for personal use only - asx2012/01/31 · for personal use only a different approach basic salaries...
TRANSCRIPT
Welcomes you to
today’s Site Visit
31 January 2012
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Forward-Looking Statement
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.
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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Modder East Location
Etendeka
Tulo
Johannesburg
Cooke
New Kleinfontein and Turnbridge
Modder North
Megamine
Ventersburg
Located in the Wits
Basin
**Rand Uranium resources and reserves not yet included.
Modder East
Greatest Gold Resource in the World
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Modder East Location
OR Tambo International Airport
Modder East
20 km
Close To All Industrial Amenities
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Modder East Location
JHB International
Modder East
20km
Small Footprint – Practical and Environmentally Friendly
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Gold One Executive Team
Izak Marais Operations
Syd Caddy Operations
Chris Chadwick CFO
Pierre Kruger Company Secretary
Richard Stewart Business Development
Neal Froneman President & CEO
People – Our Most Valuable Asset
Dick Plaistowe Surface Operations
Hartley Dikgale General Counsel
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Modder
Team
Level 1 – 4
Leadership
Harold Strydom Mine Overseer
Dana van der Walt Mine Overseer
Moeketsi Mahlatsi HR Superintendent
IR
Steven Rule Employee Development
Manager
Mario Penderis Senior
Engineering Foreman
Ravin Gareeb Chief Procurement
Officer
Steve Rossouw Chief Sampler
Steve de Canha Mine Overseer
Johan Boshoff Engineering
Overseer
Razaro Jele Stores
Superintendent
Geraldine Volschenk Financial
Accountant
Kobus Mitchell Plant Production Superintendent
Hendry Leitao Plant Production Superintendent
Nareadi Molabe Section
Geologist
John Peens Section Surveyor
Patrick Msithini HRM
Ayanda Manyi Resident Engineer
James Mcardle Explosives Manager
Fred Smit Chief Surveyor
Ian Drysdale Engineer
Simon Middlemiss Supply Chain
Manager
Marijke Rust Financial Accountant
Louis Bezuidenhout Manager Mining
Arndt Mittendorf Management Accountant
Jost Barenberg VP Mining
Johan Bruwer Engineering Manager
Mike Philips Metallurgical Manager
Izak Marais SVP: Operations
Jacques Bezuidenhout Mine Overseer
Judi Wilkinson HR Superintendent
PalPay (Acting)
Loselo Segwe SLP Manager
Evan Cook Mineral Resource
Manager
Nico Kirsten Mine Overseer
Andre Hindle GIS Draughting
Sendi Qunta Health, Safety and
Environmnetal Manager
Corrie Stiglingh Mine Overseer:
Training
Denzil Meredith Cost Accountant
Mining
Emil Glad Acting Mine Overseer
Kenneth Constable HR Superintendent
T & A
Tom Sassenburg Acting
Mine Overseer Marius Steinmann Rock Engineer
OHMS
Wouter Hamman Chief Vent
Officer
Riaan Schutte HSE Systems Consultant
Karyn Rule HR Superintendent
Staffing
Frik Minnaar Senior Electrical
Foreman
Desmond Engelbrecht Acting TMM Engineer
Leatitia Geel IT Services
Co-ordinator
Grant Sandow Chief Safety Officer
Annette Oosthuizen Cost Accountant
Capital
Billy Joubert Engineering
Overseer
Johann Beytell Shaft Engineering
Foreman
Boats Botes Asset Protection
Manager
Nico Niewenhuis VP Finance
Adrian Reynolds VP Projects
Strong Coherent
Leadership Team
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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Safety
A Consistent Safety Message
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Empowerment Of The Safety Owner On The Rockface
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Safety Performance
2006 2007 2008 2009 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Prog 3.18 0.68 1.95 1.19 0.48 0.53 1.29 1.84 1.35 1.08 0.87 0.88 0.82 0.72 0.65 0.59 0.54
Benchmark 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Target 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
LTIs
pe
r 2
00
00
0 H
ou
rs
Lost Time Injury Frequency Rate / 200 000 Hours
Zero
LTI’s
Zero
LTI’s
Two
LTI’s
Zero
LTI’s One
LTI
Zero
LTI
Zero
LTI
Zero
LTI
Zero
LTI
The Safest Underground Goldmine In South Africa
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Environment
2012 Calendar
2 Feb World Wetlands Day
19 – 25 Mar National Water Week
23 March World Meteorological Day
5 June World Environment Day
1 – 7 Sept National Arbour Week
16 Sept World Ozone Day
27 Sept World Tourism Day
4 Oct World Habitat Day
20 Oct National Marine Day
1 Dec World Aids Day
Serious About The Environment That We Operate In
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Summer tips: • Sunburn
• Protect your eyes
• Insect bites
• Heat Stroke
See your nearest WFH- newsletter
Health
Health and Wellness –
a holistic approach: • Mind
• Body
• Spirit
Maintain a healthy lifestyle and habit….
