JOHANNESBURG (miningweekly.com) – Aim-listed gold producer Goldplat has committed an initial $500 000 to further explore a new prospect, the Nyieme gold project, in Burkina Faso, this year.

The Africa-focused exploration and mining company in December signed an agreement to acquire the option over the 246-km2 project from a subsidiary of TSX-listed NGEX Resources, Sanu Exploration, for $215 000, payable in phases until October 2010.

In terms of the agreement, Goldplat would have to fund $250 000 of expenditure up to October 20, 2010, as well as a further $250 000 up to October 1, 2011, when the option period would end.

At that time, the Aim-listed company would be entitled to exercise its option to earn a 100% stake in the project, with Sanu to retain a 2% net smelter royalty.

Goldplat told shareholders in a statement on Monday that it would start the exploration work with an initial 2 500-m infill diamond drilling programme, which it expected to lead to the completion of a Joint Ore Reserve Committee-compliant resource statement.

A further surface geochemical and mapping programme would also be undertaken to further the exploration work conducted by Sanu.

"We believe previous exploration results highlight the exciting potential of the Nyieme project. High-grade quartz vein structures over a 4-km trend have been identified,” Goldplat CEO Demetri Manolis said.

Drill core results had shown grades of up to 17,83 g/t gold over 1 m and 11,67 g/t gold over 5 m.

“The board believes that development of the Nyieme project, coupled with its other gold operations in Kenya, Ghana and South Africa, will facilitate the realisation of Goldplat's aim to become a midtier gold producer and refiner in Africa,” Manolis added.

The company has already established two successful gold recovery plants, one in South Africa and another in Ghana, but was turning its focus increasingly towards the acquisition of mining assets, instead of building new reprocessing facilities.

Its chairperson Brian Moritz, in September, said that Goldplat was evaluating a number of opportunities to acquire mining projects throughout Africa, with deposits of between 200 000 oz and one-million ounces of gold.

This formed part of the producer’s plans to become a midtier gold-miner, with its Killimapesa gold project, in Kenya, already being able to produce about 3 000 oz/y of gold.

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