Operational Update

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
24 April 2018
Goldplat plc ('Goldplat' or 'the Company')
Operational Update

Goldplat plc, the AIM listed gold producer, with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, is pleased to announce an operational update for the three months ended 31 March 2018 (the 'Quarter').

Overview

• 28,534 gold equivalent ounces were sold and transferred during the nine months ended 31 March 2018 (nine months ended 31 March 2017: 27,714 ounces)
• The installation of the elution plant and associated ancillary infrastructure at Gold Recovery Ghana was completed, with the first gold pour from this operation taking place during the Quarter
• Rand Refinery paid Goldplat Recovery (Pty) Ltd an undisclosed amount in full and final settlement of the dispute between the two parties. This dispute has now been concluded
• WH Ireland has been appointed as sole Broker to Goldplat plc

Production for the Quarter

Overall production of 6,966 ounces of gold and gold equivalents was achieved during the Quarter, with operating profitability continuing at the recovery operations together with a continued reduction in losses made at Kilimapesa Gold Mine ('Kilimapesa').  In line with our commitment to build production output and profitability, the sourcing of by-product material for processing at the recovery operations and improving operational efficiencies at Kilimapesa remain primary areas of strategic focus for the Company.  During the Quarter, sourcing of material for Gold Recovery Ghana was slower than anticipated, however several batches of new material are in the final stages of contract completion. Losses continued at Kilimapesa due to lower grades and problems with the impact crusher at Plant 2.

Goldplat Recovery (Pty) Ltd ('GPL'), South Africa

• During the Quarter GPL produced 4,533 ounces of gold and gold equivalents with 3,852 ounces of gold sold for own account and 1,180 ounces transferred to clients
• Overall production at GPL was slightly below plan, with Carbon-In-Leach ('CIL') production exceeding plan and deliveries to the by-product circuits below plan. Overall targets for the year remain on track
• The dispute between Rand Refinery and GPL was concluded during the Quarter with all legal agreements being completed and Rand Refinery paying an undisclosed amount to GPL. Business between the two parties has resumed
• Good progress was made during the Quarter to clean-up a decommissioned gold operation for a large South African gold mining producer, with completion on track for the end of FY2018
• By-product contract renewals for the major South African gold producers are currently underway
• Metallurgical testwork to increase the economics of the strategic CIL stockpile are ongoing and are yielding positive results
• Process optimisation test work for the re-processing of the Tailings Storage Facility resource continues, as progress (by the DMR) on the West Pit 3 for final deposition is awaited

Goldplat Recovery Ghana ('GRG'), Ghana

• GRG produced 1,192 ounces of gold and gold equivalents, with 339 ounces of gold being sold for own account during the Quarter
• During the Quarter the elution plant and associated infrastructure was completed. This allows further beneficiation of a lot of the material to Dore bars and also fulfils a requirement of the previous gold licence renewal
• Sourcing of material for GRG remains a primary focus and several batches of new material are currently being finalised
• GRG began pouring gold on-site during the Quarter
• An environmental clean-up project with the Ghanaian Government to rehabilitate artisanal mining tailings remains under discussion, pending Government go-ahead

Kilimapesa Gold ('KPG')

• KPG produced 1,241 ounces of gold and gold equivalents, with 1,380 ounces of gold sold for own account during the Quarter
• Production for the Quarter was below plan due to lower than expected grades from the underground mine as well as problems experienced with the crushing circuit at Plant 2
• Cost optimisation is ongoing and internal approval for the installation of grid power at Plant 2, and the underground mine and Teng Teng was granted during the Quarter
• The Kempe drill is now operational at Kilimapesa Hill underground mine. This will assist in the forward planning of mining layouts with a consequent improvement of grades and costs
• Further optimisation of the metallurgical recovery is underway and we expect positive results in the near term

International marketing and sourcing

• During the Quarter the Global Sourcing Team completed a strategic global sourcing plan, which supported the Group's ongoing focus on South and North America as well as West Africa, with material being shipped to and processed primarily at GRG
• Senior teams concluded a comprehensive roadshow to North America as well as to Peru during the Quarter

Gerard Kisbey-Green, CEO of Goldplat plc, commented:

"The conclusion of the Rand Refinery dispute and the completion of the elution circuit at GRG were key highlights of the Quarter.  As we continue to focus on building gold production and increasing profitability, we look forward to progressing the turnaround at Kilimapesa and securing new strategic supply contracts at an international level for our recovery operations."

** ENDS **

For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:

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.

About Goldplat                                                                                                
Goldplat plc is an AIM quoted gold producer with two market leading recovery operations in South Africa and Ghana and an operational gold mine in Kenya.   The Company produced 42,857 ounces of gold during FY 2017, with 40,285 gold equivalent ounces sold and transferred, resulting in an operating profit from continuing operations of £2.9m for the year.  This result does not benefit from the increased processing capacity that was achieved at the Kilimapesa Gold Mine towards the end of FY 2017, with operational profitability achieved during last two months of FY 2017.  Accordingly, the Company believes it is well placed to build upon production and profitability during FY 2018.

The Company's strategy is focussed on utilising cash flow generated from its flagship gold recovery and mining operations to self-fund the sustainable growth and expansion of its niche gold recovery business model internationally. The Company is also committed to increasing its primary mining production output through acquisition / gaining interests in producing or near-production assets, preferably in Africa.  Goldplat retains exposure to a small exploration project in Ghana, in which Ashanti Gold Corp. is earning an interest via an earn-in option agreement.