JOHANNESBURG (miningweekly.com) – ASX- and JSE-listed gold producer Gold One on Wednesday reported that production from its South African operations had increased by 75% during the quarter ended December, to 10 865 oz, as the Modder East project reached commercial production.

Gold One CEO Neal Froneman said that the Modder East project produced 5 193 oz of gold in the month of December, which at this stage of the project build-up, represented over 62 000 oz of yearly production. He noted that this positioned Gold One well to achieve its stated production target of 100 000 oz for 2010.

Total production for the group for the year ended December 2009, was 17 040 oz, of which 10 865 oz were produced in the December quarter. Total gold production from Modder East for 2009 was 15 199 oz of gold, of which 10 323 oz were produced in the December quarter, a 112% improvement on the previous quarter.

“This is particularly encouraging given the mine ceased underground operations for the Christmas and New Year holidays,” said Froneman.

During the Christmas and New Year period low-grade stockpiled development ore was treated resulting in 97 oz of gold.

A total of 46 661 t of ore was processed from Modder East at a recovered grade of 6,88 g/t for 10 323 oz, while 11 940 t of ore from the Sub Nigel training centre was treated at a recovered grade of 1,16 g/t yielding 445 oz. In addition, a further 8 193 t, at a recovered grade of 0,37 g/t, yielding 97 oz of gold was fed to the crusher from the low-grade surface stockpile in December 2009.

The newly constructed metallurgical plant at Modder East, which was commissioned in June, continued to operate ahead of specification with an average overall recovery from start-up of 92%, Froneman stated.

Gold One has further taken a decision to install a gravity circuit, at a total cost of A$1,1-million.

The gravity circuit will result in higher recoveries, reduced operating costs and lower residence times, while also reducing gold lock-up owing to the free-milling nature of the ore. Froneman reported that the installation should be completed by the end of May.

Looking ahead, Gold One expected production at the Modder East mine to remain at December 2009 levels for the first quarter of 2010, resulting in a target of about 15 000 oz of gold output.

“Production ramp-up to the targeted gold production of between 100 000 oz and 120 000 oz for 2010 will continue from the middle of the second quarter as additional panels come into production,” Froneman said.

He added that the production ramp-up would primarily depend on the generation of sufficient face and ore volumes.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.