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Gold One International Updates Market On Ezulwini Operation

Mid-tier miner Gold One International (ASX: GDO, JSE: GDO) has updated the market this morning on the company's Ezulwini Operation in South Africa.

Gold One advises that on Tuesday 2 October the company obtained an interim interdict from the Labour Court of South Africa, in terms whereof the industrial action that began at the Cooke 4 Shaft (Ezulwini) on 1 October 2012 was declared to be unprotected and unlawful.

The employees were further interdicted from participating in the industrial action, which is in contravention of a two year wage agreement signed in July 2012.

The policy of 'no work - no pay' has been enforced. Employees who continue to ignore various instructions and requests from the company to return to work will face disciplinary action that may lead to their dismissal.

The company reported on 2 October 2012 that a large number of Cooke 4 night shift employees failed to report for duty on 1 October 2012, and that both day and afternoon shift employees failed to report for work on 2 October 2012.

An ultimatum to return to work was presented to employees on both 1 and 2 October.

Background

The company's flagship Modder East gold mine, commissioned in 2009 differentiates itself from most other gold mines in South Africa owing to the shallow nature (300 to 500 metres below surface). Production is continuing to ramp up having produced 123,179 ounces of gold in 2011.

At the beginning of 2012, Gold One expanded further with the acquisition of the Cooke 1, 2 and 3 Underground Operations and the Cooke surface assets (Randfontein Surface Operations) located in the West Rand, 30 kilometres from Johannesburg.

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