Kenya Update
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
7 April 2009
Goldplat plc ('Goldplat' or 'the Company')
Update for Kilimapesa Gold Mining Project in Kenya
Goldplat plc, the AIM quoted gold producer, is pleased to report that
development and production at its Kilimapesa gold mining project
('Kilimapesa Gold') in Kenya, a 50-50 joint venture with
International Gold Exploration AB, is progressing in line with
management expectations. The Company is focused on establishing
additional gold resources and upgrading the total resource to be
JORC-compliant by the end of 2009. The current small scale gold
production is primarily intended to fund this early development
work.
Overview
* Focused on maximising the ore resource through development of the
orebody
* Revenue from the processing of development ore plus some high
grade tailings anticipated to cover the operating cost of the
mine - first shipment of loaded carbon and concentrates planned
for the end of April 2009
* Underground development intersected two new veins which are
robust in nature - one vein returns a stretch value of 15m of 9.3
g/t Au over a width of 115cms
* Grade control samples taken after every blast are returning
values of up to 120 g/t Au
* Adit B Diamond Drilling ('DD') programme confirms veins at depth
below current underground workings with encouraging values of up
to 4.6 g/t Au over 150 cms
* DD commenced at the Meghor target area, which has potential for
high grades based on local artisanal returns
* Investigation of other known high grade areas with surface mining
potential continues
* Stockpiling of artisanal tailings continues - 1,700 tonnes of
tailings currently in stockpile and a further 1,500 tonnes
secured by contracts
* Environmental Impact Assessment ('EIA') submitted to the Kenyan
authorities for granting of a full Mining Licence, in final
stages of assessment
Goldplat CEO Demetri Manolis said, "With the early production at
Kilimapesa Gold performing well and our underground development
producing excellent results underpinning the increasing potential of
the project, I believe we are well placed to build the project into a
highly profitable gold mining operation. With the current favourable
gold outlook and consensus pointing to a strong year ahead, we intend
to take full advantage of the current gold demand as we increase our
production and efficiencies at the mine, which will complement our
profitable gold recovery operations in South Africa and Ghana and
increases our already robust investment case.
"Additionally with our increased cash generation and strong balance
sheet, we have the opportunity to acquire additional high quality
grade assets in order to fulfil our strategy of building a mid-tier
gold producer in Africa."
Production and Newly Refurbished Plant
The refurbished plant at Kilimapesa Gold is now operating in line
with management expectations after initial "teething" downtime when
it was commissioned in January 2009. To date the mine has milled
nearly 400 tonnes of development ore with thickener grades between 3
and 5 g/t gold ('Au') with concentrate values of up to 1,000 g/t Au
and carbon loading between 2,000 and 5,000 g/t Au. The values are
particularly encouraging as they confirm the chip sampling from the
development. The Company is targeting to increase production to 900
tonnes per month of which 750 will be from underground development
and the balance from high grade tailings. Average grades are
expected to be in excess of 4 g/t Au yielding between 4 (124oz) and 6
kg (187oz) Au per month.
The blending of high grade tailings has commenced and the first
shipment of concentrate and gold-loaded carbon is ready to export to
a refinery in South Africa at the end of April 2009.
The plant continues to be powered by diesel generators, however the
delivery of grid power to the mine site, which will reduce operating
costs, is expected imminently. The infrastructure for the grid power
is within 600m of the plant site, which will allow for easier
implementation.
Mining
The strategy at Kilimapesa Gold of developing the ore body for the
first year and covering those costs from the development ore, with
additional high grade tailings as a sweetener, is bearing fruit.
As a result of increased efficiencies, development rates continue to
improve monthly. A further 70m of mine development was achieved by
the end of March 2009 and plans indicate that rates will peak at 100m
per month with an expected 500m of vein strike length, and over 500m
of raises being available by the end of 2009.
Two additional veins, the Mid Vein and the North Vein, have been
intersected as targeted. All the veins are sub-parallel with the Mid
Vein lying approximately 40m north of the South Vein and the North
Vein about 50m north of the Mid Vein.
The Mid Vein is a robust vein with thicknesses up to 100cms and
displaying visible gold. The total exposed strike in development is
now 32m. The first 15m of chip sampling has returned an average gold
value of 9.3 g/t Au over 115cms and grade control samples taken after
every blast are returning values of up to 120 g/t Au.
The North Vein is expected to be the most continuous of the three
veins, evidenced by the continuity of the corresponding abandoned
artisanal workings on surface. These workings can be traced over a
strike length of over 500m. The morphology of the vein exposed in
the 24m of underground development, to date shows that this vein is
attaining thicknesses of up to 75cm. Chip sample assay values are
pending, but grade control samples are returning values of over 8 g/t
Au.
Additionally, the opening up of an old adit 150m to the east of Adit
B has enhanced the understanding of the mine's geological model.
This adit has over 150m of existing development, all of which was
chip sampled in February 2009. The geological model illustrating
three major sub-parallel veins at Kilimapesa Hill has now been
confirmed and the long term development planning for the mine
reflects this.
