PERTH (miningweekly.com) – Dual-listed Gold One, which owns mines and projects in South Africa, is targeting gold production of 300 000 oz in 2012, CEO Neal Froneman said on Tuesday.

The miner, which has set a stated target of becoming an one-million-ounce producer, said its flagship Modder East operation would produce 150 000 oz this year, with its Cooke underground mine and its Randfontein surface operations contributing 118 000 oz and 32 000 oz, respectively.

The 2012 production forecast is more than double what the midtier miner produced last year, bolstered by the acquisition of Rand Uranium.

During the three months to December, Gold One produced some 33 352 oz of gold, exceeding its guidance of 33 000 oz, bringing total 2011 production to 123 179 oz.

The Modder East operation produced 33 352 oz in the December quarter, and Froneman noted that production ramp-up and mining flexibility at the operation was continuing in line with the company’s plan.

“Increased on-reef development has increased available face length such that, at the end of December, Modder East had effectively opened up sufficient reserves to support our production profile for a period of around eight months, should no further development take place.”

Froneman said that following the successful closing of the Rand Uranium transaction, the acquisition of the Randfontein and Cook Underground operations has doubled Gold One’s production forecast for 2012.

“This production, combined with the operations’ substantial mineral resource and mineral reserve base, adds quality long-term production life to the Gold One group,” he said.

The Cooke underground operation was advancing strongly with the implementation of a detailed turnaround strategy, the benefits of which would start to be realised during the March quarter, Froneman said.

Gold One expected to produce some 68 000 oz in the March quarter, of which 34 000 oz would come from the Modder East operation, 26 000 oz from the Cooke underground mine and 8 000 oz from the Randfontein surface operations.

Over two years, Gold One was targeting a sustainable profitability enhancement in excess of $61.89-million a year, and Froneman noted that achieving this target would bring the operation in line with the company’s planned operating costs of around $1 000/oz by 2014.

Meanwhile, the Randfontein surface operation was being managed as an independent business unit to ensure adequate focus on existing operations and to grow the business unit by exploiting the surface resources, which belonged to Rand Uranium.

Included in the strategic focus of the Randfontein operation was the Cooke uranium project, which was focused on the development and construction of an uranium processing plant to treat the Cooke tailings deposit, as well as uranium-bearing underground ore.

Gold One announced earlier this month that it had initiated a strategic partnership with Gold Fields to investigate the joint processing of both companies’ tailings resources on the West Rand.

“During 2012 we look forward to the continued ramp-up in production at Modder East, the implementation of a well-structured turnaround plan at the Cooke underground operation and a dedicated focus on growth at the Randfontein surface operation,” said Froneman.

“With the strong support of our strategic partners, continued focus on operational delivery and advancement of our key projects, Gold One is well positioned to achieve its target of becoming a million-ounce producer.”

Gold One is majority-owned by a consortium comprising Baiyin Non-Ferrous Group, the China-Africa Development Fund, and Long March Capital.

Meanwhile, the company reported that it planned to list on the Hong Kong bourse in the next 9 to 18 months. The miner, which is already listed in Australia and South Africa, said it was opening an office in Hong Kong to bolster its presence in the region.
 

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