TIDMGCAT
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
ENDS
For further information visit www.caracalgold.com or contact the
following:
Caracal Gold plc info@caracalgold.com
Robbie McCrae
Clear Capital Markets Ltd
Joint Broker +44 203 897 0981
Keith Swann / Jonathan Critchley +44 203 869 6086
-------------------------------
VSA Capital Ltd
Financial Adviser and Joint
Broker
Andrew Raca (Corporate Finance)
Andrew Monk / David Scriven
(Corporate Broking) +44 203 005 5000
-------------------------------
St Brides Partners Ltd caracal@stbridespartners.co.uk
Financial PR
Charlotte Page / Isabel de Salis
/ Isabelle Morris
-------------------------------
DGWA, the German Institute info@dgwa.org
for Asset and
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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