The UK-based gold recovery services company said that the development with the second plant will enable plant 1, the incumbent processing plant at the Kenyan gold mine to be closed, in line with previously disclosed plans.

As part of stage 2 of the new processing plant, Goldplat has installed a crusher circuit and three additional leach tanks. The stage 1 of the new processing plant was commissioned in February 2017 with the exception of the crusher circuit.

According to Goldplat, closing plant 1 will be a key step forward in cutting down overall production costs while enabling gold recovery to be streamlined and boosting the life of the Kilimapesa Gold Mine.

Goldplat expects the closure of the first plant to reduce production in the fourth quarter of this year. It also estimates gold production for 2018 to be slightly under 5,000 ounces.

However, the company’s management is of the opinion that the production changes will have a positive affect on profitability at the Kilimapesa Gold Mine that will be reflected in the results for the quarter, owing to the lower production costs per ounce at the second processing plant.

Goldplat CEO Gerard Kisbey-Green said: “Our commitment and focus at Kilimapesa and indeed our operations as a whole, is to build production output and profitability.

“Having successfully executed a phased development plan to improve operational efficiencies at the mine by installing a new processing plant, we are delighted that Plant 2 is now established enough that we can continue running this plant as our sole processing facility.

“This will have a positive effect on profitability and help ensure we operate a more robust operation moving forward.”

Goldplat has also lined up a stage 3 expansion of plant 2 at the Kilimapesa Gold Mine which will see installation of a second mill and three more leach tanks.