Goldplat plc Operational Update

 
TIDMGDP 
 
   Goldplat plc/ Ticker: GDP/ Index: AIM/ Sector: Mining & Exploration 
 
   21 June 2017 
 
   Goldplat plc ('Goldplat' or 'the Company') 
 
   Operational update 
 
   Goldplat plc, the AIM quoted gold producer with two market-leading, 
international gold recovery businesses in South Africa and Ghana, and 
primary gold mining interests, including the Kilimapesa Gold Mine in 
Kenya, is pleased to provide an operational update. 
 
   Changes to the South African Mining Charter 
 
   On 15 June, 2017 the Broad Based Socio-Economic Empowerment Charter for 
the South African mining and minerals industry, 2017, (the '2017 
Charter') was announced and gazetted in South Africa. The 2017 Charter 
aims to introduce far-reaching, new, and in some cases, radical measures 
and requirements on the industry. Goldplat Recovery (Pty) Limited 
('GPR') is compliant with the preceding Charter, and if the 2017 Charter 
is implemented, certain changes will be required to maintain compliance, 
primarily in respect of: (i) the increased mandatory Black Economic 
Empowerment shareholding which is currently set at 26%, but is proposed 
to be increased to 30%, and (ii) in the required make-up of management 
demographics. The Chamber of Mines of South Africa has publicly rejected 
the unilateral development and imposition of the 2017 Charter and plans 
to take legal action on behalf of the industry to interdict the 
implementation of the 2017 Charter on a number of grounds. Goldplat and 
GPR will monitor this issue and will keep shareholders informed as to 
progress and the possible impact on the Company as the process unfolds. 
 
   Kilimapesa new processing facility installation and commissioning 
 
   Installation of Stage Two of the new processing plant at the Company's 
Kilimapesa Gold Mine in Kenya ('Kilimapesa') was completed in mid-June 
2017. This comprised a new crusher circuit and three additional leach 
tanks.  Although installation was slightly delayed due to difficulties 
getting certain steelwork and electrical supplies to the site, the 
Company is pleased to report that commissioning has begun and is 
expected to be completed by the end of June 2017. Furthermore, despite 
the delays, planned mill throughput rate for Stage Two of 120 tonnes per 
day of ore was achieved during May 2017. This was made possible by 
treating previously stockpiled fine material which did not require 
crushing, as well as by the relocation and installation of a spare 
crusher as a temporary measure. 
 
   A strategic decision has been taken to bring forward the switch over to 
grid power in order to overcome ongoing difficulties with the generators, 
primarily a result of poor diesel quality. In order to facilitate the 
financing thereof, an agreement has been reached with the Kenya Power 
and Lighting Co. Ltd ('Kenya Power') to allow payment of the 
installation cost of approximately US$200,000 to be spread over 12 
months. Installation is expected to begin towards the end of June 2017 
and is expected to take 6-8 weeks. Major improvements to the supply of 
grid power have also been completed by Kenya Power making this source 
far more reliable, both for the old as well as the new plants. This 
should have a positive impact on costs as fewer switch-overs to diesel 
back-up power will be required. Once consistent planned production and 
profitability have been achieved with Stage Two, a decision will be 
taken regarding the Stage Three expansion.  The Board has however 
approved the installation of the second mill (originally planned for 
Stage Three), specifically as a standby to mitigate downtime risk. 
 
   Ghana elution plant 
 
   A complete, second-hand 3-tonne elution plant was recently acquired by 
the Company's gold recovery operation in Ghana, Gold Recovery Ghana 
('GRG'), from a producer in South Africa for ZAR 2 million 
(approximately US$155k). This plant is modular, complete with all 
ancillary equipment and will more than meet the requirement of the 
Companies expanding Ghanaian operations. As such, it was deemed a better 
option than moving an existing 4-tonne plant from GPR to GRG and the 
purchase of the required ancillary equipment and infrastructure. It is 
estimated that the final cost of installation will now be in the order 
of US$1m, compared to the initial estimate of US$2m for the plant from 
GPR. The acquired elution plant has been dismantled, moved to GPR for 
refurbishment and is now in the process of being shipped to Ghana. 
Installation and commissioning is expected to be significantly quicker 
than per previous plans, with commissioning now planned for the end of 
December 2017, six months ahead of the milestone date stipulated by the 
Ghanaian Government in accordance with the Company's gold licence 
renewal terms. 
 
   South America contract 
 
   The Company has been sourcing and shipping material on a regular basis 
from various individual suppliers in South America since the second half 
of 2016 and good progress is being made on contract negotiations. The 
first significant recurring contract was signed recently with initial 
shipments of 360 tonnes of carbon underway to Ghana and shipments of 
rubber mill liners being finalised. 
 
   Gerard Kisbey-Green, Goldplat CEO commented. "Kilimapesa is now 
operating profitably and at the increased rates targeted for Stage Two. 
This, together with continued steady and positive progress in South 
America, means the overall performance of the Group remains positive and 
in line with market expectations.  Looking closer at South Africa, as we 
do not expect the new 2017 Charter to have a significant impact on our 
business, GPR will leave the ongoing negotiation process in the hands of 
the Chamber of Mines and the larger industry players, and we will 
continue to focus on issues over which we have more direct control, 
including continued focus on increasing operational efficiencies and 
ultimately profitability." 
 
   **ENDS** 
 
   For further information visit www.goldplat.com or contact: 
 
 
 
 
Gerard Kisbey-Green        CEO Goldplat plc          Tel: [phone] 
Colin Aaronson/ Daniel     Grant Thornton UK LLP     Tel: [phone] 
Bush                       (Nominated Adviser) 
Andre Raca/ Justin         VSA Capital Limited       Tel: [phone] 
McKeegan                   (Broker) 
Charlotte Page/Susie       St Brides Partners        Tel: [phone] 
Geliher                    (Financial PR) 
 
 
   The information contained within this announcement is deemed to 
constitute inside information as stipulated under the Market Abuse 
Regulations (EU) No. 596/2014. Upon the publication of this announcement, 
this inside information is now considered to be in the public domain. 
 
   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

June 21, 2017 02:00 ET (06:00 GMT)

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