REG-Conclusion of payment to IGE for Kilimapesa Gold

Thu May 12, 2011 2:00am EDT

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Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
12 May 2011
Goldplat plc ('Goldplat' or 'the Company')
Conclusion of payment to IGE for Kilimapesa Gold

 

Goldplat plc, the AIM quoted gold producer, announces that it has agreed a final one off payment of US$800,000 to its former Joint Venture partner International Gold Exploration IGE AB ('IGE') for final settlement of IGE's 50% shareholding in Kilimapesa Gold Ltd, the holding company for Goldplat's wholly owned Kilimapesa Gold Project in Kenya.  This final payment agreement translates into a reduction of US$700,000 in the announced acquisition consideration to US$2,000,000 (see news release 17 June 2009 and 24 September 2009).

 

Goldplat's strategy with regard to the Kilimapesa Gold Project, located in the historically producing Migori Archaean Greenstone Belt in western Kenya, remains to advance this highly prospective site by recommencing mining, and expanding the current JORC-compliant resource of 1.65Mt at 2.44 g/t Au for 129,000 oz of gold at a cut-off grade of 1 g/t of gold for all categories, to a targeted level in excess of 500,000 oz Au.  In line with this, the Company has implemented a defined development strategy, results of which will be published in due course.

 

Goldplat CEO Demetri Manolis said, "This is excellent news for shareholders and represents a significant reduction of the originally agreed consideration.  The development of the Kilimapesa Gold Project is part of the Company's strategy of building and advancing a portfolio of brownfield gold projects in known mineralised zones with production history.  The Company has additional projects that are being advanced in Ghana and Burkina Faso which it believes through exploration and development will lead to a significant increase in Goldplat's overall resource base.  Updates on these developments are expected in the near term, as well as from the gold recovery operations in South Africa and Ghana which continue to perform strongly; and we look forward to updating shareholders with our progress in realising Goldplat's inherent value." 

 

* * ENDS * *

 

For further information visit www.goldplat.com or contact:

 

Demetri  Manolis, CEO Goldplat plc Tel: +27 (0) 11 423 1203
James Joyce WH Ireland Limited Tel: +44 (0) 20 7220 1666
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177

 

Notes
Goldplat plc is an AIM-listed gold producer with operations in Africa.  Its strategy is to consolidate its position as a gold producer in Africa and build itself into a mid-tier gold company.  

 

The Company has two recovery businesses based in South Africa and Ghana, which, by safely disposing mining by-products, fulfil an important aspect of the mines' environmental management programmes.  The South African plant is located near the centre of the East Rand Goldfield and raw material feedstocks are sourced from many of the major South African mining companies, including AngloGold Ashanti, Goldfields, Harmony, DRD Gold and other smaller producers.  The Ghana plant, located in the free port of Tema, provides access to raw materials from mines in Mali, Guinea, Burkina Faso, Benin, Cote D'Ivore, Senegal, the DRC and Mauritania, as well as Ghana.

 

Goldplat's strategy is to build itself into a mid-tier gold producer, through the acquisition of known deposits with targets of between 200,000 and one million contained ounces.  Kilimapesa Gold is a wholly owned subsidiary of Goldplat and is developing the potential of the 213 sq km Lolgorien licence area located in the historically producing Migori Archaean Greenstone Belt in western Kenya.  Kilimapesa Gold commenced initial production in January 2009 and an aggressive exploration and development programme resulted in a maiden JORC compliant resource being reported in October 2009. 

 

Goldplat also has an option over the 246 sq km Nyieme Gold Project located in Burkina Faso, which includes known high-grade quartz vein structures, with drill core results showing up to 17.83 g/t gold over one metre and 11.67 g/t over five metres.  A maiden resource was announced in December 2010 of 685,000 tonnes at 2.61 g/t Au for 57,501oz Au at a cut-off grade of 1.0 g/t Au for all categories but the Company hopes to increase this through further exploration.

 

Additionally, the Company has entered into a Memorandum of Agreement with Gulf Coast Resources Inc ('Gulf'), a Canadian mining company for the acquisition the Banka Mining Lease, a ten year renewable mining lease for gold and associated minerals covering an area of 29 sq km located in the Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana.




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