Goldplat plc - Quarterly Update - Q1 Ended 30 Sept 2020
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
('Goldplat', the 'Group' or 'the Company')
Quarterly Update - Update on the first quarter ended
Goldplat plc, the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and a held-for-sale mining operation in Kenya, is pleased to announce an operational update for the first quarter ("Q1") ended
· The Group maintained good operating results with the South African operations achieving a profit for the Q1 of
· The initial results from a pilot plant test on Tailings Storage Facility ("TSF") material has been encouraging and is bringing us closer to finalising a detailed plan for the processing of TSF.
· Significant progress has been made in the sourcing efforts in the Group, with a constant flow of material received in
· Similarly, in
· The relationships with the plants supplying other by-products remain in good standing, with constant flow of by-products, despite the challenges of Covid-19.
· Progress is being made on obtaining final approval for extending our current TSF and an additional
· The cash requirement for Kilimapesa has been reduced with the signing of a binding term sheet with Mayflower as announced previously.
Goldplat Recovery (Pty) Limited ("GPL")
· The South African operation achieved an operating profit for the Q1 of
· During Q1, part of our plant facility was modified to improve the processing of the TSF material on a production scale. The initial results are encouraging and exceed the results from initial lab scale test work, and we will continue measuring performance going forward. The aim is to build up a data base on production and recoveries from representative areas on the TSF using different parameters in the plant sufficient to support the investment required to reprocess the TSF material.
· One of our producing mills has been allocated to this modified plant and as a result 1kg per month of gold production was sacrificed during the period. The plant was commissioned towards end of September and it is expected that the TSF material processed from it is expected to exceed the 1kg sacrificed by repurposing the mill.
· The company continued improving its the largest carbon-in-leach circuit to enable the processing of lower grade contaminated material. During the period we installed an upgraded screening unit, sacrificing 3kg of gold production during the installation phase. With the modification on the underground circuit completed, the full benefit of this improvement should be reflected during the 2nd quarter.
· Additional costs of
· Surface material and woodchips sourced during Q1 exceeded production capacity, increasing the feed material on site and contracted to more than 24 months. We received good volumes of by-products from a number of clients.
· The processing of the current TSF at the required scale still remains dependent on securing a final deposition site and a plant. Management still believe that processing the TSF through an existing third-party facility should create most value for shareholders and reduce the initial capital requirement.
· The application to extend our current TSF for deposition of current production is progressing and indications from authorities are that we should have feedback towards the end of
· Our extensive exploration and testing campaign to secure more long-term feed material for the carbon-in-leach circuits is continuing and we spend close to
Gold Recovery Ghana Limited
· The Ghanaian operation maintained its improved production levels achieved during the previous financial period and achieved an operating profit for the first quarter of
· The sustained and improving operating results is due to a constant flow of material received from clients in
· During the quarter we have made progress on our strategic focus of securing more material from
· We also signed a new contract with a company in
· The application for a license to procure and toll-treat tailings material in
Kilimapesa (Pty) Limited
· As previously announced, a binding conditional term sheet for the sale of Kilimapesa was signed with Mayflower during the quarter, with completion of the transaction subsequently extended until
· Operating losses at Kilimapesa for the first quarter were
· The operations started processing artisanal tailings material from the area on
· The Group does not expect to contribute any further cash to Kilimapesa before completion of the proposed sale.
The progress made on our planning for processing the TSF is positive and I'm confident that the pilot plant data should assist us in accelerating the processing of the TSF.
The Covid-19 pandemic remains a risk for the business and we will maintain procedures to protect the health and safety of all our people and the continuity of the business."
For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
Colin Aaronson / Richard Tonthat Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
/ Harrison Clarke/Seamus Fricker
James Joyce / Jessica Cave WH Ireland Limited (Broker) Tel: +44 (0) 207 220 1666
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.
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