Goldplat “Expanding with the commission of the processing plant” Gerard Kisbey-Green, CEO

Goldplat, the AIM quoted African gold producer, have told DirectorsTalk about 
the successful commissioning of the first stage of the new processing 
plant at Kilimapesa Gold Limited in Kenya. 
 
   The plant has a designed capacity of 200 tonnes per day and will consist 
of a crusher circuit; mills; a thickener; leach tanks; an elution plant 
as well as a tailings deposition facility. The project has been split 
into three discreet stages: 
 
 
   -- Stage One: commissioning of the plant excluding the crusher circuit, 
      which is now completed 
 
   -- Stage Two: installation of the crusher circuit and three additional leach 
      tanks 
 
   -- Stage Three: installation of a second mill and a further three additional 
      leach tanks. 
 
 
   The decision was taken during 2016 to install a new processing plant and 
tailings deposition facility, at a site in close proximity to the 
Kilimapesa Hill underground mine, to increase production volume and gold 
production, decrease operating costs, optimise overhead costs and to 
return Kilimapesa to profitability. Due to prevailing capital market 
conditions at the time, the Company decided to fund the project 
internally, through inter-company loans primarily from the recovery 
operations. It was also decided to construct the plant using existing 
equipment, and management and skills from within the Goldplat plc Group 
where possible. Accordingly, a processing plant at the Company's 
recovery operations in Ghana was deconstructed, containerised, and 
shipped to Kenya. To provide for two production mills and a spare at the 
new plant, two additional second-hand mills were also acquired in South 
Africa. All engineering, manufacturing, construction and installation 
was completed by in-house teams, with the exception of a few critical 
work streams, including the overall plant layout and design work, and 
tailings dam design, which were undertaken by outside consultants. 
 
   Stage One commissioning began on 23 December 2016 and has progressed on 
time and on budget. During the latter months of 2016, a stockpile of 
6,000 tonnes of crushed ore was created, which is sufficient to 
feed/supply the plant until the crusher circuit and additional leaching 
capacity is commissioned.  A key cut for the tailings facility has been 
constructed and tailings are currently being deposited into a borrow pit 
contained within the final tailings dam footprint. Plans are underway to 
increase the size of the final tailings facility in the near term to 
further reduce costs. 
 
   Management is pleased to report, as of the end of January 2017, that 
production is at the planned Stage One rate of 60 tonnes per day, which 
if maintained, and together with ongoing production from the existing 
plant, equates to an annualised 4,600 ounces of gold production, 
compared to the 2,005 ounces of gold produced during the 2016 financial 
year. At this production rate the mine should be profitable and in a 
position to begin repaying loans. 
 
   Stage Two installation of the crusher circuit and an additional three 
leach tanks has begun and commissioning is expected during April 2017. 
At this stage the new plant is expected to process 120 tonnes per day 
and once the plant is fully commissioned and producing at steady state, 
an annualised rate of roughly 4,500 ounces of gold is planned.  The old 
plant will continue to produce roughly 2,300 ounces of gold per year as 
long as tailings capacity exists, resulting in a potential total 
production rate of 6,800 ounces of gold per year. 
 
   Stage Three will be planned and commenced based on the performance of 
the operation once steady state is achieved. 
 
   The new processing plant is scheduled to be opened by the Kenyan Cabinet 
Secretary for Mining, Honourable Dan Kazungu, during an official opening 
ceremony on site planned for 16 February 2017. 
 
   Gerard Kisbey-Green, CEO of Goldplat commented, "I am very pleased with 
the Board's decision to proceed with an expansion plan at our Kilimapesa 
gold mine, which represents an investment of the order of US$2million. 
Although it is modest in terms of production, we believe it will result 
in the commencement of sustainable profitability at Kilimapesa.  Having 
achieved a production rate of 60 tonnes per day, following the 
successful implementation of Stage One, I believe we have already proven 
that we made the right decision.  The team on the ground has done a 
sterling job in adhering to schedules and to budget and we look forward 
to progressing to final commissioning in due course.  Profitability at 
Kilimapesa has been a long time coming and I would like to thank our 
shareholders for their patience in this regard!"