Gold One upbeat on Modder East drilling

[] — GOLD One International said on Wednesday the results of its drilling programme at its flagship Modder East mine have confirmed an extension to the high grade shoreline.

The confirmation follows from positive assay values received from the remaining two surface exploration boreholes, drilled during the 2010 exploration drilling campaign in the north eastern portion of the Black Reef orebody.

The two boreholes intersected high grade shoreline, with DD68 containing 177.1 grams per tonne over a channel thickness of 72cm, and DD69 containing 37.3 grams per tonne over 56cm equating to 127.2 grams per tonne and 20.9 grams per tonne over a one metre mining width, respectively.

The shoreline represented the highest grade area of the Buckshot Pyrite Leader Zone (BPLZ) of the Black Reef. In addition to the BPLZ intersection, the underlying Channel Facies in borehole DD69 intersected 6.0 grams per tonne over a channel thickness of 427cm, confirming the high grade channel intersection obtained in DD66.

An initial drilling campaign comprising three surface boreholes (DD65, DD66 and DD67) was undertaken at Modder East, aimed at refining the shoreline position in areas planned to be mined during 2011 and 2012, the company said.

The third borehole drilled (DD66) successfully intersected well mineralised BPLZ Facies with a grade in the original intersection of 22.7 grams per tonne over a channel thickness of 47cm and a second deflection of 19.7 grams per tonne over 42cm, equating to 10.7 grams per tonne and 8.3 grams per tonne over a one metre mining thickness, respectively.

Given the successful intersection of DD66, the two further boreholes (DD68 and DD69) were drilled during September and October 2010, approximately 100m east and northeast of DD66. In addition to the original intersections of DD68 and DD69 discussed above, a deflection was drilled per borehole, the results of which are still outstanding and will be reported once received.

The drilling results of DD65 to DD67 have been considered in an updated resource estimate for Modder East, which has been completed and is currently under review by an independent party, SRK Consulting. The results of this estimate will be published during the fourth quarter of 2010. The results from boreholes DD68 and DD69 have not been included in the resource estimate.

The geological model for the north eastern portion of the BPLZ is currently being reviewed in the light of these exploration results and will underpin a continued exploration programme aimed at defining the extent of the identified shoreline extension. This drilling programme is planned to commence in January 2011, the results of which will be incorporated into the 2011 resource update.

Gold One President and CEO Neal Froneman said he is delighted with the results of the first phase of Modder East’s exploration programme.

“This drilling has confirmed the continuous nature of our orebody and indicated that the high grade shoreline we are currently mining extends to the north eastern areas of our mine. I look forward to the results of the next phase of our exploration programme and the potential impact it may have on our medium term mining plans,” he said.