Goldplat plc, the AIM quoted gold producer, is pleased to report that trading for the first quarter of the current financial year has continued to be buoyant.
- Positioned to maintain healthy growth with increasing cash resources of £2 million
- On target to be producing gold before year end 2008 at Kilimapesa Project in Kenya, with ore being stockpiled from the underground operations and from local artisanal miners
- Significant progress at South African gold recovery business with new raw material purchased and further steps underway to further improve the plant's efficiency
- Gold Recovery Ghana growing rapidly having won a third large contract, identified and evaluated further stockpiles of artisanal tailings and progressed construction of an incinerator to increase production potential
- Additional mining opportunities continue to be evaluated in other African countries
Goldplat CEO Demetri Manolis said, "With demand for gold remaining buoyant we are ideally positioned to maintain our strong growth. Developments in Kenya are running according to plan with production still on schedule for the end of the year, and our processing operations in South Africa and Ghana are producing significant cashflows which unlike many other juniors, means we have a strong balance sheet. We are currently looking to utilise our recovery technology to expand into other countries in Africa and in turn, strengthen our connections with the mining industry to identify and acquire additional brown field projects that we can rapidly advance into production. In essence, I am confident we are in the right sector with a strong business, which gives me the utmost confidence for the future."
Mining Kilimapesa Gold - Kenya :
Kilimapesa remains on target to be producing gold before year end. To date 175m of quartz vein strike has been exposed in the underground development constituting the 'Bulk Sampling Programme' agreed with the Kenyan Commissioner of Mines. Sampling indicates an average value of 6.28 g/t Au over a strike of 114m with a stope width of 127cm, including 8.01 g/t Au over 60m with a mineable width of 144cm. The first 8m of the western-most raise indicates an average grade of 5.26g/t Au over a stope width of 100cms. The orebody at Kilimapesa Hill is thought to comprise at least 3 parallel quartz veins, approximately 25m apart, striking east - west and dipping steeply toward the south. The known mineralised strike length at Kilimapesa Hill is now 1.2 km.
In addition to the on-reef development, a diamond drilling programme has commenced comprising 14 holes for a total drill length of 500 metres on which the Company will update the market in due course.
A road to the adit entrance at Kilimapesa Hill has been developed and a station comprising an ore tipping facility, a generator and compressor house as well as a workshop has now been established. The processing plant is currently being refurbished with the leach tanks, thickener tank, ore handling, crushing section and new electric reticulation now completed. The mill has also been relined, while the area for the tailings facility has been cleared and the process of building the retaining walls has started.
Ore from the underground operations is being stockpiled at the processing plant site with some 1,500 tonnes accumulated to date. Additional mill feed sources have been utilised and in keeping with Kilimapesa's excellent local community relations, an agreement has been reached with the local artisanal miners to purchase their high grade tailings. These average 15g/t Au and to date we have stockpiled 1,600 tonnes at the plant site with an additional several thousand tonnes still due to be transported to the plant. By working closely with the local artisanal miners, the Board hope that this may lead to identifying other potential areas for mining activities.
In order to produce a JORC compliant resource, a drilling programme has been implemented at Adit B. Holes have been designed to intersect the quartz vein approximately 20m below the current drives. Four holes have been completed which show the existence of the vein below the current adit development. The data will be modelled in three dimensions to produce an accurate geological model.
The mine is situated in a predominantly Masai area and community relations are excellent. Management has committed to employing as many local staff as is possible and to date, more than 95% of the staff are Masai. The Kilimapesa Project has strong support from the Kenyan Government agencies, particularly Mining and Environment. The Permanent Secretary for the Department of Environment has made an official visit to the property and has pledged his support for the operation. Recent local meetings held for the Environmental Impact Assessment Study have shown tremendous support for the operation and all Government agencies have been consulted and to date no objections or concerns have been raised.
Kilimapesa has also recruited highly experienced South African mining staff, whose primary function will be to increase the development rates and train local labour in areas of mining skills and safety.
Gold Recovery Business:
South Africa : Significant progress has been made to secure new raw material for the South African gold recovery business. Agreements were signed with the West Wits Business Unit of AngloGold Ashanti Limited to purchase two stockpiles of raw material providing sufficient material for twelve months of production for one of the major lines of production. As a result of these two agreements, Goldplat Recovery was invited to participate in a major sampling programme of areas, under the jurisdiction of the same Business Unit, that require rehabilitation. AngloGold Ashanti's strategy is to first remove any viable gold bearing material before the final rehabilitation is completed. This project is expected provide significant material for future processing.
A further long term contract was signed with our strategic partner Rand Refinery for the supply of toll processing facilities for one of its by-products. A new automated gravity concentrator has also been ordered and is due for delivery in October 2008, to further improve efficiency at the Benoni plant.
Ghana : A third large contract has been awarded to Gold Recovery Ghana by Goldfield's Tarkwa operation to process fine carbon, with carbon now delivered to the works in Tema. Further stockpiles of artisanal tailings raw material have been identified and evaluated.
The construction of an incinerator, for shipment to Tema, is continuing in South Africa which when installed will increase production potential in Ghana .
New prospects: The potential for expansion of the Company's reprocessing operations into Tanzania and Zambia continues to be evaluated. In Tanzania , artisanal high grade tailings in excess of 100,000 tonnes have been identified, measured and sampled. Discussions with potential Tanzanian partners are ongoing regarding cooperation, with Goldplat providing the technology and expertise, with the partners supplying the tailings.
In Zambia , the Company has initiated a preliminary investigation of the copper and gold potential of the region and look forward to updating the market in due course.
Mining opportunities continue to be evaluated in other African countries. In South Africa the agreement under which Goldplat Recovery has become compliant with Black Economic Empowerment laws is expected make the acquisition of projects easier. It should be stressed that Goldplat will not become involved in exploration - it is only examining brown field projects and known deposits, which it believes can be exploited efficiently and at low risk. In this context, the fact that Goldplat currently has cash resources of some £2 million, and remains cash generative, gives it a great advantage in the junior mining field.
This announcement has been reviewed by Mr. Mark Austin, the group geologist for Goldplat and has more than 25 years' relevant experience in the field of activity concerned. He is a fellow member 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
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, 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 has expanded 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 , which is scheduled to commence production Q4 2008. A number of other potential projects across Africa are under review.
Glossary of Terms
STRIKE: the horizontal direction of a planar body (90º to the dip direction)
TAILINGS: the residues from the processing of ore
ADIT: a near-horizontal tunnel driven into a hillside
DRIVE: a tunnel on strike that is developed on ore
Goldplat is a profitable, African gold recovery services company . . .More info...
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