Caracal Gold has announced the completion of the first phase of its mining plan for the Kilimapesa Hill deposit in Kenya. This marks a significant milestone in the company's expansion financing process.
According to the London-listed miner, the capital cost to complete the expansion project is estimated to be $10.5 million. However, a reduction in capital is expected, and an updated cost plan will be calculated.
CEO Robbie McCrae expressed confidence in the Kilimapesa expansion project, stating that the three-year mine plan and project valuation provide robust economics. McCrae also highlighted potential improvements in milling circuit recoveries and the gold price used for sales.
Key highlights of the Phase 1 work include a forecast production of 49,155 ounces, gross revenue of $83.5 million, total free cash of $31.7 million, and a gold price of $1,700 per ounce.
The construction and commissioning program for the project is expected to take six months from the time the funds are drawn down.
Shares of Caracal Gold were up 0.01 pence, or 5.8%, to 0.28 pence at 0821 GMT.