Operational Update

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

24 October 2017
Goldplat plc ('Goldplat' or 'the Company')
Operational Update

Goldplat plc, the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, is pleased to announce an operational update for the three months ended 30 September 2017 (the 'Quarter').

Overview

• 95% increase on the same period in 2016 in gold equivalent ounces sold and transferred during the Quarter to 14,374 (30 September 2016: 7,382 ounces)
• All operations were profitable during the Quarter at an operational level
• 133% increase on the same period in 2016 in gold equivalent ounces produced at Kilimapesa Gold Mine to 1,449 (30 September 2016: 623 ounces) - on track to produce in excess of 5,800oz targeted during FY 2018
• Good progress was made in areas of strategic focus including:
  • Sourcing sufficient suitable material for the carbon in leach ('CIL') circuits at Goldplat Recovery (Pty) Ltd in South Africa ('GPL')
  • Ensuring that sufficient ore is sourced from the underground mine for processing through Plant 2 at Kilimapesa
  • Sourcing sufficient by-product material to keep Gold Recovery Ghana Limited ('GRG') operating to capacity. 
  • The erection of an elution plant at GRG during the Quarter

Goldplat Recovery (Pty) Ltd ('GPL'), South Africa

• 40% increase year on year ('YoY') of gold and gold equivalents produced during the Quarter to 7,588 ounces (Q1 2016: 5,418 ounces)
• 93% increase YoY of gold sold and transferred to 10,546 ounces during the Quarter (Q1 2016: 5,459 ounces)
• Good progress has been made in sourcing material for processing through the CIL circuits with more than 12 months of material available - work continues to optimise recoveries from this material
• Legal proceedings with regards to the Rand Refinery dispute continue
• Good progress is being made in securing a pit for later tailings deposition; the Department of Mineral Resources has advised the best route and we are monitoring progress from all stakeholders

Gold Recovery Ghana Limited ('GRG'), Ghana

• GRG produced 1,190 ounces of gold and gold equivalents, with 2,604 ounces of gold being sold on GRG's own account during the Quarter
• The erection of a 3-tonne elution plant is progressing well with commissioning scheduled to begin towards the end of December 2017
• Discussions continue with the Ghanaian Government regarding a project to clean-up and process contaminated artisanal tailings and the construction of a mobile gold concentrator pilot plant in South Africa progressed well. The plant is expected to be commissioned in Ghana during November 2017
• Good progress has been made during the Quarter to increase the operational footprint and sourcing of material from outside of Ghana - targeting shipments from elsewhere in Africa and South America, with regular and sustainable shipments now being received from both areas.
• Approximately 80% of the on-site tailings material has now been removed from the Ghana plant site, freeing up significant land for expansion and significantly reducing environmental liabilities.

Kilimapesa Gold ('KPG'), Kenya

• KPG produced 1,449 ounces of gold and gold equivalents, with 1,224 ounces of gold sold on KPG's own account during the Quarter
• Planned production rates at Plant 2 are now being achieved on a regular basis and plant optimisation and cost cutting is now in progress
• Production build-up from Kilimapesa mine is progressing well to meet the requirements of Plant 2
• Permission has been granted to export gravity concentrates quarterly (previously only authorised to export once per year), which should improve inventory turnaround
• National elections caused modest production disruptions during the Quarter (with employees having to take time off to vote), and the ongoing uncertainty surrounding further presidential elections continues to impact the reliability of deliveries to the mine
• All agreements with land owners and the local community have been successfully renegotiated in anticipation of the eventual closure of Plant 1.
• We are pleased to note the appointment of a Kenyan national as Plant Manager at Plant 2, replacing the South African expatriate who has completed his contract at KPG

Anumso Gold Project ('Anumso')

• Shortly following the end of the Quarter, Ashanti Gold Corp announced encouraging progress on exploration work undertaken at Anumso

Gerard Kisbey-Green, CEO of Goldplat, commented:

"With operational profitability achieved at all operations and good progress being made on our strategic objectives, I am very pleased with the results for the Quarter. With production rates at Kilimapesa now sustainable at planned levels for Stage 2, focus will be on cost reduction. At GRG good progress is being made in our efforts to grow production through sourcing material from West Africa and South America, and we expect commissioning of the elution plant scheduled to begin towards the end of December 2017."

** ENDS **

For further information, visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:

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.

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.