JOHANNESBURG (miningweekly.com) – ASX- and JSE-listed Gold One has set itself a target to produce 140 000 oz of gold in 2010 and 180 000 oz of gold in 2011, CEO Neal Froneman said on Friday.

Reporting on the company’s operational progress in the quarter ended June 30, 2009, Froneman noted that the successful commissioning of the processing plant at its Modder East project, in South Africa, boded well for it to meet its target of producing 20 000 oz of gold by the end of 2009.

With the first gold poured a quarter ahead of schedule, in July, Modder East had produced 600 oz of gold from ore from the underground project, as well as stockpiled ore mined at the Sub Nigel project.

The plant had been completed at a cost of A$39,47-million, well below the budgeted A$50,5-million.

Further, the permanent headgear and winder house at the 345-m deep vertical shaft at the Modder East operation, would be placed on its permanent foundations above the vertical shaft after the equipping of the shaft is completed in October.

Meanwhile, Gold One reported that the first phase of the recommissioning of the Sub Nigel project had been completed at a total cost of A$3,1-million, which was less than the A$4,3-million budgeted for the project.

Ore from Sub Nigel, which was expected to produce 6 000 oz/y of gold at steady state production, would be treated at the Modder East processing plant until 2011, when Modder East reached full production.

Further, the gold producer said that it expected to make substantial additions to the resource base at its Ventersburg project, which is situated near Welkom, in South Africa’s Free State province, by early next year.

Second-phase drilling started at the project in July.

Gold One regarded the project as its next potential flagship project.

A prefeasibility study would be undertaken in 2010, followed by a feasibility study in 2011.

Gold One expected to undertake mine development between mid-2012 and 2014. Production at the project would start in the fourth quarter of 2014.

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