Gold One International positioned to exceed 120,000 ounces of gold production for 2011

Gold One International (ASX: GDO, JSE: GDO) continues to ramp up gold production from the company's Modder East operations in South Africa, and is poised to overtake the 2011 targets in the next few weeks.

Gold One targeted 120,000 gold ounces to be produced during 2011, with the company already pouring 113,569 ounces, with Modder East well positioned for 2012 production to be even stronger. December quarter production up until Friday 25 November was 23,742 ounces.

In an update to the market, chief executive officer Neal Froneman added, “Our production output to date reflects the commitment and excellence of Gold One’s operational team.

"The Modder East team has ensured the operation has sufficient mining flexibility to attain our 2011 production forecast and also to provide us with a solid base on which to begin the new year.

"I look forward to the incorporation of the Cooke Underground and Randfontein Surface operations into our future production forecasts.”

Currently at the Cooke Underground Operations a complete replanning exercise for the incorporating of Gold One’s turnaround strategy is underway.

Gold One also has its annual budgeting cycle for the Modder East Operations underway, allowing the company to then deliver a comprehensive production update and guidance for 2012 at the beginning of the new year.


Updated mineral resource expected

The company’s exploration projects are progressing as anticipated, with the drilling of the extension of the eastern payshoot at Ventersburg completed recently, with the results being reviewed for an updated mineral resource estimate for the project.

This is currently being audited by an independent consulting firm and will be released during the March 2012 quarter. These resources will also underpin an updated Pre-Feasibility study, due for completion during December 2011.


A$0.55 cash offer by Chinese consortium now unconditional

Gold One yesterday took another significant step towards the transformation of the company into a very well funded gold producing company, with the A$0.55 cash offer by a Chinese consortium now unconditional.

BCX Gold, which is a special purpose vehicle formed by the consortium, has advised Gold One of the offer now becoming unconditional, due to it obtaining the requisite approvals to proceed with the transaction from the National Development and Reform Commission, the Ministry of Commerce and the State Administration for Foreign Exchange of the People’s Republic of China (PRC).

Accordingly, it has freed the offer from all defeating conditions that had not been fulfilled, including a waiver of the condition that the consortium obtain a minimum 60% interest in Gold One on a fully diluted basis.

The offer comprises a series of interdependent transactions, including the cash offer and a minimum A$150 million capital injection into Gold One.
 
The Chinese consortium is seeking to become the major shareholder and long term strategic partner of Gold One targeting a minimum 60% stake, with the cash injection providing a major boost to the development of the company.

The offer is scheduled to close on Thursday 15 December 2011, with the payment of the offer consideration expected to take place on Friday 23 December 2011.

The consortium currently has a relevant interest of around 23.895% on an undiluted basis in the ordinary shares of Gold One.

The Gold One board supports the offer.