JOHANNESBURG (miningweekly.com) – With its two existing gold recovery operations in Africa performing “solidly”, Aim-listed Goldplat was planning to start development on a third such operation by the end of this year.

In a statement to shareholders, CEO Russell Lamming said the company’s gold recovery operations in South Africa and Ghana remained profitable notwithstanding the recent drop in the gold price.

The gold producer, which also had mining and exploration operations in Kenya, Burkina Faso and Ghana, was committed to continue investing in the two existing gold recovery operations, while developing the third operation in Burkina Faso.

The operation, to be called Midas Gold, would focus on the recovery of gold from products such as high-grade fine carbon and mill liners from the major gold producers operating in the region.

Midas had re-commissioned an earlier environmental study for the site, in Dano, where the plant would be built. The company expected this study to be completed by the end of August, with all operating licences to be in place by the end of the year. 

Meanwhile, the company reported that its Goldplat Recovery South Africa (GPL) operation continued to produce robust cashflows with particular emphasis on fine carbon processing, which had expanded significantly over the past six months with new supply contracts recently signed with major South African gold producers.

As part of its investment plans to increase the gold recovery processing capacity at GPL, reduce its stockpile inventory and, in turn, further increase the South African recovery operation’s profitability, the company commissioned a new tailings retreatment carbon-in-leach (CIL) plant in March.

A second rotary kiln, which would double the available production capacity at GPL and which would process the significant stockpile of high-grade woodchips – estimated to equate to seven years of current capacity – was on track to be commissioned by the end of July.

Further, to increase the processing capacity and widen the range of products that could be treated at the Gold Recovery Ghana (GRG) operation, Goldplat would add an additional spirals circuit to the fine carbon section. This would improve the quality of the feed to the incinerator.

A thickener had been delivered to site and would be erected this month to improve the gold recovery at the CIL plant, while a rotary kiln would be also be installed at GRG.

The kiln was currently in South Africa, with installation expected to be complete in the second half of the 2014 financial year.