A Healthy Body Is Home To A Healthy Mind
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Values – the golden rules
• Fun
• Respect
• Participation
• Honesty
• Integrity
• Accountability
• Delivery
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January Value
January is the month of
Participation:
• We all contribute to
the solution – identify
YOUR reality and
solve it.
• Your opinions matter –
you like it, tell your
friends – you don’t like
it, TELL US!
For
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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Shallow Depth
Safer working environment
Negligible levels of seismicity
No environmental fatigue
Lower costs
Lower initial capital cost
Lower ongoing capital cost
Lower support cost
No refrigeration
Lower pumping costs
Lower ventilation costs
Higher productivity
Quicker access to the work place - more time on the face
Environmental conditions are conducive to better work performance
Simple logistics with no double handling of personnel, materials and ore
Shallow Is Safer, Simpler And Saves Costs
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Modder East Timeline
Low Technical Risk, Low Cost Delivery Orientated Operation
Construction capital cost of US$ 108 million
First gold pour ahead of schedule in July 2009
Commercial production 5 months later
Achieved positive cash flow 6 months after first gold pour
66,445 ounces produced in first full year of operation (2010)
123,179 ounces for 2011, against 120,000 guidance – an 85% increase on 2010
Forecast production for 2012: 150,000 ounces – a further 25% increase
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More Than Just Mining
Created employment for 1,800 people from Modder East’s surrounding
impoverished areas
Adult Basic Education Training undertaken to facilitate employees becoming
functionally literature and numerate
167 women employed in core mining, engineering and metallurgical positions
representing 10% of the workforce, and 122 women in surface occupations
Committed to the development of a level 3 clinic to service the Ekhuruleni
Metropolitan Municipality, where Modder East is located
Established a sustainable community based agricultural co-operative, employing
locals and producing fresh produce for sale within the local community
Established the Modder East Mine Community Trust to assist and enhance the
social upliftment of surrounding communities. The Trust forms 15% of our 26%
Modder East BEE initiative
Conscious of our Role in the Greater Community
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WHAM! Initiative
WHAM focuses on building a mining
company different to all others
Local recruiting – people have a place of
residence
Screening includes community background
checks
Visual display of ID cards across all bands
and biometric recognition system
English as a language of first approach
Training philosophies designed to acknowledge everyone’s desire to see how their
contribution is making a difference
In Gold One, people feel as important as what they really are through the
application of our values on all levels
Developing short interval control philosophies as a safety net where WHAM does
not achieve desired outcome
I am the ONE in Gold One
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A Different Approach
Basic salaries acknowledges equal mental and emotional
contribution to team success
No incentive to put production ahead of safety – an industry
pioneering approach recognised by DMR
Incentive schemes designed around the amount of value add
Measuring cycles abolished to ensure a goal orientated approach
Team ownership of daily output through visual recording
Visual display of participating individuals
Complete transparency around incentive payments ensures zero
production disruptions
Hard On Results, Soft On People
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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Stratigraphy
