Aim-listed Caracal Gold has signed formal agreements to acquire a 100% interest in the advanced Nyakafuru gold project and secure a 75% interest in the Simba gold project – both located in the Lake Victoria Gold Fields, in Tanzania.

The acquisitions have resulted in the company's attributable gold resources increasing to over 1.5-million ounces during the quarter ended December 31.

Management is set to fast-track additional resource drilling programmes at Nyakafuru and update the Joint Ore Reserves Committee-compliant resource, reserve estimates and pit optimisations; and Caracal has appointed a projects team this year to complete updated mine development studies.

Caracal highlighted a low acquisition cost of $5.95 per resource ounce for both Nyakafuru and Simba, with low up-front cash payment and the majority of the acquisition costs payable in shares on the achievement of key development milestones, including boosting resources and completing an updated feasibility study.

Operationally, at its Kilimapesa mine, Caracal has reported record run-of-mine production and plant throughputs, with 38 351 t of ore produced from both the underground and openpit operations during the December quarter.

Moreover, it has demonstrated that the operation has the ability to achieve targeted gold production rates of 1 000 oz a month.

“As a result of this, I was very pleased to recently announce our decision to accelerate the implementation of the final phase of our initial three-phase operational plan, to further increase monthly gold production by 100% to 2 000 oz,” CEO Robbie McCrae acclaims.

"The next phase of our expansion at Kilimapesa will require further investment into our operation and into the almost 500 employees currently on site and I look forward to working with the expanded team and with all our stakeholders and shareholders in growing this business further and achieving the growth and returns we are all looking for,” he adds.

Gold sales during the quarter totalled 1 047 oz, with the company electing to hold back on smelting of gold dore late in the quarter, as a result of its gold refinery being closed in late December and to complete further upgrades and expansion work to the gold elution plant to enable the smelting of a significant increase in gold production.

OUTLOOK
Caracal will begin the accelerated development plan at Kilimapesa in the current quarter.

As part of this plan, further expansion to the openpit and underground mining and mine development activities will begin.

Work on the milling circuit expansion will also start through installation of the second ball mill, which is currently in Nairobi and scheduled to be refurbished.

Following further metallurgical testwork in Germany, which is ongoing, Caracal will start construction of a new heap leach plant operation.

The tailings retreatment plant will also be subject to further upgrades and refurbishment work to increase throughput.

Procurement of a new gold elution plant will begin and it will be installed in the second quarter of this year, which will allow the increased levels of gold production to be smelted on-site.

Detailed engineering design work for the accelerated development plan has started and will continue throughout the first quarter of this year.

The appointment of an experienced engineering company to implement the works programmes of the accelerated development plan will be made in the second quarter

Work is also to continue on the company's planned listing on the Nairobi Stock Exchange, expected to be completed during the second quarter.

Caracal expects to receive further regulatory approvals in respect of its acquisition of Nyakafuru and Simba, and management will be on site later this quarter to begin activities in-country.