Kilimapesa Gold Mine is located in a mining friendly jurisdiction in Kenya. Kilimapesa has a mining licence with a JORC resource, an established, producing, shallow underground mine and processing plant as well as an extensive prospecting permit. Gold ore is produced on site and exported to international refiners, offering immediate value uplift through revenue generation. Further upside can be seen through plant expansion and reserve and resource upgrade.
JORC Compliant Resources of 14.05Mt @ 1.56g/t gold for 705koz contained gold
Granted mining licence and exploration licence area
Limited capital investment into mining and processing operations and regional exploration over past 5 years
Opportunity to optimise mining and processing plant operations
Opportunity to significantly increase JORC Compliant resources from several identified targets from historic small-scale mining, surface mapping and previous drilling.
Gold mining area since 1920s, in close proximity to Lake Victoria Goldfields.
- Located in the heart of East Africa, covering a total surface area of about 586,600km
- Relatively stable climate.
- Stable political system
- Government keen to attract foreign direct investment and focused on mining sector.
- Mining activity has been present for over 50 years but industry still in relative infancy.
- Significant discovery potential and gold sector is fast emerging with a number of major new investments such as AIM-listed Shanta Gold.
- Government focused on developing and implementing policies that will allow the country to benefit from its mineral wealth.
- New mining code in 2016 to ensure the sustainable exploitation of natural resources.
Kilimapesa has a current Mineral Resource of 14.05Mt @ 1.56g/t gold for 705koz contained gold at a cut off of 1 g/t. This resource is JORC Compliant and comprises the Kilimapesa Hill and the Red Ray deposits, both of which are located close to the Kilimapesa Gold Processing Plant.
Total Resource (1 g/t cut-off)
Tonnes (Mt) Grade (g/t) Ounces (koz) Kilimapesa Hill Measured and Indicated 6.92 1.45 318 Inferred 5.22 1.48 248 Total 12.15 1.5 566 Red Ray Measured and Indicated 0.88 2.84 80 Inferred 1.03 1.83 60 Total 1.91 2.28 140 Total Measured and Indicated 7.8 1.59 398 Inferred 6.25 1.53 308 Total 14.06 1.56 706
Several exploration targets have been identified as part of a mining expansion strategy to increase the project resource and extend the life of mine. These targets have been identified by past mining activities, artisanal mining, surface mapping, and exploration drilling. A targeted exploration programme commenced in December 2021 and initially focussed on the Kilimapesa Hill Deposit, targeting areas east of and close to the existing underground mine, before stepping out on strike to the eastern boundary of the mining licence as well as to the west of Kilimapesa Hill. This led to an updated Mineral Resource Estimate for the Kilimapesa Hill Deposit in July 2022 of 12.15Mt @ 1.5g/t gold for 565.7koz contained gold, taking the overall project resource to 14.05Mt @ 1.56g/t gold for 705koz contained gold.
The focus now is on the wider exploration licence, where three prioritised targets have been identified. This includes the Maghor target and the larger Vim-Rutha target in the south of the licence.
The Kilimapesa Mine consists of five adits (A, B, C, D and Bull) which have intersected at least four gold-bearing veins, three of which have been developed through drives, raises, and stopes. The strike of the orebodies is +/- E-W and the dip angle varies from 45 to 70 degrees with drive sections of 2.5m x 2m and raises are excavated at 10m to 15m intervals along the drives. Ore grade is regularly sampled at the face. Ore >3 g/t is considered high grade and mined, and the underground mine has traditionally been supplemented by tailings from artisanal mining activities.
In Q2 2022 21,743 tons of ore at 1,84g/t gold were delivered to the plant from the mine (26,329 in Q1 2022) and 20,490 tons of tailings at a grade of 1.08 g/t Au (27,792 Q1 2022) were delivered to the plant. As a result, a total of 58,722 tons were processed for gold production of 746 oz of gold in Q2 2022 (1,266 oz Au in Q1 2022). Whilst Q2 2022 is lower than Q1 2022 it is in line with the strategic plan, with expansion ongoing as Caracal targets annual gold production of 24,000oz.
Kilimapesa covers the eastern end of the historically producing Migori Archaean Greenstone Belt with gold mineralisation occurring along a WNW trending complex of shear zones with orientations that roughly parallel the strike of the belt. The Migori Greenstone Belt is responsible for the majority of Kenya’s gold production and comprises a volcano-sedimentary package of approximately 2850Ma age. It is an extension of the granite-greenstone terrain of the Tanzanian Craton / Lake Victoria Gold Fields which have been the subject extensive modern gold mining activities and nearby operators include Barrick Gold’s North Mara Mine and Shanta Gold’s West Kenya Project.