2008 � A significant step toward becoming a gold producer
HIGHLIGHTS
- Modder East development successfully negotiates the water bearing dolomites
and intersects the reef horizon in all three development ends
- Modder East on schedule for first gold pour in Q4 2009
- Sub Nigel re-commissioned in December 2008 and stoping operations begin with
first gold production expected in June 2009
- Funding shortfall reduced to R30m following a post-year end R90m capital
raise
- Focused cost reduction strategy and a fair value adjustment to the bond
liability results in a significant financial performance improvement;
- The Ventersburg project moves into pre-feasibility phase with declaration of
first 1.437 million ounce indicated resource
- Strategic acquisition to create Gold One with a dual primary listing on the
JSE and ASX is well advanced
Johannesburg, 31 March 2009: Aflease Gold Limited (�Aflease� or �the company�)
(AFO � JSE) today announced a reduced headline loss for the year ended December
2008.
As reported in its trading update of 27 March 2009, the reduction in headline
loss from R81.9m to R44.8m was as a result of reduced general and
administrative as well as a fair value adjustment to the bond liability. Available
capital was in turn strategically focused on the company�s core
development project, Modder East.
While operationally Modder East is on track for its first gold pour at the end
of 2009, Aflease continued its advances to become a global mid-tier gold
producer, by announcing a reverse-takeover of Australian listed BMA Gold
Limited. The deal � subject to, inter alia, bondholder approval after all
regulatory and shareholder approvals were met � will bring significant benefits
to the company.
The newly formed company, to be known as Gold One International Limited, will
create an attractive international gold business with a new mine on the cusp of
production and a portfolio of growth prospects, coupled with a combined
resource of more than 13m ounces of gold across the portfolio of assets in Australia,
Mozambique, Namibia and South Africa.
SA operations
During 2008, Modder East successfully completed the development of all three of
the main access ends (main decline, return airway and decline west) through the
water bearing dolomites with the first gold pour expected to take place in the
last quarter of 2009.
During June 2008, the Company approved the first phase of the recommissioning
of Sub Nigel at a capital cost of R28.9 million after a detailed study showed a
reasonable return for a relatively small investment in infrastructure. In March
2009, Sub Nigel began to hoist its first ore, to be treated at Modder East, as
the mine�s plant is commissioned towards the middle of 2009. Sub Nigel will
also provide a valuable training ground for employees earmarked for Modder
East.
Commented Neal Froneman, Aflease Gold CEO �2008 was a company changing year for
Aflease, as both the operations made strong headway towards becoming a
producer, while we announced a major transaction that will leapfrog us into becoming
a high-margin mid tier gold producer.�
�Together with a dedicated team and strong shareholder support, I am positive
that 2009 will provide more opportunities to enhance returns for Gold One
�concluded Froneman.
For further information contact Neal Froneman, chief executive, on +27836280226
Issued by Gold One t/a Aflease Gold Ltd
Website: www.gold1.co.za
Note to editors:
Aflease Gold is a South African gold development company listed on the JSE
(share code AFO). It is developing the new Modder East mine on the East Rand,
some 30 kilometres from Johannesburg, and also owns the nearby existing Sub
Nigel mine, currently being brought back into production. Its other projects
and targets include Ventersburg, a large project with inferred resources, and
Bothaville, both in the Free State Goldfields, the Tulo concession in
Mozambique and the Etendeka greenfields project in Namibia. It has a resource
base of some 13 million ounces of gold.
