Goldplat plc, the AIM quoted gold producer, is pleased to provide an operations update for its two gold recovery businesses in South Africa and Ghana, its gold mining operation in Kenya and its gold exploration programme in Burkina Faso.
Overview
Goldplat's CEO Demetri Manolis said, "We are making solid progress on all fronts. With gold production at our two recovery plants in South Africa and Ghana continuing to perform strongly and our Mining Licence due to be issued in Kenya, which will allow us to move into commercial gold production, we are ideally positioned to capitalise on the buoyant gold price environment. In addition we are highly confident of the potential that our Nyieme Project in Burkina Faso offers and this project will remain a key focus for the Company as we fast-track its development to define its economic potential.
"In terms of expansion, we are actively looking for further assets both in the junior gold mining arena in Southern Africa, and through additional gold by-product opportunities in the West Africa region, that we believe have the potential to materially impact the Company's performance moving forward."
South Africa: Goldplat Recovery (Pty) Ltd ('Goldplat Recovery')
Goldplat Recovery's processing operations are continuing to perform strongly and in line with management expectations.
Further progress has been made to secure new raw materials, and ensure the long-term supply of gold bearing feedstock for processing. An agreement has been finalised with Simmer and Jack Mines Limited ('Simmer and Jack') to purchase a total of 20,000 tonnes of gold bearing raw material from its Buffelsfontein operation in South Africa.
An intensive cyanidation plant which improves gold recovery rates has now been commissioned and it is expected to provide cost savings and improve the cash flow of the operation.
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. The Company is evaluating further potential acquisitions of such projects in South Africa.
Ghana: Gold Recovery Ghana Limited ('GRG')
In Ghana, GRG has identified and evaluated a significant number of new surface stockpiles of gold bearing material with suitable gold grades in the Konongo area in Ghana and is in negotiations to purchase these.
Initiatives such as establishing a wash bay are in place to increase the feed rate of raw materials to the existing gold plant to increase gold production are nearing completion.
Equipment required to establish a fire assay laboratory at Tema has been received from South Africa and will be operational in two months time. This will greatly improve the control of the gold plant and allow for faster evaluation and purchasing of tailings.
The Company is also evaluating further potential acquisitions of mining projects in Ghana.
Kenya : Kilimapesa Gold Limited ('Kilimapesa')
As announced on 22 July 2010, Kilimapesa Gold Ltd has received communication from the Commissioner of Mines that the Company has complied with all requirements for the issuing of the Mining Lease. The Commissioner is assisting in fast tracking the process with the Director of Survey in issuing the Mining Right Number so that he can finalise the Mining Lease.
Kenya's National Electricity Grid has now reached the mine, which will reduce operating costs as Kilimapesa will no longer be dependent on diesel generator power.
A strategic plan for expanding the operations at the mine has been completed. It is the Company's intention to increase gold production at the mine to an expected range of 5,000 to 6,000 oz of gold a year from 12 months of being issued the Mining Licence.
Burkina Faso : Nyieme Gold sarl ('NG')
The trenching programme, over the geophysical and geochemical anomalies which extend to the south along the same trend as the veins drilled in the Nyieme prospect, commenced in May 2010. 350m of trenching has been completed to date. The programme will be completed when the seasonal rains abate in August 2010.
A diamond drilling ('DD') programme over the area previously drilled by Sanu Exploration (' B VI') Limited ('Sanu') is scheduled to start on the 16 August 2010. This DD programme will comprise 11 holes for a total of 1,150m.
The Company is also exploring the possibility of exploiting by-products produced by gold mines in B urkina Faso as there are a number in operation as well as in the construction phase in Burkina Faso.
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'Ivoire, 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 Belt 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 Burkina 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.
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