Gold One International Limited (ASX: GDO) is a gold producer listed on ASX and JSE. Its flagship operation is the Modder East mine, also owning the nearby existing Sub Nigel mine, which is used primarily as a training centre in the build-up of Modder to full production. Its other projects and targets include Ventersburg the Free State goldfields and the Tulo concession in Mozambique.
Production for 2010 is targeted at between 100,000 and 120,000 ounces of gold at a cash cost of less than US$400/ounce. Reserve base of 1.36 million gold ounces and a total resources base of 13.66 million gold ounces.
Gold One International On Track For 150,000 Ounces Production In 2011
Gold One International Limited (ASX and JSE: GDO) has reported that all striking employees returned to work on Wednesday, 28 April 2010. The resumption of production after the five week strike has been efficient.
All 24 panels available for production are now fully manned and production has resumed. It is expected that production from pre-strike levels will be achieved by Monday, 10 May 2010. Lost production due to the strike is approximately 5,000 to 6,000 ounces.
Production for the June 2010 quarter is now estimated to be between 10,000 and 14,000 ounces. Modder East will be in a production ramp-up phase through to June 2011.
The five week strike, of which 4 weeks occurred after the March 2010 quarter, has resulted in the planned production of 15,000 ounces for the December 2010 month being pushed out into January 2011, resulting in 2010 annual production guidance reducing by 15,000 ounces to between 85,000 and 100,000 ounces of gold. Cost guidance for 2010 remains the same with average cash costs expected below US$400/oz.
Production guidance for 2011 remains unchanged at between 150,000 and 180,000 ounces of gold and average cash costs below US$300/oz.
Gold One President and Chief Executive Officer, Neal Froneman said, “I am delighted that striking employees have returned to work and the restart of operations has been accomplished safely and smoothly, signaling the intent by all employees to get on with the task at hand. We will endeavor to claw back what has been lost due to the strike.”
