Nyieme Project (Burkina Faso) Exploration Programme

Goldplat plc, the AIM quoted gold producer, is pleased to announce details of its intended exploration programme on the Nyieme Gold Project in Burkina Faso .

Overview

  • Positive diamond drilling results (announcement dated 25 October 2010) confirmed the highly prospective nature of the Nyieme Gold Project
  • 11 new targets have been defined over the licence from existing exploration data
  • The Exploration programme will be primarily focussed on the 5km long north-south trending geological boundary
  • New targets underpin the prospectivity of the licence
  • Eight of the targets contain anomalous soil sample values, one based on strong geophysical target, one has identical morphology as the currently drilled high gold grade area
  • Programme scheduled to start in January 2011 and expected to be completed by the end of April 2011

Goldplat CEO Demetri Manolis said, "The Nyieme Gold Project has already yielded some exciting results and with our new exploration campaign, we hope to further quantify the prospectivity of the licence area. The advancement of this project remains a priority for the Company as we believe Nyieme has the potential to add significant value to our portfolio."

Following the successful diamond drilling programme reported on 25 October 2010, Goldplat is extending its exploration of the highly prospective Nyieme Gold Project, through the implementation of an extensive programme including tight-grid soil sampling, trenching, reverse circulation drilling ('RC'), and diamond drilling, which will target 11 new areas of interest. The previous diamond drilling programme confirmed the existence of a high gold grade quartz vein system with results including 19.1g/t over 116cm and 12.24g/t over 100cm width. These results underpinned the high grades reported by Sanu Resources ('Sanu') which included 17.48g/t over 3m, 17.83g/t over 1m, and 16.76g/t over 1m.

Targets

The new programme is centred on 11 target areas which are in addition to the recently drilled area. These 11 areas have been identified primarily utilising Sanu's historic data from a previous exploration campaign, which involved an extensive 400 x 400m soil sampling grid with follow up 200 x 50m grids, regional geological mapping, rock sampling and a limited geophysical survey. Sanu's campaign ultimately focussed on the area to the north of the Nyieme Licence where it completed a 26-hole RC drilling programme. The recently completed Goldplat diamond drilling programme confirmed the findings of Sanu's RC drilling programme. Goldplat has collated all the available geological data and has developed a geological model which forms the basis of the exploration programme.

The overall geological model is based on the existence of rheological differences between a granitic terrain and Birimian volcanoclastic metasediments. North-south shearing has developed open fractures (termed Riedel Shears) between the two terrains which have been in-filled with quartz. In the drilled area this quartz contained gold mineralisation.

The exploration programme will be primarily focussed on the 5km long north-south trending geological boundary between intrusives and metasediments, but other prospective areas conforming to the exploration design parameters will also be included.

Exploration Programme

Four methods of exploration will be utilised: tight-grid soil sampling, trenching, RC drilling, and diamond drilling.

The soil sampling field work is scheduled to start at the beginning of January 2011 and is expected to be completed within one month. Eight separate grids are to be sampled.

Trenching is also scheduled to commence at the beginning of January and is expected to be completed by the end of March 2011. 33 trenches are planned resulting in a total of 3,450m. The exact location of the trenches will be guided by soil sampling results, existing geophysics, and geological mapping.

A RC drilling programme, comprising 24 holes, is scheduled to start during March 2011 and be completed before the end of April 2011. Positive results from the exploration programme will be followed up by a programme of diamond drilling. The location and number of diamond drill holes is dependent on results but an estimate of 20 holes is being used for budgetary purposes.

The total cost of this phase of the exploration programme, which includes soil sampling, trenching, RC drilling and diamond drilling is estimated to be $850,000.

Follow-up drilling will be a mixture of RC and diamond drill drilling depending on the degree of information required. At this point 9,700 m of RC drilling and 4,300 m of diamond drill is planned. This may be subject to change depending on the results obtained.

The exploration programme has been designed in accordance with the following controlling parameters:

  • Conformance with the geological model
  • Geophysical anomalies
  • Anomalous soil sampling results
  • Proximity to artisanal workings

The programme has enough resolution to ensure that even small high gold grade deposits will be identified.

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 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, 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'Ivorie, Senegal , the DRC and Mauritania , as well as Ghana .

Goldplat's strategy is to build itself into a highly profitable 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 B elt in western Kenya . Kilimapesa Gold commenced initial production in January 2009 and an aggressive exploration and development programme has resulted in a maiden JORC compliant resource being reported in October 2009. In December 2009 Goldplat plc entered into an agreement with Sanu Exploration (B VI) Limited ('Sanu'), a wholly owned subsidiary of NGEX Resources Inc, to acquire Sanu's option over the 246 sq km Nyieme Gold Project ('Nyieme') located in B urkina Faso .  The Nyieme exploration licence 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. Goldplat has started a programme of trenching and diamond drilling in order to prove up and expand the existing mineralisation.