JOHANNESBURG (miningweekly.com) – Despite achieving lower output at its gold recovery operations in the second quarter of the current financial year, gold producer Goldplat says it is making progress at these operations, where the focus remains on expanding operational capacity and sourcing new material for processing.

The company’s operations produced 10 022 gold-equivalent ounces in the three months ended December 31, an 18% decrease on the 12 188 gold-equivalent ounces produced in the second quarter of the prior financial year.

Goldplat Recovery (GPL), in South Africa, produced 6 380 gold-equivalent ounces during the quarter, compared with the 7 121 oz produced in the second quarter of the prior financial year.

Large quantities of high-grade material had been sourced during the quarter and GPL secured a contract to clean up a decommissioned gold operation on behalf of a large South African gold miner. This project will be completed by June 30.

Goldplat has, meanwhile, also entered into a memorandum of understanding (MoU) with Rand Refinery regarding a final settlement of a dispute between the parties regarding outstanding fees payable to GPL by Rand Refinery. The settlement agreement is expected to be concluded in early February.

“I believe that the MoU signed with Rand Refinery is very positive as it will allow Goldplat and GPL to focus management time on the business rather than on legal matters, while also renewing a business relationship with Rand Refinery that is beneficial to both parties,” commented Goldplat CEO Gerard Kisbey-Green.

He further welcomed the election of Cyril Ramaphosa as president of the African National Congress, saying this would make a significant change to Goldplat’s risk profile, given its exposure to South Africa.

GHANA
Goldplat Recovery Ghana (GRG), meanwhile, produced 2 408 gold-equivalent ounces for the second quarter. This was substantially lower than the 4 500 oz produced at the operations in the second quarter of the prior financial year; however, Goldplat noted that this was in line with plan.

GRG had made good progress in sourcing material for processing from outside Ghana during the quarter, with shipments received from West Africa, elsewhere in Africa and South America. Three South American producers were sending regular shipments to GRG.

Further, during the quarter under review, GRG started commissioning the elution plant, which will be officially opened in March.

A pilot plant for the testing and reprocessing of artisanal material was also delivered during the quarter; however, the Ghanaian government subsequently delayed the project to formalise a coordinated programme for the artisanal tailings processing and the rehabilitation of land in the pilot area.

KENYA
Although Goldplat’s Kilimapesa mine, in Kenya, delivered 1 234 gold-equivalent ounces during the second quarter, compared with the 567 oz produced in the prior comparable period, production was negatively impacted on by a disruption to diesel supplies and problems related to the importing of key parts for the mine’s primary crusher.

The crusher issues have since been resolved and a second diesel generator was installed at the new Plant 2 to provide additional power to increase overall production throughput at the mill.

The mine remains on track to produce 5 800 oz of gold for the full year.

“Management is committed to achieving profitability at Kilimapesa during this financial year and I am confident that we will succeed,” said Kisbey-Green.