Burkina Faso Gold Project Update

Goldplat plc, an AIM quoted gold producer, is pleased to provide an in-depth report on the planned development initiatives for the prospective 246 sq km Nyieme Gold Project ('Nyieme Project') in Burkina Faso, over which the Company recently acquired an option following the agreement with Sanu Exploration (BVI) Limited ('Sanu'), announced on 21 December 2009. The Company's aim is to prove up the economic viability of the Nyieme project, with the target of bringing it into production.

Overview:

  • Funding an initial US$500,000 for further exploration
  • Previous exploration highlights general prospectivity of the project:
    • Surface quartz vein material returned high values between 1 and 100 g/t gold over a strike distance of over 2 km
    • 4 km quartz vein system identified, with exploration indicating this could continue for an additional 4 km
    • 2,015m Reverse Circulation ('RC') drilling programme - best intersections included 3m @ 17.48 g/t gold ('Au'), 1m @ 16.76 g/t Au, 1m @ 4.46 and 1m @ 17.83g/t Au
    • Drilling indicates that multiple auriferous quartz veins could be present which could have a significantly positive implication on a gold resource
  • 2 ,500m diamond drilling ('DD') programme planned for 2010 followed by a JORC-compliant resource
  • Further targets to be explored - an extremely strong Induced Polarisation ('IP') anomaly lays parallel and 2.5 km east of the Nyieme quartz vein trend

Goldplat's CEO Demetri Manolis said, "We believe previous exploration results highlight the exciting potential of the Nyieme Project. High-grade quartz vein structures over a 4 km trend have been identified in addition to the high grades already published including 3m @ 17.48 g/t. With a defined development plan in place, which will begin with 2,500m DD programme, we aim to establish a JORC-compliant resource which will form the basis for our production development programme if economically viable. With this in mind, the Board believes that development of the Nyieme Project, coupled with its other gold operations in Kenya , Ghana and South Africa , will facilitate the realisation of Goldplat's aim to become a mid-tier gold producer and refiner in Africa ."

Previous Exploration

Sanu, a wholly owned subsidiary of NGEX Resources Inc, initially mapped and sampled the Nyieme Project, located 270 km southwest of Ouagadougou , on a 400m x 400m grid. This resulted in the identification of several gold-in-soil geochemical anomalies. A follow-up 200m x 50m soil sampling grid defined a linear quartz vein system trending north-south. Surface exposure is limited but it appears that the quartz veins are up to 2m thick and have developed within a re-entrant thrust fault zone within granodiorites intruding the Birimian metasediments , gabbros and metavolcanics.

The geochemical anomaly coincides with a north-south trending IP anomaly which is interpreted to define the quartz vein system for 4 km, and it appears to indicate that it remains open to the south. The presence of anomalous geochemical sampling as well as lag sampling suggests that the quartz vein system could extend for a further 4 km to the south. Surface samples of quartz vein material returned high values between 1 and 100 g/t gold over a strike distance of over 2km.

A 2,015m, 26 hole reverse circulation drilling programme, using 13 fence lines, was also conducted. The two hole fences were approximately 100m apart on strike and 40m apart on dip, with the maximum depth of intersection below surface being 80m. The strike distance between holes NYRC 1 and NYRC 26 was 1,700m. Significant intersections in the northern portion of the anomaly, where the quartz vein is exposed, returned some significant values including NYRC 15 which intersected 3m @ 17.48 g/t gold ('Au'), NYRC 17, 1m @ 16.76 g/t Au, and NYRC 18, 1m @ 4.46 and 1m @ 17.83g/t Au. It is interpreted that that there are distinct mineralised trends between 100m and 200m in width consisting of numerous quartz veins, plunging toward the south. A summary of the intersections is shown below:

table_jan_2010

In addition to the Nyieme quartz vein trend, an extremely strong IP anomaly lays parallel and 2.5 kms to the east of the main anomaly. Geological mapping demonstrates additional quartz veining, though sampling has not yet revealed significant gold values.

Initial Development

The Board of Goldplat has committed an initial US$500,000 to further explore the Nyieme Project, initially with an infill 2,500m diamond drilling programme in 2010, after which, the Company anticipates the calculation of a JORC-compliant resource statement. Furthermore, Goldplat will also carry out further surface geochemical and mapping programme to further define the southerly extent of the veins.

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.