PERTH (miningweekly.com) - South Africa-focused gold miner Gold One on Tuesday said that it was on track to exceed its 2011 production target of 120 000 oz of gold.

Production for the quarter ended December was currently around 23 742 oz of gold, with year-to-date production estimated at around 113 569 oz.

The miner said in a statement that the continued build-up of the Modder East operation was progressing well, and a solid foundation had been set for further build-up in production during 2012.

“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,” said CEO and president Neal Froneman.

He added that the production target expectations were specifically relevant given the company’s deal with a Chinese consortium, which would be taking up a majority interest in the gold miner, in exchange for a A$150-million cash injection.

Under the terms of the offer, should Gold One not achieve its 2011 production targets, the Chinese consortium would have been entitled to be issued with a number of adjustment subscription shares.

“Gold One remains confident that the adjustment subscription clause will not become effective, given that annual production for 2011 is anticipated to exceed 120 000 oz,” Froneman said.

Meanwhile, the miner noted that its exploration projects were also progressing as anticipated.

Most notably, the drilling of the extension of the eastern payshoot at the Ventersburg project was completed during the December quarter, and the results have been considered in an updated mineral resource estimate for the project, which would be released in the March quarter.

The resources would also underpin an updated prefeasibility study, due for completion during December 2011.

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