GoldPlat Regulatory News (GDP)

16 Oct 2006 07:00

Goldplat plc16 October 2006 Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 16th October 2006 Goldplat plc ('Goldplat' or 'the Company') Establishment of Ghana Operation Goldplat plc, the AIM-traded producer of gold and platinum group metals ("PGM")recovered from by-products of the mining process, is pleased to announce thatconstruction work has now commenced in Ghana on the Group's second goldprocessing plant, following the completion of the acquisition of a 4.25 acresite in the free zone port of Tema. The expansion represents the next step inthe Company's development plans, aimed at building Goldplat into a mid-tier goldproducing mining house backed by the revenue generated from processingoperations. The new processing plant will replicate Goldplat's South African processingoperation which has contracts with the leading mining companies in the areas ofboth gold and PGM. It will provide access to raw materials from mines in Mali,Guinea, Burkina Faso, Benin, Cote D'Ivorie, Senegal, the DRC and Mauritania, aswell as Ghana itself. The leasehold rights were acquired from the TemaDevelopment Corporation for the cash consideration of USD 200,000 through theCompany's wholly owned subsidiary Gold Recovery Ghana Limited ("GRG"). The leaseis for an initial period of 60 years with an option to renew for another 20years. The establishment of the new plant in the free port also brings with itsubstantial tax benefits. The Group has made contact with the major gold producing companies in Ghana aswell as various smaller gold operations to ensure the project's feasibility. Inall cases the by-product material produced from these companies' operations issuitable for the project in Tema. The Group will also be looking to sell scrapmetals produced as a by-product in Goldplat's processing circuit with threesmelters having already confirmed interest. The Directors anticipate that the plant in Tema should be able to commenceoperations by the end of 2006. The first operations will be the cleaning ofrubber and steel liners to produce a concentrate for export. The cleanedaluminium and steel will be sold locally. In addition, under existingagreements with local mines, fine activated carbon collected from mines isalready being exported for processing to the Company's other wholly ownedsubsidiary, Goldplat Recovery (Pty) Ltd, in South Africa while the constructionof the fluidized bed in Ghana takes place. In this respect GRG has alreadyestablished its initial turnover. Goldpalt CEO Demetri Manolis said: "We are pleased to have secured the siteidentified for our Ghana operation and to have commenced work on theestablishment of our plant there. It is our intention to build an African basedgold producing mining group. The establishment of a second processing operationin Ghana means that we will have a foundation that will provide us withsignificant revenue to finance this growth strategy. A Ghana facility not onlycomplements our South African operation but will also enable us to open furtheravenues and relationships. We are already assessing a number of interestingacquisitions in the mining area which will help us fulfil our ambitions." * * ENDS * * For further information please visit www.goldplat.com or contact: Brian Moritz Goldplat plc Tel: +44 (0) 7976 994300Demetri Manolis Goldplat plc Tel: +27 11 423 1203 Mob: +27 82 454 7392Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7242 4477Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0) 20 7242 4477Luke Cairns HB Corporate Tel: +44 (0) 20 7510 8600 Notes: Goldplat was incorporated on 24th January 2005 and listed on AIM 26th July 2006.The Company through its wholly owned subsidiary is currently a market leader inthe recovery of gold and platinum group metals from metallurgically-challengingmaterials consisting primarily of by-products from gold and platinum mines inSouth Africa. Significant stockpiles of gold bearing materials exist on mine sites, which havebeen enriched rather than depleted during mining, but which cannot be profitablyprocessed by individual mines. Mines need an economic method to dispose of suchmaterial while adhering to environmental obligations. By providing a channel formines to generate revenue from waste material and save on disposal cost meansthat a recovery operation is profitable given the Group's economies of scale. The management team has vast experience in mining and the extraction of preciousmetals, they have in turn established strong relationships with many of themajor mining houses. Goldplat additionally have contracts with the majority ofthe world's leading mining companies, including Anglogold Ashanti, Goldfields,Harmony and Bema for gold and Impala Platinum, Lonmin and Angloplats on the PGMside. It is Goldplat's business strategy to replicate the South African recoverybusiness model in Ghana where there are again significant mining operations thatcan benefit from the recovery process. The Company's focus is to use revenuesfrom both the South African and Ghana plants to identify and acquire furthergold mining assets in the future. It is Goldplat's objective to become a leadinggold exploration and production vehicle in Africa. This information is provided by RNS The company news service from the London Stock Exchange