Gold One International (GDO)

Shares / Stock Code

GDO

Stock Exchange / Sharemarket

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Gold One International (GDO) is an Australian and African gold producer listed on the financial markets operated by ASX Limited (the Australian Securities Exchange) and JSE Limited (the Johannesburg Stock Exchange) (issuer code GDO). The company was created via inward listing of Gold One – formerly BMA Gold - on the JSE and the subsequent acquisition by Gold One of all the issued ordinary shares in Aflease by way of a scheme of arrangement. Investors can trade shares on the Australian Stock Exchange (ASX). Investors can trade Gold One International shares on the Australian Stock Exchange (ASX).

The company’s vision is to be the preferred gold exploration, development and mining company, aiming to provide superior returns to investors in global markets, supportive of junior gold mining companies. The company believes that value accretive geographical diversification is also key to managing risk and in line with this strategy will continue to review opportunities in its targeted destinations of Australia, North America and Southern Africa. The company was listed on Australian stock market on 13 February, 2001.

Sub Nigel & Spaarwater

The currently dormant Sub Nigel and Spaarwater gold mines are situated 1km northwest of the town of Nigel on the East Rand. The Sub Nigel mine produced 15 million ounces of gold from the Nigel Reef between 1909 and 1971. A total of 29.7 million tonnes of ore at an average head grade of 15.7g/t were milled during this period. The 900m deep Sub Nigel 1 Shaft on the property was recently re-commissioned and licensed.

Spaarwater gold mine, located immediately west of Sub Nigel, mined the Main Reef (stratigraphically equivalent to the Nigel Reef) between 1947 and 1969. The mine produced 850,000 ounces of gold from 2.56 million tonnes of ore at an average head grade of 10.4g/t. The mineralization is confined to well defined, north-northwesterly oriented payshoots.

Further resources are associated with the Erosion Channel target located stratigraphically below the Nigel/Main Reef along the boundary between Sub Nigel and Spaarwater. The Erosion Channel is incised into shales of the Jeppestown Subgroup lying immediately beneath the Main Reef. The erosional feature is filled with quartzites, pyritic quartzites and conglomerates. Gold mineralisation occurs in the pyritic quartzite fill within these transgressive, laterally restricted bodies. There has been limited previous mining on the Erosion Channel.

New Kleinfontein & Turnbridge

The dormant New Kleinfontein and Turnbridge gold mines are situated near the town of Boksburg on the East Rand. Gold was first discovered at New Kleinfontein in 1894 and gold mining began at the New Kleinfontein Gold Mine in 1897. It is estimated that, at the closure of the mine in 1967, approximately 298,000kg (9.5Moz) of gold had been recovered from 45.7Mt of ore, principally from the Main Reef.

The Main Reef in the project area has well defined payshoots oriented northwest-southeast. These features are interpreted to result from channelized flow within a braided alluvial fan system. The channel thickness varies from a single pebble layer to up to three metres in width. The conglomerate is typically well sorted, and comprised mainly of quartz pebbles. New Kleinfontein is located in the proximal portion of the major payshoot, while Turnbridge straddles the margin of the payshoot to the south, and extends further south into a more distal environment.

In 1999, an attempt was made to re-open the New Kleinfontein Gold Mine. Following rehabilitation of the shaft infrastructure, small scale scattered underground mining began on the Main Reef, with a monthly production of approximately 2,500 tonnes from five shafts. The ore was initially treated via a toll agreement with Grootvlei Gold Mine, an adjacent mining operation.

In June 2002, a metallurgical plant was constructed at New Kleinfontein Gold Mine, with a capacity of 2,500 tonnes per month. Due to various operational problems and high unit production costs arising from the low throughput of ore in the plant, the operation failed to achieve profitability and operations at New Kleinfontein and the Turnbridge property were placed on care and maintenance in May 2003.

The New Kleinfontein property currently contains an audited Inferred resource base of 2.5 million tonnes grading 6.9 g/t for a total of 549,000 ounces of gold. The Turnbridge property currently contains an audited Inferred resource base of 1.8 million tonnes grading 4.8 g/t for a total of 280,000 ounces of gold. Both the New Kleinfontein and Turnbridge resource estimates have been calculated using a 300 cmg/t cut-off grade.

Exploration activities are underway at the two properties with the aim of upgrading the bulk of the resource to the indicated category. Prospecting at New Kleinfontein will involve surface mapping of the lease area, the re-drilling (twinning) of five short (50m) holes that were drilled previously, and the evaluation of remnant blocks. An underground mapping and sampling program is being planned for Turnbridge.