Name of the Project
Kilimapesa Hill gold project expansion.

Location
Kenya.

Project Owner/s
East Africa-focused gold producer Imara Gold, formerly Caracal Gold.

Project Description
Kilimapesa Hill has an established, producing, shallow underground mine and processing plant, as well as an extensive prospecting permit. 

The mine comprises two openpits, and an underground mine consisting of four adits, all on the Kilimapesa Hill deposit. 

The high-grade ore is processed through a conventional milling, carbon-in-leach circuit and lower-grade ore through a pilot heap-leach plant.

An expansion of the heap-leach plant is under way, with target production of 24 000 oz/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax internal rate of return of 114%, with a two-year payback period.

Capital Expenditure
The expansion will require an estimated $19.7-million tonnes in preproduction capital.

Planned Start/End Date
Existing infrastructure and the processing plant will allow for the expansion project to be completed in six months. 

Latest Developments
Imara Gold has informed its shareholders that Kenya’s Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Ali Joho has proposed the establishment of a Kilimapesa Gold Mining Resumption Committee to address outstanding disputes between Imara’s Kenyan subsidiary Kilimapesa Gold and the local Moyoi community, in Narok County.

The company said on October 21 that the committee would comprise representatives from the Ministry of Mining, Blue Economy and Maritime Affairs, the Moyoi community, and the county governments of Narok and Kilimapesa.

The committee’s mandate would include resolving community complaints pertaining to Kilimapesa’s operations, reviewing new commitments entered into between the company and the community, facilitating ongoing engagement between the two parties and making recommendations to Joho on any grievances or disputes arising under the mineral right.

Imara supports the establishment of the committee, which it believes will provide an effective and transparent platform to address legacy issues created under previous management, and enable the resumption of large-scale gold mining and processing at the Kilimapesa gold mine.

The company has proposed that its representatives on the committee include its independent Kenyan directors Noreen Kidunduhu, Hannah Wang’Ombe and Edward Ruheni.

The company has said it has been focused on resolving past issues raised by stakeholders since appointing a new executive management team and board of directors in the second quarter of this year.

These issues include the nonpayment of amounts due to the Moyoi community, local workers and key suppliers, as well as unmet commitments to sustainable and long-term community development projects.

Mining and gold processing operations were suspended at the project in the first quarter of 2024, with the last gold sales made in March of that year. Illegal access and activities at the mine site have been reported by Imara to the Ministry and other regulatory bodies.

According to the company, the Ministry approved its request to establish adequate security at the mine to safeguard all assets, and the company is reviewing measures to further strengthen on-site security.

Imara has said representatives of its new executive management team, in Kenya, will meet with key stakeholders as part of a broader strategy to expand its gold production and exploration portfolio organically, and through strategic acquisitions and partnerships across Kenya, Tanzania, Uganda, Eritrea and Burundi.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Caracal Gold, email info@caracalgold.com.