Targeting Two Of Eleven Reef Horizons
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Schematic Section
Malmani Dolomite
Witwatersrand Quartzite
Transvaal Quartzite Fluvial Beach Marine
300 m
2,500 cmg/t 850 cmg/t 400 cmg/t
Section Perpendicular to the Black Reef Shoreline
Black Reef
Simple and Well-Understood Geology
Karoo Sandstone
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26
Black Reef
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Black Reef
Buckshot Pyrite Leader Zone
(BPLZ)
Channel Facies
Black Reef Quartzite
Visual Reef Ensures Easy Identification
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Depositional Model
Consistent, High Payability Due To Marine Activity
Fluvial
Marine
Beach
UK9A Reef Main Reef
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Kimberley Reef (UK9A)
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Mineral Resource: 2011
Significantly enhanced
database
2011 mining depletion
Increased cut-off
grades (122 cmg/ton –
171 cmg/ton)
2011 surface
exploration drill
program
Continued advancement of resources
2010 2011
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Mineral Resource: 2011
Continued advancement of resources
1Modder East Consolidated Resource Table (September 2011)1
Tonnes Grade Gold content
(Mt) (g/t) (Moz)
Measured BPLZ + Channel Facies2,6 0.54 14.93 0.26
Total Measured: 0.54 14.93 0.26
Indicated BPLZ + Channel Facies2,6 7.02 5.18 1.17
Black Reef Channel Facies3 19.98 1.39 0.89
UK9A4,6 3.45 4.03 0.45
Total Indicated: 30.45 2.56 2.51
Total Indicated and Measured 30.99 2.78 2.77
Inferred BPLZ + Channel Facies2 1.50 3.13 0.15
Black Reef Channel Facies3 8.77 0.76 0.22
UK9A4 3.97 3.03 0.39
UK5a5 9.41 1.82 0.55
Total Inferred: 23.65 1.71 1.31
Total Resource 54.64 2.32 4.08 1 Resources are reported in accordance with SAMREC guidelines (estimates would be identical if reported in accordance with JORC standards)
2 Signed-off by Glanville Consulting, independent resource consultants to Gold One, audited by SRK, Quoted at a cut-off of 171 cmg/t
3 Signed-off by Glanville Consulting, independent resource consultants to Gold One, audited by SRK, Quoted at a cut-off of 260 cmg/t
4 Signed-off by Minxcon, independent resource consultants to Gold One, audited by SRK, Quoted at a cut-off of 119 cmg/t
5 Signed-off by Minxcon, independent resource consultants to Gold One, audited by SRK, Quoted at a cut-off of 496 cmg/t
6 Mineral resources are quoted inclusive of mineral (ore) reserves
Tonnes Grade Gold content
(Mt) (g/t) (Moz)
0.29 16.25 0.15
0.29 16.25 0.15
9.19 4.56 1.35
33.19 1.11 1.18
3.45 4.03 0.45
45.83 2.02 2.98
46.12 2.11 3.13
2.62 1.85 0.16
4.73 0.73 0.11
3.97 3.03 0.39
9.41 1.82 0.55
20.73 1.81 1.21
66.85 2.02 4.34
2010
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Black Reef Reserve: 2010
Cut-off of 149
cmg/t
Simple and Well-Understood Geology
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UK9A Reserve: 2010
Remained
largely
unchanged
since feasibility
study
Simple and Well-Understood Geology
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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Modder East Access
Primary Access Surface Decline
Mechanised decline and footwall
development
Conventional narrow reef breast stoping
Truck hoisting
Secondary Access Vertical Shaft
345 metre deep and 6.5 metre in
diameter with fixed guides
Primary access for personnel with
Koepe winder
Ventilation shaft
Designed For Efficiency
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Hydropower
Trade-off study completed by
Turgis Consulting in June 2007
Penetration rate for
hydropower drills is double
that of compressed air drills
Requires 195 fewer rock drill
operators
Capex 60% less than that for
compressed air
Drilling cost 30% less than that for compressed air
Eliminates need for expensive and energy inefficient compressors
Power Requirement Reduced From 35MVA to 20MVA
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Conventional Process Design
