Goldplat plc Operational Update
August 31 2016 - 2:00AM
UK Regulatory
TIDMGDP
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
31 August 2016
Goldplat plc ('Goldplat' or the 'Company')
Operational Update
Goldplat plc, the AIM quoted African gold producer, is pleased to
announce a positive operations update for the three months ended 30 June
2016 (the 'Quarter') for its two market leading gold recovery businesses
in South Africa and Ghana, and its Kilimapesa Gold Project in Kenya,
reporting a total gold and gold equivalent production of 11,969 ounces,
continued profitability and steady progress on priority capital
projects.
Production for the Quarter
During the Quarter, the Rand Refinery silver toll recovery project was
completed and although the contract is currently under dispute, the
Directors are confident that the dispute will be resolved. Preliminary
results from the project show a total of approximately 3,700kg of silver
(1,593 gold equivalent ounces) and 42kg (1,350 ounces) of gold were
produced for the Rand Refinery. Including this production, total gold
produced during the Quarter was 11,969 ounces, total gold and gold
equivalents sold was 6,584 ounces and gold and gold equivalents
transferred to clients was 9,131 ounces, amounting to total gold and
gold equivalents sold and transferred of 15,715 ounces. The difference
between the gold production and gold sales and transfers reflects the
reduction of stock.
This was an excellent Quarter for Goldplat, as with the elutions for the
silver project reaching completion during the Quarter, the elution
circuit was once again available for producing own and client gold.
Goldplat Recovery Pty Limited ('GPL') - South Africa
-- During the Quarter, 11,095 ounces of gold and gold equivalents were
produced, a total of 5,012 ounces were sold and 9,131 ounces were
transferred to clients by way of metal transfers.
-- The Company successfully completed the silver toll recovery project for
Rand Refinery to which the high grade circuit and approximately half of
the increased elution capacity had been dedicated.
-- The current dispute between the two companies is on-going and the Board
is confident that the dispute will be resolved.
-- Overall inventory was significantly reduced following the completion of
the silver project as 100% of the elution capacity being available for
gold recovery during the latter part of the Quarter.
-- GPL successfully delivered the first Dore bars to Heraeus Refinery as
part of our strategy to de-risk from single refinery dependency.
-- A new General Manager and a Strategic Sourcing Manager has joined the GPL
team, adding significant strength to the operational team.
-- The metallurgical research into optimising metal recovery from tailings
recovered from the Tailings Storage Facility, part of the re-processing
project, was completed. Complementary test work to determine the
operational variables of the pre-treatment of the tailings will have to
be completed before the plant design, production planning and economic
assessments can be undertaken.
Gold Recovery Ghana ("GRG")
-- During the Quarter, 304 ounces of gold was produced at GRG with 947
ounces being sold, the difference again representing the depletion of
stocks.
-- The renewal of the Gold and Environmental Protection Agency licences are
in progress. The processing of these applications is taking longer than
anticipated but GRG is working closely with the relevant authorities and
expects the process to be concluded during H1 2017.
-- The new commissioning date of the elution plant project is still being
negotiated with the Ghanaian Authorities and will be agreed once the
licences have been renewed.
-- The de-commissioned carbon-in-leach ('CIL') plant was containerised and
shipped to Kenya. This has freed up significant surface area, part of
which will be used for the Elution Plant project.
-- Relationships with clients in Ghana remained stable during the Quarter
and deliveries from these clients have normalised.
-- During the Quarter, representatives from the company visited a number of
gold mining operations in South America and agreed to process a trial
batch of material. The results from the trial were very encouraging and
the decision has been taken to move a procurement officer to South
America for a period of six months to arrange more trials, and
potentially the processing of full batches.
-- As part of our strategy to explore other international markets, a
delegation will be visiting gold mining operations in Guinea to
investigate the availability of materials for processing at GRG.
Kilimapesa Gold ("KPG")
-- Kilimapesa produced 570 ounces of gold during the Quarter and 625 ounces
from the mine were sold.
