Banka Mining Lease Ghana - Technical report

Goldplat plc, the AIM quoted gold producer focussed in Africa, is pleased to provide a positive technical summary report for its recently acquired c.29 sq km Banka Mining Lease ('Banka' or 'the Project'), in the Amansie East and Asante Akim South Districts on the eastern margin of the highly prospective Ashanti Gold Belt in southern Ghana.

Overview

  • Independent report, compiled by SEMS Exploration Services, ('SEMS') a leading mineral exploration consultancy in West Africa, highlights potential for significant gold mineralisation

  • Banka is 10 km southwest of Newmont's Akyem deposit (circa 14Moz Au)

  • Previous diamond core drilling programmes clearly defined significant high grade gold intersections located within a broad low grade mineralised zone - 4 km strike with surface outcropping

  • Previous drill results include intersections of 0.8 metres at 13.2g/t Au and 1 metre at 11.30 g/t Au

  • Previous artisanal activity in the area - historical mine records suggest artisanal miners were exploiting a gold resource estimated to be at a grading of up to 26.9 g/t Au

  • Current initial non JORC compliant resource of 262,107 oz Au to a depth of 100 metres - report suggests significant potential to upgrade this and increase the resource with infill drilling - potential for increase depth of drilling to 250 metres

  • Immediate plan to implement a defined development programme at Banka to define a JORC compliant resource

Goldplat's CEO Demetri Manolis said, "This technical report underpins the prospectivity of Banka in Ghana for gold. Early exploration work already suggests that there is potential for a significant resource. Our aim is to rapidly advance this brown-field gold project, convert and raise the existing gold resource to a JORC compliant status, and develop Banka in the mid-term into a profitable mining operation.

"The development of Banka forms part of the Company's strategy of building a solid portfolio of advanced gold mining projects in recognised mineralised areas with production history. We continue to explore and develop our other mining projects in Kenya and Burkina Faso, which I believe in conjunction with Banka, will give Goldplat the potential to generate a target resource base of in excess of one and a half million ounces of gold by 1H 2012. Updates on these developments are expected in the near term, as well as from our platform gold recovery operations in South Africa and Ghana which continue to perform strongly and profitably."

SEMS technical summary statement of potential for economic gold occurrences at Banka, Ghana

Banka straddles the eastern margin of the Ashanti Gold Belt in southern Ghana. The Project is licensed with the Minerals Commission of Ghana as a Mining Lease which covers 29.63 square kilometres and is located ten kilometres southwest of, and along strike from, Newmont Mining Corporation's ('Newmont') Akyem deposit (circa 14Moz Au).

The geological setting of Banka is similar to that of the Akyem property with Birimian volcanosedimentary rocks occurring to the east of the property and Banket conglomerate horizons trending in a north easterly direction through the western portion. Newmont's Akyem deposit occurs within the Birimian volcanosedimentary units and the massive gold deposits of Tarkwa occur in Banket conglomerate horizons similar to those seen in the central and western portions of Banka concession.

Gold has been mined from one of the Banket conglomerates, the 'eastern conglomerate', for more than one hundred years with the Adansi Syndicate sinking four vertical shafts in 1910. Mine records suggest the Adansi Syndicate were exploiting a resource estimated to be grading at up to 26.9 g/t Au. Today the eastern conglomerate horizon continues to be exploited on a small scale by artisanal miners from nearby villages.

Since the Adansi Syndicate's mining operations (1910 to 1913), very little exploration work has been completed at Banka until Mwana Africa Ltd ('Mwana') entered into a joint venture with the local licence holders in 2006.

Mwana completed two diamond core drilling programmes along the eastern conglomerate on wide spaced drill lines (200-800 metres between sections). This work clearly defined a broad low grade mineralised zone (20 to 50 metres wide @ 0.35 g/t Au) extends from the Banka village to the Tokwae village, a distance of 4.2 km, along the eastern conglomerate. Within the broad, low grade mineralised envelope significant high grade intersections were recorded.

All significant gold mineralisation identified to date at Banka has occurred within the eastern Banket conglomerate horizon. Some of the better drill intersections are presented below however it must be noted that these results are not representative of all historic programs in their entirety.

