Goldplat plc Operational Update

 
TIDMGDP 
 
   Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 
 
   20 April 2017 
 
   Goldplat plc ('Goldplat' or 'the Company') 
 
   Operational Update 
 
   Goldplat plc, the AIM listed gold producer, with international gold 
recovery operations located in South Africa and Ghana and a gold mine in 
Kenya, is pleased to announce an operational update for the three months 
ended 31 March 2017 (the 'Quarter'). 
 
   Production for the Quarter 
 
   Overall production of 6,746 ounces of gold and gold equivalents was 
achieved during the Quarter. Operating profitability continued at the 
recovery operations together with continued reduction in losses made at 
Kilimapesa. The sourcing of by-product material for processing at the 
recovery operations remains the number one strategic focus area and good 
progress is being made in this area at all operations. The second most 
important area of strategic focus is the installation of the new plant 
at Kilimapesa, with progress towards operational profitability of this 
operation also progressing well. 
 
   Overview 
 
 
   -- 27,714 gold equivalent ounces were sold and transferred during the nine 
      months ended 31 March 2017 (nine months ended 31 March 2016: 25,048 
      ounces) 
 
   -- Completion of installation of the first stage of the new processing plant 
      at Kilimapesa Mine 
 
   -- Secured US$2million Scipion Loan facility 
 
 
 
 
 
                     3(rd) Qtr            9 Months            9 Months 
                 Ending March 2017    Ending March 2017   Ending March 2016  12 Months ending June 2016 
Goldplat Plc      Equivalent Gold      Equivalent Gold     Equivalent Gold         Equivalent Gold 
Consolidated            oz                   oz                  oz                      oz 
Gold and Gold 
Equivalent 
Production 
Gold Recovery 
 Ghana                         803                8,391               6,579                       6,883 
Kilimapesa 
 Gold                          964                2,154               1,435                       2,005 
Goldplat 
 Recovery                    4,979               17,518              16,695                      28,778 
Total                        6,746               28,063              24,709                      37,666 
Gold and Gold 
Equivalent 
Sold 
Gold Recovery 
 Ghana                       5,466                7,909               8,017                       8,964 
Kilimapesa 
 Gold                          900                1,993               1,374                       1,999 
Goldplat 
 Recovery                    2,894               12,732              11,563                      16,575 
Total                        9,260               22,634              20,954                      27,538 
Gold and Gold 
Equivalent 
Transferred 
Goldplat 
 Recovery                    1,801                5,080               4,094                      13,225 
Total                        1,801                5,080               4,094                      13,225 
Gold and Gold 
Equivalent 
Sold and 
Transferred 
Gold Recovery 
 Ghana                       5,466                7,909               8,017                       8,964 
Kilimapesa 
 Gold                          900                1,993               1,374                       1,999 
Goldplat 
 Recovery                    4,695               17,812              15,657                      29,800 
Total                       11,061               27,714              25,048                      40,763 
 
 
   Goldplat Recovery (Pty) Ltd ('GPL'), South Africa 
 
 
   -- During the Quarter GPL produced 4,979 ounces of gold and gold equivalents 
      with 2,894 ounces of gold sold for own account and 1,801 ounces 
      transferred to clients. 
 
   -- Capital expenditure during the Quarter included the replacement of the 
      cyclone sections and kiln seals of one of the rotary kilns and the 
      installation of a new mill in the high-grade section. Capital expenditure 
      in the final quarter of the FY will remain sustaining capital only, 
      including a new store for processing and storage of concentrates. 
 
   -- Legal proceedings with regards to the Rand Refinery dispute are in 
      process and remain separated from the day-to-day operations between the 
      two companies. 
 
   -- Goldplat continued to deliver concentrates to Rand Refinery and Aurubis 
      in Germany during the Quarter. 
 
   -- In line with the Company's strategic decision to mitigate single refiner 
      risk, another refinery has been identified and a new contract is being 
      finalised to ship concentrates during the next quarter. 
 
   -- Sourcing of sufficient quantity of the right quality material remains 
      GPL's main focus area. 
 
   -- GPL's Environmental Consultants are finalising the action plan regarding 
      the use of an old disused pit on adjacent land for tailings deposition. 
      This includes the review of the prospecting rights over the pit as well 
      as discussions with the current prospecting right holder to either close 
      the prospecting right or transfer ownership to GPL. Preparation for the 
      required permits and licences is also underway. 
 
 
   Goldplat Recovery Ghana ('GRG'), Ghana 
 
 
   -- GRG produced 803 ounces of gold and gold equivalents, with 5,466 ounces 
      of gold being sold for own account during the Quarter. 
 
   -- The first South American agreement with GRG has been finalised and 
      shipment is expected in the next quarter of an estimated 240 tonnes of 
      material. 
 
   -- The focus at GRG continues on the sourcing of material from existing and 
      new clients with positive progress from South America as more shipments 
      are on the way to Ghana. 
 
   -- Sourcing of material from two other West African Countries has been 
      identified and discussions are underway with the mining companies to 
      export the material to Ghana. 
 
   -- The 4-tonne elution project is progressing well and on target. Various 
      equipment and construction material are already in Ghana with the 
      shipment of the main acid and carbon columns planned before the end of 
      June 2017 to allow the engineering modifications on the carbon column to 
      be completed. The final costing of the project is expected in the next 
      quarter. 
 
