HomeGoldModder East ramp-up continuing as planned

Modder East ramp-up continuing as planned

Portal at Gold One’s
flagship Modder East mine.
Johannesburg, South Africa — MININGREVIEW.COM — 18 June 2010

Gold One International Limited “’ an amalgamation of Australia’s BMA Gold and South Africa’s Aflease “’ says its production ramp-up at the company’s flagship Modder East gold mine is continuing as planned, and that the build-up rate required to attain this year’s gold production targets is being achieved.

A statement issued by the company today said the continuous ramp-up in gold production was being achieved by the opening up of additional mining faces through ongoing reef development. Six mining faces had been mined out against the northern side of the shore line with current output being achieved from the mining of 18 panels. A further 11 panels would be available by the end of the quarter, which would provide significantly more mining flexibility in the third quarter.

The statement added that six of the new panels were situated in the new North 2 Raise, where gold values remained consistent with the high gold grades experienced near the shoreline. Off reef development was now approaching the North 3 Raise, where first reef development was expected to start during the third quarter.

It went on to say that at full production, 75 panels would be in operation, and reef development was on target to have 50 panels available at year end. The steady increase in available panels provided the platform for a sustainable increase in output, supporting the forecast build up rate.

Production at Modder is now consistently outperforming levels attained prior to the five week strike that occurred between 23 March and 28 April 2010. Ramp-up to pre-strike levels was achieved by the end of May, some four weeks after the end of the strike, with the company currently producing at an average of over 200 ounces of gold per day. Recoveries remain strong, and continue to exceed 96%.

Gold One is maintaining its production guidance of more than 10 000 ounces for the current quarter. September quarter production is expected to be approximately 25 000 ounces, and total 2010 production guidance remains between 85 000 and 100 000 ounces of gold.

Gold One president and CEO Neal Froneman commented: “I am pleased that production is back at levels prior to the strike, and that the build-up to attain this year’s production is going well, especially at times when the US$ gold price is reaching an all time high. The company is continuing its progress with the re-financing of a corporate debt facility, and expects that a term-sheet with the preferred lenders will be signed within the next fortnight.”