Gold One International, the product of a merger between Australian company BMA Gold and Aflease, on Thursday said that total 2010 production guidance remains between 85 000 to 100 000 ounces of gold.
The company said production ramp-up at its flagship Modder East gold mine was continuing as planned and that the build up rate required to reach this year's gold production targets was being achieved.
It said that the continuous ramp up in gold production was being achieved by the opening up of additional mining faces through ongoing reef development.
Six mining faces have been mined out against the northern side of the shore line with current output being achieved from the mining of 18 faces, a further 11 faces will be available by the end of the quarter.
At full production, 75 faces will be in operation, and reef development is on target to have 50 faces available at year end, the company said.
The company said production at Modder was now consistently outperforming levels attained prior to the five-week strike that occurred in late March to the end of April 2010.
Ramp-up to pre-strike levels was achieved by the end of May.
The company is currently producing an average of over 200 ounces of gold per day with recoveries exceeding 96 percent.
Gold One expects production of more than 10 000 ounces for the current quarter while September quarter production is expected to be about 25 000 ounces.
"I am pleased that production is back at levels prior to the strike and that the build-up to attain this year's production is going well, especially at times when the US$ gold price is reaching an all time high," said Gold One president and chief executive officer Neal Froneman.
"The company is continuing its progress with the re-financing of a corporate debt facility, and expects that a term-sheet with the preferred lenders will be signed within the next fortnight," Froneman said. - I-Net Bridge