Last checked at 21 Dec 2022 07:00
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 Robbie McCrae | info@caracalgold.com |
Clear Capital Markets Ltd Joint Broker Keith Swann / Jonathan Critchley | +44 203 897 0981 +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 Financial PR Charlotte Page / Isabel de Salis / Isabelle Morris | caracal@stbridespartners.co.uk |
DGWA, the German Institute for Asset and Equity Allocation and Valuation European Investor and Corporate Relations Advisor Katharina Löckinger | info@dgwa.org
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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 km2 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.