162% Resource Increase at Kenyan Gold Mine

Goldplat plc, the AIM listed gold producer, is delighted to announce an updated JORC-Compliant resource from the Kilimapesa Gold operating mine ('Kilimapesa' or 'the Project') in Kenya.

  • Total underground JORC-Compliant gold resource estimate of 8,292,613 tonnes at 2.44 g/t gold ('Au') for 649,804 oz Au at a cut-off grade of 1 g/t Au

  • Resource represents a 402,320 oz Au or 162% increase from previously published JORC-Compliant 3,133,613 tonnes at 2.46 g/t gold for 247,484 oz Au announced in May 2012

  • Resource calculated from the Kilimapesa Hill and Red Ray exploration and development sections of the Project, located in South Western Kenya within the historically producing Migori Archaean Greenstone Belt

  • Resource currently covers a 1.2 km and 1 km strike length over the Kilimapesa Hill and Red Ray target areas respectively - resource remains open

  • Ramp up at the mine remains on track with initial annual production targeted at 10,000 oz - this is in addition to production from recovery operations in Ghana and South Africa

Goldplat's CEO Demetri Manolis said, "With 649,804 oz of gold now quantified, we have exceeded the 500,000 resource base targeted for 2012 and achieved a dramatic 520,502 oz increase on our initial resource published in 2009. These figures, in tandem with our ever improving knowledge of the system, underpin our belief that the project area has the ability to contain in excess of 1 million ounces of gold. Our continued efforts towards increasing the resource ounces and production at the mine, which include underground development, additional drill programmes and expanding plant capacity, are progressing well and we look forward to achieving our targeted initial 10,000 oz of gold per annum production rate. This progress, in tandem with the continued strong performance from our gold recovery operations, means that we are on track to achieve our growth objectives and significantly increase our production and operating profit, which in the year ending 30 June 2011 was £3,054,000."

Figure 1 - Total Resource (at 1 g/t cut-off)

TOTAL RESOURCE (1 g/t cut-off)
Resource ClassificationWithin Veins and Host
TonnesAu Grade g/tContained Au Oz
Measured641,9232.6955,612
Indicated1,267,8942.96120,547
Total1,909,8172.87176,159
Inferred6,382,7962.31473,645
Total8,292,6132.44649,804

The total estimated resource includes a Measured and Indicated mineral resource of 1,909,817 tonnes at 2.87 g/t Au for 176,159 oz Au plus an additional 6,382,796 tonnes at 2.31 g/t for 473,645 oz Au within the Inferred category.

Kilimapesa Hill

A JORC-Compliant ore resource of 531,631 oz at an average grade of 2.43 g/t at a 1 g/t cut-off has been declared at Kilimapesa Hill. This covers a 1.2km strike length over the Kilimapesa Hill target area. Currently the underground exposure is limited to a maximum depth below surface of 60m and comprises development on three veins covering a strike length of 320m.

The resources are contained within three sub-parallel east-west trending quartz veins intruded into Archaen Banded Iron Formation and basaltic country rocks. The main mineralisation is contained within the quartz veins, which lie within a low grade halo in the bounding country rocks. Access to the orebody is via a northerly developed horizontal adit, that has intersected the east-west trending quartz veins on which reef drives and raises have been developed.

The number of sampling points used in the estimation was 2,076 individual composite samples from underground channel sampling and represent over 650m of on-reef development, in the form of on-reef drives and raises. The database has been imported into the Datamine software package from which the orebody has been modelled and the estimation done using ordinary kriging. Channel sampling was done at three metre horizontal spacing with sample widths at a maximum of 25cm. Other analysis determined that any sample value greater than 20g/t be trimmed to that threshold; effecting only 2.21% of the sample population. Model block size was chosen to be 2m x 1m x 2m (x, y, z), for a total of 69,232,500 blocks used in the estimation.

Five surface drill holes were completed at the end of March 2012 for a total of 1,138 drilled metres. This programme successfully extended the known orebody to in excess of 140m below the current workings and extending the known strike to 1,200m. The drill core size was NQ. Values above 10 g/t were cut to that threshold effecting 5.05% of the population. 113 individual composite samples from these five surface holes were included in the estimation.

The estimated resources extend to a maximum of 270m below the current workings and are mostly comprised of Inferred Resources. This maximum depth occurs in the eastern side of the deposit and is due to the surface holes that intersected the veins at lower depths. The average maximum depth of the resource estimation (below current workings) is 160m.

Resources by category at a cut-off value of 1 g/t Au are shown in the following table:

KILIMAPESA HILL (1 g/t cut-off)
Resource ClassificationWithin Veins and Host
TonnesAu Grade g/tContained Au Ozs
Measured112,0003.6513,143
Indicated975,0002.9592,315
Total1,087,0003.02105,458
Inferred5,723,0002.32426,173
Total6,810,0002.43531,631

Figure 2 - Kilimapesa Hill Resources (at 1 g/t cut-off)

Red Ray

The Red Ray area is approximately 2km to the northeast of the Kilimapesa Gold Plant location. A JORC-Compliant ore resource of 118,173 oz at an average grade of 2.48 g/t at a 1 g/t cut-off has been declared here, based on a total of 13 diamond drill holes for 651m of core. Total strike length of the area drilled is approximately 1,000m. All samples were submitted to ALS Chemex Laboratories in Johannesburg. Figure 3 shows the resource for Red Ray at a cut-off of 1 g/t.

