Kenyan Gold Project - Kilimapesa Gold Update

Goldplat plc, the AIM quoted gold producer, is pleased to provide a positive update on its wholly owned gold mining operation ('Kilimapesa Gold'), located in the historically producing Migori Archaean Greenstone Belt in western Kenya.

Overview

  • Title Deed required for the issuing of the Mining Lease has been issued - final documentation delivered to the Commissioner of Mines and Geology in Kenya
  • Underground development to commence to increase existing ore resources
  • Extend current 250m underground strike exposure of auriferous quartz veins at Kilimapesa Hill target
  • Sub-incline to be developed to extend vein exposure at depth
  • Four key exploration targets identified for diamond drilling based on existing data and artisanal activity
  • Continuity of quartz veins at Vim/Rutha target confirmed by recent geophysical IP surveys & laterally continuous over 300-400m
  • Three parallel quartz veins mapped on surface beyond the Vim/Rutha target over 5km strike
  • Red Ray correlates positively to Kilimapesa Adit B - rock chip samples of up to 10 g/t Au
  • Phase one of a two phased drilling programme has commenced a 28 shallow hole drilling programme over 1,120m focussing on the prospective Vim/Rutha and RedRay target areas 2km south of Kilimapesa Hill
    • Aim to increase the JORC compliant resource base at Kilimapesa Gold to 500,000 ounces ('oz') of gold ('Au')

    Goldplat CEO Demetri Manolis said, "We continue to make excellent progress at Kilimapesa Gold and I am delighted to report that the first phase of our drilling programme to seek to upgrade the resource towards the 0.5 million oz mark is underway. The 28 shallow hole drilling programme is targeting two new target areas, Vim/Rutha and RedRay, which previous geological mapping, sampling and IP have identified as being highly prospective. With the Title Deed now issued I am also pleased to report that we are now a short time away from being issued with the final Mining Lease which will trigger the commencement of full production, with an initial target of circa 5,000oz Au per annum. These are exciting times for the Company with significant activity across the portfolio, and I look forward to updating shareholders further as we look to build our resource base and production profile."

    Mining Lease

    The Title Deed required for the completion of the application for the Mining Lease has been issued and the documentation has been delivered to the Commissioner of Mines and Geology of Kenya. The process now consists of the gazetting of the application for three months in the Kenyan national press before issuance of the Mining Lease can be finalised. In the mean time, the Company will resume on-reef development at Kilimapesa Gold as allowed for by the Mining Location Licence which was issued late last year.

    Importantly, Goldplat has continued to work together and form strong bonds with the local community and the Government of Kenya, during the development of Kilimpaesa Gold and the Mining Lease grant process. The Company would also like to take this opportunity to thank the Commissioner of Mines and Geology personally for his support through this process.

    Underground Development

    Goldplat will re-commence underground development with a view to increase the 250m underground strike exposure of the auriferous quartz veins at the Kilimapesa Hill target area. In addition, a sub-incline will be developed to extend vein exposure in depth by 30m vertically below current workings in order to develop the next production level. This development is expected to provide additional ore resources to the existing JORC-compliant resource of 1.65Mt at 2.44 g/t Au for 129,000 oz of gold at a cut-off grade of 1 g/t of gold for all categories and will also allow greater mining flexibility when full stoping operations commence.

    Exploration

    Following a data gathering exercise which included geological mapping and sampling, IP anomalies, artisanal activity, and previous RC drilling results, Goldplat has identified four highly prospective targets at Kilimapesa Gold, which it intends to explore with a view to publishing an upgraded JORC-compliant resource by Q4 2011. Phase one of a two phased drilling programme commenced June 2011 and is focussed on exploring the Vim/Rutha and Red Ray target areas. The programme will comprise drilling of 28 shallow holes to depths of 40m. The second phase of drilling is designed to follow up on the results of Phase 1 with intercepts up to 80m deep.

    Vim/Rutha

    The Vim/Rutha target area is located less than 2km to the south of Kilimapesa Hill. Several narrow (between 5cm and 100cm thick) steeply dipping auriferous quartz veins trending parallel to the veins intersected in the mining operations at Kilimapesa Hill outcrop on surface and have demonstrated lateral continuity of between 300-400m. A recent geophysical IP survey has conf irmed the lateral continuity of the veins but has also indicated possible hitherto unknown veins. The estimated total strike length of the veins of over 5km attests to the prospective potential of this area. Diamond drilling, comprising 16 shallow holes for a total of 640m has commenced and 4 deeper holes for a total of 460m will be drilled in the second phase programme.

    Red Ray

    The Red Ray target is located 1km east of Kilimapesa Gold's processing plant. As previously announced, two main veins striking east to west and dipping steeply to the south can be traced along the crest of two small hills which are approximately 1.5km in length. These veins are thought to correlate to the veins currently exposed in Adit B at Kilimapesa Hill 5km to the west. Extensive artisanal activity has taken place along the crest of the hills and the veins are also exposed at the base of the hills in the adits. Additionally individual rock chip samples of up to 10 g/t Au have been previously recorded by Goldplat. The Red Ray Phase one exploration programme is also underway and will consist of surface and underground mapping as well as 12 shallow diamond drill holes for a total length of 480m. 2 deeper holes for a total of 180m will be drilled in the second phase of the 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 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.