Caracal Gold PLC (LON:GCAT) Corporate Update and Q2 2023

Operations Summary

Caracal Gold plc, the East African gold producer with over 1,300,000oz JORC-compliant gold resources, provides a corporate update and progress report on its operations and exploration activities for the quarter ended 31 June 2023 (‘Q2 2023’) specifically, the Company’s Kilimapesa Gold Mine and Processing Operation in Kenya (‘Kilimapesa’ or the ‘Project’) and the high grade, shallow gold Nyakafuru Gold Project in Tanzania.

Corporate Update

Financing

During the quarter the company continued to progress the Kilimapesa expansion financing transaction.

Submission of a Prospectus

The company submitted the first draft of the prospectus to the FCA for approval on 18 April 2023. The company is working with its advisers to seek approval of the prospectus by the FCA and will update the market in due course.

Board Composition

During the quarter:

·    Mr Simon Grant-Rennick joined the Board as Executive Chairman,

·    Mr Riaan Lombard resigned from his role as Executive Director,

·      Mr Gerard Kisbey-Green and Ambassador Hon Dan Kazungu both resigned from their roles as Non-Executive Directors,

The Board are in discussion with various possible Non-Executive Director candidates and possible candidates that may be put forward as part of the financing.

DETAILS

KENYA

Operations

 Sales

·    1,645oz of gold were sold during the quarter

·    The average price received for the quarter was US $1,933 per oz

·    The AISC per oz produced for the quarter was US $1,218 per oz

Mining

·      The underground mine remained on care and maintenance,

·    A total of 38,011 high-grade tonnes were mined from the open pit @ 2,51 g/t,

·    A total of 18,394 low-grade tonnes were mined from the open pit @ 1,55 g/t,

Processing

·    The milling plant processed a total of 38,543t at an average grade of 2.23g/t,

·    The heap leach plant processed a total of 12,177t at an average grade of 1.26g/t,

·    Improvements included:

o  Installation of a standby power genset in April, improved plant availability from 81% in April to 89% in May and 89% in June,

o  Commissioning of an additional 100m³ CIL tank in the leach circuit, improved recoveries in the Milling plant from 76% in Q1 to 78.7% in Q2.

·    Milling plant availability was impacted negatively in June due to a drive breakdown and worn mill liners. The repair works for the mill drive and liner repairs were completed in July.

Exploration

·    High-grade zones were identified and opened up the 2A, 2B, 3B, 3A, and 1C sections producing 38,011 high-grade tonnes at an average grade of 2,51 g/t.

·    The focus on high-grade 1C area:

The area consists of zones of weathered BIF hosting quartz veins of different sizes. Mapping and grab sampling at the zone indicate a strong potential. Two quartz veins, one 3 to 5m wide and one of 4m wide are actually mined since the end of May. They are hosted in weathered BIF with proximal mineralization. The area has been drilled in 2022 and the results of the RC drilling assays indicate an increased potential at depth. Currently, the exploration works in the area are to assess the extent east and west of the mined area.

Safety, Health and Environment

·    There were no major/reportable accidents during the 2^nd quarter, only 2 minor accidents were recorded,

·    No LTI was recorded in the 2^nd Quarter. The last recorded LTI was in July the 3^rd quarter of 2022,

·    Fatality rate, a notice of violation and fines is maintained at zero.

Robbie McCrae, CEO of Caracal, said,

“After a difficult first quarter it has been great to see Kilimapesa run in a steady state over the second quarter. The production numbers confirm that the operation is running well.

Activities to secure the Kilimapesa expansion funding have progressed well and the transaction is into the final documentation phase which when complete means we will announce financing deal and move to drawdown of the funds.

The approval process for the prospectus by the FCA continued during the quarter and getting this approved is a priority for us.” 

For further information visit www.caracalgold.com or contact the following: