Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Goldplat receives green-light for Kilimapesa Hill’s gold production

Goldplat (LON:GDP) told investors that it expects the Kilimapesa Hill gold mining project  to reach its full processing capacity by early September, after it received the green light to begin commercial production from existing stockpiles,  while the mining lease is being finalised.

The company received permission to start commercial production from the Republic of Kenya’s Commissioner for Mines and Geology, after it was previously granted conditional approval in July.

"Naturally we are delighted that we have been given the green light by the Commissioner  ... Our near-term objective remains the establishment of a profitable small mine producing circa 5,000-6,000 oz of gold per year within 12 months of being issued the Mining Licence”, Goldplat Chief Executive Demetri Manolis said.

At Kilimapesa work is already underway to re-commission the processing plant, which is expected to be at a full processing capacity of 1,000 tonnes of ore per month by early September 2010.

Goldplat noted that Kilimapesa’s underground operations will be kept in abeyance until the routine registration of the cadastral survey is complete, and the mining lease has been granted. Kilimapesa’s existing ore stockpiles are expected to provide enough mill feed until full underground mining operations resume.

Previously, in July, Kenya’s commissioner for Mines and Geology said that the Kilimapesa Hill project represents the start of a new era for the gold mining industry in Kenya.

The project is located on the historically producing Migori Archaean Greenstone Belt, in western Kenya. Back in October 2009, Goldplat completed Kilimapesa’s maiden JORC resource estimate, in with 401,000 tonnes grading 2.39g/t (grams per tonne) of gold for 31,416oz in the Measured category, a  Measured and Indicated resource of 41,000 tonnes at 2.56g/t gold for 3,400oz for a total underground resource of 1.65Mt at 2.44g/t gold at 2.44g/t for 129,000oz.


Disclosure: The author holds no positions in the company