REG - Caracal Gold PLC - Corporate Update and Q2 2023

Caracal GoldAnnouncement

04/08/2023 07:00

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RNS Number : 2589I  Caracal Gold PLC  04 August 2023

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

4 August 2023

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

Corporate Update and Q2 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 June
2023 ('Q2 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

During the quarter the company continued to progress the Kilimapesa expansion
financing transaction.

 

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

During the quarter:

·    Mr Simon Grant-Rennick joined the Board as Executive Chairman,

·    Mr Riaan Lombard resigned from his role as Executive Director,

·      Mr Gerard Kisbey-Green and Ambassador Hon Dan Kazungu both
resigned from their roles as Non-Executive Directors,

The Board are in discussion with various possible Non-Executive Director
candidates and possible candidates that may be put forward as part of the
financing.

 

DETAILS

 

KENYA

Operations

 

                    Q1 - 23  Q2-23 April  Q2-23 May    Q2-23 June
 Mined tons         12,045   15,000       18,660       19,970
 Treated Tons       19,104   16,819       17,210       16,691
 Smelted ounces Au  627      640          526          479

 

Sales

 

·    1,645oz of gold were sold during the quarter

·    The average price received for the quarter was US $1,933 per oz

·    The AISC per oz produced for the quarter was US $1,218 per oz

 

Mining

 

 

·      The underground mine remained on care and maintenance,

·    A total of 38,011 high-grade tonnes were mined from the open pit @
2,51 g/t,

·    A total of 18,394 low-grade tonnes were mined from the open pit @
1,55 g/t,

 

Processing

 

·    The milling plant processed a total of 38,543t at an average grade of
2.23g/t,

·    The heap leach plant processed a total of 12,177t at an average grade
of 1.26g/t,

 

 

·    Improvements included:

o  Installation of a standby power genset in April, improved plant
availability from 81% in April to 89% in May and 89% in June,

o  Commissioning of an additional 100m(3) CIL tank in the leach circuit,
improved recoveries in the Milling plant from 76% in Q1 to 78.7% in Q2.

·    Milling plant availability was impacted negatively in June due to a
drive breakdown and worn mill liners. The repair works for the mill drive and
liner repairs were completed in July.

 

Exploration

 

·    High-grade zones were identified and opened up the 2A, 2B, 3B, 3A,
and 1C sections producing 38,011 high-grade tonnes at an average grade of 2,51
g/t.

·    The focus on high-grade 1C area:

 

The area consists of zones of weathered BIF hosting quartz veins of different
sizes. Mapping and grab sampling at the zone indicate a strong potential. Two
quartz veins, one 3 to 5m wide and one of 4m wide are actually mined since the
end of May. They are hosted in weathered BIF with proximal mineralization. The
area has been drilled in 2022 and the results of the RC drilling assays
indicate an increased potential at depth. Currently, the exploration works in
the area are to assess the extent east and west of the mined area.

 

Safety, Health and Environment

 

·    There were no major/reportable accidents during the 2(nd) quarter,
only 2 minor accidents were recorded,

·    No LTI was recorded in the 2(nd) Quarter. The last recorded LTI was
in July the 3(rd) quarter of 2022,

·    Fatality rate, a notice of violation and fines is maintained at zero.

 

 

Robbie McCrae, CEO of Caracal, said,

 

"After a difficult first quarter it has been great to see Kilimapesa run in a
steady state over the second quarter. The production numbers confirm that the
operation is running well.

 

Activities to secure the Kilimapesa expansion funding have progressed well and
the transaction is into the final documentation phase which when complete
means we will announce financing deal and move to drawdown of the funds.

 

The approval process for the prospectus by the FCA continued during the
quarter and getting this approved is a priority for us."

 

**ENDS**

 

For further information visit www.caracalgold.com
(http://www.caracalgold.com/)  or contact the following:

 

 Caracal Gold plc                                    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

 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 optimization 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
programmez 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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