REG-Completion of purchase of Banka Mining Lease - Ghana

Thu May 26, 2011 2:01am EDT

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

26 May 2011

Goldplat plc ('Goldplat' or 'the Company')
Completion of purchase of Banka Mining Lease - Ghana

 

Goldplat plc, the AIM quoted gold producer focused in Africa, announces that its wholly owned subsidiary company Banka Gold (Ghana) Limited completed the purchase of the Banka Mining Lease from Gulf Coast Resources Ghana Limited.  The Banka Mining Lease ('Banka') is a ten year renewable mining lease for gold and associated minerals, granted by the Government of Ghana, over an area of c.29 sq km located in the Amansie East and Asante Akim South Districts of the prospective Ashanti Region of the Republic of Ghana.   

 

Banka is held subject to a 10% carried interest owned by the Government of Ghana, and Gulf Coast Resources Inc, the parent company of the vendor, is entitled to receive a net smelter royalty of 1.5% of gold sold.  The consideration for the purchase, which has been settled out of existing cash resources of Goldplat, was USD 1.6 million.

 

On 23 November 2010 Goldplat announced that it had signed a Memorandum of Agreement to acquire Gulf Coast Resources Ghana Limited, the holder of the Banka Mining Lease, subject, inter alia, to the completion of satisfactory due diligence.  Following completion of such due diligence it was agreed that Goldplat would  acquire the Banka Mining Lease itself.  Goldplat is now finalising its proposals for further exploration and development of the Banka Mining Lease.  An announcement of these proposals, together with a summary of the results of the technical due diligence, will be made in due course.

 

Goldplat CEO Demetri Manolis said, "We are delighted to have finalised this acquisition as we believe Banka represents a substantial gold prospect in the Ashanti Region of Ghana, a prime district for gold project development.  Work completed to date indicates the prospectivity of the licence area and we plan to establish a JORC compliant resource, and ultimately commence a significant mining operation.  Banka, along with the Company's solid portfolio of gold projects in Burkina Faso, Kenya, South Africa and Ghana underlines Goldplat's continued commitment to building its position as a highly profitable mid-tier gold company in Africa."

 

* * 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 acquired 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.  The Company is now implementing a defined development plan with a view to proving a JORC compliant resource.

 
 

 

 

 

 

 

 




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