Solid Operational Performance for Gold One for June 2011...

Solid Operational Performance for Gold One for June 2011 Quarter
 28,511 ounces of gold production resulting in the net cash flow from operations increasing quarter on quarter by 39% to US$ 15.59 million
 Cash and gold receivables balance increased quarter on quarter by 35% to US$ 25.13 million
 Introduction of strategic partner and cash offer of A$ 0.55 per share
 Successful offer to acquire gold producer Rand Uranium for US$ 250 million
 Excellent safety results with a lost-time injury-free quarter
 Positive progress of projects including confirmation of a high grade payshoot extension at Ventersburg and positive Black Reef intersection at Modder North
JOHANNESBURG ? 26 July, 2011. Gold One International Limited (ASX and JSE: GDO) is pleased to report another quarter of continued production growth with 28,511 ounces of gold having been produced. This gold production represents an 8.9% increase relative to the March 2011 quarter?s production of 26,188 ounces and also exceeds the quarter?s guidance of 28,000 ounces. Total production for the first half of 2011 therefore amounts to 54,699 ounces. With the continued production ramp up on track, the company is well positioned to achieve its annual gold production target of 120,000 ounces.
The strong operational performance was achieved during a time when Gold One?s South African operations had a lost-time injury-free quarter, which has, in turn, reduced the progressive lost-time injury frequency rate per 200,000 hours (?LTIFR?) for 2011 to 0.86; significantly below the Australian LTIFR benchmark of one.
Operating cash flow for the quarter increased significantly, amounting to US$ 24.95 million. After development and capital expenditure of US$ 9.36 million, the group generated a net cash flow from operations of US$ 15.59 million; 39% higher than the previous quarter?s US$ 11.19 million.
Gold One ended the first half of 2011 with US$ 25.13 million of cash on hand and gold receivables (including restricted cash of US$ 5.28 million), compared to an end of March 2011 quarter cash on hand and receivables balance of US$ 18.67 million (including restricted cash of US$ 5.29 million).
Gold One President and CEO Neal Froneman comments: ?The company has continued to build on the solid foundation that it has established throughout this year. For the September 2011 quarter, 34,000 ounces of gold production is being targeted and all necessary development and infrastructure is in place to ensure achievement of the company?s annual gold production target of 120,000 ounces.?
Exploration and Projects
The company has also made good progress with several of the initiatives in its project pipeline. At Ventersburg, the pre-feasibility study that was completed at the end of the March 2011 quarter underwent extensive review by the company during the June 2011 quarter. Following the review, it was anticipated that the pre-feasibility study could potentially be optimised and enhanced through the addition of shallower resources that could facilitate more rapid orebody access. In this regard, a possible shallow extension to the eastern most payshoot was modelled and drilling to date has yielded favourable results. This drilling is planned to be completed by the beginning of the December 2011 quarter and the updated pre-feasibility study is anticipated to be completed by the end of this year. At Megamine, desktop studies undertaken during 2010 have continued with a particular focus on the Wit Nigel property, being the southern property contiguous to Megamine comprising the prospecting right belonging to Goliath Gold Mining Limited,
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formerly White Water Resources Limited. This information, combined with the current surface exploration drilling programme, will be utilised to extend the existing Megamine geological models into the adjacent Wit Nigel prospecting area.
The 2011 drill programme at Modder East has been concluded, which, when considered in conjunction with the drilling undertaken during the December 2010 quarter, will result in additional resources in the northeastern portion of Modder East. The results of this drilling will be incorporated into the updated Modder East resource statement anticipated to be published during the December 2011 quarter.
Corporate Development
On 28 April, 2011, Gold One announced that it had made a binding offer to acquire 100% of Rand Uranium (Proprietary) Limited for US$ 250 million and on 16 May, 2011, Gold One also announced that it had signed a Transaction Implementation Agreement that could result in a change of control with a consortium of Chinese investors becoming Gold One?s long term strategic partner and major shareholder (?Jintu transaction?).
The Rand Uranium transaction is progressing well, with the conditions precedent all currently on track to be fulfilled on or before the dates stipulated in the amended sale of shares agreement. The notice of meeting and explanatory memorandum regarding the subscriptions relating to the Jintu transaction are expected to be issued in due course; this issue will trigger the opening of the offer. The general meeting of Gold One shareholders is expected to be held in late August or early September 2011 to approve, inter alia, the subscription.
Gold One President and CEO Neal Froneman comments: ?Shareholders have indicated strong support for both the Rand Uranium and Chinese consortium transactions. I am confident that these transactions, combined with further progress and development within the company?s current project pipeline, will continue to create significant shareholder value. In addition, it is especially pleasing to report that, despite the major corporate initiatives undertaken during this quarter, the company has continued to perform above expectations operationally, suggesting that the strategy of establishing a solid foundation, and clear role clarity between operational and corporate development functions prior to considering external growth, has been successful.?