TIDMGCAT
RNS Number : 9381V
Caracal Gold PLC
15 August 2022
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector:
Mining
15 August 2022
Caracal Gold plc ('Caracal' or the 'Company')
Q2 2022 Operations Summary
Caracal Gold plc, the expanding East African gold producer with
over 1,300,000oz JORC-compliant gold resources, is pleased to
announce an update on its operations and exploration activities in
Kenya and Tanzania for the quarter ended 30 June 2022 (the
'Quarter' or 'Q2'); specifically, the Company's Kilimapesa Gold
Mine and Processing Operation in Kenya ('Kilimapesa' or the
'Project') and its high grade, shallow gold exploration projects in
Tanzania.
Q2 HEADLINES
-- Exploration on the Kilimapesa Hill Deposit ('KHD'), which
began in December 2021, culminated in an updated Mineral Resource
Estimate ('MRE') being completed during the Quarter (see RNS 12
July 2022).
-- A revised Share Purchase Agreement ('SPA') was signed to
acquire 100% of Tyacks Gold Limited ('Tyacks'), the holder of the
licences collectively referred to as the Nyakafuru Project
('Nyakafuru' or the 'Project') in Tanzania, paving the way for
completion of the acquisition.
-- The US$500,000 payment due under the Tyacks SPA was made.
-- The pilot heap leach project at Kilimapesa progressed well
with the first gold production from the project, completion of pad
two construction and good progress on the commissioning of the
third leach pad.
-- The Kilimapesa expansion project continued to be progressed
some significant milestones included the orders for various long
lead items being placed, geotech drilling for the main heap leach
pad was completed, the talings circuit was taken offline for
optimization work to be carried out.
-- Underground operations focussed on development and
establishing mining blocks to provide the required output and
flexibility going forward for the expansion project and open pit
mining was stopped for a period during the quarter to alleviate
pressure on the excessive stockpiles at the processing plant.
-- Reverse Circulation ('RC') drilling on the Kilimapesa Hill
and the Maghor target was completed, and the rig was moved to the
larger Vim-Rutha target which is a wide target in the south of the
licence and stretches across the full strike of the exploration
licence.
-- Diamond Drilling ('DD') on Kilimapesa Hill was completed and
the rig was moved to and started drilling on the Vim Rutha
target.
Robbie McCrae, CEO of Caracal, said,
"The team and I are pleased with the all-round performance
during the quarter, significant progress has been made across the
board and we are on track for an exciting third quarter.
"The results of the updated Mineral Resource have shown a
significant increase in the quality of the resource at Kilimapesa
Hill. We are very excited to find and prioritise the next sources
of production to complement the growth on Kilimapesa Hill and the
existing mining licence. The positive results in the earlier MRE
update have further strengthened the Project team's confidence and
justifies our decision to expand production at Kilimapesa to
24,000oz per annum. The ounces contained in the Measured and
Indicated category are now able to be converted into reserves for
the mining and processing plant.
"We are looking forward to seeing the results come in from our
regional exploration programme, especially the Vim Rutha target
which is currently being drilled.
"The Kilimapesa expansion project continues to progress and we
are on target for completion by the end of 2022.
"Signing the revised Share Purchase Agreement with Tyacks Gold
in Tanzania has allowed our team to begin site work at the
Nyakafuru Project in preparation for the confirmatory resource
study, including drilling, to begin in October 2022. We are excited
about the new gold mine development opportunity this will present
as Nyakafura more than doubles our total resource base and
exploration potential for the Company."
Operations
-- 21,743 tons of ore at 1,84g/t gold ('Au') were delivered to
the plant from the mine (26,329 in Q1 2022), down on the previous
quarter but in line with the strategic plan.
-- 20,490 tons of tailings at a grade of 1.08 g/t Au (27,792 Q1
2022) were delivered to the plant.
-- A total of 58,722 tons were processed through the plants for
gold production of 746 oz of gold during the quarter (1,266 oz Au
in Q1 2022) down but in line with the strategic plan.
-- The closing stockpile at the plant was 22,757 tons at a grade
of 1,68g/t Au (22,744 tons at 1,72g/t Au in Q1 2022).
-- First production was achieved from the pilot heap leach plant
with 16,213 tons now on the pads at an average grade of 1.48g/t Au
(3,915 tons at 1.5g/t Au in Q1 2022). Average recovery of 49.2% was
achieved from the leach pads.
-- Construction and commissioning of the second pad was
completed and the third pad construction was 80% complete during
the Quarter.
Exploration
-- A total of 1,145m DD and 5,088m of RC drilling was completed during the quarter.
-- The RC drilling programme on Kilimapesa Hill was completed
and the rig moved to the Maghor prospect as part of the 1(st) phase
of the regional exploration programme.
