Caracal Gold PLC (LSE:GCAT) said second-quarter production from its Kilimapesa gold mine was in line with expectations and that the expansion project at the mine achieved some significant milestones.
It produced 746 ounces of gold from the Kenyan mine and achieved its first production from the pilot heap leach plant. Construction and commissioning of a second heap leach pad has been completed and work on a third pad was 80% complete during the quarter.
The Kilimapesa expansion project continued to make progress with significant milestones met such as the placing of orders for various long lead items, completion of geotech drilling for the main heap leach pad, and the talings circuit being taken offline so optimization work could be carried out.
"The team and I are pleased with the all-round performance during the quarter, significant progress has been made across the board and we are on track for an exciting third quarter,” said chief executive Robbie McCrae.
The company recently announced a significant increase in the mineral resource estimate (MRE) for Kilimapesa Hill.
READ: Caracal Gold significantly boosts resource base at Kilimapesa, with further upgrades expected
“We are very excited to find and prioritise the next sources of production to complement the growth on Kilimapesa Hill and the existing mining licence,” said McCrae. “The positive results in the earlier MRE update have further strengthened the project team's confidence and justifies our decision to expand production at Kilimapesa to 24,000oz per annum.”
"The Kilimapesa expansion project continues to progress and we are on target for completion by the end of 2022.”
Caracal also has a share purchase agreement to acquire Tyacks Gold Ltd, a licence holder of the Nyakafuru project in Tanzania.
READ: Caracal Gold revises share purchase agreement for Tyacks Gold
It said that preparation of the site, which will allow the start of an exploration programme, will be concluded by the end of September and drilling is planned to start early in October.