   -- The installation of a drier for the fluidised bed incinerators was 
      completed and has improved the overall incinerator controls and 
      efficiency. The next step is the installation of a scrubber system 
      purchased from a South African supplier. The unit is currently being 
      manufactured and expected to be shipped and installed in the next 
      quarter. 
 
   -- A third Fluidised Bed Incinerator ('FBI') has been purchased for GRG to 
      assist with the increased lower grade material available from clients. 
      The FBI unit will be shipped to GRG in the next quarter. 
 
   -- A second static incinerator has been installed to assist with the 
      increased material received from South America. The unit was sourced from 
      within the group. 
 
   -- The shot blast facility continues to operate well and at capacity. 
 
   -- The removal of material from the on-site tailings dump to a land-fill 
      site continued during the Quarter and is 80% completed. 
 
   -- GRG is complying with the specified milestones following the renewal of 
      the gold licence on 23 December 2016 and is communicating continuously 
      with the Minerals Commission. 
 
 
   Kilimapesa Gold ('KPG') 
 
 
   -- KPG produced 964 ounces of gold and gold equivalents, with 900 ounces of 
      gold sold for own account during the Quarter. 
 
   -- Stage Two of the processing plant expansion, which includes the 
      installation and commissioning of the crusher circuit and construction of 
      the civils and fabrication of three additional carbon-in-leach ('CIL') 
      tanks is largely on target for completion in April 2017. The crusher 
      circuit has been delayed slightly due to steel availability in country 
      but will not impact the production throughput planned for Stage Two. 
 
   -- With the additional CIL tanks commissioned early in Q4 FY 2017 and the 
      availability of fine material on the stockpile, planned throughput and 
      gold production for Stage Two is expected to be achieved by end April 
      2017 despite the delay in the crusher section, which is expected to be 
      completed by the end of May 2017. Processing of the lower grade ore 
      stockpile commenced during the Quarter and we continue to add more 
      material from the mine and other surface sources to the stockpile. 
 
   -- At Kilimapesa Hill the new mechanical loader is fully operational and 
      contributed significantly to improved development rates.  The 
      availability of working places and production areas has significantly 
      strengthened operational flexibility and consequently improved the 
      ability to meet increased production requirements. 
 
   -- At the Teng-Teng exploration project, the second outlet has holed to 
      surface and the mono winch has been installed. The deepening of the 
      incline has been completed, which will allow for rail transport and 
      tipping of mined ore. 
 
   -- During the Quarter, Goldplat purchased and transported tailings from 
      Migori county where KPG identified significant quantities of good quality 
      surface material. Material is being added to stockpiled ore. 
 
   -- KPG continues to run the existing plant following additional re-designing 
      work that was completed on the existing tailings facility in order to 
      allow a further 6-12 months' deposition. 
 
 
   Anumso Gold Project 
 
 
   -- During the Quarter, Ashanti Gold Corp completed their initial due 
      diligence work and took the decision to proceed with the first option 
      period earn-in. 
 
   -- All administrative and logistical operations including local company 

      registration and setting up of bank accounts have been completed. 
 
   -- 20 Reverse Circulation ('RC') drill holes have been drilled and assayed. 
 
   -- Planned work for the next period includes surface geochemical work over 
      the West Banka trend; advanced project mapping; metallurgical test work 
      and evaluation of further drilling requirements. 
 
 
   International marketing and sourcing 
 
 
   -- During the Quarter, we continued to make good progress in the global 
      sourcing of materials for processing in Ghana and in South Africa with 
      the designated team visiting North America. 
 
 
   The first contract with a South American producer has been finalised and 
shipment is expected in the next quarter. Other proposals submitted to 
South American clients are in advance stages of finalisation. 
 
   Scipion Loan Facility 
 
   During the quarter, Goldplat, through Gold Mineral Resources Ltd ('GMR'), 
agreed a US$2 million uncommitted, on-demand, revolving pre-export loan 
facility with Scipion Active Trading Fund arranged by Scipion Capital 
Ltd.  See announcement dated 17 March 2017 for further information. 
 
   Gerard Kisbey-Green, CEO of Goldplat, commented: 
 
   "This has been a good quarter on all fronts, especially with respect to 
our main areas of strategic focus. I am particularly pleased with 
progress made on the plant expansion and achievement of targets at 
Kilimapesa, as well as the positive developments being made with respect 
to the sourcing of material from South America. Alongside this we have 
identified new sourcing opportunities within West Africa and are also 
exploring opportunities in North America.  I believe Goldplat is on 
track to meet planned targets for FY 2017 and look forward to keeping 
our shareholders updated with our continued progress." 
 
   ** ENDS ** 
 
   For further information, visit www.goldplat.com, follow on Twitter 
@GoldPlatPlc or contact: 
 
 
 
 
Gerard Kisbey-Green        CEO Goldplat plc          Tel: [phone] 
Colin Aaronson / Daniel    Grant Thornton UK LLP     Tel: [phone] 
Bush                       (Nominated Adviser) 
Andrew Raca / Justin       VSA Capital Limited       Tel: [phone] 
McKeegan                   (Broker) 
Charlotte Page / Susie     St Brides Partners Ltd    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. 
 
   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

April 20, 2017 11:45 ET (15:45 GMT)

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