RED RAY (1 g/t cut-off)
Resource ClassificationWithin Veins and Host
TonnesAu Grade g/tContained Au Ozs
Measured529,9232.4942,469
Indicated292,8943.0028,232
Total822,8172.6770,701
Inferred659,7962.2447,472
Total1,482,6132.48118,173

Figure 3 - Red Ray Resource (at 1 g/t cut-off)

A further phase of drilling at Red Ray comprising nine holes for a total of 660m is near to completion and is designed to extend the current known limits of mineralisation to 2.5km.

Resource Classification

The determination of the resource classification used is as follows:

  • Measured - Resources estimated using a very restricted search ellipsoid size of 10m in the principal direction

  • Indicated - Resources estimated using a search ellipsoid of equivalent to the second modelled variographic range of 90m in the principal direction

  • Inferred - Resources estimated using a search ellipsoid twice the size of the second modelled variographic range, 180m in the principal direction including any resources estimated outside the modelled veins

Qualified Person

This announcement has been reviewed by Mr. Mark Austin, the group geologist for Goldplat who has more than 30 years of relevant experience in the field of activity concerned. He is a fellow of the Geological Society of South Africa ('GSSA') and is registered as a Professional Natural Scientist with the South African Council for Natural Scientific Professions and he has consented to the inclusion of the material in the form and context in which it appears.

The author and practitioner of the Kilimapesa Hill resource estimation report, is Mr. Dexter Ferreira, who is a senior geostatistician with over 19 years' experience in project evaluation internationally, including extensive involvement with mineral projects throughout South America and Africa. He is a member of the South African Council for Natural Scientific Professions, and qualifies as an 'Expert', 'Competent Person' and 'Qualified Person' as defined in National Instrument 43-101 and the JORC Code.

The JORC-Compliant resource for the Red Ray area was compiled by Dr Cedric Simonet, European Geologist No. 739 and who qualifies as a Competent Person in terms of the rules of the JORC code.

* * ENDS * *

For further information visit www.goldplat.com or contact:

Demetri Manolis, CEOGoldplat plcTel: +27 (0) 11 423 1203
Ewan Leggat/Katy Birkin Fairfax I.S. PLC Tel: +44 (0) 20 7598 5368
Felicity EdwardsSt Brides Media & Finance LtdTel: +44 (0)20 7236 1177

Notes:

Goldplat plc, which has a market cap of circa £19 million, is an AIM-listed profitable, debt free gold producer and mine development company focused in Africa, which has a strong cash position of in excess of £4.59 million as at 31 December 2011. The Company has a solid portfolio of assets including two gold recovery operations in South Africa and Ghana, which recover precious metal from by-products of the mining process such as woodchips, fine carbon and waste grease. For the FY 2011 these operations produced circa 28,000 ounces of gold. Goldplat also has a producing gold mine in Kenya and two brownfield gold development projects in Ghana and Burkina Faso with near term resource upgrade potential from which it aims to delineate in excess of 1 million ounces of resources by H1 2012. In line with this, the Company has implemented defined exploration and development programmes across each of its projects with a view to developing multiple profitable mining operations in the near to medium term.

.

NOTES:

Summary of Important Criteria used in the Assessment and Reporting of the Kilimapesa Underground Gold Resource

CriteriaStatus
Sampling Techniques, Assay Data, Drilling Details
Sampling Techniques
  • Sampling channels were cut using a hand-held pneumatic chipping hammer.

  • Individual samples were marked off using the methodology as described in "South Africa Mine Valuation edited By C.D. STORRAR, 1977" and are recorded as 'true sample widths'.

  • All sampling was supervised by a qualified geologist.

Location of Sampling Channels
  • Sample Channels are located underground by a qualified surveyor.

  • All sample sections are painted for further reference.

Sampling Data
  • All sample channels are recorded on 'Sample Sheets' which diagrammatically represent each sample section and correlation.

  • Each sample is recorded in a spatial data base

Verification of Sampling Data
  • Several channels have been twinned and the results show a close correlation.

Sample Assay
  • All samples have been submitted to certified laboratories in Tanzania or South Africa.

  • QA/QC has been done for all sample batches.

Drilling Methodology - Kilimapesa Hill
  • 5 wire line diamond drill holes were drilled to intersect the orebody below the current underground workings

  • Core size was NQ

  • All core was logged and sampled by a qualified geologist.

  • The core was split and half submitted to a ALS Laboratory in Johannesburg

Drilling Methodology - Red Ray
  • All holes were drilled using wire-line

  • Core size was TT46 and BQ

  • All core was logged and sampled by a qualified geologist

  • The core was split and half submitted to ALS in Johannesburg

Location of Boreholes
  • All borehole collars were surveyed by a qualified surveyor

  • Down-the-hole surveys at Kilimapesa Hill were done using Reflex technology

  • Down-the-hole surveys at Red Ray were not carried out due to the short drillhole lengths.

Estimating and Reporting of Mineral Resources
Database Integrity
  • Examination of the database has not revealed any issues of concern that could significantly affect the current resource estimation

Estimation and Modelling Techniques
  • Veins were modelled using Datamine software, whilst estimation was done using GSLIB[i] software. Estimation was completed using ordinary kriging and a minimum and maximum number of composites of 3 and 10 respectively.
Cut-Off Parameters
  • Outlier trimming limits were determined using "indicator correlation for lag 1" plots, cumulative correlation plots and cumulative logarithmic probability plots.

Classification
  • Classification of estimated resources used variographic ranges as factors. Classification scheme as per CIM[ii]
Bulk Density
  • The average SG of 3 was used based on measurements of samples submitted to SGS Laboratories, Johannesburg

Moisture Content
  • Dry tonnes have been used

[i] GSLIB is an acronym for geostatistical software library. This name was originally used for a collection of geostatistical programs developed at Stanford University over the last 15 years
[ii] Canadian Institute of Mining, Metallurgy and Petroleum.