Goldplat plc Operational Update
October 27 2016 - 1:00AM
UK Regulatory
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: +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 Page / 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
October 27, 2016 02:00 ET (06:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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