Dual-listed gold producer Caracal Gold’s latest production numbers confirm that the Kilimapesa mine, in Kenya, is operating well following a difficult first quarter.
The operation treated 50 720 t in the second quarter of the year, compared with the 19 104 t treated in the first quarter of the year.
Smelted ounces increased to 1 645 oz in the second quarter, compared with 627 oz in the first quarter.
Caracal sold 1 645 oz of gold in the quarter under review, with an average price of $1 933/oz realised.
All-in sustaining costs came to $1 218/oz in the reporting quarter.
The installation of a standby power generator in April improved plant availability from 81% in April to 89% in May and June.
Additionally, Caracal commissioned an additional carbon-in-leach tank at Kilimapesa’s leach circuit, which improved recoveries in the milling plant from 76% in the first quarter to 78.7% in the second quarter.
Although milling plant availability was subsequently impacted by a drive breakdown and worn mill liners, Caracal says repair works have been completed.
Meanwhile, the company reports that activities to secure funding for an expansion project at Kilimapesa are progressing well, with a transaction being in the final documentation phase. Caracal will soon announce the financing deal and first drawdown of funds.
This while exploration efforts are under way to assess the extent of mineralisation to the east and west beyond the current mining area.
Caracal plans to increase gold production at Kilimapesa to 24 000 oz/y and the resource to beyond two-million ounces, against a current resource of 706 000 oz.