REG - Caracal Gold PLC - Corporate Update and Q1 2023 Operations Summary

Caracal GoldAnnouncement

15/05/2023 07:00

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RNS Number : 3372Z  Caracal Gold PLC  15 May 2023

 
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector: Mining

15 May 2023

Caracal Gold plc ('Caracal' or the 'Company')

Corporate Update and Q1 2023 Operations Summary

 

Caracal Gold plc, the East African gold producer with over 1,300,000oz
JORC-compliant gold resources, provides a corporate update and progress report
on its operations and exploration activities for the quarter ended 31 March
2023 ('Q1 2023') specifically, the Company's Kilimapesa Gold Mine and
Processing Operation in Kenya ('Kilimapesa' or the 'Project') and the high
grade, shallow gold Nyakafuru Gold Project in Tanzania.

 

Corporate Update

 

Financing

 

On the 16(th) February the company announced it had drawn down US $1m from
ORCA Capital GmbH (ORCA) via the issue of secured convertible loan notes. In
addition the company granted ORCA the option to subscribe for a further US $4m
of loan notes. The company has continued to progress financing arrangements
for the Kilimapesa expansion project, legal and technical due diligence
processes are underway with the preferred funder. Philoro Global Trading AG
('Philoro') have confirmed their commitment to participate in the funding,
this is dependent on the company securing the balance of financing required to
fully fund the Kilimapesa expansion project.

 

Regulatory Disclosure

 

The Company reached a settlement with Mill End Capital Limited ("Mill End"),
the details of which were announced by RNS on 12 May 2023.

 

 

Submission of a Prospectus

 

The Company submitted the first draft of the prospectus to the FCA for
approval on 18 April 2023.  The Company is working with its advisers to seek
approval of the prospectus by the FCA and will update the market in due
course.

 

Board Composition

 

Mr. Simon Gaines-Thomas resigned from his role as Non-exec Chairman in mid
January. Mr Simon Grant-Rennick was nominated to the role as Executive
Chairman and this nomination was subject to certain final commercial
negotiations and legal formalities which were completed and his appointment
announced on 26 April 2023.

 

Corporate Governance

 

The corporate governance review initiated is ongoing.

 

Q1 2023 Operations Summary

 

HIGHLIGHTS

 

·    Due to the delay in funding, activities around the expansion and
operations were limited during January and the 1(st) half of February.

·    Activities recommenced at the Kilimapesa Mine from the middle of
February. These included:

o  Heap-leach operations recommencing on 5 March,

o  Milling operations recommencing on 8 March,

o  Open cast mining recommencing on 5 March,

o  Underground mining operations are not planned to reopen until funding is
secured,

·    A high-grade zone was discovered on the Kilimapesa Hill deposit and
mining commenced on this zone on 9 March,

·    Work on the expansion continued with:

o  Delivery of new jaw crusher,

o  Delivery of new excavator and bull dozer,

o  Pad 4 construction commenced.

·    Desk top work was completed for the planned drilling program at the
Nyakafuru Gold Project in Tanzania.

 

Robbie McCrae, CEO of Caracal, said,

 

"Q1 of 2023 was a trying time for Caracal Gold stakeholders and I am very
grateful to all stakeholders for their support to the Caracal and Kilimapesa
teams who, under very difficult circumstances, have pulled us through the Q1
period.

 

The discovery and processing of the High Grade zone on the Kilimapesa Hill has
assisted greatly in March and the gold price has also been kind to us during
March - the production numbers for the quarter are down but when you consider
the production only recommenced on 5 March we are well positioned for the Q2
period.

 

The Mill End financing has been settled and the draft prospectus lodged with
the FCA to commence the approval process.

 

Activities to secure the expansion funding have progressed well during the
period and we expect to announce financing in due course."

 

DETAILS

 

KENYA

Operations

 

                    Q4 - 22                       Q1 - 23
 Mined tons         35,989                        12,045
 Treated Tons       19,613                        19,104
 Smelted ounces Au               835              627
 Stockpile tons     7,715 @ 1.47g/t               11,504 @ 2.23g/t

 

·   The Open pit was put on care and maintenance for the first two months
of the quarter and resumed production on the 8(th) of March 2023.

·   A total of 400 tonnes of low-grade ore was mined at an average grade of
1,38 g/t.

·   High-grade zones were identified and opened up the 2A section producing
11,645 tonnes at an average grade of 3,98 g/t.

·   A total of 2,946t waste was mined.

 

·   The Kilimapesa processing plant was on care and maintenance for the
first 2 months of the quarter and resumed normal production on 5 of March
2023.

·   The plant processed a total of 6,246t at an average grade of 3.60g/t
through the CIL circuit and a further 12,858t at an average grade of 1.25g/t
through the Heap leach circuit to realize a total of 627 ounces in gold sales.

 

Exploration

 

Exploration work focussed on the near mine areas on the Kilimapesa Hill
deposit.

 

A high-grade zone was discovered and sufficient ore to support 13 months of
high-grade ore processing defined.

 

No exploration drilling was completed.

 

Safety, Health and Environment

 

Work continued on the approval of the Open Pit and Exploration Impact
Assessment with NEMA.

 

Ongoing support of employees with various training programmes completed and
underway.

 

Four minor accidents were reported during the Q1 period.

 

TANZANIA

 

Desk top work was completed for the planned drilling program at the Nyakafuru
Gold Project in Tanzania.

 

 

**ENDS**

 

For further information visit www.caracalgold.com or contact the following:

 

 Caracal Gold plc                                    info@caracalgold.com (mailto:info@caracalgold.com)

 Robbie McCrae
 VSA Capital Limited                                 +44 203 005 5000

 Financial Adviser and Broker

 Andrew Raca (Corporate Finance)

 DGWA, the German Institute for Asset and            info@dgwa.org (mailto:info@dgwa.org)

 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.  The
company 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 the ability to increase gold production to 24,000oz
p.a. and the resource to +2Moz (current JORC compliant resources of approx.
706,000oz). Alongside this, Caracal is undertaking a targeted exploration
programme at the Nyakafuru Project in Tanzania, which has an established
high-grade shallow gold resource of 658,751oz at 2.08g/t contained within four
deposits over 280 km2 and appears amenable to development as a large scale
conventional open pit operation.

Caracal's experienced team has a proven track record in successfully
developing and operating mining projects throughout Africa.  The Company 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).  The Company is
also in the process of listing on the Nairobi Securities Exchange.

 

 

 

 

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