Operations Update
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
15 December 2009
Goldplat plc ('Goldplat' or 'the Company')
Operations Update
Goldplat plc, the AIM quoted gold producer, is pleased to provide an
operations update for its gold recovery businesses in South Africa
and Ghana and its Kilimapesa gold mining project in Kenya, which is
approaching commercial production and will positively impact the
Company's FY2010 gold production.
Goldplat's CEO Demetri Manolis said, "The processing operations in
South Africa and Ghana are generating significant cash through the
optimisation and expansion of the recovery plants. We are delighted
by the progress being made and will, according to our business model,
look to utilise this cash flow to expand our project portfolio into
primary production projects. Accordingly we are evaluating
additional opportunities that we believe have the potential to
materially impact the Company's performance moving forward.
Furthermore we are excited about the advancements being made in Kenya
and look forward to receiving the go-ahead for commercial production
in Kenya, which will contribute positively to our financial
performance when operational."
South Africa: Goldplat Recovery (Pty) Ltd ('Goldplat Recovery') -
Gold processing operations continuing to perform strongly
Goldplat Recovery is progressing well with the operation continuing
to develop strong cash flow. The design work for an intensive
cyanidation plant to leach the gravity concentrates and load gold
onto carbon for elution is finished and instillation is due to
commence imminently. As a result of this, the Company will
predominantly sell its gold in the form of a bullion bar, instead of
in concentrates, which will result in significant cost savings in
transport and processing costs. Furthermore, this will improve the
cash flow as bullion is paid for within a few days compared to a few
months for concentrates.
Additionally, in line with the Company's expansion plans, Goldplat
Recovery is reviewing opportunities to acquire a mining asset to
expand production into the primary gold producing sector.
Ghana: Gold Recovery Ghana Limited ('GRG') - Gold production
increasing and development proceeding according to plan
In Ghana, progress remains strong and on track. The incinerator has
been commissioned and has produced ash with grades exceeding 600 g/t
gold from relatively low grade material.
GRG is also progressing with the design and purchase of an elution
plant, which will enable it to export bullion rather than loaded
carbon. This will improve cash flow and significantly reduce the
transport costs and the carbon consumption, as the carbon is
regenerated in the elution plant and returned to the carbon in leach
circuit.
As in South Africa, design and test work is complete and construction
is due to commence imminently for the instillation of an intensive
cyanidation plant. As a result of this, the gold in the concentrates
will be beneficiated to bullion form with resultant significant cost
savings in transport and processing costs. Also, as with the South
African operation, this plant will also improve the cash flow, as
once again, bullion is paid for within a few days compared to a few
months for concentrates.
The Ghanaian Minister of Mines visited the facilities in Tema and was
impressed with the added value operation. The Company enjoys an
excellent relationship with the authorities in Ghana and looks
forward to this continuing as it focuses on developing its business
with major producers operating within the country.
Gold Recovery Ghana is also in reviewing opportunities to acquire a
mining project in Ghana.
Kilimapesa Gold (Pty) Ltd ('Kilimapesa Gold') and the Kilimapesa Hill
gold mining project ('Kilimapesa') - closing in on commercial gold
production
Kilimapesa Gold has made excellent progress with the application for
the Mining Lease at Kilimapesa, located in South Western Kenya within
the historically producing Migori Archaean Greenstone Belt.
The National Environmental and Management Agency has issued the
licence for the Environmental Impact Assessment and the local
authority has set aside the land for mining purpose. All other
conditions for the Mining Lease have now been met. The Commissioner
of Mines and Geology has approved the Mining Lease application and
all that is now required is the final ratification by the Minister of
Environment and Resources. Once this is officially approved,
Kilimapesa Gold will be permitted to make commercial sales of gold.
* * ENDS * *
For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc Tel: +27 (0) 11
423 1203
James Joyce WH Ireland Limited Tel: +44 (0) 20
7220 1666
David Porter WH Ireland Limited Tel: +44 (0) 20
7220 1666
Bill Sharp Alexander David Securities Tel: +44 (0)20
Limited 7448 9820
David Scott Alexander David Securities Tel: +44 (0)20
Limited 7448 9820
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20
7236 1177
Isabel Crossley St Brides Media & Finance Ltd Tel: +44 (0)20
7236 1177
Notes:
Goldplat is an AIM-listed gold producer with operations in Africa.
Its strategy is to consolidate its position as a gold producer in
Africa and build itself into a highly profitable mid-tier gold
company, leveraged through revenue generated from its gold recovery
businesses.
The Company has two recovery businesses based in South Africa and
Ghana producing circa 21,000 ounces of gold per year. These safely
dispose of mining by-products, and fulfil an important aspect of the
mines' environmental management programmes. The South African plant
is located near the centre of the East Rand Goldfield and raw
material feedstocks are sourced from many of the major South African
mining companies, including AngloGold Ashanti, Goldfields, Harmony,
DRD Gold and other smaller producers. The Ghana plant, located in
the free port of Tema, provides access to raw materials from mines in
Mali, Guinea, Burkina Faso, Benin, Cote D'Ivorie, Senegal, the DRC
and Mauritania, as well as Ghana.
Goldplat is looking to increase its asset base through the
acquisition of known deposits with targets of between 200,000 and one
million contained ounces. To this end, it is developing its wholly
owned Kilimapesa Gold mining project, located in the historically
producing Migori Archaean Greenstone Belt in western Kenya.
Kilimapesa Gold commenced initial production in January 2009 and has
announced an initial JORC-compliant resource of 1.65Mt at 2.44 g/t Au
for 129,000 oz Au at a cut-off grade of 1 g/t Au for all categories.
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