rest of 2013. This has been
maintained during October 2013.
One of the first objectives of the Cooke 4 turnaround programme is to ensure profitability at the operation
after operating and capital costs. Current operating and capital costs at Cooke 4 are approximately ZAR 64
million per month (approximately US$ 6.4 million per month). At current gold prices of approximately ZAR
400,000/kg this equates to 160 kilograms per month or some 5 kilograms per day in order to cover those
costs. Average daily production over the past five weeks has amounted to 4.8 kilograms per day.
Schematics:Cooke 4 Break-Even Gold Production
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
13 | P a g e
Due to the high fixed cost base at Cooke 4, largely associated with water pumping activities, future unit cost
decreases are anticipated to come from increased mining volumes from both areas currently being mined
and from co-product areas that contain both gold and uranium ores.
Cooke 4 will mine uranium from three areas to the north and the south of the shaft pillar. Thus far, 2,100
metres of haulages has been re-equipped in preparation for mining. The planned production build up, due to
commence in January 2014, will be from the current six panels to 15 panels by the end of the 2014 year.
Final commissioning of the existing uranium extraction facility is expected mid-January 2014.
In addition to the uranium co-product upside, the placement of backfill is a key aspect to increasing
production at Cooke 4. A ZAR 3 million capital programme has been undertaken on improvements and
enhancements to the Backfill Plant and placement process. This has supported record backfill placements
since June 2013 and to date an increase in backfill placement from 1,009 m³ per month to approximately
8,000 m³ per month has been achieved. The monthly placement of 8,000 m³ per month is required to
enhance current production and provide immediate secondary extraction opportunities.
Schematics:Cooke 1-3 Monthly Backfill Usage
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Jul-13
Sep-13
Total development for the September 2013 quarter was 5,536 metres compared to the previous quarter’s
5,460 metres. Reef metres rose 12% over the quarter to 3,029 metres, generating 793 metres of pay face
length with a further 876 metres expected in the last quarter of this year.
For the quarter under review a unit cash cost of US$ 2,104/oz was achieved across the Cooke 4 Underground
Operation compared to US$ 1,805/oz in the June 2013 quarter. This increase resulted largely from the
impact of the wage equalisation of the Cooke 4 employees to the Chamber of Mines recognised rates
following a Memorandum of Agreement entered into by Gold One with NUM and the Congress of South
African Trade Unions (“COSATU”) in November 2012. This equalisation resulted in an approximate wage
increase of 34% with a further 7.5-8% wage increase as per the two year wage agreement signed with NUM
for the Cooke Underground and Randfontein Surface Operations in September 2013, effective from 1 July
2013. The increase in labour cost equates to US$ 0.7 million per month. The electricity tariffs are
approximately 45% higher during winter and also had a negative impact on costs, effectively increasing costs
by US$ 0.2 million per month. Other cost increases amounted to US$ 0.1 million per month. Various cost
control measures, including stringent stores control implemented as part of the turnaround strategy,
resulted in savings of US$ 0.2 million per month and limited the monthly cost increase to US$ 0.8 million
during the quarter. With planned increases in production volumes, unit costs are expected to decrease in
the December 2013 quarter.
Cooke 4 tonnage for the quarter was treated through the Cooke 4 Gold Plant and amounted to 82,031
treated tonnes, which yielded 8,592 ounces of gold from a recovered grade of 3.26 grams per tonne.
Recovery at the Cooke 4 Gold Plant was in line with the previous quarter at 96%.
Development and Exploration Projects
Zuurbekom Project
The Zuurbekom exploration project, adjacent to the Cooke 1 and 2 shafts of the Cooke Underground
Operation, comprises an area of 6,843 hectares and is being explored for potential down-dip extensions to
the higher grade UE1A Reef that has been the primary orebody of the Cooke shafts in the past.
15 | P a g e
Borehole positions for the current exploration programme are shown in green in Figure 3.1 below, and have
been positioned to explore for an extension to the primary Cooke 1 payshoot. Previous mining stopped on
the mine lease boundary.
Figure 3.1 Cooke 1 Zuurbekom Potential Payshoot
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
To date eight of the nine planned exploration holes and 24 deflections have been drilled since the start of
the campaign in May 2013. The last hole is currently being drilled and is expected to be completed during
the December 2013 quarter.
The assay results that have been reported to date are detailed in the following table.