-- The DD drilling program on the Kilimapesa Hill was completed
and the rig moved to the Vim Rutha prospect as part of the 1(st)
phase of the regional exploration programme.
-- Exploration drilling (both DD and RC), trenching, rock grabs
sampling and mapping on the regional targeted areas is set to
continue in the broader exploration licences during the following
quarter.
The updated MRE was completed during the Quarter with the
results reported on 12 July 2022. Highlights of the updated MRE are
as follows:
-- Expanded Measured, Indicated and Inferred Resource of 12.15Mt
@ 1.5g/t gold for 565.7koz contained gold for the Kilimapesa Hill
Deposit, following successful resource expansion drill
campaign.
-- Significant 202% increase in the Measured and Indicated
category, with 56% of the contained ounces (317.6koz) now in
Measured and Indicated (previously 105koz).
-- Result supports at least a 10-year Life of Mine for the
current Project expansion, targeting 24,000oz per annum
production.
-- The significant increase in the Measured and Indicated
Resource provides the required optionality for the current mining
operations and the required difference in grade to feed the Milling
Plant and the Heap Leach plants.
-- Overall Project Mineral Resource now stands at 14.05Mt @
1.56g/t gold for 705koz contained gold.
Safety, Health, and Environment
-- The Environmental Impact Assessment ("EIA") on the heap leach
pant was submitted to NEMA Narok County during the quarter with
licence granted on 28 June 2022.
-- The EIA for the exploration drilling and open pit mining progressed well during the Quarter.
-- No accidents or incidents were reported during the quarter.
Tanzania
-- The revised SPA between Caracal Gold plc and Tyacks Gold
whereby Caracal will acquire Tyacks and the Nyakafura project was
signed and announced at the end of May 2022.
-- The Caracal technical team (including mining, exploration and
drilling) conducted a site visit to the project.
-- Key processes towards completion of the transaction are being
finalised with the assistance of Dentons Law in Tanzania including
the Financial Conduct Commission, the Tanzanian Revenue Authority
and the Minerals Commission submissions now in process.
-- Site preparation for the commencement of the exploration
programme will be concluded by the end of September and drilling is
planned to start early in October 2022.
Outlook For the Next Quarter
Output from the underground mine and the open pit are planned to
steadily increase of the next six months with mining and processing
capacity planned to reach the targeted rate of 24,000oz pa by
year-end.
Exploration focus has moved to the Vim Rutha regional target on
which both drilling and trenching is planned. The Company will
provide the market with updates on this target.
In Tanzania the focus will be on preparation work for drilling
to commence in Q4 2022.
**S**
For further information visit www.caracalgold.com or contact the
following:
Caracal Gold plc info@caracalgold.com
Robbie McCrae
Sheila Boit
Clear Capital Markets Ltd
Joint Broker +44 203 897 0981
Keith Swann / Jonathan Critchley +44 203 869 6086
-------------------------------
VSA Capital Ltd
Financial Adviser and Joint
Broker
Andrew Raca (Corporate Finance)
Andrew Monk / David Scriven
(Corporate Broking) +44 203 005 5000
-------------------------------
St Brides Partners Ltd caracal@stbridespartners.co.uk
Financial PR
Charlotte Page / Isabel de Salis
/ Isabelle Morris
-------------------------------
DGWA, the German Institute info@dgwa.org
for Asset and
Equity Allocation and Valuation
European Investor and Corporate
Relations Advisor
Katharina Löckinger
-------------------------------
Notes
Caracal Gold plc is an expanding East African focused gold
producer with a clear path to grow production and resources both
organically and through strategic acquisitions. Its aim is to
rapidly increase production to +50,000ozs p.a. and build a JORC
compliant resource base of +3Moz within 18 months from its listing
in August 2021. We are progressing a well-defined mine optimisation
strategy at our 100% owned Kilimapesa Gold Mine in Kenya, where
there is significant mid-term expansion potential and ability to
increase gold production to 24,000oz p.a. and the resource to +2Moz
(current JORC compliant resources of approx. 706,000oz). Our
experienced team, with proven track record in successfully
developing and operating mining projects throughout Africa, is
reviewing other complementary and strategically located gold mine
and development projects in East Africa.
Caracal is a responsible mining and exploration company and
supports the positive social and economic change that it
contributes to the communities in the regions that it operates. It
is a proudly East African-focused company: it buys locally, employs
locally, and protects the environment and its employees and their
families' health, safety, and wellbeing.
Caracal's shares are quoted on the Main Market of the London
Stock Exchange (LON: GCAT) and on the Frankfurt Stock Exchange
(FSE: 6IK); a listing on the Nairobi Securities Exchange is
underway.
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