Goldplat enters into MOU with Gulf Coast Resources to acquire mining rights in Ghana

Goldplat plc, the AIM quoted gold producer, announces that it has entered into a Memorandum of Agreement with Gulf Coast Resources Inc (‘Gulf'), a Canadian mining company for the acquisition of Gulf's wholly-owned subsidiary company, Gulf Coast Resources Limited (‘GCR'). GCR owns the Banka Mining Concession, a ten year renewable mining lease for gold and associated minerals covering an area of 29 square kilometres located in the Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana (‘the Banka Mining Lease').

Overview:

· Memorandum of Agreement signed to acquire GCR and a 90% interest in the 29 sq km Banka Gold Mining Lease located in the prospective Ashanti gold region in Ghana

· Goldplat has paid Gulf US$50,000 and will undertake a due diligence review of the Banka Mining Lease and GCR

· Subject to due diligence, acquisition consideration is US$1,500,000 with Gulf to receive a 1.5 % Net Smelter Return on all gold production from the Banka Mining Lease

· Detailed geology shows that the conglomerates at the Banka Mining Lease outcrop on surface and can be traced continually over 4 kms

· Previous exploration include best intersections of 12 meters at 29.42 g/t Au and 9 meters at 57.7 g/t Au

· Intention to implement a development programme to prove up the economic viability of the Banka Mining Lease and define a JORC compliant resource

Goldplat CEO Demetri Manolis said, "Banka represents a substantial and exciting gold prospect in the Ashanti Region of Ghana, a prime district for gold project development. Early work indicates the prospectivity of the licence area and we have defined a development plan aimed at publishing a JORC resource in due course. Importantly small scale trial production has already taken place. This proposed acquisition represents Goldplat's continued commitment to building on its position as a gold producer in Africa and creating a highly profitable mid-tier gold company."

GCR holds a 90% interest in the Banka Mining Lease with the Ghana Government holding the remaining 10% as a statutory free carried or non-contributing interest. By the terms of the Banka Mining Lease, GCR was granted the exclusive right to enter, mine, extract and sell gold and diamonds from the area covered by the Banka Mining Lease subject to the terms and conditions of the Banka Mining Lease.

On 3 February 2010 GCR applied to the Government for a renewal of the Banka Mining Lease and the said application is still under consideration by the Government as at the date hereof pending which GCR has lawfully retained possession of and interest in the Banka Mining Lease.

The Memorandum of Agreement is intended to lead to the signing of a formal agreement (‘the Formal Agreement'). Goldplat has paid Gulf the sum of US$50,000 and will undertake a due diligence review of the Banka Mining Lease and GCR.

Completion of the acquisition is conditional on:

a) completion of successful due diligence by Goldplat,

b) delivery by Gulf of the renewed Banka Mining Lease and EPA Permit to Goldplat; and

c) delivery by Gulf of a letter from the Minister of Lands and Natural Resources approving the sale of GCR and assignment of the renewed Banka Mining Lease to Goldplat.

Following the satisfaction of these conditions Goldplat will purchase GCR and the 90% interest in the Banka Mining Lease (excluding Plant and Machinery) for a consideration of US$1,500,000 subject to the retention by Gulf of a 1.5 % Net Smelter Return on all gold production from the Banka Mining Lease. The Company will pay US$1,000,000 on the completion of due diligence and the renewed Banka Mining Lease, and a final US$500,000 on the first anniversary.

Banka Mining Lease

The 29 sq km Banka Mining Lease is located approximately 40 km north east of AngloGold's Obuasi gold mine in the Amansie East and Asante Akim North Districts of the Ashanti Region in Ghana.

The Banka Mining Lease is underlain by Tarkwaian sediments dipping approximately 60° to the east. Several bands of conglomerate, separated by greywackes and arenites, are present on the property and exhibit impressive strike continuity. The detailed geology shows that the conglomerates outcrop on surface and can be traced continually over 4 kms. Previous exploration programmes conducted on the property by GCR have classified the conglomerates into Western and Eastern zones, the Eastern zone being stratigraphically below the Western zone and the preferred target for exploration.

Several vertical shafts also exist on the property which have been accessed by GCR. Underground development comprises on-reef drives and sampling has indicated grades of up to 25 g/t of gold (‘Au').

Additionally, three zones from other sampling taken previously in the Eastern limb of the Banka Mining Licence were reported as follows:

Site A: (located near Tokwae) received assay results ranging from 12.2g/t Au to 34.7g/t Au from samples taken from historic dumps while grab samples from the reef workings ranged from 1.6g/t Au to 6.7g/t Au.

Site B: (located between Tokwae and Banka) grab samples from the reef returned assays ranging from 1.5g/t Au and 21.4 g/t Au.

Site C: old workings were deemed extensive, on-reef trenches of 1.2 metres and 2.7 metres assayed at 19.92g/t Au and 28.11g/t Au respectively.

EquiGold NL completed 2,699 metres of Reverse Circulation drilling in 42 holes on the three sites with the highest concentration of drill holes on site C. Previous drill results through C-Zone include intersections of 12 meters at 29.42 g/t Au and 9 meters at 57.7 g/t Au. These are the reported grades to date, however further work will be required to fully evaluate the extent of the gold mineralisation.

The Newmont gold mine, Akyem, lies 35 kms along strike to the east and that the orebody is comprised of a low grade high tonnage open-pittable resource in excess of 7 million oz Au.

Conditional on completion it is the Company's intention to undertake a work development programme to enable a JORC compliant resource to be calculated.

Qualified Person

This announcement has been reviewed by Mr. Mark Austin, the group geologist for Goldplat who has more than 25 years of relevant experience in the field of activity concerned. He is a fellow of the Geological Society of South Africa (‘GSSA') and has consented to the inclusion of the material in the form and context in which it appears.

This article was originally posted on Africa Oil & Mining Network

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