Gold Recovery Operations Increasing Production
Goldplat plc, the AIM quoted gold producer, is pleased to provide a positive operations update from its two gold recovery operations in South Africa and Ghana.
Gold recovery operations have performed well in H1 2011 - the Company expects to report a significant increase in operating profit compared to six months ended 2011
South African gold recovery is performing strongly and in line with management's expectations:
Continuing to improve the plant's operational efficiency and profitability and reviewing new business opportunities
High grade mill project, built to increase milling capacity, has been commissioned and is performing solidly
Memorandum of Understanding submitted to a mid-tier gold producer in South Africa to allow Goldplat to mine one of its shafts on a net smelter return basis
Letter of Intent has been accepted by DRD in South Africa to secure further feedstock from its East Rand Proprietary Mines operation
Accessing a longer term project to reprocess tailings from the Company's Goldplat Recovery operation - potential to significantly impact profitability
Ghana gold recovery operation is performing ahead of management's expectations
Marked increase in by-products received for processing through existing contracts with Goldfield Limited, AngloGold Ashanti Limited and Golden Star Resources Limited
Toll processing operation with Adamus Resources performing well - transport costs reduced
Advanced negotiations with other mining companies regarding acquiring further processing by-products for gold recovery from Burkina Faso and Mali which if completed would positively impact profitability
New gold recovery opportunities - currently investigating the feasibility of setting up a processing unit in Burkina Faso and reviewing potential plant designs and equipment.
Total gold production for FY 2012 expected to exceed FY 2011 gold production of 28,185 oz
Goldplat CEO Demetri Manolis said, "We are a highly cash generative and profitable gold production company and I am delighted to report that our two gold recovery operations in South Africa and Ghana have performed strongly for the first half of the trading year and expect to see this trend continue for the second half of the year. Additionally, with the commencement of gold production earlier this month at our first mining operation, Kilimapesa Gold in Kenya, we expect to significantly exceed last year's total gold production of 28,185 oz. In turn we also have two brownfield high grade gold development projects in Burkina Faso and Ghana with resource upgrade and production potential. With these developments in mind, I believe that Goldplat looks set for significant growth during the remainder of 2012 and beyond."
Goldplat Recovery (Pty) Ltd - South Africa ('Goldplat Recovery')
Goldplat's gold recovery operation in South Africa, which processes and recovers gold from by-products of the mining process, is performing strongly and in line with management's expectations for FY 2012.
In order to continue improving the plant's operational efficiency and profitability the Company has implemented additional plant equipment and reviewed a number of new business opportunities.
In this regard, the high grade mill project, built to increase milling capacity, has been commissioned and is performing well. Additionally a new fluidised bed incinerator is currently being installed on site, which once commissioned will have a positive impact on the cash position of the Company. This will increase Goldplat Recovery's ability to successfully bid for fine carbon contracts from other mining companies and will assist in reducing some of the Company's stocks of gold bearing material held at Goldplat Recovery.
In terms of new business opportunities, the procurement of new gold bearing materials from further gold mining companies in South Africa is on-going and our stocks of raw material remain stable. The Company is currently in discussions with potential new clients regarding securing additional materials for processing. Any contract secured will be announced in due course.
A Memorandum of Understanding has also been submitted to a mid-tier gold producer in South Africa to allow Goldplat to mine one of its shafts on a net smelter return basis. In addition, negotiations are on-going with a second mid-tier gold producer located in the Witwatersrand goldfields with a view to Goldplat mining one or more of its shallow shafts on a net smelter return basis.
As previously reported, a Letter of Intent has been accepted by DRD Gold SA ('DRD'), a mid-tier gold producer in South Africa, to secure further feedstock from its East Rand Proprietary Mines operation. Goldplat Recovery has undertaken exploration of all of its surface reserves including old shaft areas, railway lines and the gold plant itself and a proposal has been presented to DRD.
Goldplat is also accessing a longer term project to reprocess tailings from the Company's Goldplat Recovery operation. The Company has significant reserves of coarse material that has been screened out of purchased material prior to processing. Goldplat is investigating the crushing and screening of this material to provide a viable grade fine fraction that can be processed for gold recovery and the coarse fraction for sale. A feasibility study is in progress with samples having been submitted to mining consultants SGS for evaluation. If the project is commissioned the Company believes it would have a significant impact on the profitability of Goldplat Recovery.
The Company will make an update to the market on these new business opportunities in due course.
Goldplat Recovery Ghana Limited ('GRG')
In terms of gold recovery and profitability the GRG gold recovery operation has performed beyond management's expectations in the first six months of the year and the Board expect to see this trend continue for the second half of FY 2012.
The Company is pleased to report that there has been a marked increase in the by-products received through existing contracts with Goldfield Limited, AngloGold Ashanti Limited and Golden Star Resources Limited. With this in mind, GRG has placed an order for a second fluidised bed incinerator which will be delivered in Q1 2012.
The toll processing operation GRG has in place with Adamus Resources ('Adamus'), which processes by-products off site, is performing well with transport costs being reduced by sourcing materials closer to Adamus' processing plant. A second receiving area at the Adamus plant has been constructed which will enable the Company to increase the volumes of materials delivered each month for processing. Further testwork is being completed by Adamus on GRG's tailings situated on site at GRG's operations in Tema to establish if these tailings can be successfully processed. If viable, this will provide extra revenue opportunities and free capacity for further stockpiles of raw materials to be held at Tema.
Goldplat is still in advanced negotiations with other mining companies regarding acquiring further processing by-products for gold recovery from Burkina Faso and Mali. A number of proposals have been submitted to these various operations and we will update on progress in due course.
New Recovery Opportunities
Research in Burkina Faso has also indicated that there are significant volumes of tailings at attractive grades available for processing. The Company is currently investigating the feasibility of setting up a processing unit in Burkina Faso and reviewing potential plant designs and equipment.
* * ENDS * *
For further information visit www.goldplat.com or contact:
|Demetri Manolis, CEO||Goldplat plc||Tel: +27 (0) 11 423 1203|
|Ewan Leggat/Katy Birkin||Fairfax I.S. PLC||Tel: +44 (0) 20 7598 5368|
|Felicity Edwards||St Brides Media & Finance Ltd||Tel: +44 (0)20 7236 1177|
Goldplat plc, which has a market cap of circa £23 million, is an AIM-listed profitable, debt free gold producer and mine development company focussed 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.
Goldplat is a profitable, African gold recovery services company . . .More info...
Goldplat has two profitable gold recovery businesses in South Africa and Ghana . . .More info...
To subscribe to Goldplat's news release list please click here . . .More Info...