LOM feasibility study
determined plant recoveries
of 88%
Knelson Concentrator
commissioned in Q4 2010 –
recoveries to remain above
90% over LOM
Secondary crushing circuit
commissioned and ready for
use, allowing plant nameplate
capacity to increase
from 70 000 tonnes/month
to 100 000 tonnes/month
Plant Recoveries of 96.1% for 2011
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Relative Orebody Positions
BPLZ
UK9a
Continuous and Tabular Orebody Conducive to Low Cost Mining
Black Reef
UK9a Reef
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Development Layouts
Modern Underground Infrastructure Geared for Productivity
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Modder East
Modern Underground Infrastructure Geared for Productivity
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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Development
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ME TMM Waste Meters
0
100
200
300
400
500
600
Jan
-10
Feb
-10
Mar
-10
Apr
-10
May
-10
Jun
-10
Jul-
10
Aug
-10
Sep
-10
Oct
-10
No
v-10
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Apr
-11
May
-11
Jun
-11
Jul-
11
Aug
-11
Sep
-11
Oct
-11
No
v-11
Dec
-11
Jan
-12
Feb
-12
Mar
-12
Apr
-12
May
-12
Jun
-12
Jul-
12
Aug
-12
Sep
-12
Oct
-12
No
v-12
Dec
-12
Jan
-13
Feb
-13
Mar
-13
Apr
-13
May
-13
Jun
-13
Jul-
13
Aug
-13
Sep
-13
Oct
-13
No
v-13
Dec
-13
ME Trackless Waste Development
TMM Waste Ave per year Budget 2012/2013
Note: values sourced from MRM
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ME Conv Reef Meters
0
50
100
150
200
250
300
350
Jan
-10
Feb
-10
Mar
-10
Apr
-10
May
-10
Jun
-10
Jul-
10
Aug
-10
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Apr
-11
May
-11
Jun
-11
Jul-
11
Aug
-11
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan
-12
Feb
-12
Mar
-12
Apr
-12
May
-12
Jun
-12
Jul-
12
Aug
-12
Sep
-12
Oct
-12
No
v-1
2
Dec
-12
Jan
-13
Feb
-13
Mar
-13
Apr
-13
May
-13
Jun
-13
Jul-
13
Aug
-13
Sep
-13
Oct
-13
No
v-1
3
Dec
-13
ME Conventional Reef Development
Conv Reef Budget 2012/2013 Ave per year
Note: values sourced from MRM
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M2 Available for Mining
0
46000
92000
138000
184000
230000
276000
322000
368000
414000
460000
506000
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-12
Sep
-12
Oct
-12
No
v-12
Dec
-12
Jan
-13
Feb
-13
Mar
-13
Ap
r-1
3
May
-13
Jun
-13
Jul-
13
Au
g-13
Sep
-13
Oct
-13
No
v-13
Dec
-13
M2 Available for Mining – 2012 - 2013
Budget 2012/2013
Note: values sourced from MRM
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Reef Production F
or p
erso
nal u
se o
nly
M2 – depletion
-
5 000
10 000
15 000
20 000
25 000
30 000
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-1
2
Sep
-12
Oct
-12
No
v-1
2
Dec
-12
Jan
-13
Feb
-13
Mar
-13
Ap
r-1
3
May
-13
Jun
-13
Jul-
13
Au
g-1
3
Sep
-13
Oct
-13
No
v-1
3
Dec
-13
ME M2
ME Actual Budget 2011/2012 Budget 2012/2013 Ave per year
Note: values sourced from MRM
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ME Reef Tons Broken
-
20 000
40 000
60 000
80 000
100 000
120 000
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-1
2
Sep
-12
Oct
-12
No
v-1
2
Dec
-12
Jan
-13
Feb
-13
Mar
-13
Ap
r-1
3
May
-13
Jun
-13
Jul-
13
Au
g-1
3
Sep
-13
Oct
-13
No
v-1
3
Dec
-13
ME Reef Tons Broken - Monthly
Tons Broken Budget 2012/2013 Ave per year
Note: values sourced from MRM
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Relative Orebody Positions
BPLZ
UK9a
Continuous and Tabular Orebody Conducive to Low Cost Mining
Black Reef
UK9a Reef
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Underground Workings
UG Plan 31 Dec 10 to 31 Dec 13
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31 December 2010 F
or p
erso
nal u
se o
nly
31 March 2011 F
or p
erso
nal u
se o
nly
30 June 2011 F
or p
erso
nal u
se o
nly
30 September 2011 F
or p
erso
nal u
se o
nly
31 December 2011 F
or p
erso
nal u
se o
nly
31 December 2012 F
or p
erso
nal u
