TIDMGCAT
RNS Number : 4046O
Caracal Gold PLC
08 October 2021
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector:
Mining
8 October 2021
Caracal Gold plc ('Caracal' or the 'Company')
Exploration Update
Caracal Gold plc, the gold producer with operations in East
Africa, is pleased to announce an update on its ongoing exploration
activities at its producing Kilimapesa Gold Mining and Processing
Operations in Kenya, where it is advancing an initial shallow
trenching programme on high priority targets on the newly targeted
Southern Mineralized Zone ahead of the commencement of its planned
RC and diamond drilling programmes later in the year.
HIGHLIGHTS
-- Peak trench sample result of 40m at 4.85g/t gold including 7m
at 7.6g/t from trench CART 0003
-- Individual samples of 1m at 15.08g/t; 1m at 14.09g/t and 1m
at 12.89g/t in trench CART 0003
-- Individual samples of 1m at 5.1g/t gold and 1m at 7.93g/t
gold in trench CART 0001
-- Individual sample of 1m at 8.24g/t gold in trench CART
0002
-- Initial trench lengths have been extended as intersections of
gold mineralisation exceeded expectations and remains open in all
directions
-- Trenching work is continuing and is now planned to expose the
southern contact of mineralisation in the six trenches across an
initial strike length of 125m out of an approximate 7km of
potential strike length
-- Bulk sampling from the first trenches will now also be
excavated and used for further testwork and analysis
Robbie McCrae, CEO of Caracal, said, "Our focus at Caracal is on
rapidly delivering on our strategy of becoming a +50,000oz p.a.
producer and building a JORC compliant resource base of +3Moz
within the next 12-18 months. Whilst we will continue to increase
production at our Kilimapesa Gold Mining and Processing Operations,
in parallel with this we will be focused on our aggressive
acquisition strategy and on our exploration activities on our
mining and prospecting licenses at Kilimapesa where the potential
to increase our resource base is significant.
"Whilst early days, these shallow and high grade trenching
results, particularly the 40m running at almost 5g/t of gold,
provide us with very good indication that, what we potentially have
at the newly targeted Southern Mineralized Zone, is a very wide and
extensive gold mineralised zone that extends for several kilometres
on our prospecting license and is open at depth. It is very
encouraging that this Southern Mineralized Zone is in addition to,
and south of the mineralisation and JORC compliant resource of over
671,400ozs that we have already defined and is being mined at
Kilimapesa.
"We now look forward to completing this initial trenching work
and the follow up bulk sampling programme and to include this
Southern Mineralized Zone in our surface RC and diamond drilling
programmes which will commence as soon as the recently acquired
drill rigs arrive on site later this quarter."
The planned exploration programmes to be completed on the mining
and prospecting licenses at Kilimapesa include early trenching work
and bulk sampling and also both surface and underground exploration
drilling planned to increase the Company's JORC compliant resources
as well as to improve the knowledge and quality of the existing
671,400 ounces of resource.
This initial trenching work commenced during September 2021 and
has focussed on previously identified high priority targets within
the prospecting permit. The programme was implemented following
approval by the Company's Board of the new exploration strategy put
forward by the recently expanded geological team and was based on a
thorough and detailed analysis of previous exploration and mapping.
This Caracal exploration strategy aims to not only expand the
resource base significantly but to diversify into different areas
and mineralisation types, and to define areas which present
low-cost and shallow and near term, open pit mining opportunities
to complement the existing resource and underground mining at
Kilimapesa Hill.
One of the different mineralisation types identified is the
older dolerites, which present in a 120 oriented shear zone hosted
gold mineralisation trend. This trend extends for approximately 7km
within the prospecting permit and includes a number of historical
colonial workings and artisanal workings. The Competent Persons
Report contained within the Company's Prospectus stated, "potential
grades in these areas (Blue Ray; Vim / Rutha; Caldwell and other
"colonial" workings) are 12g/ton with potential depths of between
30m and 70m".
The initial exploration activities are based on six trenches
that have been planned on the western boundary of the prospecting
permit and directly south of the Kilimapesa Processing Plant. The
trenches are being excavated to a depth of 3m and at spacings of
25m and are investigating the continuance of the known dolerite
mineralisation, and in particular, the southern contact area.
Initial mapping of the first three trenches has confirmed that
the mineralisation is associated with a Dolerite-Grey Wacke hanging
wall contact and a Dolerite-Quartz Porphyry footwall contact and
dilation zones within the Dolerite body. Both the hanging wall and
footwall of the dolerites show mineralised continuity across the
trenches as well as being consistent with the other historical
workings referenced. Mineralisation is open in all directions.
The mineralised older dolerite zone is known from historical
mapping to be up to 500m wide in areas on the prospecting permit.
As previous artisanal and colonial shafts have focussed on either
the Southern or Northern contacts, the six current trenches are
exploring the southern contact, have yet to define the southern
limit of mineralisation and mineralisation in all trenches are
still open to the north and at depth
Trenching will be continued to expose the Southern contact of
mineralisation in the six trenches across an initial strike of 125m
out of an approximate 7km of strike. At the same time a bulk sample
from the first trenches will be excavated and used for further
testwork and analysis.
The trenching work is being undertaken prior to the commencement
of the Company's planned RC and diamond drilling programmes, which
are due to commence later in the year once delivery of the two
drill rigs to Kenya has been completed.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
ENDS
For further information visit www.caracalgold.com or contact the
following:
Caracal Gold plc info@caracalgold.com
Gerard Kisbey-Green
Jason Brewer
Novum Securities Ltd crowbury@novumsecurities.com
Joint Broker
Colin Rowbury
-----------------------------
VSA Capital Ltd ipo@vsacapital.com
Financial Adviser and Joint
Broker
Andrew Raca / James Deathe
-----------------------------
St Brides Partners Ltd info@stbridespartners.co.uk
Financial PR
Isabel de Salis / Oonagh Reidy
/ Isabelle Morris
-----------------------------
DGWA, the German Institute for info@dgwa.org
Asset and
Equity Allocation and Valuation
European Investor and Corporate
Relations Advisor
Stefan Müller / Katharina
Löckinger
-----------------------------
Notes
Caracal Gold plc is an emerging 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 12-18 months from its
listing in August 2021. To this end, it is progressing a
well-defined mine optimisation strategy at its 100% owned
Kilimapesa Gold Mine in Kenya, where there is significant mid-term
expansion potential and ability to increase gold production to
25,000oz p.a. and the resource to +2Moz (current JORC compliant
resources of approx. 671,000oz). Additionally, its 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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END
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