With a very positive outcome from a resource and reserve upgrade, the Gold One International (ASX / JSE: GDO) Modder East resources gained 18%, with reserves up 13%.
The gold upgrade has extended the mine life of Modder East, located in South Africa, by five years out to 2022.
Modder East’s total life of mine is now 13 years, and with a plant capacity of 100,000 tonnes of ore per month, production between 2012 and 2015 is forecast to exceed 150,000 gold ounces annually.
Based on the current spot gold price around US$1400, the in situ value of production for the four years from 2012 to 2015 is US$840 million.
Gold production is forecast to decrease from 2016 to between 100,000 and 120,000 ounces annually until 2020, then to 40,000 each year until 2022, as generally lower grade ore will be used.
Production for 2011 is forecast at 120,000 ounces.
The Modder East upgrade boosted Gold One’s total resource base to; 21.7 million gold ounces, with importantly 8.6 million ounces in the measured and indicated categories, with 13.1 million ounces inferred.
This total resource includes; Modder East, Ventersburg, Megamine and New Kleinfontein and Turnbridge.