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
Robbie McCrae
