LSE- and FSE-listed Caracal Gold has reported solid progress in the development of its Kilimapesa gold mine and processing operation, in Kenya, during the quarter ended June 30.
Exploration on the Kilimapesa Hill Deposit (KHD), which began in December last year, culminated in an updated mineral resource estimate (MRE) being announced on July 12, which showed 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, following a successful resource expansion drill campaign.
A significant 202% increase in the measured and indicated category was announced, with 56% of the contained 317 600 oz now in the measured and indicated categories, up from 105 000 oz previously.
The result supports at least a ten-year life-of-mine for the current project expansion, targeting a 24 000 oz/y production capacity.
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, the company said in a market update on August 15.
The overall project mineral resource now stands at 14.05-million tonnes at 1.56 g/t gold for 705 000 oz of contained gold.
“The results of the updated mineral resource have shown a significant increase in the quality of the resource at Kilimapesa Hill. 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.
“The ounces contained in the measured and indicated category are now able to be converted into reserves for the mining and processing plant,” Caracal CEO Robbie McCrae said.
Meanwhile, Caracal said the pilot heap leach project at Kilimapesa had progressed well during the quarter, with the first gold produced, construction of the second leach pad completed and good progress made on the commissioning of the third leach pad all being achieved.
The Kilimapesa expansion project continued to be progressed, with key milestones including the orders for various long lead items being placed, geotechnical drilling for the main heap leach pad being completed and the tailings circuit being taken offline for optimisation work to be carried out.
Underground operations, meanwhile, focused on developing and establishing mining blocks to provide the required output and flexibility going forward for the expansion project.
Meanwhile, openpit 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 KHD and the Maghor target was completed during the quarter, whereafter the rig was moved to the larger Vim-Rutha target, which is a wide target in the south of the licence that stretches across the full strike of the exploration licence.
Diamond drilling (DD) on the KHD was also completed and the rig was moved to the Vim-Rutha target, where DD has begun.
“We are looking forward to seeing the results come in from our regional exploration programme, especially the Vim-Rutha target," McCrae said, adding that the Kilimapesa expansion project was on target for completion by the end of the year.
TANZANIA
Meanwhile, in Tanzania, Caracal signed a revised share purchase agreement to acquire 100% of Tyacks Gold – the holder of the licences collectively referred to as the Nyakafuru project – thereby paving the way for completion of the acquisition.
A payment of $500 000 under the agreement was made during the quarter under review.
“Signing the revised share purchase agreement with Tyacks . . . 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.
“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,” McCrae said.