East African gold producer Caracal Gold has updated its mineral resource estimate (MRE) to reflect an expanded measured, indicated and inferred resource of 12.15-million tonnes at 1.5 g/t gold for 565 700 oz of contained gold for the Kilimapesa Hill deposit (KHD) at the company’s flagship Kilimapesa gold mining and processing operation in Kenya.
 
LSE- and FSE-listed Caracal said on July 12 that there was a significant 202% increase in the measured and indicated category, with 56% of the contained 317 600 oz now categorised as such, up from the previous 105 000 oz.

The MRE result supports at least a ten-year life-of-mine (LoM) for the current Kilimapesa project expansion, which is targeting a production rate of 24 000 oz/y.

“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 24 000 oz/y, with the ounces contained in the measured and indicated category now able to be converted into reserves to support the mining and processing plant,” Caracal CEO Robbie McCrae said.

The significant increase in the measured and indicated resource provided the required optionality for the current mining operations, as well as the required difference in grade to feed the milling plant and the heap leach plants.

With resource expansion drilling ongoing, McCrae said the next batch of drill results were expected to grow the resource and LoM even further. He said these results should further enhance the KHD, as the company had tested the western extent of the deposit and stepped out on strike to the eastern boundary of the mining licence.

Alongside this, current drilling was focused outside of the initial MRE area on the prospecting permit and regional targets, where McCrae believed there was higher-grade potential. 

“We believe there is significant further uplift potential,” he said.

Overall, the Kilimapesa project mineral resource now stands at 14.05-million tonnes at 1.56 g/t gold for 705 000 oz of contained gold.

“The early decision to acquire our own drill rigs and assemble our own drilling 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,” McCrae said.

KHD is one of two key deposits at Kilimapesa. The key deposit is Red Ray, a new licence which has been approved for issue. Caracal said it was on track to engage with the office of the Cabinet Secretary for finalisation and collection.

Caracal’s total portfolio mineral resource now stands at 26.36-million tonnes at 1.61 g/t gold for 1.37-million ounces of contained gold.

Meanwhile, McCrae said Caracal’s acquisition of the Nyakafuru project in the Lake Victoria goldfields, in northern Tanzania, continued to proceed according to plan.

“We are excited for the new gold mine development opportunity this presents,” he said.