Ghana - progress report

11 May 2007 10:30

Goldplat plc11 May 2007 Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 11 May 2007 Goldplat plc ('Goldplat' or 'the Company') Progress Report on Ghana Operations The directors of Goldplat PLC are pleased to announce that substantial progresshas been made towards bringing the new plant in Ghana, operated by the whollyowned subsidiary Gold Recovery Ghana Limited ("GRG"), into full production. Plant Construction Stage one of construction at the free port of Tema, Ghana, has been completed.This includes the office building, change house, security building, electricalsub-station, container loading ramp, process building, material storagecontainers and the installation of the incinerators. The property is surroundedby a brick wall and steel gates and has 24 hour security guards. A supervisorand production staff have been appointed. These staff members are Ghanaiancitizens. Completion of stage one has meant that processing fine carbon, steel and rubbermill liners and similar high value materials is under way. The second phase of construction is now in progress. This will enable GRG toprocess lower value gold bearing materials similar to those presently processedin South Africa. A mill has been selected and is being refurbished at the group's facility inBenoni for shipment to Ghana. Gravity concentrators have been ordered and aquotation has been obtained for the CIL tanks which we propose to order from aGhanaian company. This second stage will allow GRG to reach its full plannedproduction capability later this year. Processing and raw materials As stated above, GRG has commenced production of gold. To date 14 kg of goldhave been produced from 108 tons of raw material and GRG is already operatingprofitably. Further material has been processed to the concentrate stage and isbeing stockpiled at Tema for bulk shipping to Rand Refineries. The procurement of raw material is an essential element for GRG to besuccessful, and the directors are very encouraged by progress to date. The contract with Anglogold Ashanti's Obuasi mine was referred to in theGoldplat Admission document and has subsequently been renewed and extended toinclude mill liners and grease.. Fine carbon has also been secured from GoldenStar Mining's Wassa mine and from Central African Gold's Bibiani mine. Millliners have been secured from Obuasi, from Redback Mining's Chirano mine andfrom Wassa. In addition, mill grease has been secured from Obuasi. Supplies of mill liners and grease are currently being negotiated with anotherAnglogold Ashanti operation at Iduapriem as well as from Bibiani. Taken together these contracts will mean that GRG has a steady flow of materialsfor processing. The board is also encouraged at the progress made in securing materials to beprocessed though the CIL plant, when construction is complete. In addition tomaterials similar to those processed in South Africa, it has become clear thatsmall scale mining in Ghana has resulted in tailings which are an environmentalliability and at the same time contain much higher concentrations of gold thatthose found in South Africa. The Ghana Minerals Commission provided GRG with alist of the licensed small workers which contains approximately 100 licenseholders. Visits to some of these licence holders and the initial sampling of thetailings on their properties indicate that the processing of this material inTema will be economically viable. Testwork on one of the stockpiles provided ahead grade of 14.7g/t and a gold recovery of 43.5% using a standard gravityconcentration process and 92% recovery on the middlings and gravity tails usingthe CIL process. An official testwork report has been obtained. This initiativeis supported by the authorities in Ghana. A more detailed evaluation of thevolumes of tailings available and the gold grade is being undertaken. These visits have resulted in other opportunities being presented. Inparticular, the acquisition of gold in a form with a much higher grade and theacquisition of gold mining properties and their subsequent development intosmall mining operations are two examples of the opportunities available. Commenting on progress in Ghana, Demetri Manolis, CEO of Goldplat, said, "TheGhana operation is only one area where Goldplat is making rapid progress. Theopportunities available to us to enter the junior mining area have exceededexpectations, and some of our cash flow has been used to investigate theseopportunities. For that reason, the board took a decision to reduce the rate ofdevelopment in Ghana while maintaining profitability by stepping up SouthAfrican production. Despite the change of emphasis, production in Ghanacommenced precisely on schedule and I remain convinced of the excellentprospects for GRG." * * ENDS * * For further information visit www.goldplat.com or contact: Demetri Manolis, CEO Goldplat plc Tel: +27 11 423 1203James Joyce WH Ireland Limited Tel: 020 7220 1666Isabel Crossley St Brides Media & Finance Ltd Tel: 020 7242 4477 This information is provided by RNS The company news service from the London Stock Exchange