Goldplat plc Operational Update

 
TIDMGDP 
 
 
   Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 
 
   27 October 2016 
 
   Goldplat plc ('Goldplat' or the 'Company') 
 
   Operational Update 
 
   Goldplat plc, the AIM quoted African gold producer, with two market 
leading gold recovery businesses in South Africa and Ghana and primary 
gold mining interests, including the Kilimapesa Gold Project in Kenya, 
is pleased to announce an operations update for the three months ended 
30 September 2016 (the 'Quarter'). 
 
   Production for the Quarter 
 
   Overall production of 9,129 ounces of gold and gold equivalents was 
achieved during the Quarter, alongside improvements in operating 
profitability at the recovery operations and the continued reduction in 
losses made at Kilimapesa. Good progress was made on all areas of 
strategic focus including the sourcing of by-product material for 
processing at the recovery operations, the identification of new global 
geographies from which to import material for processing, and the 
installation of the new plant at Kilimapesa designed to bring the 
operation to profitability during FY2017. 
 
   Goldplat Recovery Pty Limited ('GPL') - South Africa 
 
 
   -- During the Quarter GPL produced an operational profit of approximately 
      GBP769k on production of 5,418 ounces of gold and gold equivalents with 
      4,280 ounces of gold sold for own account and 1,179 ounces transferred to 
      clients. 
 
   -- With all major capital projects being successfully completed during the 
      previous financial year, capital expenditure during the Quarter was 
      reduced to sustaining CAPEX only. Capital expenditure to maintain 
      operations will continue in Q2 FY2017 with focus on the cyclone sections 
      of the rotary kiln and the upgrade of the high grade mill section. 
 
   -- The independent investigation concerning the dispute with Rand Refinery 
      regarding the silver sulphide toll recovery project is still in process 
      but has been separated from the day-to-day operations between the two 
      companies. 
 
   -- Notwithstanding the dispute with Rand Refinery, Goldplat continues to 
      deliver concentrates to Rand Refinery, which has improved its turnaround 
      time significantly. The Company also continues to deliver concentrates to 
      Aurubis in Germany, in line with its strategic decision to mitigate 
      single refiner risk. 
 
   -- GPL has increased its stockpile of raw material inventory, which is the 
      feedstock for the carbon-in-leach ('CIL') circuits, as a result of the 
      increased efforts on strategic sourcing. 
 
   -- Test work undertaken by a local university to maximise recoveries of the 
      Company's Tailings Storage Facility (JORC Compliant resource of 82,000oz 
      of gold) has been completed. Evaluation of operational variables of the 
      pre-treatment stage is now underway with test work expected to be 
      finalised at the end of Q2 FY2017. 
 
 
   Gold Recovery Ghana ('GRG') 
 
 
   -- GRG produced an operational profit of approximately GBP305k from 
      production of 3,088 ounces of gold and gold equivalents, with 1,349 
      ounces of gold being sold for own account during the Quarter. 
 
   -- The focus at GRG remains on the sourcing of material from existing and 
      new clients. The Company's marketing efforts in South America is gaining 
      traction and Goldplat remains confident that it can develop GRG as a hub 
      to service clients internationally. In line with this strategy, GRG 
      remains committed to installing an elution column and associated 
      ancillary equipment, which will improve GRG's competitive advantage and 
      satisfy the Ghanaian Government's requirement to produce bullion for 
      export. 
 
   -- Work to improve incinerator controls and efficiency is underway and 
      modifications include the installation of a drier and scrubber. 
 
   -- The new shot blast facility is operating well, an initial trial batch of 
      liners from a client in South America has been processed profitably and a 
      second batch has been shipped. 
 
   -- The removal of material from the on-site tailings dump to a land-fill 
      site began during the Quarter. This will reduce the rehabilitation 
      liabilities and free up significant space for the further expansion of 
      the operation. The cost of removing the tailings will be more cost 
      effective than rehabilitation the dump in situ. 
 
   -- GRG has applied for the renewal of its gold licence, with a new 3-year 
      licence expected during Q2 FY2017. GRG has been operating under a 
      temporary licence during the Quarter. Documentation for the renewal of 
      the Environmental Protection Agency permit should be ready for submission 
      during Q2 FY2017. 
 
 
   Kilimapesa Gold ('KPG') 
 
 
   -- KPG suffered an operating loss of approximately GBP100k on production of 
      623 ounces of gold and gold equivalents, with 574 ounces of gold sold for 
      own account during the Quarter. 
 
