Goldplat plc (LON:GDP) said it has completed ‘Stage 2’ of the expansion of its new processing plant (Plant 2) at the Kilimapesa gold mine in Kenya, and as a result would be closing its incumbent Plant 1 at the site.
The AIM-listed gold miner said as a result of the expansion, the Kilimapesa mine was now processing at a rate of around 5,000 tonnes per month, and that in addition with the Plant 1 closure would help reduce overall production costs, allow gold recovery to be optimised and increase the life of the mine.
READ: Goldplat’s quarterly gold and gold equivalent production rings in at 6,966 ounces
The firm added that the fine material currently being processed through Plant 1 will be sent to Plant 2, where it will be processed directly through the classifier and the cyclone, bypassing the milling process, and increasing throughput with an overall improvement in the margin per ounce recovered.
Because of the closure, Goldplat also said that there would be an initial reduction in production during the last quarter which would result in production for the year being slightly below 5,000 ounces, however it added that the changes would positively impact profitability at Kilimapesa and would be reflected in the results for the quarter due to the lower production costs per ounce at Plant 2.
The changes in Kilimapesa's production profile were also not expected to have a material impact on market forecasts for the company's profitability for the financial year to 30 June 2018.
Gerard Kisbey-Green, Goldplat chief executive, said: “Having successfully executed a phased development plan to improve operational efficiencies at the mine by installing a new processing plant, we are delighted that Plant 2 is now established enough that we can continue running this plant as our sole processing facility. This will have a positive effect on profitability and help ensure we operate a more robust operation moving forward."
In late-afternoon trading, Goldplat shares were steady at 6.25p.