Caracal Gold PLC (LSE:GCAT) said a prospecting licence surrounding its Kilimapesa gold mine in Kenya has been renewed for a further three years.
The prospecting license forms part of the company's broader exploration and development activities at Kilimapesa, which will now be accelerated, and is 62 times larger than Kilimapesa's current licence area.
"The renewal of our prospecting licence, which surrounds Caracal's existing mining licence at Kilimapesa, is yet another vote of confidence from the Kenyan Government in our operations in the country,” said chief executive Robbie McCrae.
“It also provides a strong boost to our corporate strategy and plan to expand our exploration activities beyond Kilimapesa, and in turn, grow our mineral resource base to over 2Mozs [million ounces] from current and new operations within 18 months.
"Developing additional gold assets beyond our flagship Kilimapesa gold mine is a core pillar of our overall expansion strategy as we seek to become a major gold producer in East Africa, producing over 50,000ozpa [ounces per annum].
"Our goal is to develop a gold mine strategically located in proximity to our flagship asset plus acquire additional development projects to build out a world class portfolio in one of the world's most exciting gold jurisdictions."
Two recently purchased reverse circulation and diamond drill rigs are due imminently on the Kilimapesa site, the company said.