Goldplat announces that following the successful installation and subsequent "Stage 2" expansion of a new processing plant at the Company's Kilimapesa Gold Mine in Kenya, the new plant is now processing at a rate of circa 5,000 tonnes per month and as a result, and in line with previously announced plans, the incumbent plant, Plant 1, will be closed. This major step forward will reduce overall production costs, allow gold recovery to be optimised and increase the life of the mine.
Without the economies of scale provided by Plant 2, the higher cost of production at Plant 1 requires a comparatively higher feed grade to make a contribution to the overall operation. 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.
Further cost savings will also be achieved through the restructuring of labour, although the closure of Plant 1 will not result in a significant reduction in labour numbers as employees will be re-assigned to other positions at Plant 2 and at the mine where possible.
The previously reported planned Stage 3 expansion at Plant 2 will be undertaken on a modular basis, as and when finances allow.
Gerard Kisbey-Green, CEO of Goldplat plc, said: "Our commitment and focus at Kilimapesa and indeed our operations as a whole, is to build production output and profitability. 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."