Caracal Gold PLC (LSE:GCAT) has highlighted mining results which it describes as “beyond expectations” following the start of operations at the high grade its Kilimapesa Hill deposit.
The Kenyan project got underway in the first quarter and today’s announcement covers the first 30 days of mining – and comes ahead of the company's quarterly update which is expected by the end of April.
Caracal said it has been processing 360 tonnes per day of high-grade material, and this rate is ongoing, with average daily grades ranging from 3.15 grams per tonne to 4.92g/t.
It has also extended the initial mining plan, to a 13-month period, in which it expects to be delivering high-grade material to the milling plant.
"The results from the first 30 days of mining and processing ore from the Kilimapesa Hill high-grade zone have gone beyond expectations, and the team is continuing to improve in all areas,” said chief executive Robbie McCrae.
The high-grade zone now supports the current production levels for 13 months, plant availability is back on track and improving after the installation of standby power, and recoveries are expected to improve with the delivery and commissioning of the new crusher and additional CIL tank capacity."
Caracal also noted that it had appointed Pivot Mining Consultants to produce an independent mine design and scheduling for the Kilimapesa project, including the high-grade zone.
In London, Caracal shares rose by some 11% in Monday morning’s trade to change hands at 0.47p each.