After striking gold, firm gets nod to commence mining

By JOHN NJIRAINI

A company that struck gold in Trans Mara District is set to commence mining after securing necessary approvals from the Government.

British firm Goldplat Plc that discovered huge deposits of gold said it has been granted the go ahead to commence mining, something that catapults Kenya to the league of gold producing nations.

The licence has been granted to Goldplat Plc local subsidiary Kilimapesa Gold, which has discovered commercially viable gold deposits at Lolgorian area of Trans Mara after three years of prospecting.

Mining lease grant

"This is very exciting news for us because it enables Kilimapesa Gold to commence operations," said Goldplat Chief Executive Demetri Manolis.

He said the company expects to be granted the mining lease grant in the near future in order to secure long-term mining rights over the gold prospect. The company plans to develop a small profitable gold mine with an initial target of producing about 5,000 ounces of gold per annum.

It also intends to set up an elution plant and carbon regeneration kiln that will allow it to export gold bullion rather than concentrate.

The company said the deposits are estimated at between 40,000 ounces (oz) and 60,000 ounces, which means they can support mining of 4,000 ounces per year and thus a lifespan of between 10 to 15 years.

The granting of a license to Kilimapesa Gold will provide impetus to other companies exploring for gold in the wider Trans Mara, Migori and Narok districts.

Only recently, Canadian firm Linear Metals Corp joined in the scramble for gold exploration fields in the region after acquiring three fields previously controlled by East African Pure Gold and B&M Mining Company.

Other foreign companies that are angling for a fortune from the resource include Red Rock Resources, Aviva Mining, Abba Mining, Afri-All Company and Mid-Migori.