Email response from their IR manager- Ilja Graulich Jas We have...

Email response from their IR manager- Ilja Graulich

Jas

We have not made full announcements on the debt, this will come in time

Below responses to some of the major questions, we have had, including your questions

Also, we are looking at some 500 retrenchments @ RU as we speak to bring costs down, and optimisation of treatment of ore.

IDG


Are the assets BEE compliant post GDO?s acquisition and what is GDO?s effective level of ownership?

No the assets as they are currently contemplated in the sale are not BEE compliant. To achieve approval of the transaction from the Department of mineral Resources (DMR) BEE compliancy will need to be put into place prior to the transaction being finalized. This will be done using a similar model to that applied at the other Gold One assets, e.g. Modder East and Goliath. Effectively this is done at an asset level where 26% of the asset is sold to the BEE partners funded by vendor financing and repaid over time at market related prices. As such Gold One will effectively hold 100% of the assets for now.



What levels of CAPEX do you envisage for the Cooke Gold Plant reconfiguration to treat underground ores?

Less than R20 million ($3 million). The Cooke plant has over the past few years been significantly upgraded By Rand Uranium to treat the surface sand material. It has also recently been ?re-commissioned? on underground ore in limited volumes that have been batch treated during times when the Doornkop plant has been temporarily unavailable. The proposed Capex expenditure largely relates to upgrading the existing tanks within the plant and minor work on the mills. Once uranium production starts, an additional R25 million capital expenditure is envisaged to split the gold only and gold and uranium bearing ore into separate streams.



What improvement on current operating costs (ZAR1,000/t) are you targeting at Cooke underground?

Over the next 12 to 24 months we are looking at reducing the underground operating costs by at least 20%. Given the depth and volumes planned, opex costs for this operation should be approximately R750 ? R800/ton. Additional cost savings will also be made on the processing side once all ore is treated at the Cooke Plant as opposed to the toll treating at Doornkop. This change over is anticipated to take between 6 and 12 months and processing costs could be reduced by as much as 30%.



What levels of CAPEX are being scoped for the new uranium processing facility?

A total CAPEX of R2.8 bn (~$410 million) of which R0.3 bn is directly related to the tailings depositional facility and the remainder to the U Plant. Gold One will review in detail the existing feasibility study to determine whether any cost savings in this regard are prudent (initial indications are that some savings are likely).



What sort of operating costs are targeted in the uranium study?

It is important to recognise that Gold One does not view the uranium project as a ?standalone? project but rather as a co-product that facilitates a reduction in gold operating costs. This is probably the single biggest difference between Gold One?s view and that of the current owners which makes this acquisition so exciting in the medium term. However to try and split out uranium costs alone would suggest that operating costs for the surface resource only are about 45$/lb (in addition gold would be recovered from this dump which when taken as a credit to U opex, would result in a net OPEX cost of 40$/lb). If underground ore is included (i.e. mining costs carried by Gold production and only processing costs carried by Uranium) then total operating costs for U production is about 40$/lb.

When considering the co-product model, our modelling suggests that at steady state, gold cash costs (including uranium credits) will be below US$400/oz.



When is GDO hoping to make an investment decision on the uranium project?

In 2012. This will follow a detailed review of the existing feasibility study as well as an optimised co-product mining plan being developed.