Gold One International (ASX: GDO, JSE: GDO) flagship operation is the Modder East mine, also owns the nearby existing Sub Nigel mine. The company's assets include a pipeline of Southern African projects comprising 21.71 million ounces.
Gold One is currently under a A$0.55 cash offer for a minimum 60% stake from a Chinese consortium.
Gold One International (ASX: GDO) plans to acquire underground deposits in South Africa with the aim of replicating the company’s success at the Modder East Operations.
Modder East was the first new mine to be built in the gold rich East Rand region of South Africa in 28 years. The operation hosts 1.34 million ounces of Reserves along with 4.08 million ounces of Resources and currently has a 10 year mine life.
Gold One and 70% owned subsidiary Goliath Gold have entered into an acquisition agreement for the Pamodzi East Rand underground deposits and selected surface assets. Consideration for the acquisition is ZAR70 million (A$8.6 million).
Under the agreement, Gold One will obtain prospecting rights that lie down dip to the Modder East mine and acquire selected surface infrastructure, while Goliath will acquire prospecting rights along with historical mining and geological data over the remaining area.
The areas included in the deal will effectively link Modder East in the north of the East Rand Basin with Goliath’s 50 kilometres of underground mapping in the south, creating a continuous brownfield exploration property.
Gold One president and CEO Neal Froneman said the acquisition would give the two companies access to explore one of the world’s largest brownfield exploration properties.
“We believe that there is potential for another three to four operations within the East Rand Basin all of similar scale to Modder East, and we plan to follow the successful development philosophy employed at our Modder East Operation,” Froneman said.
“This acquisition further enforces our commitment to the continued growth of responsible and sustainable mining, not only in the East Rand but in South Africa as a whole.”
Upon completion of the acquisition, both Gold One and Goliath will embark on exploration in previously unmined areas, with Gold One focused on the down dip extensions to Modder East and Goliath Gold seeking shallow exploration opportunities over the remainder of the assets.
Rather than use existing infrastructure, Gold One intends to replicate the Modder East operation, which was specifically designed to be isolated from historical infrastructure and flooded workings to avoid water pumping problems.
Modder East has been designed with modern and sustainable environmental practices to avoid contributing to water problems in the basin.
The acquisition agreement includes selected surface assets which will have strategic value for new mining operations. These include general offices and the Grootvlei Number 4 Shaft complex, which includes the historical gold treatment plant.
Options exist to either refurbish the existing gold plant or construct a new plant on the historically disturbed site.
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