REG - Caracal Gold PLC - Scoping Study Delivers Robust Project Economics

Caracal GoldAnnouncement

21/12/2022 07:00

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RNS Number : 3852K  Caracal Gold PLC  21 December 2022

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

 21 December 2022

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

Scoping Study Delivers Robust Project Economics

 

Caracal Gold plc, the expanding East African gold producer with over 1.3
million oz ('Moz') JORC compliant gold resources, is pleased to publish a
Scoping Study focused on the expansion of its flagship Kilimapesa Hill Gold
Project ('Kilimapesa ' or the 'Project') in Kenya, which highlights robust
project economics.

 

HIGHLIGHTS

Robust economics with upside to expand production (post tax, based on a gold
price ofUS$1,700/oz for 3 months and then US$1,650/oz for remaining 10 years)

·    114% internal rate of return ('IRR')

·    2-year payback period

·    US$12.6m first full year free cash flow ('FCF')

·    US$118m FCF over life of mine ('LOM')

·    US$1095/oz all-in sustaining costs ('AISC')

·    10-year life of mine

·    24,000oz pa average production

·    US$19,7m pre-production capital (including mining pre-production
& continued)

 

Robbie McCrae, Chief Executive Officer of Caracal, commented, "We are
delighted with the results of the Scoping Study for Kilimapesa, which reported
a headline 114% IRR, 2-year payback, and US$93m of free cash flows being
generated over the life of mine. The extremely robust economics in tandem with
the low strip ratio mine plan, and simple heap leach processing route to
deliver circa 24,000oz gold per annum, underpins the potential of the
Project.   Notably, Kilimapesa benefits from the capital sunk to date by
both GoldPlat and Caracal as well as existing infrastructure and plant, which
will enable us to complete the expansion project in just six months.

 

"The Company also has considerable upside potential with further resources
already defined in the Kilimapesa Hill project along with the additional
drilling planned on the hill in early 2023; we anticipate this will easily
double the life of mine.  Additionally, as recently announced, the Vim Rutha
prospect, a shear zone of about 4.9km parallel to the known orebody at the
Kilimapesa Hill deposit, offers potential commercially viable ounces very
close to the existing plant, further strengthening the opportunity.

 

"With funding secured from OCIM and Philoro, Caracal is fully funded to
deliver the Kilimapesa expansion project and exploration programmes in both
Kenya and Tanzania."

 

DETAILS

Caracal is focused on delivering an optimisation strategy at its Kilimapesa
Hill Gold Project where it aims to increase gold production to 24,000oz p.a.
and the resource to +2Moz. Kilimapesa, which is located in a mining friendly
jurisdiction in Kenya, has an established, producing, shallow underground mine
and processing plant as well as an extensive prospecting permit. As part of
its strategy, utilising an updated Mineral Resource Estimate, internal
feasibility study, and detailed due diligence undertaken by its funders,
Caracal has published a Scoping Study that emphasises Kilimapesa's robust
economics (post tax, based on a gold price of US$1,700/oz for 3 months and
then US$1,650 for remaining 10 years).  Highlights include:

 

·    114% internal rate of return ('IRR')

·    2-year payback period

·    US$12.6m first full year free cash flow ('FCF')

·    US$118m FCF over life of mine ('LOM')

·    US$1095/oz all-in sustaining costs ('AISC')

·    10-year life of mine

·    24,000oz pa average production

·    US$19,7m pre-production capital (including mining pre-production
& continued)

 

With funding in place, the Company now plans to fast-track the expansion
project with completion anticipated towards the end of H1 2023.

http://www.rns-pdf.londonstockexchange.com/rns/3852K_1-2022-12-20.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3852K_1-2022-12-20.pdf)

 

ENDS

 

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

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

 Robbie McCrae
 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.  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 km(2) 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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