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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	GDO
Latest Price:	0.48 (0.00%)
52-week High:	0.56
52-week Low:	0.29
Market Cap:	388.32M

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Gold One International Full Gold One International profile here

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 produces first tonne of gold at Modder East

Wednesday, May 19, 2010 by Proactive Investors

With the official opening of Gold One International's (ASX/JSE: GDO) Modder East mine near Johannesburg in South Africa, Gold One is producing gold at an annualised rate of 60,000 ounces with forecasts to produce between 85,000 and 100,000 ounces of gold in 2010.

With average cash costs expected to be below US$400/oz and phase One of the mine with a life of eight years and production is set to peak at 150,000 to 180,000 ounces of gold a year, current market valuation and share price at $0.25 - $0.30 appears light.

The opening comes less than a week after Modder East celebrated the milestone of producing its first tonne of gold.

President and Chief Executive Officer Neal Froneman highlighted that the occasion came, to the day, on the fourth anniversary of the first sod being turned at Modder East on 18 May 2006, which saw the start of the construction of this new era gold mine.

The East Rand has produced over a quarter of all the gold ever to come from South Africa. Modder East is the first new mine to be built in the region in 28 years, having so far provided direct employment opportunities for over 1000 people. Modder East distinguishes itself from most of the other gold mines in South Africa, on the basis of its shallow nature (300 metres deep).

Froneman cited the decision by the company to invest ZAR26 million (A$4 million) into the rehabilitation of the Sub Nigel number one shaft and turn it into a purpose built training centre complete with underground classrooms that provide on-the-job training, as a major highlight on the journey to creating the Modder East of today.

Major milestones achieved at Modder East in the past year include the start of production and the first pour of gold from underground in July 2009, culminating in the declaration of commercial and continuous production by the company less than six months after mine start-up.

Froneman said “I am delighted to have witnessed today's opening, and would like to, once again, express my sincere gratitude to the employees and shareholders who have made this all possible. Stakeholders, from government to our trusted suppliers, have played an integral part to ensure new life is breathed into the Wits East Rand gold basin."

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