East African gold producer Caracal Gold has reported a 202% increase in measured and indicated category, with 56% of the contained 317 600 oz now categorised as such, up from the previous 105 000 oz at Kilimapesa gold mining and processing operation in Kenya.
This is an update of the firm’s mineral resource estimate (MRE) which reflects an expanded measured, indicated and inferred resource of 12.15-million tonnes at 1.5 g/t gold for 565 700 oz of contained gold for the Kilimapesa Hill deposit (KHD). The MRE result supports at least a ten-year life-of-mine (LoM) for the current Kilimapesa project expansion, which is targeting a production rate of 24 000 oz/y.
“This significant increase in the quality of the resource at KHD has further strengthened the project team’s confidence and justifies our decision to expand production at Kilimapesa to 24 000 oz/y, with the ounces contained in the measured and indicated category now able to be converted into reserves to support the mining and processing plant,” Caracal CEO Robbie McCrae said.
“The significant increase in the measured and indicated resource provided the required optionality for the current mining operations, as well as the required difference in grade to feed the milling plant and the heap leach plants. The next batch of drill results were expected to grow the resource and LoM even further. We believe there is significant further uplift potential,” McCrae said.
The Kilimapesa project mineral resource now stands at 14.05-million tonnes at 1.56 g/t gold for 705 000 oz of contained gold. KHD is one of two key deposits at Kilimapesa. The key deposit is Red Ray, a new licence which has been approved for issue. Caracal said it was on track to engage with the office of the Cabinet Secretary for finalisation and collection. Caracal’s total portfolio mineral resource now stands at 26.36-million tonnes at 1.61 g/t gold for 1.37-million ounces of contained gold.