REG - Caracal Gold PLC - Q2 2022 Operations Summary

Caracal GoldAnnouncement

15/08/2022 07:30

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RNS Number : 9381V  Caracal Gold PLC  15 August 2022

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

15 August 2022

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

Q2 2022 Operations Summary

 

Caracal Gold plc, the expanding East African gold producer with over
1,300,000oz JORC-compliant gold resources, is pleased to announce an update on
its operations and exploration activities in Kenya and Tanzania for the
quarter ended 30 June 2022 (the 'Quarter' or 'Q2'); specifically, the
Company's Kilimapesa Gold Mine and Processing Operation in Kenya ('Kilimapesa'
or the 'Project') and its high grade, shallow gold exploration projects in
Tanzania.

 

Q2 HEADLINES

 

·    Exploration on the Kilimapesa Hill Deposit ('KHD'), which began in
December 2021, culminated in an updated Mineral Resource Estimate ('MRE')
being completed during the Quarter (see RNS 12 July 2022).

·    A revised Share Purchase Agreement ('SPA') was signed to acquire 100%
of Tyacks Gold Limited ('Tyacks'), the holder of the licences collectively
referred to as the Nyakafuru Project ('Nyakafuru' or the 'Project') in
Tanzania, paving the way for completion of the acquisition.

·    The US$500,000 payment due under the Tyacks SPA was made.

·    The pilot heap leach project at Kilimapesa progressed well with the
first gold production from the project, completion of pad two construction and
good progress on the commissioning of the third leach pad.

·    The Kilimapesa expansion project continued to be progressed some
significant milestones included the orders for various long lead items being
placed, geotech drilling for the main heap leach pad was completed, the
talings circuit was taken offline for optimization work to be carried out.

·    Underground operations focussed on development and establishing
mining blocks to provide the required output and flexibility going forward for
the expansion project and open pit mining was stopped for a period during the
quarter to alleviate pressure on the excessive stockpiles at the processing
plant.

·    Reverse Circulation ('RC') drilling on the Kilimapesa Hill and the
Maghor target was completed, and the rig was moved to the larger Vim-Rutha
target which is a wide target in the south of the licence and stretches across
the full strike of the exploration licence.

·    Diamond Drilling ('DD') on Kilimapesa Hill was completed and the rig
was moved to and started drilling on the Vim Rutha target.

 

Robbie McCrae, CEO of Caracal, said,

 

"The team and I are pleased with the all-round performance during the quarter,
significant progress has been made across the board and we are on track for an
exciting third quarter.

 

"The results of the updated Mineral Resource have shown a significant increase
in the quality of the resource at Kilimapesa Hill.  We are very excited to
find and prioritise the next sources of production to complement the growth on
Kilimapesa Hill and the existing mining licence. The positive results in the
earlier MRE update have further strengthened the Project team's confidence and
justifies our decision to expand production at Kilimapesa to 24,000oz per
annum. The ounces contained in the Measured and Indicated category are now
able to be converted into reserves for the mining and processing plant.

 

"We are looking forward to seeing the results come in from our regional
exploration programme, especially the Vim Rutha target which is currently
being drilled.

 

"The Kilimapesa expansion project continues to progress and we are on target
for completion by the end of 2022.

 

"Signing the revised Share Purchase Agreement with Tyacks Gold in Tanzania has
allowed our team to begin site work at the Nyakafuru Project in preparation
for the confirmatory resource study, including drilling, to begin in October
2022. We are excited about the new gold mine development opportunity this will
present as Nyakafura more than doubles our total resource base and exploration
potential for the Company."

 

Operations

·    21,743 tons of ore at 1,84g/t gold ('Au') were delivered to the plant
from the mine (26,329 in Q1 2022), down on the previous quarter but in line
with the strategic plan.

·    20,490 tons of tailings at a grade of 1.08 g/t Au (27,792 Q1 2022)
were delivered to the plant.

·    A total of 58,722 tons were processed through the plants for gold
production of 746 oz of gold during the quarter (1,266 oz Au in Q1 2022) down
but in line with the strategic plan.

·    The closing stockpile at the plant was 22,757 tons at a grade of
1,68g/t Au (22,744 tons at 1,72g/t Au in Q1 2022).

·    First production was achieved from the pilot heap leach plant with
16,213 tons now on the pads at an average grade of 1.48g/t Au (3,915 tons at
1.5g/t Au in Q1 2022). Average recovery of 49.2% was achieved from the leach
pads.

·    Construction and commissioning of the second pad was completed and
the third pad construction was 80% complete during the Quarter.

 

Exploration

 

·    A total of 1,145m DD and 5,088m of RC drilling was completed during
the quarter.

·    The RC drilling programme on Kilimapesa Hill was completed and the
rig moved to the Maghor prospect as part of the 1(st) phase of the regional
exploration programme.

·    The DD drilling program on the Kilimapesa Hill was completed and the
rig moved to the Vim Rutha prospect as part of the 1(st) phase of the regional
exploration programme.

·    Exploration drilling (both DD and RC), trenching, rock grabs sampling
and mapping on the regional targeted areas is set to continue in the broader
exploration licences during the following quarter.

 

The updated MRE was completed during the Quarter with the results reported on
12 July 2022. Highlights of the updated MRE are as follows:

·      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.

·      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.

 

Safety, Health, and Environment

 

·    The Environmental Impact Assessment ("EIA") on the heap leach pant
was submitted to NEMA Narok County during the quarter with licence granted on
28 June 2022.

·    The EIA for the exploration drilling and open pit mining progressed
well during the Quarter.

·    No accidents or incidents were reported during the quarter.

 

Tanzania

 

·    The revised SPA between Caracal Gold plc and Tyacks Gold whereby
Caracal will acquire Tyacks and the Nyakafura project was signed and announced
at the end of May 2022.

·    The Caracal technical team (including mining, exploration and
drilling) conducted a site visit to the project.

·    Key processes towards completion of the transaction are being
finalised with the assistance of Dentons Law in Tanzania including the
Financial Conduct Commission, the Tanzanian Revenue Authority and the Minerals
Commission submissions now in process.

·    Site preparation for the commencement of the exploration programme
will be concluded by the end of September and drilling is planned to start
early in October 2022.

 

Outlook For the Next Quarter

 

Output from the underground mine and the open pit are planned to steadily
increase of the next six months with mining and processing capacity planned to
reach the targeted rate of 24,000oz pa by year-end.

 

Exploration focus has moved to the Vim Rutha regional target on which both
drilling and trenching is planned.  The Company will provide the market with
updates on this target.

 

In Tanzania the focus will be on preparation work for drilling to commence in
Q4 2022.

 

**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 Ltd                                       +44 203 005 5000

 Financial Adviser and Joint Broker

 Andrew Raca (Corporate Finance)

 Andrew Monk / David Scriven (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

 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 within 18
months from its listing in August 2021.  We are progressing a well-defined
mine optimisation strategy at our 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. 706,000oz). Our 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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