Investors get Nema nod to prospect for gold in Trans Mara

The national environmental standards regulator has cleared a group of investors seeking to engage in a commercial gold prospecting in Lolgorien, area of Trans Mara district in western Kenya.

“The National Environmental and Management Agency (Nema) have issued the licence for the environmental impact assessment and all agreements with the local authorities have been completed,” Goldplat Plc chairman Brian Moritz said in a statement.

The London Stock Exchange (LSE) listed Goldplat is one of the two companies that are prospecting for commercially viable deposits of gold in the region around the Migori Archaean Greenstone Belt, where the Lolgorien licence area is located.

The location is a northern continuation of the Lake Victoria Goldfields which host major gold deposits including Barrick multi-million ounce North Mara mine, which lies approximately 40 km to the southwest of the Lolgorien property.

“The final component, the cadastral survey, is underway and is expected to be completed shortly. The committee for approving the mines mining lease has given its approval pending the completion of this survey. Once this is officially approved, Kilimapesa Gold will be permitted to make commercial sales of gold, including gold currently held in stock, and production of gold will recommence,” Mr Moritz further said.

In September 2009, Goldplat announced that it had completed the purchase of the remaining 50 per cent interest in Kilimapesa Gold (Pty) Limited (‘Kilimapesa Gold’) for Sh203 million ($2.7 million), from International Gold Exploration AB (‘IGE’), through the Company’s wholly owned subsidiary Gold Mineral Resources Limited.

Goldplat now owns 100 per cent of Kilimapesa Gold and its Lolgorien gold project, which includes the operating Kilimapesa Hill gold mine and adjacent exploration assets located in South Western Kenya within the historically producing Migori Archaean Greenstone Belt.

The company further said the consideration for the acquisition was Sh203 million ($2.7 million), of which Sh90 million ($1.2 million) had already been paid, and the balance payable in six monthly amounts of Sh18.75 million ($250,000), commencing the date when Kilimapesa Gold’s mining licence is issued by the authorities in Kenya .

The consideration payable to IGE for the acquisition of Kilimapesa Gold would be met from Goldplat’s existing cash resources.

Records showed that Goldplat and IGE first entered into a joint venture agreement in June 2007 under which Goldplat earned 50 per cent of Kilimapesa Gold by advancing Sh30 million ($400,000) to develop the Kilimapesa gold mine under Goldplat’s management.

This resulted in small scale gold production commencing at the beginning of 2009.

New project

Looking forward, the future for both our recovery businesses looks bright.

With good stock piles and a steady flow of materials for processing through contracts with a growing number of major mining companies as well as increased capacities and capabilities, we anticipate that revenues, in particular in Ghana , should rise accordingly,” Mr Moritz said.

The official said Goldplat’s other gold prospecting businesses in countries such as South Africa and Ghana were firmly on track to realise better returns in the current fiscal year.

“We are excited about the prospects at Kilimapesa Gold that will, we hope, see the start of commercial production in the near future as well as our new mining venture in Burkina Faso,” the official said.

“We continue to assess various acquisition opportunities across Africa to strengthen our portfolio, specifically looking at mining assets that would utilise the company’s knowledge and experience in the gold producing sector,” Goldplat CEO, Mr Demetri Manolis, said: “These are exciting times for Goldplat as we continue to bolster our position as a gold producer in Africa. With the mining licence allowing us to make commercial gold sales at our Kilimapesa Gold mine close to finalisation, and a new gold mining project in Burkina Faso, an emerging gold district, we are realising our strategy of building a portfolio of production and exploration properties to become a mid tier gold producer.”