Caracal Gold has announced a possibility of expanding the Kilimapesa Hill project in Kenya. The firm confirmed from a study that the project can generate $93-million of free cash flow over the ten-year lifespan, with a 114% internal rate of return and two-year payback period.
Kilimapesa project
The Kilimapesa project mineral resource currently 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 East African gold producer, Caracal Gold recently 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.
The firm targets a ten-year, 24 000 oz/y gold operation. They estimate the expansion project can be completed in just six months and also plan on undertaking additional drilling early in the new year, to exploit any more upside potential near the mine.
CEO Robbie McCrae is confident the resources around the project can easily double the life of the mine. Additionally, the Vim Rutha prospect, a shear zone of about 4.9 km parallel to the known orebody at the Kilimapesa Hill deposit, offers potential commercially viable ounces very close to the existing plant, further strengthening the opportunity. He confirms that the company is fully funded to deliver the Kilimapesa Hill expansion project, and exploration programmes in both Kenya and Tanzania.
