TIDMGCAT
RNS Number : 5344A
Caracal Gold PLC
03 February 2022
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector:
Mining
3 February 2022
Caracal Gold plc ('Caracal' or the 'Company')
Move to Accelerate Expansion at Kilimapesa Gold Mine
Caracal Gold plc, the gold producer with operations in East
Africa, is pleased to update the market on the Board's decision to
now accelerate implementation of the final phase of its' initial
three-phase operational plan to further increase gold production
and improve efficiencies at its flagship Kilimapesa Gold Mining and
Processing Operations in Kenya.
The decision to accelerate the third phase development
activities at the Kilimapesa Gold Mining and Processing Operations
and increase production to approx. 24,000oz p.a. follows the
successful completion of the first two phases of operational
improvements and developments since listing in August 2021, and the
Board's decision to implement further operational improvements to
the mining, processing and administrative aspects of its gold
producing operations.
Key highlights
-- Accelerated development plan at the Kilimapesa Gold Mine and
Processing Operations to now commence and implemented over the next
6-months.
-- Run-of-mine (ROM) production from the existing open pit and
underground mining operations already at levels to support a 100%
increase in the milling circuit capacity from 500tpd to
1,000tpd.
-- Further expansion to open pit and underground mining and
development activities to commence to support the increased
long-term sustainable production levels.
-- Milling circuit expansion to be achieved through installation
of the second ball mill (currently in Nairobi to be refurbished),
the addition of new crushing and screening plant and upgrades to
the thickeners, cyclones and installation of additional CIL
tanks.
-- Commencement of construction of a new heap leach plant
operation, which will initially be loaded with approx. 40,000t of
currently stockpiled low-grade material, and thereafter treat up to
10,000t of ore monthly from low-grade open pit and low-grade
underground ROM feed.
-- Upgrade, refurbishment and optimisation of the tailings
retreatment plant from the current throughput levels of 500tpd to
up to 1,000tpd and with a focus of increasing both gold recoveries
and plant availability.
-- Decoupling of the milling and the tailings retreatment plants
to allow independent operation and optimisation work.
-- Procurement and installation of a new gold elution plant to
allow the increased levels of gold production to be smelted on site
and the gold dore bars to be sold under the existing gold refining
agreements.
-- As part of the third phase operational plan further
improvements in infrastructure and engineering services will be
completed to support the greatly increased plant throughput and
gold production levels.
-- These changes and improvements follow experience gained from
the initial two phases of expansion and optimisation work
completed. ROM throughput, gold recoveries and production are
forecast to create a much improved balanced production circuit,
aimed at improving not only absolute production, minimising waste
but also recovery levels and costs.
-- Work on the detailed engineering design for the accelerated
development plan has already commenced, with the appointment of an
experienced engineering company to implement the works programs to
be made following final site inspections to be undertaken later
this week with the Company's newly appointed General Manager, Mr
Riaan Lombard.
Chief executive of Caracal Gold Plc, Robbie McCrae, said :
"We are both encouraged and excited to move very quickly to the
next phase of development and operational activities at our
flagship project, which once completed, will see gold production
achieve the targeted levels of approx 24,000oz pa.
"The decision to move to this next phase of development has been
made significantly ahead of schedule and within the first 6-months
of our stock exchange listing in London.
"The Board has supported and approved the accelerated
development plan for our Kilimapesa Gold Mining and Processing Mine
after having seen the successful implementation of the first two
phases, which have already delivered a significant increase in
production from the open pit and underground mining operations and
record levels of throughput through the processing plant.
"The next phase of development will be completed over approx.
6-months and will be completed by an experienced and competent
engineering company overseen by our recently appointed new General
Manger.
"We want to thank shareholders for their ongoing support and
look forward to hitting the next milestones in our bid to become a
major gold producer and new mine developer in East Africa."
DETAIL AND FURTHER BACKGROUND
1. 2022 - A Year of Planned Major Growth in Kenya
The Company has now embarked on an accelerated development plan
for its Kilimapesa Gold Mining and Processing Operations.
The aim of this is to achieve monthly gold production to over
2,000oz and annual production to approx. 24,000oz. This increased
level of gold production is largely already supported by the
current ROM production from the underground mining operations and
the shallow open pit operations that commenced in late 2021, which
has justified the planned doubling in capacity in the milling
circuit. The optimisation and refurbishment of the tailings
retreatment plant and construction of new heap leach plant will
further assist in increasing gold production levels.