16 | P a g e
Zuurbekom North east exploration campaign FY 2013 (end Sept 2013)
Channel Au g/t over U3O8
HOLE No REEF DEPTH Au cmg/t COMMENT
width cm channel width cmkg/t
ZBK-01d0 UE1a/E9 794.0 492 0.33 160.2 0.028
ZBK-01d1 UE1a/E9 794.3 271 0.52 142.1 0.061 Expl ora ti on hol e a nd defl ecti ons s i tua ted north of pa y-
ZBK-01d2 UE1a/E9 794.1 182 1.60 290.2 0.109 s hoot. Hi gh cha nnel wi dth va ri a ti on.
ZBK-01d3 UE1a/E9 793.8 246 0.59 144.8 0.091
ZBK-02d0 UE1a/E9 798.6 256 0.80 204.8 0.079
ZBK-02d1 UE1a/E9 798.7 159 0.74 117.5 0.120 Expl ora ti on hol e a nd defl ecti ons s i tua ted s outh of pa y-
ZBK-02d2 UE1a/E9 798.5 278 0.17 47.0 0.068 s hoot. Hi gh cha nnel wi dth va ri a ti on.
ZBK-02d3 UE1a/E9 798.5 144 0.36 51.3 0.089
ZBK-04ad0 UE1a/E9 886.1 262 0.38 99.3 0.080
ZBK-04ad1 UE1a/E9 886.8 260 0.51 132.2 0.070 North ea s t of pa y-s hoot, l ow gra de zone, l es s cha nnel
ZBK-04ad2 UE1a/E9 886.3 297 0.15 44.6 0.042 va ri a ti on tha n hol es 1 a nd 2.
ZBK-04ad3 UE1a/E9 886.4 269 0.30 81.6 0.093
ZBK-05d0 UE1a/E9 986.5 251 2.76 693.2 0.144
On s outh ea s tern ma rgi n of pa y-s hoot, mi ni ng gra de ca n
ZBK-05d1 UE1a/E9 986.6 203 4.19 869.2 0.169
be i mproved wi th s el ecti ve cut. Sel ecti ve cut cha nnel
ZBK-05d2 UE1a/E9 986.5 182 4.34 788.6 0.225 107cm, cha nnel va l ue 6.15 g/t.
ZBK-05d3 UE1a/E9 986.0 192 4.14 796.2 0.208
ZBK-06d0 UE1a/E9 859.3 135 4.27 575.4 0.209
Zone proxi ma l to Cooke 1 ea s tern bounda ry, mi ni ng gra de
ZBK-06d1 UE1a/E9 859.6 125 4.04 507.5 0.209
ca n be i mproved by mi ni ng s el ecti ve cut cha nnel wi dth of
ZBK-06d2 UE1a/E9 859.3 132 3.66 481.7 0.256 100 cm, cha nnel va l ue of 5.52 g/t.
ZBK-06d3 UE1a/E9 859.8 112 2.70 303.3 0.238
ZBK-07d0 UE1a/E9 746.4 270 2.06 558.5 0.107
Zone proxi ma l to Cooke 1 Ea s tern bounda ry, mi ni ng gra de
ZBK-07d1 UE1a/E9 746.4 227 1.76 400.4 0.244
ca n be i mproved by mi ni ng s el ecti ve cut cha nnel wi dth of
ZBK-07d2 UE1a/E9 746.6 265 1.42 376.6 0.197 103cm, cha nnel va l ue 5.34 g/t
ZBK-07d3 UE1a/E9 746.7 258 1.43 368.6 0.181
ZBK-08ad0 UE1a/E9 754.8 222 0.70 156.0 0.109
ZBK-08ad1 UE1a/E9 754.7 220 0.74 162.2 0.111
Va ri a bl e gra des i n thi s zone.
ZBK-08ad2 UE1a/E9 754.4 212 2.09 442.7 0.085
ZBK-08ad3 UE1a/E9 754.7 221 6.42 1419.9 0.100
ZBK-09d2 UE1a/E9 835.2 193 6.48 1250.6 0.126
ZBK-09d3 UE1a/E9 835.1 211 4.64 980.8 0.112 Va ri a bl e gra des i n thi s zone. Mother hol e i nters ected
1 dyke. Defl ecti on 1 di d not i nters ect reef, defl ecti ons 2 to 5
Channel thickness represents the true, dip corrected thickness of the reef.
2 i nters ected reef. Sel ecti ve cut cha nnel 193 cm,cha nnel
Represents the average grade over the true thickness of the total reef, calculated using a weighted average of assayed grade from
gra de 6.48 g/t.
individual samples over the total channel thickness.
3
Channel widths are variable with narrow channel UE1A conglomerate above wider E9EC conglomerates.
4
Channel width used is a combination of the full width of the UE1A Reef present together with a portion of the E9 package below.
5
The dip used in the area calculations is an average of three to five measurements from within the reef package.
6
Minor loss of mineralised carbonaceous material during the drilling process is considered possible due to core breakage in the core
barrel.
The comprehensive assay results will be published in the December 2013 quarter following receipt and
analysis of the final assays and will be utilised for the updated annual mineral resource estimate.
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 can be selectively extracted
at higher margins due to above average reserve grades and existing haulage infrastructure, and will
positively impact on overall mine profitability and mining flexibility.
A new backfill plant will facilitate secondary reef mining and pillar extraction opportunities at Cooke 2
initially and may be expanded to Cooke 3 in future.
The environmental process that supports the building of the Backfill Plant has progressed according to plan.
The Environmental Impact Assessment and EMP required in terms of National Environmental Management
Act and Mineral Petroleum and Resources Development Act have been submitted to the authorities for
17 | P a g e
review. The water use licence application has been submitted to the Department of Water Affairs. The
environmental authorisation is expected by the end of January 2014.
The Backfill Plant optimised process flow diagram and final detailed plant design will be completed and
approved during the December 2013 quarter, following which long lead construction items will placed,
enabling construction to commence during the March 2014 quarter.
3.2. Randfontein Surface Operation
September 2013 June 2013
Quarter Quarter
Reclaimed Grade 0.431 g/t 0.442 g/t
Milled Tonnes 907 211 t 860 272 t
Recovered Grade 0.310 g/t 0.313 g/t
Residue Grade 0.121 g/t 0.129 g/t
Gold Recovery 72% 71%
Gold Produced 9 054 oz 8 662 oz
Cash Operating Cost 1 US$ 1 165 /oz US$ 1 174 /oz
Total Cost 2 US$ 1 255/oz US$ 1 270/oz
Average Gold Price Received US$ 1 361/oz US$ 1 272/oz
Gross Cash Margin US$ 196/oz US$ 98/oz
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.
Schematics: Randfontein Surface Tonnage Profile Grade and Recovered Grade and Surface Querterly 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 September 2013 quarter the Randfontein Surface Operation’s progressive LTIFR for the
2013 year was 0.12; a substantial improvement on the operation’s 2012 LTIFR of 1.08. There were no lost-
time injuries reported during the September 2013 quarter. This compares favorably to the LTIFR of 0.41 that
was achieved for the June 2013 quarter where one lost-time injury was recorded.
Total volumes treated increased quarter-on-quarter by 5% with 907,211 tonnes treated from surface
sources; an increase of 46,939 tonnes when compared to the June 2013 quarter. Importantly, hydraulic
reclamation of slimes commenced during the quarter under review with a total of 154,927 tonnes being
hydraulically reclaimed, representing some 17% of the Cooke Gold Plant feed for the quarter. This
development is significant in that it proves the concept on which COP is premised.
The average head grade for the quarter decreased marginally from 0.442 grams per tonne in the June 2013
quarter to 0.431 grams per tonne. The July and August 2013 head grades averaged 0.416 grams per tonne
primarily as a result of lower grades from the periphery of the Dump 20 sand dump. The September 2013
head grade, however, increased to 0.461 grams per tonne due to higher slimes grades and reclamation of
remnant high grade sand from Dump 20. The residue grade decreased from 0.129 grams per tonne for the
June 2013 quarter to 0.121 grams per tonne for the September quarter, resulting in improved overall
recovery of 72% for a yield of 0.310 grams per tonne compared to the previous quarter’s 71% for a yield of
0.313 grams per tonne.
The Cooke Gold Plant produced a total of 9,568 ounces, of which 9,054 ounces were attributable to the
Randfontein Surface Operation and were produced from the mechanically reclaimed sand and hydraulically
reclaimed slime materials. Despite the marginal reduction in head grade, gold production for the quarter
increased by 4.5% compared to the previous quarter principally as a result of the higher reclaimed and
treated tonnages and improved overall recovery.
The Randfontein Surface Operation’s unit cash operating cost marginally decreased to US$ 1,165/oz for the
September 2013 quarter from US$ 1,174/oz for the June 2013 quarter. This decrease is particularly pleasing
considering that quarterly costs included the annual union labour increase of 7.5-8% from July 2013 and a
45% increase in electricity expenditure for the quarter due to higher winter tariffs for July to mid-September
2013. Notwithstanding the higher electricity tariffs, electricity usage decreased quarter-on-quarter due to
the reduced milling requirement for the slime material. Furthermore, a reduction in reagent and milling cost
quarter-on-quarter was realised principally as a result of the slimes feed to the plant. The reduced costs
experienced to date from the commissioning of the hydraulic reclamation production section together with
ongoing cost reduction initiatives underpin the forecast unit cost reduction of around 40%, which will be
realised following the full commissioning of COP.
Development and Exploration Projects
Cooke Optimisation Project
During the December 2013 quarter the operation will focus on the full commissioning of the ZAR 230 million
COP which is planned for completion by the end of November 2013. Upon the commissioning of the
upgraded Cooke Gold Plant operations to 400,000 tonnes per month from the current 300,000 tonnes per
month, mechanical sand reclamation will cease together with deposition onto the Cooke Tailings Dam. The
residue from the hydraulically reclaimed slime will be deposited into various open pits for which approval for
the amendment to the EMP was recently awarded by the DMR.
The EMP approval was conditional on the provision of the necessary closure guarantees, which have
subsequently been provided. Residue disposal to the open pits is conditional upon Rand Uranium obtaining a
water use licence from the Department of Water Affairs. Notwithstanding the imminent commencement of
19 | P a g e
deposition into the pits in November 2013 and the commissioning of the Cooke Gold Plant upgrade to
400,000 tonnes per month, current levels of production at 300,000 tonnes per month can be sustained until
April 2014 if required, utilising the Cooke Tailings Dam as the deposition site.
The total project capital cost is estimated to be US$ 24.3 million (ZAR 230 million), of which US$ 16.6 million
(ZAR 165.2 million) had been incurred as at the end of the quarter under review.
West Rand Tailings Retreatment Project
The pre-feasibility study for the WRTRP with Sibanye Gold was concluded during the quarter under review.
The pre-feasibility study demonstrated that there is an opportunity to extract significant value from both
parties’ combined mineral resource’s and to extract approximately three million ounces of gold and
approximately 50 million pounds of uranium over a 30 year life from the retreatment of current and historic
tailings. There is also an opportunity to get into business early by utilising existing surface infrastructure and
spare capacity at existing plants.
The pre-feasibility study evaluated:
- The utilisation of existing surface and underground infrastructure
- Existing and proven metallurgical process designs
- The strategic phasing of capital
- The optimal scheduling of the available resource mix.
The pre-feasibility study outcome will be delivered during the December 2013 quarter.
3.3. Modder East Operation
September 2013 June 2013
Modder East Operation
Quarter Quarter
Ore Mined Underground 245 804 t 205 458 t
Mined Grade 5.03 g/t 5.01 g/t
Milled Tonnes (Black Reef) 233 740 t 199 924 t
Recovered Grade 3.60g/t 4.32g/t
Gold Recovery 93% 94%
Gold Produced 27 026 oz 27 786 oz
Cash Operating Cost 1 US$ 703/oz US$ 638/oz
Total Cost 2 US$ 870/oz US$ 809/oz
Average Gold Price Received US$ 1 262/oz US$ 1 134/oz
Gross Cash Margin US$ 559/oz US$ 496/oz
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.
Modder East’s progressive LTIFR for the year as at the end of the September 2013 quarter amounted to
0.32. The LTIFR for the September 2013 quarter alone was 0.42. This compares to the June 2013 quarter
LTIFR of 0.16.
20 | P a g e
Modder East delivered a record for tonnes broken during the quarter of 245,804 tonnes. These tonnes were
mined underground at near constant broken grades of just above 5 grams per tonne. The significant increase
in ore mined underground is the result of the continued emphasis on recruiting and training of underground
labour. Accordingly, employee numbers increased by a net 93 employees, most of which have been
deployed in underground rock breaking positions.
As a result of this increase in rock breaking teams, square metres mined increased quarter-on-quarter by
just over 10,000 square metres, or 21%, to 57,456 square metres for the quarter under review. Of the
245,804 tonnes of reef mined during the September 2013 quarter, 235,457 tonnes of Black Reef were mined
at an average grade of 5.11 grams per tonne, of which 213,601 tonnes were attributable to stoping
production at an average grade of 5.44 grams per tonne and 21,856 tonnes were attributable to trackless
reef development tonnes at 1.88 grams per tonne grams per tonne. The balance of the tonnage, being
10,347 tonnes at an average grade of 3.27 grams per tonne, was attributed to development and ledging on
the UK9A Kimberley Reef horizon.
During the quarter under review, the logistics system was tested at these new levels of significantly
increased daily volumes and proved that sustainable operation at these levels and above is indeed possible.
This is particularly pleasing given that the life of mine design parameters are very close to these achieved
levels. As a result of the increased utilisation of resources, equipment availability was affected through
additional downtime for scheduled maintenance, preventing, in the interim, even higher levels of output.
The mining mix delivered to the metallurgical facility was sub-optimal due to not all broken tonnes being
hauled to surface and the marginal reduction in recoveries from 94.2% in the June 2013 quarter, to 92.6% in
the September 2013 quarter. This resulted in a decrease of recovered grades to 3.60 grams per tonne.
Total on-reef development for the September 2013 quarter was 448 metres, compared to the June 2013
quarter’s 483 metres. The shortfall of 150 metres against the steady state target of 600 metres per quarter,
which was expected to be achieved in the September 2013 quarter, was a result of the lower than budgeted
equipment availability.
Mechanised off-reef development remained steady at 627 metres during the September 2013 quarter, short
of the planned level of 900 metres per quarter. The achievement of steady state mechanised development
targets, both on- and off-reef, remains a business imperative. To this end, unabated management focus has
been applied to ensure an improvement in equipment availability and utilisation. Total trackless
development for the quarter under review amounted to 987 metres compared to the previous quarter’s
1,085 metres.
At the end of the September 2013 quarter, 411,348 square metres were available for mining, compared to
434,568 square metres at the end of the June 2013 quarter. This translates to approximately two years of
mining at current and planned production rates.
Schematics:Modder East Milled Tonnage Profile Grade and Recovered Grade and Querterly Production and cash Cost
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
The combined effect of higher throughput at lower recovered grades resulted in a relatively flat quarter-on-
quarter gold production output of 27,026 ounces for the quarter against a forecast of 32,250 ounces.
The operational team is committed to reversing this trend through continuous improvement in planned
maintenance systems and the introduction of an underground vehicle tracking system, which will improve
the availability and utilisation of mechanical units while also further improving daily rock breaking output
through continued focus on recruitment and training.
Cash operating costs for Modder East increased quarter-on-quarter from US$ 638/oz to US$ 703/oz. This
increase in unit costs was primarily due to an increase in total cost as a result of the substantial increase in
rock production and tonnes treated quarter-on-quarter, with a relatively flat quarter-on-quarter ounce
profile. Unit costs measured on a South African Rand per reef tonne treated basis decreased from ZAR 815 in
the June 2013 quarter to ZAR 773 in the September 2013 quarter.
For the quarter under review 233,740 tonnes were treated at the Modder East Metallurgical Plant, reflecting
a 17% increase on the 199,924 treated during the June 2013 quarter. Tonnes treated consisted of Black Reef
only, with ore from UK9A Reef development and preliminary stoping operations stockpiled for treatment
during the December 2013 quarter. A total of 11,514 tonnes of UK9A Reef at a grade of 2.92 grams per
tonne, along with 9,989 tonnes of Black Reef trackless development ore at a grade of 1.95 grams per tonne,
was stockpiled.
Management focus for the December 2013 quarter will be directed at achieving two key objectives:
- The final step change in daily volumes of rock broken and delivered to surface, to achieve designed
levels of output of 120,000 tonnes per month.
- Sustained high levels of development output, required to expose the orebody to the higher grade
eastern and western sections. This is consistent with the shoreline orebody model upon which the
original mine design was based.
Sustained high levels of equipment availability are critical to the achievement of these two objectives and, as
such, will receive the necessary management attention and allocation of both human and financial
resources.
Development and Exploration Projects
Modder North
The Modder North pre-feasibility study progressed well during the quarter and primarily evaluated various
access options to the orebody, including twin-haulage options directly from strategic points in the current
Modder East underground operations and decline access from surface in the vicinity of Modder North.
Environmental and depositional considerations and estimated capital, as determined by the potential size of
the resource and associate mining rates, have indicated that the ore from Modder North would be
insufficient to warrant a stand-alone metallurgical plant. It is therefore envisaged that ore from the Modder
North complex would likely be treated at the Modder East Metallurgical Plant. The pre-feasibility study is
therefore also considering potential changes that would be required at the Modder East Metallurgical Plant
in order to accommodate the extra tonnage as well as to Modder East’s underground infrastructure to
handle the additional ore.
During the September 2013 quarter a total of 3,362 diamond drill metres and 360 percussion drill metres
were completed at the Modder North Project. The status of the diamond drilling is illustrated in Figure 4.1.
