REG-Operational Update <Origin Href="QuoteRef">GLDP.L</Origin>

GoldplatAnnouncement

21/06/2017 07:05

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Goldplat plc/ Ticker: GDP/ Index: AIM/ Sector: Mining & Exploration
21 June 2017
Goldplat plc ('Goldplat' or 'the Company')
Operational update

Goldplat plc, the AIM quoted gold producer with two market-leading,
international gold recovery businesses in South Africa and Ghana, and primary
gold mining interests, including the Kilimapesa Gold Mine in Kenya, is pleased
to provide an operational update.

Changes to the South African Mining Charter
On 15 June, 2017 the Broad Based Socio-Economic Empowerment Charter for the
South African mining and minerals industry, 2017, (the '2017 Charter') was
announced and gazetted in South Africa. The 2017 Charter aims to introduce
far-reaching, new, and in some cases, radical measures and requirements on the
industry. Goldplat Recovery (Pty) Limited ('GPR') is compliant with the
preceding Charter, and if the 2017 Charter is implemented, certain changes
will be required to maintain compliance, primarily in respect of: (i) the
increased mandatory Black Economic Empowerment shareholding which is currently
set at 26%, but is proposed to be increased to 30%, and (ii) in the required
make-up of management demographics. The Chamber of Mines of South Africa has
publicly rejected the unilateral development and imposition of the 2017
Charter and plans to take legal action on behalf of the industry to interdict
the implementation of the 2017 Charter on a number of grounds. Goldplat and
GPR will monitor this issue and will keep shareholders informed as to progress
and the possible impact on the Company as the process unfolds.

Kilimapesa new processing facility installation and commissioning
Installation of Stage Two of the new processing plant at the Company's
Kilimapesa Gold Mine in Kenya ('Kilimapesa') was completed in mid-June 2017.
This comprised a new crusher circuit and three additional leach tanks. 
Although installation was slightly delayed due to difficulties getting certain
steelwork and electrical supplies to the site, the Company is pleased to
report that commissioning has begun and is expected to be completed by the end
of June 2017. Furthermore, despite the delays, planned mill throughput rate
for Stage Two of 120 tonnes per day of ore was achieved during May 2017. This
was made possible by treating previously stockpiled fine material which did
not require crushing, as well as by the relocation and installation of a spare
crusher as a temporary measure.

A strategic decision has been taken to bring forward the switch over to grid
power in order to overcome ongoing difficulties with the generators, primarily
a result of poor diesel quality. In order to facilitate the financing thereof,
an agreement has been reached with the Kenya Power and Lighting Co. Ltd
('Kenya Power') to allow payment of the installation cost of approximately
US$200,000 to be spread over 12 months. Installation is expected to begin
towards the end of June 2017 and is expected to take 6-8 weeks. Major
improvements to the supply of grid power have also been completed by Kenya
Power making this source far more reliable, both for the old as well as the
new plants. This should have a positive impact on costs as fewer switch-overs
to diesel back-up power will be required. Once consistent planned production
and profitability have been achieved with Stage Two, a decision will be taken
regarding the Stage Three expansion.  The Board has however approved the
installation of the second mill (originally planned for Stage Three),
specifically as a standby to mitigate downtime risk.

Ghana elution plant
A complete, second-hand 3-tonne elution plant was recently acquired by the
Company's gold recovery operation in Ghana, Gold Recovery Ghana ('GRG'), from
a producer in South Africa for ZAR 2 million (approximately US$155k). This
plant is modular, complete with all ancillary equipment and will more than
meet the requirement of the Companies expanding Ghanaian operations. As such,
it was deemed a better option than moving an existing 4-tonne plant from GPR
to GRG and the purchase of the required ancillary equipment and
infrastructure. It is estimated that the final cost of installation will now
be in the order of US$1m, compared to the initial estimate of US$2m for the
plant from GPR. The acquired elution plant has been dismantled, moved to GPR
for refurbishment and is now in the process of being shipped to Ghana.
Installation and commissioning is expected to be significantly quicker than
per previous plans, with commissioning now planned for the end of December
2017, six months ahead of the milestone date stipulated by the Ghanaian
Government in accordance with the Company's gold licence renewal terms.

South America contract
The Company has been sourcing and shipping material on a regular basis from
various individual suppliers in South America since the second half of 2016
and good progress is being made on contract negotiations. The first
significant recurring contract was signed recently with initial shipments of
360 tonnes of carbon underway to Ghana and shipments of rubber mill liners
being finalised.

Gerard Kisbey-Green, Goldplat CEO commented. "Kilimapesa is now operating
profitably and at the increased rates targeted for Stage Two.  This, together
with continued steady and positive progress in South America, means the
overall performance of the Group remains positive and in line with market
expectations.  Looking closer at South Africa, as we do not expect the new
2017 Charter to have a significant impact on our business, GPR will leave the
ongoing negotiation process in the hands of the Chamber of Mines and the
larger industry players, and we will continue to focus on issues over which we
have more direct control, including continued focus on increasing operational
efficiencies and ultimately profitability."

**ENDS**

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

 Gerard Kisbey-Green           CEO Goldplat plc                           Tel: +27 (71) 8915775      
 Colin Aaronson/ Daniel Bush   Grant Thornton UK LLP (Nominated Adviser)  Tel: +44 (0) 20 7383 5100  
 Andre Raca/ Justin McKeegan   VSA Capital Limited (Broker)               Tel: +44 (0) 20 3005 5000  
 Charlotte Page/Susie Geliher  St Brides Partners (Financial PR)          Tel: +44 (0) 20 7236 1177  

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inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
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Source: Goldplat plc via Globenewswire