The deal saw Mayflower Gold Investments reverse into listed Papillon, bringing the ownership of Kenya’s Kilimapesa gold mining and processing operations back to the public markets, having formerly been owned by Goldplat PLC.
Caracal added that a new mine plan was implemented at the site and supported by a strengthened geological team.
That has included the appointment of an additional exploration geologist who is overseeing an extended trenching programme ahead of two new RC and DD drills that are due to arrive on site this quarter.
Robbie McCrae, chief executive of Caracal, said “excellent progress is being made” at Kilimapesa, where the company is looking to increase gold production to 25,000oz per year.
He said a recent agreement to connect the plant to the grid power was a “key achievement” as it would “deliver major cost savings and improved economics, but it also strengthens our ESG credentials given Kenya’s advanced stance on the use of renewable energy”.
“Additionally, our exploration programmes aimed at increasing our JORC compliant resources to +2Moz are also making headway, with initial trenching of shallow open pit areas initiated, the acquisition of our own RC and DD drills, and in-house drilling teams established to allow us to accelerate our exploration activities.”