   -- The erection phase of the new processing plant is progressing well. It is 
      expected that the mine will be able to start the milling section by the 
      end of December 2016 and in so doing increase the output in ounces as 
      planned. The plant expansion is expected to be fully completed in 
      February 2017 when the redesigned crushing section will be commissioned. 
      The mill will be fed by a temporary structure and mechanical loading 
      during the interim period. 
 
   -- Lower grade ore stockpiled as a result of the current capacity constraint 
      has increased substantially and further material from surface sources 
      have been added. KPG will process this stockpile in conjunction with run 
      of mine ore. 
 
   -- Development at Adit D has reached the 3rd vein and there are now 12 
      development ends available for further development. The acquisition of an 
      underground core drill will improve not only the development progress but 
      also the grade and reserve controls going forward. The new sampling and 
      mapping programme continues. A mechanical loader has been acquired and 
      will be tested during Q2 FY2017. Management believes the development rate 
      will increase significantly with this new equipment. 
 
   -- At the Teng-Teng exploration project, the second outlet has holed to 
      surface and facilities for material handling through this outlet are 
      being installed to facilitate ongoing bulk sampling purposes. 
 
   -- A permit has been granted to purchase and transport tailings from Migori 
      county, where KPG has identified significant quantities of good quality 
      surface material. Material from this community initiative will also be 
      added to stockpiled ore. 
 
   -- Goldplat's intention is to run the existing plant as long as the tailings 
      facility can accommodate material. The current tailings facility capacity 
      has been increased to provide for a further 6 months' deposition and work 
      has begun on construction of the new tailings facility adjacent to the 
      new plant. The new facility is scheduled to be ready to receive tailings 
      from the new plant when it starts up. 
 
 
   Anumso Gold Project 
 
 
   -- An earn-in option agreement with Ashanti Gold Corp over the Anumso 
      project in Ghana was signed and announced during the Quarter. Ashanti has 
      begun on-site work as part of their initial six-month due diligence of 
      the Anumso earn-in option agreement. 
 
 
   International marketing and sourcing 
 
 
   -- During the Quarter good progress was made in the global sourcing of 
      materials for processing in Ghana and in South Africa as appropriate. 
 
   -- A team has been designated to manage the international sourcing function, 
      a sourcing specialist has been transferred from GRG to Brazil, and 
      contracts have been entered into with a South American partner to 
      facilitate the sourcing strategy. 
 
   -- An initial trial batch of mill liners was shipped to, and processed 
      profitably at, GRG and during the Quarter a further batch of mill liners 
      as well as a batch of woodchips mixed with fine carbon have been shipped 
      to GRG. 
 
   -- Three contracts with producers in various countries in South America have 
      reached advanced stages of completion and are expected to be concluded 
      during Q2 FY2017. 
 
 
   Gerard Kisbey-Green, CEO of Goldplat plc, commented: 
 
   "This was a good production and financial quarter in what is typically a 
difficult period for Goldplat. I am very pleased with the progress made 
on all areas of strategic focus as we continue to improve our 
operational efficiencies, increase processing capacity and ultimately 
build our profitability. Particularly satisfying is the progress that is 
being made in the diversification of sourcing material for processing 
from South America, as well as the on-going installation of the new 
plant at Kilimapesa in Kenya. We look forward to continuing to keep 
shareholders updated with our operational progress." 
 
   ***S *** 
 
   For further information, visit www.goldplat.com, follow on Twitter 
@GoldPlatPlc or contact: 
 
 
 
 
Gerard Kisbey-Green       CEO Goldplat plc           Tel: [phone] 
Colin Aaronson / Jen      Grant Thornton UK LLP      Tel: [phone] 
Clarke / Daniel Bush      (Nominated Adviser) 
Andrew Raca / Justin      VSA Capital Limited        Tel: [phone] 
McKeegan                  (Broker) 
Charlotte Page / Susie    St Brides Partners Ltd     Tel: [phone] 
Geliher 
 
 
   The information contained within this RNS is considered to be inside 
information, for the purposes of Article 7 of EU Regulation 596/2014, 
prior to its release. 
 
   About Goldplat 
 
   Goldplat plc, is an AIM quoted gold recovery services company with two 
market leading operations in South Africa and Ghana. The Company's 
strategy is focussed on utilising its cash flow generated from flagship 

gold recovery operations in Africa to self-fund sustainable growth and 
expansion of niche gold recovery business model. The Company also has a 
small gold mining and exploration portfolio in Kenya, Burkina Faso and 
Ghana and is evaluating various opportunities to create value or 
monetise these assets. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Goldplat plc via Globenewswire 
 
 
 
 

(END) Dow Jones Newswires

October 27, 2016 02:00 ET (06:00 GMT)

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