se o
nly
31 December 2013 F
or p
erso
nal u
se o
nly
31 December 2013 (UK9A) F
or p
erso
nal u
se o
nly
Hauling F
or p
erso
nal u
se o
nly
Stoping Width 1
33
.10
13
2.6
0
13
2.5
6
13
2.6
0
13
1.9
9
13
1.8
1
13
0.2
8
13
2.6
0
13
1.4
7
13
1.1
7
13
0.7
7
13
2.8
5
13
1.0
2
13
0.3
5
13
0.5
6
12
8.0
0
13
2.7
8
12
9.9
6
12
9.2
5
12
5.4
1
12
4.4
8
12
3.6
5
12
1.6
9
120.0
125.0
130.0
135.0
17-J
ul-1
1
24-J
ul-1
1
31-J
ul-1
1
07-A
ug
-11
15-A
ug
-11
22-A
ug
-11
29-A
ug
-11
04-S
ep
-11
12-S
ep
-11
19-S
ep
-11
26-S
ep
-11
3-O
ct-
11
10-O
ct-
11
17-O
ct-
11
24-O
ct-
11
31-O
ct-
11
7-N
ov-1
1
14-N
ov-1
1
21-N
ov-1
1
28-N
ov-1
1
5-D
ec-1
1
12-D
ec-1
1
19-D
ec-1
1
Stoping Width
S/W Prog Ave
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Reef Tonnes Trammed
-
20 000
40 000
60 000
80 000
100 000
120 000
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-1
2
Sep
-12
Oct
-12
No
v-1
2
Dec
-12
Jan
-13
Feb
-13
Mar
-13
Ap
r-1
3
May
-13
Jun
-13
Jul-
13
Au
g-1
3
Sep
-13
Oct
-13
No
v-1
3
Dec
-13
Reef Tonnes Trammed
ME Tonnes Trammed Budget (Broken) 2012/2013 Ave per year
Note: values sourced from MRM
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Gold Production F
or p
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nal u
se o
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Gold per Quarter
13 207 12 288
19 470 21 480 26 184
28 511
35 128 33 352 20 000
25 000 28 000 34 000 33 000
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
Q1 - 2010 Q2 - 2010 Q3 - 2010 Q4 - 2010 Q1 - 2011 Q2 - 2011 Q3 - 2011 Q4 - 2011
Gold Production per Quarter 2010 - 2011
Five Quarters of Consecutive over-delivery
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Gold Forecast per Quarter
34 000 36 000 42 000
38 000
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
Q1 - 2012 Q2 - 2012 Q3 - 2012 Q4 - 2012
Gold Production per Quarter for 2012
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LOM Profile (2010)
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Ou
nce
s
Ton
nes
Production Profile
Tonnes mined Gold Produced (oz's)
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LOM Profile (2010)
0
1
2
3
4
5
6
7
0
200
400
600
800
1 000
1 200
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
g/t
US$
/oz
Production Profile
Cost per ounce (US$/oz) Grade (g/t)
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Rand per Tonne Treated
0
100
200
300
400
500
600
700
800
900
1 000
1 100
1 200
1 300
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-10
Jan
-11
Mar
-11
May
-11
Jul-
11
Sep
-11
No
v-11
Jan
-12
Mar
-12
May
-12
Jul-
12
Sep
-12
No
v-12
Rand per Tonne Treated
Monthly 2012 Budget Ave per year
Note: actual values sourced from cost accounting information
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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Modder North
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Modder North refers to the area situated approximately 5km North of
the Modder East Operation, within the existing new order mining
right
The primary target is a main reef resource, approximately 500m
below surface
Access to main reef traverses black reef
Modder North
Excellent Opportunity within Existing Mining Right
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Schematic Section
Malmani Dolomite
Witwatersrand Quartzite
Transvaal Quartzite Fluvial Beach Marine
160 m
Section Perpendicular to the Black Reef Shoreline
Black Reef
Simple and Well-Understood Geology
Karoo Sandstone
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East Rand Basin Boundary
Modder East
Holfontein
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Modder North
A Clearly Defined Target
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Resample Program
Low Technical Risk, Low Cost Operation
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Historical Data
-58000 -56000 -54000 -52000
-58000 -56000 -54000 -52000
-2898000
-2897000
-2896000
-2895000
-2894000
-2893000
-2892000
-2898000
-2897000
