Caracal Q2 gold output down as exploration yields positive results

Caracal Gold, which owns the Kilimapesa Gold Mine in Kenya produced 746 oz of gold during the second quarter of 2022 compared to 1,266 oz in the first quarter of the year.
The miner said 21,743 tonnes of ore at 1,84g/t gold were delivered to the plant from the mine compared to 26,329 in the first quarter of 2022.
Construction and commissioning of the second pad were completed and the third pad construction was 80% complete during the Quarter, it said.
Meanwhile, Caracal chief executive Robbie McCrae said results of the updated mineral resource have shown a significant increase in the quality of the resource at Kilimapesa Hill.
Results showed 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, following a successful resource expansion drill campaign.
It reported a significant 202% increase in the measured and indicated category, with 56% of the contained 317 600 oz now in measured and indicated from the previous 105 000 oz.
“The positive results in the earlier [mineral resource estimate] update have further strengthened the Project team's confidence and justifies the company’s decision to expand production at Kilimapesa to 24,000oz per annum,” said McCrae. 
Meanwhile, Caracal signed a revised share purchase agreement to acquire 100% of Tyacks Gold, the holder of the licences collectively referred to as the Nyakafuru project in Tanzania.
A payment of $500 000 under the agreement was made during the period under consideration.
It said site preparation for the commencement of the exploration programme will be concluded by the end of September and drilling is planned to start in early October 2022.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished