Wrap Text
September 2013 Quarterly Results
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”)
Media Release
September 2013 Quarterly Results
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
JOHANNESBURG – 30 October, 2013. Gold One International Limited (ASX and JSE: GDO) is pleased to
advise the market on the release of the company’s September 2013 Quarterly Report. The quarter under
review 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
1
Underground Operations achieving approximately 37,210 ounces, which would have equated to 9.4% above
guidance and a 17% quarter-on-quarter improvement.
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.
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 (“WTRP”) 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 WTRP 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.
Johannesburg
30 October 2013
JSE Sponsor
Macquarie First South Capital
ENDS
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.
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.
This news release does not constitute investment advice. Neither this news release nor the information contained in it constitutes an
offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction.
Forward-Looking Statement
This release includes certain forward-looking statements and forward-looking information. All statements other than statements of
historical fact included in this release including, without limitation, statements regarding future plans and objectives of Gold One
International Limited are forward-looking statements (or forward-looking information) that involve various risks, assumptions and
uncertainties. There can be no assurance that such statements will prove to be accurate and actual values, results and future events
could differ materially from those anticipated in such statements. Important factors could cause actual results to differ materially
from Gold One’s expectations. Such factors include, among others: the actual results of exploration activities; actual results of
reclamation activities; the estimation or realisation of mineral reserves and resources; the timing and amount of estimated future
production; costs of production; capital expenditures; costs and timing of the development of Modder East and new deposits;
availability of capital required to place Gold One’s properties into production; the ability to obtain or maintain a listing in South
Africa, Australia, Europe or North America; conclusions of economic evaluations; changes in project parameters as plans continue to
be refined; future prices of gold and other commodities; possible variations in ore grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents; labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals, permits or financing or in the completion of development or construction activities, economic
and financial market conditions; political risks; Gold One’s hedging practices; currency fluctuations; title disputes or claims
limitations on insurance coverage. Although Gold One has attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended.
Any forward-looking statements in this release speak only at the time of issue. There can be no assurance that such statements will
prove to be accurate as actual values, results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Gold One does not undertake to update any
forward-looking statements that are included herein, or revise any changes in events, conditions or circumstances on which any such
statement is based, except in accordance with applicable securities laws and stock exchange listing requirements.
Competent Persons’ Statement
The information in this release that relates to exploration results, mineral resources or ore reserves is based on information
compiled by the following Competent Persons for the purposes of both the 2004 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”) and the 2007 Edition of the South African Code for
Reporting of Exploration Results, Mineral Resources and Mineral Reserves (“SAMREC Code”).
The overall Competent Person for the Gold One Group is Dr Richard Stewart, who has a doctorate in geology and who is a
professional natural scientist registered with the South African Council for Natural Scientific Professions (“SACNASP”), membership
number 400051/04. Dr Stewart is also a member of the Geological Society of South Africa (“GSSA”) and is Executive Vice President:
Technical Services for Gold One, with which he is a full-time employee, and has 13 years’ experience relevant to the style of
mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person
for the purposes of both the JORC Code and the SAMREC Code.
The Competent Person for the Ventersburg 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 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. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes that are spaced closely enough for geological and grade continuity
to be reasonably assumed. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality
can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and
grade continuity. The estimate is based on limited exploration and sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drillholes. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. Investors are cautioned not to assume that all or any part of the mineral deposits in the measured
and indicated resource categories will ever be converted into reserves. In addition, “inferred resources” have a great amount of
uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral
resource will be ever be upgraded to a higher category. Under South African and Australian rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility studies or economic studies except under conditions noted in the
SAMREC Code and the JORC Code, respectively.
Investors are cautioned not to assume that all or any part of an inferred resource exists or is economically or legally mineable.
Exploration data is acquired by Gold One and its consultants under strict quality assurance and quality control protocols.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained
herein.
Date: 30/10/2013 08:41:00 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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