It is proposed that the process plant upgrades and expansion
works will implemented by an experienced and highly capable
engineering company over a 6-month period. Final site inspections
are to commence this week in Kenya by the shortlisted engineering
group and has been arranged to coincide with the arrival of the
Company's new General Manager on site at the Kilimapesa Gold Mining
and Processing Operations.
2. Milling Circuit
A 100% increase in the milling circuit capacity is now proposed
with capacity increasing from the current from 500tpd levels to up
to 1,000tpd.
This will be achieved through the installation of a second ball
mill. This ball mill is already in Nairobi and refurbishment work
will be completed. In addition, a new crushing and screening plant
will be installed to feed the increased twin-ball mill capacity.
Further upgrading work will be required to be completed on the
thickeners and additional CIL tanks are to be installed.
Metallurgical testwork is ongoing in Germany to optimise the
milling circuit.
3. Heap Leach Plant Construction
Construction of a new heap leach plant to treat up to 10,000tpm
of lower grade material is to now commence. This follows
preliminary design work and metallurgical testing completed in
2021.
Further metallurgical testing to allow recoveries to be
optimised is currently underway in Germany.
An initial load of approx. 40,000t of low-grade material that is
already stockpiled on site will commence in the next 4-months, and
after which, up to 10,000t of ore monthly from low-grade open pit
and underground ROM feed will be processed through the heap leach
plant.
4. Tailings Retreatment Plant
It is proposed to complete a major upgrade and refurbishment of
the tailings retreatment plant that is currently treating approx.
500tpd of material.
The upgrades ware being completed to increase throughput at the
tailings plant to up to 1,000tpd.
As a result of the refurbishment work, plant availability and
gold recoveries are forecast to increase significantly.
5. New Elution Plant
The current elution plant at the Kilimapesa Gold Mining and
Processing Operations will be unable to treat the increased levels
of loaded carbon from the processing plant. As a result, a new more
modern and more efficient gold elution plant is to be constructed
on site.
The new elution plant will allow the planned increased levels of
gold production to be smelted on site.
6. Infrastructure and Engineering Services
With the substantial increase in processing plant and tailings
retreatment throughput, as well as the new heap leach plant, there
is a requirement to substantially increase the Company's supporting
engineering and infrastructure works. This will be completed in
parallel with the expanded mining and processing plant construction
activities.
7. Detailed Engineering Work and Site Inspections
Detailed engineering design for the work associated with the
accelerated third phase of the development plan at the Kilimapesa
Gold Mining and Processing Operations has already commenced and
will be completed following the appointment of an experienced
engineering company to implement the planned works programs. This
appointment will be completed later this month.
This detailed engineering work will be advanced in the coming
weeks and will include final site inspections of the process plant,
underground and open pit mining operations and tailings storage
facility and the associated mine and plant infrastructure.
The Company's newly appointed General Manager, Mr Riaan Lombard
will oversee the implementation of the development operational
plan, immediately following his arrival on site later this
week.
SUMMARY
The Company is now accelerating the implementation of the final
phase of its' initial three phase operational plan at its
Kilimapesa Gold Mining and Processing Operations in Kenya.
The development and operational actvities are forecast to
increase annual gold production to approx. 24,000oz and also
improve operational efficiencies throughout the gold mining
operation. The Company has strengthened its executive management
team to support the increased level of activities and now looks
forward to delivering on key production, costs and earnings
milestones in 2022.
**S**
For further information visit www.caracalgold.com or contact the
following:
Caracal Gold plc info@caracalgold.com
Gerard Kisbey-Green
Jason Brewer
VSA Capital Ltd
Financial Adviser and Joint
Broker
Andrew Raca / James Deathe/
Pascal Wiese +44 (0)20 3005 5000
----------------------------
St Brides Partners Ltd info@stbridespartners.co.uk
Financial PR
Oonagh Reidy / Charlotte Heap/
Isabelle Morris
----------------------------
DGWA, the German Institute for info@dgwa.org
Asset and
Equity Allocation and Valuation
European Investor and Corporate
Relations Advisor
Stefan Müller / Katharina
Löckinger
----------------------------
Notes
Caracal Gold plc is an emerging 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 +50,000oz p.a. and build a JORC
compliant resource base of +3Moz within 12-18 months from its
listing in August 2021. To this end, it 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 ability to increase gold production to
25,000oz p.a. and the resource to +2Moz (current JORC compliant
resources of approx. 671,000oz). Additionally, its 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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