-2896000
-2895000
-2894000
-2893000
-2892000
LVLC 5
LVLC 4
LVLC 3
LVLC 2
LVLC 1
HVHC 2
HVHC 1
MCMH 1
LCHG 1
KN4
KN5
KN3
HME 2
HME 3HME 4
HME 5
HME 6HME 7
HME 8
HME 9
HME 10
HME 11
0m 500m 1000m 1500m 2000mcmg/t
0 to 100
100 to 200
200 to 300
300 to 400
400 to 600
600 to 10000
Low Technical Risk, Low Cost Operation
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Updated Resource
Confirmed previous resource
estimates
Decision made to drill “white area
extensions”
Low Technical Risk, Low Cost Operation
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Modder North Exploration
Modder East Plant
An Aggressive Drilling Program
MN1 MN2
MN3
MN4
MN5
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Drill Hole Results
BH_ID REEF
Depth (m) Bottom Contact
Dip Corrected
Channel Thickness (cm)1
g/t cm.g/t
MN1_0D BPLZ 167.75 50 3.80 189
MN1_4D BPLZ 168.21 53 4.39 231
MN1_5D BPLZ 168.53 44 4.29 188
MN1_0D Main Reef 435.01 10 0.31 3
MN1_1D Main Reef 435.63 12 5.79 70
MN1_2D Main Reef 435.00 10 0.10 1
MN2_D0 BPLZ 166.38 25 0.80 20
MN2_D0 Main Reef 462.66 31 3.80 117
MN2_1D Main Reef 464.42 26 3.99 102
MN2_2D Main Reef 464.46 34 3.28 112
MN3_D0 BPLZ 179.47 119 31.37 3,727
MN3_3D BPLZ 179.21 112 25.82 2,894
MN3_4D BPLZ 178.43 57 2.88 163
MN3_D0 Main Reef 473.92 12 0.60 7
MN3_1D Main Reef 476.68 16 14.50 228
MN3_2D Main Reef 470.08 11 4.00 43
MN4_D0 Main Reef 479.59 30 24.84 734
MN4_1D Main Reef 479.64 30 28.02 828
MN4_2D Main Reef 480.52 30 29.18 881
MN5_D0 BPLZ 177.23 20 0.11 2
MN5_3D BPLZ 178.02 18 0.10 2
MN5_D0 Main Reef 450.10 17 2.93 50
MN5_1D Main Reef 450.15 18 0.73 13
MN5_2D Main Reef 450.04 19 2.40 45
1 Channel thickness represents the true, dip corrected thickness of the Reef. Dip corrections are undertaken based on dip measurements from core bedding angles.
Drilling results are
sufficiently positive to
warrant aggressive
exploration program
2012 drilling focused
on:
Black Reef
Main Reef
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Modder North– Initial Steps
Turgis engaged on 13 July
Turgis site visit to Modder North 20 July
Briefing to Turgis was “where can we position the portal”
High level concept study presented on 4 Aug
Drilling continues
Low Technical Risk, Low Cost Operation
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Conceptual Layout
Main Reef Access Shaft
Black Reef Access Ramp Vent Raise
Coal Seam
Black Reef
Main Reef
Settlers & Dams
Pump Station
Loading Box
Silo’s
50
m
50
m
45
m
44
0m
58
5m
16
0m
Ø 8,0m
Ø 5,5m
5,5m X 5,5m
Low Technical Risk, Low Cost Operation
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• The project to amend the existing EIA and EMP, to include the
proposed new access portal to be located on Modder North and the
proposed new access road linking Modder East and Modder North,
is well underway.
• The process aims to ensure compliance with both the requirements
of the MPRDA and NEMA legislation, and as such the two
processes are run in parallel. To this effect it was decided to proceed
with a Basic Assessment process as opposed to the EIA process.
This is possible since, the area to be disturbed by infrastructure at
Modder North remains beneath 20 hectares.
Modder North: Progress
Low Technical Risk, Low Cost Operation
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The basic assessment application has been submitted and the required meetings
with the relevant authorities undertaken. The resulting and required specialist
studies are all well underway.
The scoping report (EIA in terms of MPRDA) has been completed and made
available for public review and comment on 23 January.
All registered Interested and affected parties (IAPs) notified via mail, email and
fax.
The IWWMP and WUL –necessary meetings with DWA conducted. Ground-
and surface water specialists appointed and necessary studies underway.
Public consultation thus far has included meetings with local council, -
communities and the relevant authorities such as DMR, GDARD and DWA.
