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GoldplatAnnouncement

27/07/2017 07:05

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Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
27 July 2017
Goldplat plc ('Goldplat' or 'the Company')
Trading and Operational Update

Goldplat plc, the AIM listed gold producer, with international gold recovery
operations located in South Africa and Ghana and a gold mine in Kenya, is
pleased to announce a trading update for the year ended 30 June 2017 ('FY
2017'), a production update for FY 2017 and an operational update for the
three months (the 'Quarter') ended 30 June 2017

Trading update

Goldplat is pleased to announce that consolidated profit before tax for the
Company before any adjustment for the Nyieme Project (as described further
below) is expected to exceed market expectations for FY 2017. The Company
expects to publish its annual financial results in September 2017

Production for the year ended 30 June 2017
* 42,857 gold equivalent ounces, representing a 14% increase over the previous
year were produced during FY 2017 (FY June, 2016: 37,666 ounces). All
operations contributed to the year-on-year increase which exceeded targets for
the year
* 40,285 gold equivalent ounces were sold and transferred during FY 2017 (FY
2016: 40,763 ounces). The high level of gold sold and transferred during FY
2016 was due to stock carried over from the previous year being sold, whereas
the Gold equivalent ounces sold during 2017 reflects a build-up of material in
Ghana which will be sold in the first quarter of the new year
Production for the Quarter

Overall production of 14,790 ounces of gold and gold equivalents was achieved
during the Quarter. This relatively high quarterly production was primarily as
a result of:
* commissioning most of the stage two expansion at Kilimapesa Gold Limited
('KPG') during the Quarter and consequent increase in production to 1,254
ounces of gold
* production from a large contract with a new client in Africa being completed
at Goldplat Recovery Limited ('GPL') during the Quarter, resulting in 11,896
ounces of gold equivalent ounces of production at GPL for the Quarter.
       Goldplat Plc Consolidated        4th Qtr ending     4th Qtr ending       Year ending        Year ending     Year ending June 2016   Year ending June 2016   
                                           June 2017          June 2017          June 2017          June 2017         Equivalent Gold         Equivalent Gold      
                                        Equivalent Gold    Equivalent Gold    Equivalent Gold    Equivalent Gold             kg                      oz            
                                               kg                 oz                 kg                 oz                                                         
 Gold Equivalent Production                                                                                                                                        
 Gold Recovery Ghana                                   51              1 640                312             10 031           214                    6 883          
 Kilimapesa Gold                                       39              1 254                106              3 408           62                     2 005          
 Goldplat Recovery                                    370             11 896                915             29 418           895                   28 778          
 Total                                                460             14 790              1 333             42 857          1 171                  37 666          
 Gold Equivalent Sold                                                                                                                                              
 Gold Recovery Ghana                                   13                418                259              8 327           279                    8 964          
 Kilimapesa Gold                                       38              1 222                100              3 215           62                     1 999          
 Goldplat Recovery                                    306              9 838                702             22 570           516                   16 575          
 Total                                                357             11 478              1 061             34 112           857                   27 538          
 Gold Equivalent Transferred                                                                                                                                       
 Goldplat Recovery                                     34              1 094                192              6 173           411                   13 225          
 Total                                                 34              1 094                192              6 173           411                   13 225          
 Gold Equivalent Sold and Transferred                                                                                                                              
 Gold Recovery Ghana                                   13                418                259              8 327           279                    8 964          
 Kilimapesa Gold                                       38              1 222                100              3 215           62                     1 999          
 Goldplat Recovery                                    340             10 932                894             28 743           927                   29 800          
 Total                                                391             12 572              1 253             40 285          1 268                  40 763          

