Signs Agreement with Central Rand Gold to Mine in South Africa
Goldplat plc, the AIM quoted gold producer, is pleased to announce that it has signed an agreement with Central Rand Gold Ltd's wholly owned subsidiary Ferreira Estates and Investment Company Ltd, aimed at recommencing gold mining at the Crown East and CMR Bird Reef mines in the West Rand area near Johannesburg in South Africa. Subject to due diligence, under the terms of the agreement Goldplat will have the rights to assume mining of the two sites in return for a 5% net smelter royalty. It is envisaged that the ore from the two sites will be processed at the Company's gold recovery operations in South Africa, Goldplat Recovery (Pty) Ltd ('Goldplat Recovery').
Initial work by Goldplat will focus on confirming historic data, sampling and evaluating the historically producing reefs which start from surface to ascertain the higher grade areas from which to commence production. Both parties believe that there is significant gold bearing ore available to mine at commercial rates.
The agreement has the potential to increase productivity at Goldplat Recovery and increase revenues at the plant which in FY 2011 generated £12.3 million and total Group revenues which in FY 2011 generated £19.62 million. The infrastructure in South Africa means that logistics will be relatively easy and the projected cost per ounce will be in the lower quartile range. All work on the project will be funded out of the Company's existing cash reserves which at 31 December 2011 stood at £4.59 million.
Goldplat CEO Demetri Manolis said, "The deal with Central Rand Gold has the potential to increase the Company's total gold production for the years ahead and build on our gold mining activities, which includes our newly producing Kilimapesa gold mine in Kenya and our two brownfield mining development projects in Burkina Faso and Ghana. By utilising our recovery operations in South Africa to process the ore from the two historic mines, we have limited CAPEX requirements compared to a start up operation, and also near-term revenue potential. We will immediately start analysing the two sites to assess the potential and look forward to updating the market on this in due course."
|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 £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...
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