Goldplat plc Gold Production and Increasing Profitability

Goldplat plc (LON:GDP), the AIM listed gold producer, with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, has today announced an operational update for the three months ended 31 March 2018.

Overview

28,534 gold equivalent ounces were sold and transferred during the nine months ended 31 March 2018 (nine months ended 31 March 2017: 27,714 ounces.

The installation of the elution plant and associated ancillary infrastructure at Gold Recovery Ghana was completed, with the first gold pour from this operation taking place during the Quarter
Rand Refinery paid Goldplat Recovery (Pty) Ltd an undisclosed amount in full and final settlement of the dispute between the two parties. This dispute has now been concluded
WH Ireland has been appointed as sole Broker to Goldplat plc

Production for the Quarter

Overall production of 6,966 ounces of gold and gold equivalents was achieved during the Quarter, with operating profitability continuing at the recovery operations together with a continued reduction in losses made at Kilimapesa Gold Mine (‘Kilimapesa’). In line with our commitment to build production output and profitability, the sourcing of by-product material for processing at the recovery operations and improving operational efficiencies at Kilimapesa remain primary areas of strategic focus for the Company. During the Quarter, sourcing of material for Gold Recovery Ghana was slower than anticipated, however several batches of new material are in the final stages of contract completion. Losses continued at Kilimapesa due to lower grades and problems with the impact crusher at Plant 2.

Gold Equivalent Ounces
for the month period ending 31 March 2018

Goldplat Recovery (Pty) Ltd (‘GPL’), South Africa

During the Quarter GPL produced 4,533 ounces of gold and gold equivalents with 3,852 ounces of gold sold for own account and 1,180 ounces transferred to clients
Overall production at GPL was slightly below plan, with Carbon-In-Leach (‘CIL’) production exceeding plan and deliveries to the by-product circuits below plan. Overall targets for the year remain on track
The dispute between Rand Refinery and GPL was concluded during the Quarter with all legal agreements being completed and Rand Refinery paying an undisclosed amount to GPL. Business between the two parties has resumed
Good progress was made during the Quarter to clean-up a decommissioned gold operation for a large South African gold mining producer, with completion on track for the end of FY2018
By-product contract renewals for the major South African gold producers are currently underway
Metallurgical testwork to increase the economics of the strategic CIL stockpile are ongoing and are yielding positive results
Process optimisation test work for the re-processing of the Tailings Storage Facility resource continues, as progress (by the DMR) on the West Pit 3 for final deposition is awaited

Goldplat Recovery Ghana (‘GRG’), Ghana

GRG produced 1,192 ounces of gold and gold equivalents, with 339 ounces of gold being sold for own account during the Quarter
During the Quarter the elution plant and associated infrastructure was completed. This allows further beneficiation of a lot of the material to Dore bars and also fulfils a requirement of the previous gold licence renewal
Sourcing of material for GRG remains a primary focus and several batches of new material are currently being finalised
GRG began pouring gold on-site during the Quarter
An environmental clean-up project with the Ghanaian Government to rehabilitate artisanal mining tailings remains under discussion, pending Government go-ahead

Kilimapesa Gold (‘KPG’)

KPG produced 1,241 ounces of gold and gold equivalents, with 1,380 ounces of gold sold for own account during the Quarter
Production for the Quarter was below plan due to lower than expected grades from the underground mine as well as problems experienced with the crushing circuit at Plant 2
Cost optimisation is ongoing and internal approval for the installation of grid power at Plant 2, and the underground mine and Teng Teng was granted during the Quarter
The Kempe drill is now operational at Kilimapesa Hill underground mine. This will assist in the forward planning of mining layouts with a consequent improvement of grades and costs
Further optimisation of the metallurgical recovery is underway and we expect positive results in the near term

International marketing and sourcing

During the Quarter the Global Sourcing Team completed a strategic global sourcing plan, which supported the Group’s ongoing focus on South and North America as well as West Africa, with material being shipped to and processed primarily at GRG
Senior teams concluded a comprehensive roadshow to North America as well as to Peru during the Quarter

Gerard Kisbey-Green, CEO of Goldplat plc, commented: “The conclusion of the Rand Refinery dispute and the completion of the elution circuit at GRG were key highlights of the Quarter. As we continue to focus on building gold production and increasing profitability, we look forward to progressing the turnaround at Kilimapesa and securing new strategic supply contracts at an international level for our recovery operations.”