Goldplat Recovery (Pty) Ltd ('GPL'), South Africa
* Gold production at GPL during the Quarter was high (at 11,896 ounces of gold
equivalent produced) due primarily to the completion of processing of a large
one-off batch of carbon from a new client in Africa. Most of this production
was also sold during the Quarter with the remainder planned for sales in the
first quarter of the new year
* The Carbon-in-leach ('CIL') circuits exceeded planned gold production due to
higher grade of processed material, despite an unplanned stoppage of a mill
during the period.
* With sourcing of feed for the CIL circuits remaining a priority, the Company
is pleased that large volumes of material for the CIL circuits for the new
financial year were sourced during the Quarter. Some of this material will
benefit from various different testwork being undertaken to improve
recoveries. 
* Metallurgical testwork and pilot tests on the stock dam material continue.
The process of securing the West 3 Pit for deposition tailings continues but
with the different interests of the various stakeholders and the changing
regulatory environment, the approval process is taking longer than initially
anticipated. The Company remains confident that the logistical and regulatory
issues will be overcome and the pit will be secured. 
* No further progress has been made on the Rand Refinery dispute.
Goldplat Recovery Ghana ('GRG'), Ghana
* Gold production at GRG improved significantly during the Quarter to 1,640
ounces of gold equivalent resulting in an annual production of 10,031 ounces
of gold equivalent production.
* With sources of material from within Ghana continuing to deplete for various
reasons, focus remained on sourcing from outside of the country. Momentum in
this regard is picking up with contracts secured from elsewhere in Africa as
well as South America. 
* The planned elution plant was shipped from GPL during the Quarter and
arrived in Ghana shortly after the end of the Quarter, with work started on
site preparation and civils. Whereas the deadline for commissioning is June
2018, GRG would like to target the end of December 2017 for commissioning. 
* A third fluidised bed incinerator which was purchased second-hand from an
operator in Tanzania is currently being transported for shipment to GRG. 
* During the Quarter, more focus was put into improving security at the plant
and also in processing the large stockpiles of low-grade material. These
projects are ongoing and contribute to ensuring space for and a secure
environment for planned increased production at GRG in the future. 
* GRG is investigating a major project with the Ghanaian Government to assist
in clean-up of artisanal mining tailings. The Company is conducting extensive
sampling programmes to assess both gold as well as contaminant (mainly mercury
and cyanide) content and is simultaneously investigating the most efficient
processing methods so as to recover gold and deal with contaminants in an
environmentally acceptable manner (in compliance with acceptable global
standards).
Kilimapesa Gold ('KPG'), Kenya
* Production at KPG of 1,254 ounces of gold equivalent during the Quarter
represented a 41% increase on the previous quarter and a record gold
production quarter for the operation. Notwithstanding the improvement, the
production was lower than that planned due to both lower tonnages and grades
mined. 
* Production rates were impacted by problems with generators, mainly
associated with poor diesel quality. These issues have been largely dealt with
during the Quarter. A new diesel bowser has been installed at the new plant, a
new supplier has been engaged, and the process of installing grid power at
plant 2 has been initiated. 
* KPG achieved operational profitability during the months of May and June
2017 - for the first time since the acquisition a decade ago. Management is
confident that profitability will now be maintained and improved.
* Full commissioning of stage two of the new plant is still not complete due
to ongoing delays in clearing key equipment through the port. Planned mill
throughput was achieved as sufficient fine material was previously stockpiled
for processing during commissioning. Increased mine production and final
commissioning of the crusher section during the first quarter of the new
financial year should improve both tonnage and grade of material and should
allow improved recoveries. 
* All sections of the crusher section have been run on trial basis and have
performed very well. Full commissioning is expected during the first quarter
of the new financial year. 
* KPG continues to acquire good quality tailings for processing at the old
plant where the tailings facility capacity has been increased to provide for a
further 12 months of production.
Anumso Gold Project, Ghana
* During the Quarter, Ashanti Gold Corp completed an extensive soil sampling
programme across the Anumso Gold Project properties to test the strike extent
of the Banka conglomerate. 1,300 samples were collected which are now being
assayed locally
* All core has been reviewed and a 320Kg sample was selected for metallurgical
testing. Samples are currently in Vancouver for test work.
* All core is now being stored on GRG's site in Tema 
* Ashanti Gold Corp's planned work for the next period includes the completion
of assaying of soil samples and metallurgical testwork of core samples.
Nyieme Gold Project, Burkina Faso

The exceptional 3-year extension granted for Nyieme Gold Project in Burkina
Faso on 29 September, 2014 expires in October 2017. The Company has no
intention to apply for a further extension or a renewal as previous work at
the project found it to be of too small a scale to be viable and the Company
does not wish to commit any further capital on exploration at this project. A
decision has been taken by the Board to fully write-off the value of the
Nyieme Gold Project during FY 2017. The value of this write-off in Goldplat's
income statement for the year ended 30 June 2017 is expected to be
approximately £980,000.

South America
* Strong progress has been made in securing contracts with operators in
various South American countries. A local Brazilian metallurgist has been
employed to work alongside the Company's local partner (Oretec). 
* Deliveries of material to GRG from the Company's first large, long-term
contract in Uruguay were received during the Quarter with production expected
in the new financial year. 
* Trial batches of mill liners, wood chips and low-grade carbon have proved to
be economically viable. This is important as significant competition for
higher grade carbon has been encountered. 
* The Board expects further progress in South America in the new financial
year which will assist with the growth plans at GRG.
Gerard Kisbey-Green, CEO of Goldplat plc, commented:

"The final quarter of the financial year produced good results all around for
Goldplat, with a particular highlight being the continued record gold
production and first operational profitability at our Kilimapesa operation.
Delays in the final commissioning of stage two of the new plant were largely
out of the team's control and I remain very proud of the work done on the
project which should reap rewards in the years to come! Securing and
completion of a very large contract for a new client in Africa was a further
highlight at GPL! Despite this being a one-off contract, it proved our ability
to source material from new clients and geographies, manage the logistics and
process large amounts of material quickly and profitably! This is an important
aspect of overall risk mitigation for Goldplat. I believe that the extensive
progress being achieved in the diversification of sourcing of material at all
of our operations will stand the Company in good stead for the coming
financial year. I look forward to sharing comprehensive results with the
market in September 2017".

**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  

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
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Source: Goldplat plc via Globenewswire