Main Reef diamond drilling on MN37, MN44, MN45, MN53, MN54, MN60, MN61, MN63 and MN64 were
completed, while drilling on MN41 and MN57 commenced and will continue during the December 2013
quarter. Black Reef diamond drilling on MNBR5-7 was also completed. Total exploration costs during the
quarter amounted to US$ 0.51 million (ZAR 5.12 million).
The number of drill rigs in operation during the December 2013 quarter is expected to reduce as the drilling
programme for 2013 is completed. The drill rigs will remain focused on completing MN41 and MN57 (see
Figure 4.1) and thereafter will progress MN58 and MN59. The last Main Reef hole planned for 2013 is WG2
in the medium depth portion (approximately 770 metres) of the Main Reef, which is expected to verify the
23 | P a g e
extension of a regional payshoot. In addition, two shallow Black Reef holes, DD78 and DD79, have been
planned to assist in verifying the Black Reef structure between the Modder East Operation and the Modder
North target area, should a decision be made to access Modder North from existing operations.
Figure 4.1 Completion Status of the Modder North Project Drilling Programme.
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
24 | P a g e
Assay results received during the September 2013 quarter for the Modder North drilling programme are
indicated in Table 3.3 below.
Dip Corrected
Channel
BH_ID REEF
Thickness g/t 2 cm.g/t
1
(cm)
MN56 Main Reef 84 3.28 274.86
MN56_1D Main Reef 76 2.34 177.68
MN56_2D Main Reef 74 2.23 164.47
MN55 Main Reef 65 13.10 845.38
MN55_1D Main Reef 67 15.63 1052.51
MN55_2D Main Reef 75 12.08 908.78
MN51 Main Reef 85 0.96 81.79
MN51_1D Main Reef 56 1.71 95.65
MN51_2D Main Reef 71 1.82 128.44
MN45 Main Reef 106.20 0.55 58.00
MN45D2 Main Reef 111.60 0.86 96.00
MN36 Main Reef 61 6.69 407.37
MN36_1D Main Reef 104 3.69 383.13
MN36_2D Main Reef 70 5.75 402.12
MN38 Main Reef 33 0.30 9.91
MN38_1D Main Reef 45 0.11 4.83
MN38_2D Main Reef 29 0.30 8.60
MN53 Main Reef 71 0.37 26.00
MN53D1 Main Reef 61 0.76 46.00
MN53D2 Main Reef 72 0.29 21.00
MN54 Main Reef 57 1.20 68.00
MN54D1 Main Reef 64 3.36 214.00
MN54D2 Main Reef 63 3.31 207.00
MN63 Main Reef 73 1.06 78.00
MN63D1 Main Reef 70 0.94 65.00
MN63D2 Main Reef 78 1.35 105.00
MN48 Main Reef 52.9 4.46 236.22
MN48D1 Main Reef 46.6 5.53 257.96
MN48D2 Main Reef 57.1 5.02 286.16
MN48 BPLZ 22.8 0.02 0.46
MN37_2D Main Reef 28.89 74.93 2164.70
MN56 BPLZ 25.81 0.04 1.03
MN56D3 BPLZ Band 1 30.53 0.04 1.22
MN56D3 BPLZ Band 2 29.54 0.16 4.70
MN56D4 BPLZ Band 1 32.82 0.06 1.97
MN56D4 BPLZ Band 2 28.84 0.14 4.01
MNBR02 BPLZ 81.55 0.08 6.23
MNBR02D1 BPLZ 26.74 3.43 91.79
MNBR02D2 BPLZ 82.80 0.06 4.76
MNBR04 BPLZ 25.86 0.52 13.37
MNBR04D1 BPLZ 21.84 0.36 7.86
MNBR04D2 BPLZ 111.16 0.08 9.08
Table 3.3 Assay Results Received for Modder North During the September 2013 Quarter
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.
25 | P a g e
It is expected that the mineral resource estimates for both the Main Reef and the Black Reef will be updated
during the December 2013 quarter, upon completion of the 2013 planned drilling. The mineral resource will
be used to underpin the results of the current pre-feasibility study, which is expected to be completed in the
June 2014 quarter.
4. Development and Exploration Projects
4.3. Tulo
The primary focus at Tulo during the quarter under review has been the collection and bulk sampling of a
prominent two kilometre quartz vein outcrop that forms the southern portion of a 20.5 kilometre magnetic
lineament, which was identified during a high resolution helicopter-borne geophysical survey. A three tonne
bulk sample was transported to Harare, Zimbabwe, to APT Laboratories where bulk metallurgical test work
was completed to determine the economic viability of gold recovery via gravity concentration after impact
crushing and milling.
