Progress Report on Ghana Operations
Goldplat plc, the AIM listed gold producer, is pleased to announce that its gold recovery plant in the free port of Tema in Ghana is ahead of schedule and targeted to be fully operational in January 2008. The plant, owned by the Company's wholly owned subsidiary, Gold Recovery Ghana Limited ("GRG"), is already in production with full commissioning targeted for December 2007. To build on existing stockpiles to feed the plant, 16,000 tonnes of material estimated to contain 4,723 ounces of gold was recently acquired.
The construction of the carbon in leach circuit ('CIL'), the final part of phase two of the development programme, is on target to be completed at the end of November 2007. GRG intends to commission the plant in December 2007 and to be in full production in January 2008, with plant maximisation achieved during the first quarter of 2008. In particular, the civil construction is complete and the steel tanks and walkways are being manufactured on site from pre-cut and shaped steel. When complete this plant will enable GRG to maximise the gold recovery. from the surface material in one pass.
GRG has completed the testing phase for the ball mill, feed conveyor and gravity concentrators installed in September 2007 and is now processing the surface material through the gravity concentration circuit on a 24-hour basis.
GRG has purchased two large surface stockpiles in the Dunkwa area at below previously paid average prices, which provide an extra 16,000 tonnes of material estimated to contain 4,723 ounces of gold based on assays of representative samples. Whilst the stockpiles of raw material now exceed two years of production, there are a number of other potential stockpiles which GRG will continue to evaluate. GRG's objective is to secure the 50,000 to 60,000 tonnes of surface material that has already been identified and sampled which will provide sufficient stock for 55 to 67 months production.
These stockpiles at the workings are an environmental liability as most are situated in the watercourse. Removal of this material by GRG and processing thereof contributes to the rehabilitation of the area.
Furthermore, GRG has introduced cost savings on the transport of material to Tema, which should have a positive impact on the results.
Smelting of Gold Concentrates
Further investigation has identified substantial supplies of gold concentrates available for smelting and export to the Company's strategic partner, Rand Refinery Limited. A smelter has been purchased and is due to be delivered in Tema during November 2007. Arrangements are being finalised for the secure export of the bullion from Ghana .
Goldplat CEO Demetri Manolis said, "We are pleased with both the progress on plant construction, and also on the amount of material available for us to process. While the Company can expect an increasing contribution to the second half results from GRG following the completion of its planned facilities, the prospects are further improved by the exciting possibilities for smelting concentrates, which have recently come to light.
"Naturally, the success of our recovery businesses has a direct impact on our strategy to become a junior mining house focussed on gold production. With increased cash flow from both our recovery plants in Ghana and South Africa , we can accelerate our existing project in Kenya and explore new exciting acquisition opportunities."
This announcement has been reviewed by Mr Mark Austin. Mr Austin is the group geologist for Goldplat plc and has more than 25 years' 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 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
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