Burkina Faso Gold Project Update

Goldplat plc, the AIM quoted gold producer, is pleased to provide an update on its exploration programme for the prospective 246 sq km Nyieme Gold Project ('Nyieme Project') in Burkina Faso .

Overview:

  • Intention to prove up the viability and production potential of the Nyieme project, and to test for further anomalies on the property
  • A phased approach to the exploration programme being implemented
    • Phase 1 - a trenching programme over areas of geophysical and soil sampling anomalies scheduled to start in May 2010
    • Phase 2 - a 1,250m diamond drilling ('DD') programme over the area previously drilled by Sanu Exploration ('BVI') Limited ('Sanu') - scheduled to start on completion of Phase 1, expected August 2010
    • 11 hole DD programme will test in depth the high grade zones and strike lengths
    • Budget for Phases 1 and 2 circa US$240,000
    • Targeting a JORC-compliant resource following completion of Phases 1 and 2
    • Phase 3 - follow-up DD drilling based on results from Phases 1 and 2 to further define the economic potential of the project

Goldplat CEO Demetri Manolis said, "We are highly confident about the potential of the Nyieme Project in Burkina Faso and have therefore devised an extensive exploration programme to test both the existing high grade targets, which include 3m @ 17.48 g/t gold as well as potential new areas of mineralisation. The West African region is attracting significant investment due to the recognised prospectivity of Burkina Faso , Ghana and Mali , and we believe through exploration we can significantly improve the value of the Nyieme Project."

Exploration Programme:

The exploration programme is designed to achieve two major objectives:

  • To extensively trench the geochemical and geophysical anomaly which extends to the south along the same trend as the veins drilled in the Nyieme prospect. This trenching will cover a strike length of 6km. Additional trenching will be conducted on a strong Induced Polarisation ('IP') anomaly which lays parallel and 2.5 km to the east of the main anomaly.
  • To further explore the Nyieme project as previously drilled by Sanu Exploration (BVI) Ltd. Sanu conducted a 2,015m 26 hole reverse circulation ('RC') drilling programme the intersection results of which best intersections included 3m @ 17.48 g/t gold ('Au'), 1m @ 16.76 g/t Au, 1m @ 4.46 g/t Au and 1m @17.83 g/t Au. A summary of the results are shown in Table 1. For further information see news release 11 January 2010.

Goldplat has designed an 11 hole DD programme which will test in depth the high grade zones indicated by the RC programme as well as testing for any strike extensions to the mineralisation. Any significant results from the trenching programme in Phase 1 will be followed up by DD as part of Phase 2 which is planned for August 2010.

The total cost of Phases 1 and 2 of the exploration programme is estimated to cost US$240,000. On completion it will be determined if a JORC-compliant resource can be calculated.

Download Table 1: Results of 2,015m 26 hole RC drilling programme

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.

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 Ltd Tel: +44 (0)20 7448 9820
David Scott Alexander David Securities Ltd Tel: +44 (0)20 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 two projects; its wholly owned Kilimapesa Gold mining project, located in the historically producing Migori Archaean Greenstone Belt in western Kenya and the prospective 246 sq km Nyieme Gold Project in Burkina Faso with a view to establishing a mining operations in the short term.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.