The programme for the bulk sample involved impact crushing to 100% passing 1 millimetre. The crushed
product was processed via a Knelson KC-MD3 Laboratory Concentrator. The gravity tailing product was
ground to 80% passing 75 micron and subjected to gravity concentration. The final gravity tailing product
was cyanide-leached for 24 hours.
The average assayed head grade of the bulk representative sample was 4.28 grams per tonne of gold.
Impact crushing of the sample to 1 millimetre prior to Knelson concentration to simulate early liberation
processing methods realised gold recovery of 50.6% of ore head. Fine milling of the gravity tails to 80%
passing 75 micron prior to gravity concentration to simulate conventional milling process realised further
gold recovery of 68.3% of test feed (33.8% of ore head). Total gravity gold recovery via impact crushing and
fine milling was therefore 84.4% of the ore head. Cyanide agitation of the final gravity tails sample realised
gold recovery of 84.1% of leach feed, equivalent to 13.1% of sample head in 24 hours of leaching.
The positive test work results have provided the company with several potential alternatives to consider fast
tracking production opportunities in parallel with the ongoing exploration activities, considering the
utilisation of a gravity recoverable plant.
During the quarter under review expenditure at Tulo amounted to US$ 0.24 million (ZAR 2.4 million).
5. Outlook
Group Production Guidance
Total group gold production for the December 2013 quarter is forecast at 68,550 ounces; a 9% decrease on
production guidance for the September 2013 quarter and a 4% decrease on the September quarter’s
production of 71,740 ounces owing to the shorter December quarter.
The Modder East Operation’s production outlook for the December 2013 quarter will remain at 27,000
ounces. During the December 2013 quarter the company will focus on achieving steady state production.
Production outlook for the Cooke Underground Operation’s December 2013 quarter is 32,800 ounces. Focus
will remain 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 at Cooke 2, 3 and 4. Further upside is
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expected from both Cooke 3 and 4 as mining of mixed gold and uranium ores takes place in anticipation of
uranium production in the March 2014 quarter.
For the Randfontein Surface Operation, production outlook for the December 2013 quarter is maintained at
8,750 ounces as the Cooke Gold Plant is prepared ahead of the commissioning of COP.
Group Development Outlook
Pamodzi East Rand Operations Transaction
On 18 September 2013 Gold One and Goliath Gold, in which Gold One holds a 72% controlling interest,
announced that the Pamodzi East Rand Operation’s transaction had gone unconditional following the
granting of the third and final prospecting right pertaining to the acquisition agreement to purchase the
underground deposits and selected surface assets of Pamodzi.
The final payment to the sellers will be made upon transfer of the properties to Gold One. The outstanding
payment amounts to US$ 6.3 million (ZAR 63 million), of which US$ 5.9 million (ZAR 58.5 million) is payable
by Gold One and US$ 0.5 million (ZAR 4.5 million) by Goliath Gold, given that a deposit of US$ 0.7 million
(ZAR 7 million) was paid on signature.
Sibanye Gold Transaction
On 21 August 2013 it was announced that Gold One had signed a merger agreement with Sibanye Gold. The
transaction is progressing well as a number of conditions precedent have already been completed and the
outstanding conditions precedent are in process with the various regulatory bodies. The circular to Sibanye
Gold shareholders was issued on 7 October 2013 and the meeting is expected to be held on Tuesday, 5
November 2013 at 09:00 Central African Time. The balance of the conditions precedent are expected to be
met in early 2014.
Further information regarding the transaction may be found in the Gold One media release titled ‘Gold One
Merges West Rand Assets with Sibanye Gold for 17% Equity Interest’, published on 21 August 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: September 2013 Quarter ASX Trading Statistics
For the release with pictures and schematics, please refer to the company`s website hosted at www.gold1.co.za
Sep13 Oct13
ENDS
Weltevredenpark
30 October 2013
JSE Sponsor
Macquarie First South Capital
28 | P a g e
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 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 Proprietary
Limited (“Rand Uranium”), 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, 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 (“Sibanye Gold”) 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 Proprietary Limited (“Ezulwini”), 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 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 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.
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After Gold One assumed managerial control of Cooke 4 in mid-2012, the shaft produced gold in the months
of August, September and December 2012 only due to illegal industrial action that temporarily halted the
operation during October and November 2012. 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%.
On the 21 August 2013 the company announced that it had entered into an agreement with Sibanye Gold
Limited (“Sibanye Gold”) to merge its 74% shareholding in and claims against Newshelf 1114 Proprietary
Limited, which holds a 100% shareholding in Rand Uranium and will also hold 100% of Ezulwini after an
internal restructure, in exchange for a 17% interest in the fully diluted share capital of Sibanye Gold through
the issue of new ordinary shares.
