Caracal calls first quarter a ‘trying time’
Gold exploration and mining company Caracal CEO Robbie McCrae has described the first quarter as a “trying time” for the company, which had to pull through “very difficult circumstances”, as the company continues to undergo a corporate governance review.
At the company’s Kilimapesa gold mine and processing operation in Kenya, both the openpit and processing plant were on care and maintenance for the first two months of the quarter and resumed normal production on March 5 and March 8, respectively.
Once operations resumed, 400 t of low-grade ore was mined at an average grade of 1.38 g/t. High-grade zones were identified and opened up in the 2A section, producing 11 645 t at an average grade of 3 98 g/t. Overall, a total of 2 946 t waste was mined.
The plant managed to process a total of 6 246 t at an average grade of 3.6 g/t through the carbon-in-leach (CIL) circuit and a further 12 858 t at an average grade of 1.25 g/t through the heap leach circuit to realise a total of 627 oz in gold sales.
Exploration work focussed on the near mine areas on the Kilimapesa Hill deposit.
Underground mining operations are not planned to reopen until funding is secured.
“The discovery and processing of the high-grade zone on the Kilimapesa Hill has assisted greatly in March and the gold price has also been kind to us during March – the production numbers for the quarter are down but when you consider the production only recommenced on March 5, we are well positioned for the quarter two period,” McCrae said.
He noted that the company had reached a settlement with Mill End Capital, with a draft prospectus lodged with the Financial Conduct Authority to begin the approval process.
“Activities to secure the expansion funding have progressed well during the period and we expect to announce financing in due course,” McCrae added.
On February 16, Caracal announced that it had drawn down $1-miillion from ORCA Capital through the issue of secured convertible loan notes. In addition, the company granted ORCA the option to subscribe for a further $4-million of loan notes.
Caracal has continued to progress financing arrangements for the Kilimapesa expansion project, where legal and technical due diligence processes are under way with the preferred funder.
Philoro Global Trading has confirmed its commitment to participate in the funding, which is dependent on the company securing the balance of financing required to fully fund the Kilimapesa expansion project.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation