Goldplat hopeful of Kenya breakthrough

Goldplat has said that it remains hopeful of securing solid long-term returns from its project in south-western Kenya.

The mining company, which is listed on the alternative investment market (AIM), is currently assessing the viability of the Lolgorien gold project, in which it owns a 50 per cent stake.

Following the completion of the first phase of its underground sampling project, Goldplat is now moving on to the next stage.

Demetri Manolis, chief executive of Goldplat, said money from the treatment of bulk samples would help fund the project moving forward.

"Following on from the highly encouraging underground sampling results achieved in October, we are now progressing decisively to the next phase of our programme to develop the gold potential at Lolgorien," he said.

"The cash flow from the treatment of the bulk samples and the high grade tailings will help to pay for this phase and on-reef development will help the company reach a position of defining mineral resources which can be mined with very little development and within a short time scale, thus providing us with the potential to generate significant cash flow in the short term."

Goldplat is planning to begin a six-month underground development programme to enable bulk sampling of the ore body at Lolgorien in January.

The drill programme in the Alpha Ray and Red Ray areas will start the following month.