JOHANNESBURG (miningweekly.com) – ASX- and JSE- listed Gold One’s growth projects were taking shape, keeping it on track to ramp up its production to 20 000 oz of gold before the end of the year, CEO Neal Froneman told shareholders on Monday.

In a statement, he noted that the company was on track to achieve that target, with its Modder East operation moving into commercial and continuous production.

The operation had already produced its first 6 191 oz of gold in the quarter ended September 30, 2009.

With the project now 95% completed, Gold One is anticipating moving into monthly positive cash flow at the operation, it reported.

Further, the vertical shaft at Modder East would be fully operational by November, with the equipping of the shaft more than 90% completed, the permanent headgear having been put in place and the Koepe winder having been placed in position.

The completion of the shaft would coincide with the completion of the underground shaft access development, which would allow the company’s teams faster access to their working faces, resulting in higher productivity, Gold One stated.

The first hydropower pump station at Modder East, which would supply high-pressure water to operate the rock drills on the reef horizon, has also been commissioned.

Meanwhile, the processing plant at Modder East, which had been completed at a cost of A$39,47-million in the quarter ended June 2009, was currently treating about 600 t/d or 18 000 t/m of ore from both Modder East and Sub-Nigel.

The plant had been designed to treat 100 000 t/m of ore.

It was currently operating at R20/t less than what was set out in the feasibility study, while the junior gold-miner continues to focus on efficiency and cost improvements.

A specialist consultancy was working with Gold One to reduce the operating costs further, it reported.

At the company’s Sub-Nigel operation, the production was expected to reach a steady state target of 2 000 m2/m by the last quarter of the year.

The operation has, to date, produced 1 022 oz of gold and is expected to contribute a further 1 000 oz of gold before the end of the year.

EXPLORATION ACTIVITIES

Meanwhile, Gold One has appointed Turgis Consulting to undertake a prefeasibility study at its Ventersburg project. The study would be completed before the end of 2010.

Four drill rigs were currently in operation at the project, with the gold-miner aiming to define another one-million ounces of indicated resource to add to the existing 1,44-million ounces of indicated and 1,84-million ounces of inferred resource.

A revised resource update for the project would be completed early in 2010.