TIDMGCAT
RNS Number : 3368L
Caracal Gold PLC
10 September 2021
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector:
Mining
10 September 2021
Caracal Gold plc ('Caracal' or the 'Company')
Operations Update
Caracal Gold plc, the gold producer with operations in East
Africa, is pleased to announce an update on operations at its
producing Kilimapesa Gold Mining and Processing Operations in
Kenya, where it is advancing a phased mine optimisation
strategy.
HIGHLIGHTS
-- Connecting mains power to the processing plant within the
next eight weeks, dramatically reducing operating costs by approx.
US$100/oz and providing significant ESG benefits
-- Continuing to increase processing plant throughput, with the
redesigned plant operating more efficiently and at increased
rates
-- New Mine Plan being successfully implemented and supported by
a strengthened geological team, which is gaining a deeper
understanding of the structural geology
-- Appointment of additional exploration geologist, who is
expediting the Company's broader exploration plans at Kilimapesa,
including commencement of an extended trenching programme ahead of
two new RC and DD drills that have been acquired by the Company and
are due to arrive on site this quarter
-- Corporate Office opened in Nairobi and listing on the Nairobi
Securities Exchange progressing
-- Advanced negotiations on the potential acquisition of several
previously identified, complementary and strategically located gold
mine and development projects in East Africa
Robbie McCrae, CEO of Caracal, said, "Having listed at the end
of August 2021, we've hit the ground running across every aspect of
our gold mining and exploration business. Ex cellent progress is
being made at our flagship asset, the Kilimapesa Gold Mine in
Kenya, where we are fast-tracking a mid-term optimisation plan
focused on increasing gold production to 25,000oz p.a.
"A key accomplishment has been the agreement to connect the
plant to the grid power; not only does this deliver major cost
savings and improved economics, but it also strengthens our ESG
credentials given Kenya's advanced stance on the use of renewable
energy. Additionally, our exploration programmes aimed at
increasing our JORC compliant resources to +2Moz are also making
headway, with initial trenching of shallow open pit areas
initiated, the acquisition of our own RC and DD drills, and
in-house drilling teams established to allow us to accelerate our
exploration activities. Furthermore, discussions regarding the
potential acquisition of previously identified major gold assets in
East Africa are progressing at pace.
"We are delighted with the market reception since listing at the
end of August and look forward to proactive engagement with
shareholders as we rapidly advance our strategy of becoming a
+50,000oz p.a. producer and building a JORC compliant resource base
of +3Moz within 12-18 months across our East African focussed gold
mining and exploration activities."
DETAILS
Since listing at the end of August 2021, the Company continues
to build on its position as an emerging East African-focused gold
producer, growing both production and resources organically and
through strategic acquisitions. To this end, it is advancing a
phased mine optimisation strategy at its first asset, the
Kilimapesa Gold Mining and Processing Operations, where there is
significant expansion potential and ability to increase gold
production to 25,000oz p.a. and the resource to +2Moz in the
mid-term.
As part of its optimisation strategy, the Company has signed an
agreement to connect grid power to the processing plant; this is
expected to be completed within the next eight weeks. Not only will
this dramatically reduce its diesel consumption and operating costs
by approximately US$100/oz, but the connection will also provide
significant ESG benefits given the electric power sector in Kenya
relies largely on renewable energy sources such as hydropower and
geothermal sources of energy.
Throughput at the mine is continuing to increase, with the
redesigned plant operating more efficiently and at increased rates.
Activities include:
-- The commissioning of the screening plant in July, which is
operating efficiently and is successfully screening previously
low-grade material into 3 size fractions with the smaller 2 size
fractions, which carry most of the grade, being processed directly
through the mill;
-- The commencement of construction of a test heap leach pad,
following the successful recovery of gold from low-grade material
in laboratory test work; a decision on construction of a full-scale
heap leach pad will made within next 90 days based on results from
the test pad; and
-- The completion of substantial improvements/upgrades to the
mine laboratory, which can now handle all the assay work from
sampling from the mine, the process plant and can complete all the
sample prep for the samples that will come from the soon to be
commenced drilling programme.
The Kilimapesa Underground Mine and the implementation of a new
Mine Plan is also operating well, and is supported by the Company's
strengthened geological team, which is gaining a deeper
understanding of the structural geology and controls.
The Company remains committed to implementing its broad gold
exploration programmes in Kenya and has further strengthened its
geological team with the appointment of a highly experienced
exploration geologist, who has extensive gold exploration
experience in Kenya and is now expediting a new exploration
programme. An initial trenching programme has begun across various
targets within the Company's exploration licence and at the
Kilimapesa Mine on the Company's Mining License. Additionally, the
Company has acquired two new drill rigs (a RC - Reverse Circulation
- and a DD - Diamond Drill rig), which will be shipped shortly to
site with drilling expected to commence in Q1 2022. The acquisition
of both of these drill rigs provides the Company with much
increased flexibility and significant costs savings as it looks to
accelerate its gold exploration activities in East Africa.
On the corporate front, the Company has opened an office in
Nairobi and continues to advance a listing on the Nairobi
Securities Exchange with its local broker, Faida Investment Bank.
Furthermore, discussions regarding several complementary and
strategically located gold mining and development projects in East
Africa, which the Company previously identified, are underway;
further details will be disclosed as these advance.
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.
S
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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