REG - Caracal Gold PLC - Mine Plan for Kilimapesa expansion

Caracal GoldAnnouncement

26/10/2023 07:00

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RNS Number : 3044R  Caracal Gold PLC  26 October 2023

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

 

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

Mine Plan for Kilimapesa expansion

Caracal Gold plc, the East African gold producer with over 1,300,000oz
JORC-compliant gold resources, announces the completion of Phase 1 of the work
program which was to review and update the geological model and mining plan
for the Kilimapesa Hill deposit.

The work included the review of the geological model, mineralization model,
grade models, producing the Whittle optimisations, pit designs and a project
evaluation. This is an important milestone in the Kilimapesa expansion project
financing process.

Work Program

Minopex Advisory (Pty) Ltd, a DRA Global Group Company, are carrying out the
work program on behalf of Caracal. The scope of work/phases are as follows:

 

·   Phase 1:               3-year mine plan to support
Kilimapesa expansion financing;

·   Phase 2:              Full remodeling of Kilimapesa Hill
deposit including additional drilling;

·   Phase 3:              Update the MRE (JORC) for Kilimapesa
Hill deposit;

·   Phase 4:              Completion of 10 year mine plan for
Kilimapesa Hill deposit.

Highlights from the Phase 1 work are as follows:

·      Independent Technical report providing 36 month mine plan for
Kilimapesa Hill deposit;

·      49,155oz forecast production;

·      AISC US $1,055 per oz;

·      Gross Revenue + US $83.5m;

·      Total Free Cash + US $31.7m;

·      Gold Price US $1.700 per oz.

The Phase 1 mining plan has 2,427,279t of ore mined over the 36 month period
at an average grade of 1.06g/t. 529,756t at an average grade of 1.8g/t are
processed through the Milling/CIL plant with 1,897,524t at an average grade of
0.86g/t processed by the Heap Leach plant. The plan assumes a 75% recovery by
the Milling/CIL plant for 23,002oz recovered and a 50% recovery through the
Heap Leach plant for a total of 26,153oz recovered. Combined Milling/CIL and
Heap Leach production over the 36 months is 49,155oz.

The current capital cost to complete the Kilimapesa expansion project is
approximately US $10.5m based on the results from the Phase 1 work. A
reduction in the capital is expected and this  plan will now be costed and an
updated capital cost for the expansion project calculated and announced.

This capital cost, along with the revised operating costs, will be used to
update the financial model and agree the terms of the expansion funding.

The construction and commissioning program for the project is 6 months from
when the funds are drawn down.

 

Robbie McCrae, Chief Executive Officer of Caracal, commented,

 

"We are delighted with the results of the 1(st) Phase work completed by
Minopex. The 3 year mine plan and project valuation provide robust economics
and validate our confidence in the Kilimapesa expansion project.

 

We see further upside in Milling circuit recoveries and in the gold price used
versus what we are currently getting for our gold sales.

 

We look forward to commencing the Phase 2 program with Minopex and to updating
the market on the progress. Phase 2 will provide full understanding of the
size of the Kilimapesa Hill resource (increased and updated MRE) and to the
Life of Mine plan and project valuation.

 

The 3 year revised Mine plan will now be incorporated into the financial model
allowing us to finalize the terms of the expansion financing. We look forward
to providing an update for the expansion funding process in the near future."

 

**ENDS**

 

 Caracal Gold plc                                    robbie@kilimapesa.com

 Robbie McCrae
 VSA Capital Limited                                 +44 203 005 5000

 Financial Adviser and Joint 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

 

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