-- Monthly losses continue to be reduced by improving gold yields, and cost
reduction through various initiatives.
-- Processing of high grade artisanal tailings from within the licence area
continued and have contributed very positively to the overall gold
production for the Quarter.
-- Limited production of high grade ore from on-reef exploration at
Teng-Teng continued during the quarter, with a second outlet being
developed.
-- Plans are still underway to prepare for a mining licence application.
-- The Knelson concentrator plant trials proved to be very successful - the
equipment has now been installed and re-commissioned at the new plant
site. The concentrator will be used to process lower grade artisanal
tailings.
-- Good progress is being made on the new plant project:
-- The EIA report has been approved and KPG has received a VAT
exemption for import of plant and equipment.
-- The CIL plant from GRG has been shipped to Kenya and was cleared
through customs during the Quarter.
-- All major infrastructure is being manufactured at GPL in South
Africa and shipped to Kenya as containers are filled.
-- The land required for the tailings deposition has been acquired
and the design for the tailings facility has been completed.
-- The tailings facility design for the Knelson concentrator tailings
is complete and a borrow pit has been excavated.
-- On-site, water supply to the plant has been completed with storage
tanks installation complete.
-- Various civil works around site have been completed.
-- The plant design is complete and approved with a wet crushing
section added during the Quarter.
-- A geologist was appointed on 1st July 2016 to strengthen the team.
-- A facility for $250 000 has been arranged with Stanbic Kenya
specifically for capital equipment.
Anumso Gold Limited ('Anumso")
Good progress was made in finding a partner for the Anumso project. A
letter of intent, to invest and earn into the project, was signed post
the Quarter-end by a Canadian listed company. A binding option agreement
is expected to be finalised during September 2016. Such an earn-in will
provide investment into the project, with Goldplat retaining exposure
without having to raise capital during the earn-in period.
Rand Refinery silver project dispute update
Further to the announcement made on 11 July 2016 regarding the dispute
between GPL and Rand Refinery, the two parties have been in discussions
regarding the best possible way to resolve the dispute amicably. A joint
team has been appointed to manage a process of investigation, to be run
by independent external industry experts, to assist the parties
resolving the dispute. The investigation is expected to be completed
during the final quarter of 2016, following which the two parties will
seek resolution in light of the findings of the independent
investigation.
During the course of this investigation Rand Refinery will deal with
Goldplat in a "business as usual" manner regarding refining and payments,
keeping the disputed amount separate from other accounts. The dispute is
unfortunate given the original intention of the project, to enhance the
relationship between the two parties, and to demonstrate the improved
capability and flexibility gained by GPL with the installation of the
new elution plant.
Gerard Kisbey-Green, CEO of Goldplat plc, commented:
"This has been a very strong final Quarter of FY 2016 and I am very
pleased with what the various Goldplat teams have achieved.
Notwithstanding the dispute with Rand Refinery, the silver project was a
great technical success and processing the first trial batch of South
American material successfully in Ghana was an unexpected bonus!
These projects and a number of others are proving that the capital
invested in infrastructure and new equipment during the year was well
invested and will continue to deliver returns going forward.
Committing a milling circuit and a substantial portion of the elution
capacity at GPL to the Rand Refinery silver project for most of the
Quarter meant we had a lot of client and own material to elute in the
final month of the Quarter. I am pleased to say that all client material
and a significant amount of our own material was successfully processed
during the month.
Lastly, I believe that both the Kilimapesa project and our strategy to
procure material from South America have gained momentum during the
Quarter and will continue into the new financial year. Whereas the
results reflect the operational performances only, I am pleased to
report that including all head office costs and costs associated with
non-operating subsidiaries, the Group was profitable during the
Quarter."
*** 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 / Jen Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
Clarke / Daniel Bush (Nominated Adviser)
Andrew Raca / Justin VSA Capital Limited Tel: +44 (0) 20 3005 5000
McKeegan (Broker)
Charlotte Heap / Susie St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
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
August 31, 2016 02:00 ET (06:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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