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  • Writer's pictureMark Watson-Mitchell

Caracal Gold – Q2 Operational Update and a Board shake-up sees shares up 25%

The expanding East African-focused gold producer Caracal Gold (LON:GCAT) has today updated its shareholders with a Q2 Corporate Update.


Operations


It reported on its operations and exploration activities for the quarter ended 30 June specifically, the on its Kilimapesa Gold Mine and Processing Operation in Kenya and the high-grade, shallow gold Nyakafuru Gold Project in Tanzania.


In Kenya the second quarter saw 1,645 oz of gold being sold at an average $1,933 per oz against the all-in sustain costs of $1,218 per oz.


On the processing side the milling plant flowed a total of 38,543t at an average grade of 2.23g/t, while the heap leach plant processed 12,177t at an average grade of 1.26g/t.


The group’s milling plant availability was impacted negatively in June due to a drive breakdown and worn mill liners, however the repair works for the mill drive and liner repairs were completed in July.


The group, which has over 1.3moz JORC-compliant gold resources, is now focussing its exploration activities on it 1C area, with mapping and grab sampling indicating a strong increased potential at depth.


Management Comment


CEO Robbie McCrae stated that:


"After a difficult first quarter it has been great to see Kilimapesa run in a steady state over the second quarter. The production numbers confirm that the operation is running well.


Activities to secure the Kilimapesa expansion funding have progressed well and the transaction is into the final documentation phase which when complete means we will announce financing deal and move to drawdown of the funds.


The approval process for the prospectus by the FCA continued during the quarter and getting this approved is a priority for us."


Board Shake-Up


It has also announced a bit of a shake-up of its Board of Directors ahead of seeking FCA approval for a new Prospectus.


The company has seen three of its Directors resign, while appointing a new Chairman and declaring that it is in discussion with Non-Executive Director candidates.


The group, which is quoted on the Main Market and also on the Frankfurt Stock Exchange (FSE:61K), is in the process of obtaining a listing on the Nairobi Securities Exchange.


Price reaction


The group’s shares are up nearly 25% at 0.40p this morning in reaction to the news.

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