The management is confident that the current development strategy,
which includes stoping next year, will assist in creating a
JORC-compliant resource, thereby maximising the life of mine.
Diamond Drilling
The 5 hole DD programme results are considered to be very
encouraging, despite the poor core recovery due to the fractured
ground conditions. Firstly, the depth extension of the South Vein
that has been developed from Adit B has been proved, with
intersections up to 20m vertically below the vein being recorded.
Secondly, considering the poor core recovery, the assay results
indicate that economic gold values also continue at depth. Thirdly,
the veins were intersected at the targeted depth which demonstrates
that there are no major structural disturbances. These results
signify that the development of a new adit 60m below Adit B can be
planned with increased confidence.
The results of the drilling programme at Adit B are shown below.
Hole UTM Zone 36M Arc Total Intersections (True
No. 1960 Azimuth Angle Hole Width)
Easting Northing Depth From To Au Width
2.35 58
KPB002 697131 9865282 352º -70 39.6m 14.14m 14.72m g/t cms
0.58 96
KPB007 697152 9865277 350º -69º 39.5m 11.97m 12.93m g/t cms
4.03 180
KPB008 697152 9865277 350º -45º 31.9m 19.03m 20.83m g/t cms
4.21 140
KPB011 697177 9865272 355º -65º 40.0m 13.87m 15.27m g/t cms
4.60 150
KPB012 697177 9865272 348º -43º 37.8m 21.23m 22.73m g/t cms
NB. Co-ordinates taken with GPS. To be confirmed by
survey
An additional 5 hole DD programme for the potential high grade Meghor
target area has commenced. The first hole has been completed and the
second is underway. Results will be announced when all 5 holes have
been drilled and data analysed. Furthermore, the Company has
identified areas where high grade artisanal mining has taken place
and is currently exploring these areas through trenching and
subsequent diamond drilling with a view to high grade, low tonnage
surface mining.
Artisanal Tailings Stockpile
Stockpiling of artisanal tailings continues, however due to the very
heavy rains experienced in the area during January and February, the
amount of tailings delivered to the plant were minimal. With daily
deliveries of tailings now resumed, the total stockpiles amount to
1,700 tonnes with a further 1,500 tonnes secured by contracts.
Environmental Impact Assessment ('EIA')
The EIA has been submitted to the Kenya Environmental Agency (NEMA)
and is in the final stages of assessment. We look forward to
updating the market with further developments in due course.
Mining Licence Application
The full Mining Licence application has been submitted to the
Commissioner of Mines and Geology.
Qualified Person
This announcement has been reviewed by Mr. Mark Austin, the group
geologist for Goldplat who has more than 25 years' relevant
experience in the field of activity concerned. He is a fellow of the
Geological Society of South Africa ('GSSA') and has consented to the
inclusion of the material in the form and context in which it
appears.
* * ENDS * *
For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc Tel: +27 (0) 11
423 1203
James Joyce WH Ireland Limited Tel: +44 (0) 20
7220 1666
Sarang Shah WH Ireland Limited Tel: +44 (0) 20
7220 1666
Bill Sharp Alexander David Securities Tel: +44 (0)20
Limited 7448 9820
David Scott Alexander David Securities Tel: +44 (0)20
Limited 7448 9820
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20
7236 1177
Isabel Crossley St Brides Media & Finance Ltd Tel: +44 (0)20
7236 1177
Notes
Goldplat plc is an AIM-listed gold producer with operations in
Africa. Its strategy is to consolidate its position as a gold
producer in Africa and build itself into a highly profitable mid-tier
gold company, leveraged through revenue generated from its gold
recovery businesses.
.
The Company has two recovery businesses based in South Africa and
Ghana, which, by safely disposing mining by-products, fulfil an
important aspect of the mines' environmental management programmes.
The South African plant is located near the centre of the East Rand
Goldfield and raw material feedstocks are sourced from many of the
major South African mining companies, including Anglogold Ashanti,
Goldfields, Harmony, DRD Gold and other smaller producers. The Ghana
plant, located in the free port of Tema, provides access to raw
materials from mines in Mali, Guinea, Burkina Faso, Benin, Cote
D'Ivorie, Senegal, the DRC and Mauritania, as well as Ghana.
Goldplat's strategy is to build itself into a highly profitable
mid-tier gold producer, through the acquisition of known deposits
with targets of between 200,000 and one million contained ounces. To
this end, in a 50/50 JV, it is developing the potential of the 213 sq
km Lolgorien licence area ('Kilimapesa Gold'), located in the
historically producing Migori Archaean Greenstone Belt in western
Kenya. Kilimapesa Gold commenced initial production in January 2009
and an aggressive exploration and development programme has been
implemented to define a JORC compliant resource at the project.
Additionally the Company is currently evaluating gold recovery
operations in Tanzania and Zambia and also has joint venture
agreements with Black Economic Empowerment ('BEE') partners in place
to take advantage of mining opportunities in South Africa.
Glossary of Terms
STRIKE: the horizontal direction of a planar body (90º to the dip
direction)
TAILINGS: the residues from the processing of ore
ADIT: a near-horizontal tunnel driven into a hillside
---END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.