Media notices, site notices and background information documents have been
published and distributed
Modder North: Progress
Low Technical Risk, Low Cost Operation
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Bulk Sampling
Although necessary, the aforementioned process is time consuming and
will take the best part of 2012 to complete
Final detail is currently being attended to in order to facilitate all work
necessary to extract a bulk sample of black reef from the northen-most
part of the property. Some realities to be considered:
Footprint of the disturbed area must be smaller than one hectare
No water storage allowed on site
No Eskom power available
Our objective is to complete all required work to enable the first hard rock
blast on 31 March 2012
Low Technical Risk, Low Cost Operation
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Modder East
1. Location
2. Safety, Health, Environment and our
Values
3. Being shallow, Being Different
4. Geology
5. Access, Mining Method and Metplant
6. Production 2010 – 2013
7. Modder North
First Gold Pour – 24 June 2009
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• Built and developed mine in accordance with modern mining methods and best
practice
– Internal benchmark
• Lower technical risk close to surface; well understood geology
• Strong capable and experienced team with track record of delivery
• A benchmark for safety
• A productive and cost efficient mine; quick access with more time on face
– Consistently beat guidance
• Strong environmental focus
• Untapped potential – exploration of Modder North
Conclusion
Being shallow, being different; positioned for success For
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Gold One Resources and Reserves
Tonnes Grade Gold content
Measured (Mt) (g/t) (Moz)
Modder East 1,20.54 14.93 0.26
Total Measured: 0.54 14.93 0.26
Indicated Modder East 1,230.45 2.56 2.51
Megamine 321.55 4.36 3.02
Ventersburg 422.83 3.90 2.86
Turnbridge 51.92 2.70 0.17
Total Indicated: 76.76 3.47 8.56
Total Measured and Indicated: 77.30 3.55 8.82
Inferred
Modder East 223.65 1.71 1.31
Turnbridge 53.88 2.73 0.34
New Kleinfontein62.47 6.9 0.55
Ventersburg 411.44 3.50 1.29
Megamine 364.62 4.64 9.63
Total Inferred: 106.07 3.84 13.12
183.36 3.72 21.93
Tonnes Grade Gold content
(Mt) (g/t) (Moz)
Modder East Proved Reserves 0.24 10.90 0.08
Probable Reserves 11.69 3.86 1.45
Probable and Proved Reserves 11.93 4.00 1.531 Signed off by Turgis Consulting, independent resource consultants to Gold One, audited by SRK,
BPLZ w as estimated at a cut-off of 149 cmg/t and UK9A estimated at a cut-off of 146 cmg/ton
4 Signed-off by Dr I.C. Lemmer, independent resource consultant to Gold One, audited by SRK
2 Reserves are reported in accordance w ith SAMREC guidelines (estimates w ould be identical if reported in accordance w ith JORC standards)
Gold One International Consolidated Mineral Resource Statement
Total Measured, Indicated and Inferred: 7
1 Mineral Resources are quoted inclusive of ore reserves
2 Signed-off by Glanville Consulting and Minxcon, independent resource consultants to Gold One, audited by SRK
3 Signed-off by Dr I.C. Lemmer and Minxcon, independent resource consultants to Gold One, audited by SRK
5 Signed-off by SRK Consulting
7 Resources are reported in accordance w ith SAMREC guidelines (estimates w ould be identical if reported in accordance w ith JORC standards)
Gold One International Mineral (Ore) Reserve Statement1,2
6 Signed-off by Camden Geoserve, independent resource consultants to Gold One, audited by SRK
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Competent Person
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. COMPETENT PERSONS The information in this release that relates to Gold One exploration results, mineral resources or ore reserves is based on information compiled by 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 the senior vice president of Business Developmentfor Gold One with which he is a full-time employee. He has 10 years’ experience which is 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 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). Dr Stewart consents to the inclusion in this release of the matters based on information compiled by Gold One employees and it’s consultants in the form and context in which they appear. 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 by Gold One on the ASX Announcements Platform and the Stock Exchange News Service (SENS) on 11 October 2010 (Megamine), 7 December 2010 (Ventersburg) and 15 December 2010 (Modder East). The information in this release that relates to Rand Uranium exploration results, mineral resources or ore reserves is based on information compiled by Mr. Jurgens Visser who is a professional mine surveyor registered with the South African Council for Professional and Technical Surveyors (PLATO), membership number PLS0693. Mr Visser is the Head of Mineral Resources Management for Rand Uranium, with which he is a full-time employee. He has 25 years experience which is 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 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). Mr Visser consents to the inclusion in this release in the form and context in which they appear.”
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Discussion and
Safety Induction
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