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 ? C Zhou ( Non-Executive Director)
79 Broadway, Nedlands, Western Australia, 6009
PO Box 3438, Nedlands, Western Australia, 6009 Company Secretaries
Telephone +61 8 6389 2688 ? K Hogg (Australia) (effective 15 January 2013)
Facsimile +61 8 6389 2588 ? P B Kruger (South Africa)
Johannesburg Corporate Office Registrars
Constantia Office Park, Bridgeview House, Ground Boardroom Limited
Floor Level 7
Corner 14th Avenue and Hendrik Potgieter Street 207 Kent Street
Weltevreden Park, 1709, Gauteng, South Africa Sydney
Telephone: +27 11 726 1047 NSW
Fax: +27 11 726 1087 Australia
2000
Issued Capital Telephone: +61 2 9290 9600
1,421,538,989 shares on issue
Options (unlisted: 34,669,326 South African Transfer Secretaries
ADR ratio: 1 ADR = 10 ordinary shares Computershare Investor Services
70 Marshall Street
Stock Exchange Listings Johannesburg
ASX/JSE Limited: GDO 2001
OTCQX International: GLDZY
Level 1 ADR Sponsor
Directors The Bank of New York Mellon
? C Chadwick (CFO and Acting CEO) Depositary Receipts Division
? Y Sun (Chairman) 101 Barclay St, 22nd Floor
? A Liu (Independent Non-Executive Director) New York, New York 10286
? R Chan (Independent Non-Executive Director) USA
? M Solomon (Independent Non-Executive Telephone: +1 212 815 3700
Director) Fax: +1 212 571 3050
30 | P a g e
201 Sussex Street
Auditors Sydney, NSW 1171
KPMG Inc. Australia
Telephone: +61 2 8266 0000
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
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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.
The Competent Person for the Cooke 1-3 resources is Dr Carina Lemmer, who has a doctorate in applied
earth sciences (geostatistics) and who is a professional natural scientist registered (“SACNASP”),
membership number 400021/03. Dr Lemmer is an independent consultant to Gold One, and has been an
independent consultant to the South African mining industry for the past 23 years. Dr Lemmer has 35 years’
experience in resource estimation relevant to the style of mineralisation and type of deposit under
consideration, and to the activity which she is undertaking, to qualify as a Competent Person for the
purposes of both the JORC Code and the SAMREC Code.
The Competent Persons for the Cooke 4 resources are Mr Antonio Umpire and Mr Charles Muller of Minxcon
Proprietary Limited. Mr Umpire has a bachelor’s degree in science (geology) and is a professional natural
scientist registered with SACNASP, membership number 400372/12. Mr Umpire is also a member of the
GSSA and is the MRM: International for Minxcon, with which he is a full-time employee, and has 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. Mr Muller has a bachelor’s degree in science (geology) and is a professional natural scientist
registered with SACNASP, membership number 400201/04. Mr Muller is also a member of the Geostatistical
Association of South Africa (“GASA”) and is a Director for Minxcon, with which he is a full-time employee,
and has 25 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.
SRK Consulting (SA) Proprietary Limited has reviewed the total Cooke Underground Operations including
estimated mineral resources and reserves. The Competent Person who reviewed the Cooke 4 mineral
resources is Mr Victor Simposya. Mr Simposya is a full time employee of SRK Consulting (SA), independent
consultant to Gold One, and is a professional natural scientist registered with SACNASP, membership
number 40052/03, and has the necessary 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 SAMREC Code and JORC Code. The Competent Person who reviewed the Cooke
1-3 mineral resources is Mr Mark Wanless. Mr Wanless is a full time employee of SRK Consulting (SA) and is
a professional natural scientist registered with SACNASP, membership number 400178/05, and has the
necessary 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 SAMREC
Code and JORC Code. The Competent Person who reviewed the Cooke mineral (ore) reserves is Mr Roger
32 | P a g e
Dixon. Mr Dixon is a full time employee of SRK Consulting (SA) and is a registered professional engineer
(South Africa), 20000060, and Fellow of the Southern African Institute of Mining and Metallurgy (“SAIMM”).
By virtue of his education, membership to a recognised professional association and relevant work
experience, Mr Dixon is qualified for the activity which he is undertaking, to qualify as a Competent Person
for the purposes of both the SAMREC Code and JORC Code.
The above persons and entities 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.
33 | P a g e
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.
34 | P a g e
Date: 30/10/2013 08:40:00 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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