Progress Report on Ghana Operations
Goldplat plc, the AIM listed gold producer, is pleased to announce that its gold recovery plant in Ghana operated by the its wholly owned subsidiary, Gold Recovery Ghana Limited ("GRG"), is now in full production. In addition, further surface stockpiles in Ghana have been purchased and the Company's client base has been strengthened.
The construction of the carbon in leach circuit ("CIL") section of the plant was completed in December 2007 as planned and the plant is now in full production. This integrated gravity and CIL plant will enable the Company to maximise the gold recovery from the surface material in one pass. This will have a significant impact on costs and therefore on the profitability of GRG.
An agreement was reached for the purchase of a further two large surface stockpiles in the Dunkwa area at prices below what GRG had previously been paying. This provides an approximately 37,000 additional tonnes of material estimated to contain 21,373 oz of gold, based on assays of representative samples. GRG's total stocks in Ghana are approximately 52,000 tonnes of materials estimated to contain 30,178 oz of gold (based on representative samples), which now exceed five years of production.
A further three large surface stockpiles estimated to contain approximately 30,000 tonnes of material have been identified and evaluated. GRG is currently negotiating the purchase price for these materials and also continues to evaluate other stockpiles that are being offered. In addition, the supply of mill liners and fine carbon continues to be strong.
GRG is now processing the surface material through the gravity concentration circuit and the cyanide CIL circuit on a 24-hour, three shift, and seven days per week operation.
Smelting of Gold Concentrates
The installation of the smelter has been completed, which will enable GRG to take advantage of a new business opportunity - the smelting of gold concentrates produced by third parties. Once the smelter is operational, GRG will smelt the concentrates and export the bullion to Rand Refinery in South Africa . The Company has accepted the terms for the export and refining of gold bullion submitted by Rand Refinery.
GRG is considering the installation of an elution plant to allow it to produce bullion from the CIL plant. This will reduce the carbon costs and improve the cash flow. It is also considering the installation of an incinerator for the processing of the fine carbon in Ghana , which will reduce costs significantly and ensure that it is competitive when bidding for fine carbon.
Relationships with the Authorities and Clients
The Company's client base has improved with Goldfield's Tarkwa operation being the latest addition to its list. It has moved 12 containers of fine carbon estimated to contain 2,821 oz of gold from Tarkwa in the last four weeks.
GRG's relationship with the authorities is excellent and this month it will seek to extend its relationships with other state organisations.
Goldplat Plc is an AIM-listed gold producer with operations in Africa . Its strategy is to create a mid-tier mining house focused on gold production leveraged through revenue generated from its gold recovery businesses.
The Company has two recovery business based in South African and Ghana, which, by safely disposing of mining by-products, fulfill 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 expanding into gold mining through the acquisition of known deposits with targets of between 200,000 and one million ounces of ore contained. To this end, in a 50/50 JV, it is developing the potential of the highly prospective 213 sq km Lolgorien licence area located in the historically producing Migori Archaean Greenstone Belt in western Kenya , with a view of establishing a mining operation in the short term. A number of other potential projects across Africa are under review.
For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc, Tel: +27 11 423 1203, Mob: +27 82 454 7392
James Joyce WH Ireland Limited, Tel: +44 (0)20 7220 1666
Isabel Crossley St Brides Media & Finance Ltd, Tel: +44 (0)20 7242 4477
Goldplat is a profitable, African gold recovery services company . . .More info...
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