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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 says Modder East processing "above expectations"

Tuesday, August 31, 2010

Gold One International (ASX, JSE: GDO) has updated operations and provided an interim financial report for the period up to 31 August 2010.

The company reported gross profit of A$17.1 million for six months to 30 June 2010 and net cash inflow from operating activities for the period was A$10.7 million, with A$14.1 million before finance costs and taxes.

Gold One has a current cash balance of A$7.7 million. Monthly mined volumes continue to increase as more panels come into production.

On May 19 Gold One officially opened the Modder East mine near Johannesburg in South Africa.

The Modder East processing facility is continuing to deliver above expectations with recoveries of 96% being maintained during July and August and exploration has identified a high grade shoreline extension.

The commissioning of the gravity circuit is planned to take place in early October 2010 and the secondary crushing plant is expected to be commissioned during September 2010.

Importantly, the quality of the ore body continues to reflect the results of the original geological modelling with mined grades (including in-stope and development dilution) being maintained above 8 g/t, which is in line with expectations.

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.

Revised Black Economic Empowerment (BEE) agreements were signed in the period enabling implementation of the security provisions for the debt facility, which is on track to be completed during September 2010.

The September quarter production guidance was lowered from 25,000 ounces to between 18,000 and 20,000 ounces due to a slower than expected build up in the new North 2 area.

The company said 2010 and 2011 annual forecasts are under review due to the slower North 2 production build up.

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