___________________________________________________________________________
FORWARD-LOOKING STATEMENT: This news release includes certain �forward-looking
statements� and �forward-looking information�. All statements other than
statements of historical fact included in this release including, without
limitation, statements regarding future plans and objectives of Aflease Gold
and BMA Gold are forward-looking statements (or forward-looking information)
that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors could cause actual results to differ materially from Aflease Gold and
BMA Gold�s expectations. Such factors include, among others, the actual results
of exploration activities, actual results of reclamation activities, the
estimation or realisation of mineral reserves and resources, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits, availability
of capital required to place Aflease Gold and BMA Gold�s properties into
production, conclusions of economic evaluations, changes in project parameters
as plans continue to be refined, future prices of gold and other commodities,
possible variations in ore grade or recovery rates, failure of plant, equipment
or processes to operate as anticipated, accidents, labour disputes and other
risks of the mining industry, delays in obtaining governmental approvals,
permits or financing or in the completion of development or construction
activities,
Aflease Gold and BMA Gold�s hedging practices, currency fluctuations, title
disputes or claims limitations on insurance coverage, Although Aflease Gold and
BMA Gold have attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate as actual results and future events
could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Aflease
Gold and BMA Gold do not undertake to update any forward-looking statements
that are included herein, except in accordance with applicable securities laws.
In addition, this news release uses the terms �indicated resources� and
�inferred resources� as defined in accordance with the SAMREC Code (South African
Code for Reporting of Mineral Resources and Mineral Reserves prepared by the
South African Mineral Resource Committee) (SAMREC) under the auspices of the
South African Institute of Mining and Metallurgy effective March 2000 or as
amended from time to time. A mineral reserve is the economically mineable part
of a measured or indicated resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate
at the time of reporting that economic extraction can be justified. A mineral
reserve includes diluting materials and allows for losses that may occur when
the material is mined. A proven mineral reserve is the economically mineable
part of a measured resource for which quantity, grade or quality, densities,
shape and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters to support
production planning and evaluation of the economic viability of the deposit. A
probable mineral reserve is the economically mineable part of an indicated
mineral resource for which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence sufficient to allow
the appropriate application of technical and economic parameters to support
mine planning and evaluation of the economic viability of the deposit. A
mineral resource is a concentration or occurrence of natural, solid, inorganic
or fossilized organic material in or on the earth�s crust in such form and
quantity and of such a grade or quality that it has reasonable prospects for
economic extraction. The location, quantity, grade, geological characteristics
and continuity of a mineral resource are known, estimated or interpreted from
specific geological evidence and knowledge. A measured mineral resource is that
part of a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters to support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes that are
spaced closely enough to confirm both geological and grade continuity. An
indicated mineral resource is that part of a mineral resource for which
quantity, grade or quality, densities, shape and physical characteristics can
be estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drillholes that are spaced closely enough for geological and grade
continuity to be reasonably assumed. An inferred mineral resource is that part
of a mineral resource for which quantity and grade or quality can be estimated
on the basis of geological evidence and limited sampling and reasonably
assumed, but not verified, geological and grade continuity. The estimate is
based on limited exploration and sampling gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drillholes. Mineral
resources which are not mineral reserves do not have demonstrated economic
viability. Investors are cautioned not to assume that all or any part of the
mineral deposits in the measured and indicated resource categories will ever be
converted into reserves. In addition, �inferred resources� have a great amount
of uncertainty as to their existence and economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral resource will be
ever be upgraded to a higher category. Under South African rules, estimates of
inferred mineral resources may not form the basis of feasibility or
pre-feasibility studies or economic studies except under conditions noted in
the SAMREC Code. Investors are cautioned not to assume that all or any part of
an inferred resource exists or is economically or legally mineable. Exploration
data is acquired by the corporation and its consultants under strict quality
assurance and quality control protocols. No stock exchange, securities
commission or other regulatory authority has approved or disapproved the
information contained herein.
Carol Smith
Investor Relations
Aflease Gold Limited t/a Gold One
carol.smith@gold1.co.za
www.gold1.co.za
Tel: +27 11 726 1047 (ext. 203)
Mobile: +27 82 338 2228
Fax: +27 11 726 1087
Direct Fax: +27 86 545 1127
Postal Address: Postnet Suite 345, Private Bag X30500, Houghton, 2041. South
Africa
Delivery/Street Address: 45 Empire Road, ist Floor, Parktown, 2193.
South Africa