Goldplat plc Operational Update
21 April 2017 - 1:45AM
UK Regulatory
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: +27 (71) 8915775
Colin Aaronson / Daniel Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
Bush (Nominated Adviser)
Andrew Raca / Justin VSA Capital Limited Tel: +44 (0) 20 3005 5000
McKeegan (Broker)
Charlotte Page / Susie St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
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)
Copyright (c) 2017 Dow Jones & Company, Inc.
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