REG - Caracal Gold PLC - Increased Mineral Resource estimate for Kilimapesa

Caracal GoldAnnouncement

12/07/2022 07:30

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RNS Number : 0822S  Caracal Gold PLC  12 July 2022

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

12 July 2022

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

Increased Mineral Resource estimate for Kilimapesa Gold Mine

 

Caracal Gold plc, the expanding East African gold producer with over
1,300,000oz JORC-compliant gold resources, is pleased to announce an updated
Mineral Resource Estimate ('MRE') for the Kilimapesa Hill Deposit ('KHD') at
the Company's flagship Kilimapesa Gold Mine and Processing Operation in Kenya
('Kilimapesa' or the 'Project').

 

Highlights

·    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

o  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.

o  KHD is one of two key deposits at Kilimapesa, the other being Red Ray, a
new licence for which has been approved for issue with the Company due to
engage with the office of the Cabinet Secretary for finalisation and
collection.

·    Caracal's total portfolio Mineral Resource now stands at 26.36Mt @
1.61g/t gold for 1.365moz contained gold.

o  The acquisition of the Nyakafuru Project in the world-class Lake Victoria
Gold Fields in northern Tanzania continues to proceed according to plan (see
RNS dated 31 May 2022).

·    Further resource expansion anticipated, with drilling at the Project
ongoing; assay results expected from testing the western extent of Kilimapesa
Hill and the eastern boundary of the mining licence and drilling also underway
at prioritised regional targets.

 

Resource Summary

                                                     Measured and Indicated                Inferred                              Total
 Project Name          Deposit                       Tonnes (Mt)  Grade (g/t)  Gold (kOz)  Tonnes (Mt)  Grade (g/t)  Gold (kOz)  Tonnes (Mt)  Grade (g/t)  Gold (kOz)

 Kilimapesa Gold Mine  Kilimapesa Hill               6.92         1.45         318         5.22         1.48         248         12.15        1.5          566
                                           Red Ray                0.88         2.84        80           1.03         1.83        60           1.91         2.28        1
                                                                                                                                                                       4
                                                                                                                                                                       0
                                           Total KMG              7.8          1.59        398          6.25         1.53        308          14.06        1.56        7
                                                                                                                                                                       0
                                                                                                                                                                       6
 Nyakafuru Gold        Voyager - Mentelle            5.9          1.71         322         1.9          1.47         89          7.7          1.65         411
                       Leeuwin - Grange              2.2          1.62         114         2.4          1.75         134         4.6          1.69         248
                                           Total NG               8.1          1.67        436          4.3          1.61        223          12.3         1.67        6
                                                                                                                                                                       5
                                                                                                                                                                       9
 Caracal Gold PLC                                    15.9         1.63         834         10.55        1.57         531         26.36        1.61         1365

 

Robbie McCrae, CEO of Caracal Plc said, said,

 

"We are delighted to announce the updated MRE for the Kilimapesa Hill Deposit.

 

"This significant increase in the quality of the resource at KHD has further
strengthened the Project team's confidence and justifies our decision to
expand production at Kilimapesa to 24,000oz per annum, with the ounces
contained in the Measured and Indicated category now able to be converted into
reserves to support the mining and processing plant.

 

"With resource expansion drilling ongoing, we expect the next batch of drill
results to grow the resource and life of mine even further.  These results
should further enhance Kilimapesa Hill, as we have tested the western extent
of the deposit and stepped out on strike to the eastern boundary of the mining
licence. Alongside this, current drilling is focussed outside of the initial
MRE area on the prospecting permit and regional targets, where we believe
there is higher grade potential.  Accordingly, we believe there is
significant further uplift potential and are very excited to find and
prioritise the next sources of production to compliment the growth on
Kilimapesa Hill and the existing mining licence.

 

"The early decision to acquire our own drill rigs and assemble our own
drilling team to work alongside Franck and his exploration team is proving to
be successful as it gives us the flexibility to adapt drilling programmes
based on the success of our results and ultimately drill lots of metres cost
effectively.   We look forward to translating this into increased
resources.

 

"Beyond Kenya, the acquisition of the Nyakafuru Project in the world-class
Lake Victoria Gold Fields in northern Tanzania continues to proceed according
to plan, and we are excited for the new gold mine development opportunity this
presents."

 

**ENDS**

 

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

 

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

 Robbie McCrae

 Sheila Boit
 Clear Capital Markets Ltd                            +44 203 897 0981

 Joint Broker                                         +44 203 869 6086

 Keith Swann / Jonathan Critchley
 VSA Capital Limited                                  +44 203 005 5000

 Financial Adviser and Joint Broker

 Andrew Raca (Corporate Finance)

 Andrew Monk (Corporate Broking)
 St Brides Partners Ltd                               caracal@stbridespartners.co.uk (mailto:caracal@stbridespartners.co.uk)

 Financial PR

 Charlotte Page / Isabel de Salis / Isabelle Morris
 DGWA, the German Institute for Asset and             info@dgwa.org (mailto:info@dgwa.org)

 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 +50,000oz
p.a. and build a JORC compliant resource base of +3Moz.  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 24,000oz 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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