Aim-listed Goldplat will close Plant 1 at its Kilimapesa gold mine, in Kenya, following the successful installation and subsequent second-stage expansion of a new processing plant.
The new plant, which is processing at a rate of around 5 000 t/m, is now established enough that Goldplat can continue running the plant as its sole processing facility.
"This will have a positive effect on profitability and help ensure we operate a more robust operation moving forward," CEO Gerard Kisbey-Green said in a statement.
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.
The expansion will include an additional thickener and carbon-in-leach tanks will be erected. To further optimise recovery efficiencies, a second mill will be installed and a more cost-effective tailings dam layout will be constructed.
The closure of Plant 1 will initially result in a reduction in production during the last quarter, with gold production for the year expected to be slightly below 5 000 oz.
Management believes the changes in production will positively impact on profitability at Kilimapesa, which will be reflected in the results for this quarter, owing to the lower production costs per ounce at Plant 2.