Hole # From To Width Drill Type g/t
AERC06 25.0 26.0 1.0 RC 8.21
AERC11 42.0 43.0 1.0 RC 14.67
AERC20 35.0 36.0 0.3 RC 11.00
06BAEDD004 0.9 1.2 0.3 Core 10.70
06BAEDD006 59.5 59.8 0.3 Core 6.87
06BAEDD006 60.8 61.1 0.3 Core 14.90
06BAEDD006 61.4 61.7 0.3 Core 9.52
06BAEDD006 61.7 62.0 0.3 Core 8.93
06BAEDD006 62.9 63.2 0.5 Core 6.30
06BAEDD015 56.5 57.0 1.0 Core 10.90
06BAEDD015 61.6 62.6 0.4 Core 7.25
06BAEDD015 85.9 86.3 0.4 Core 9.60
07BAEDD038 93.2 93.6 0.8 Core 7.27
07BAEDD040 34.4 35.2 0.8 Core 13.20
07BAEDD040 35.2 36.0 1.0 Core 11.30
07BAEDD040 47.2 48.2 1.0 Core 7.60

Mwana attempted to estimate a mineral resource for the eastern conglomerate but found that high grade mineralisation could not be reliably traced between their wide spaced drill sections. Mwana concluded that a Non-JORC 'tangible blue sky mineral resource' containing 262,107 ounces of gold to a depth of 100 metres could be upgraded and increased with infill drilling. This assumption is supported by experiences with other conglomerate hosted ore bodies in Ghana, such as the Tarkwa and Damang gold mines, where tighter grade control drill patterns often increase mineral resources and reserves.

Considerable potential exists within Banka to increase the current Non-JORC mineral resource. The primary target for gold exploration is the eastern conglomerate horizon where it is proposed that the resource might be increased by:

  • A closer spaced drill pattern for the full length of the conglomerate unit. Mwana limited its drilling to the south western two thirds (2.5 km) of the eastern conglomerate. Closer spaced drilling is likely to identify new high grade zones and to enable a more continuous resource wireframe to be created.

  • A number of higher grade intersections occur in isolated drill holes over the north eastern portion of the eastern conglomerate. Additional drilling may define resource blocks that are not included in the current resource estimation.

  • Deeper drilling under the eastern conglomerate. All Mwana drilling was restricted to the top 100 to 150 metres of the eastern conglomerate zone. If continuous zones of >10 g/t mineralisation can be defined then it is suggested that the depth of drilling should be doubled to 250 metres from surface. It should be noted that mineralised Banket conglomerate horizons in Ghana are generally continuous units that have not be subjected to intense deformation. At Tarkwa such conglomerates have been traced for considerable depths.

Other prospective zones within Banka which may host gold mineralisation are:

  • The western conglomerate horizon which lies approximately 1.3 km to the west of the eastern conglomerate. This zone stretches for 3.7 km in a north easterly direction and has been rock chip sampled at regular intervals. To date results have not been encouraging but if this horizon is the western limb of the same conglomerate unit mined by the Adansi Syndicate then it should be tested by drilling at depth. It should be noted that the northernmost 500 metre portion of the western conglomerate is coincident with anomalous soil geochemistry values. This has not previously been investigated.

  • The relationship between the eastern and western conglomerate is not clear. Previous interpretations have assumed they are two limbs of a synformal structure and therefore the same horizon - as suggested in the point above. However, it is possible that the eastern conglomerate is part of a much larger regional synform which would mean the western conglomerate is a separate, younger conglomerate horizon. Such an interpretation would greatly increase the depth potential of mineralisation associated with the eastern conglomerate.

  • The Tarkwaian/Birimian contact and Birimian volcanosedimentary units to the east of Banka provide a similar geological setting to the Akyem deposit so may host a similar style of gold mineralisation. Soil geochemistry has not identified any significant anomaly in this area but subsurface testing of structural targets may be justified in the future.

Qualified Person

This announcement has been reviewed by Mr. Mark Austin, the group geologist for Goldplat who has more than 25 years of relevant experience in the field of activity concerned. He is a fellow of the Geological Society of South Africa ('GSSA') and has consented to the inclusion of the material in the form and context in which it appears.

* * 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
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177

Notes

Goldplat plc 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 mid-tier gold company.

The Company has two recovery businesses based in South Africa and Ghana, which, by safely disposing mining by-products, 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'Ivore, Senegal, the DRC and Mauritania, as well as Ghana.

Goldplat's strategy is to build itself into a mid-tier gold producer, through the acquisition of known deposits with targets of between 200,000 and one million contained ounces. Kilimapesa Gold is a wholly owned subsidiary of Goldplat and is developing the potential of the 213 sq km Lolgorien licence area located in the historically producing Migori Archaean Greenstone Belt in western Kenya. Kilimapesa Gold commenced initial production in January 2009 and an aggressive exploration and development programme resulted in a maiden JORC compliant resource being reported in October 2009.

Goldplat also has an option over the 246 sq km Nyieme Gold Project located in Burkina Faso, which includes known high-grade quartz vein structures, with drill core results showing up to 17.83 g/t gold over one metre and 11.67 g/t over five metres. A maiden resource was announced in December 2010 of 685,000 tonnes at 2.61 g/t Au for 57,501oz Au at a cut-off grade of 1.0 g/t Au for all categories but the Company hopes to increase this through further exploration.

Additionally, the Company has acquired the Banka Mining Lease, a ten year renewable mining lease for gold and associated minerals covering an area of 29 sq km located in the Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana. The Company is now implementing a defined development plan with a view to proving a JORC compliant resource.