Caracal Gold PLC on Tuesday said the Vim Rutha prospect corridor at the Kilimapesa Hill deposit in Kenya was ‘intensely gold-bearing’ after positive assay results.

Caracal Gold shares were up 24% trading at 0.90 pence per share on Tuesday afternoon in London.

The London-based East African focused gold producer said tests results on samples from hole VMRDD_001 had revealed 13.2 metres at 1.6 grammes of gold per tonne at Vim Rutha, as well as 11.4 metres of 3.2 grammes of gold per tonne in hole NMRDD_003.

Other samples showed 3 metres at 1.6 grammes of gold per tonne, 7 metres of 2.6 grammes of gold and 1 metre of 84.2 grammes of gold.

The company said the assay results, from 107 drill holes totalling 10,424 metres of the planned 12,000 reverse circulation drilling programme, and 21 holes totalling 3,637.7 metres of 3,000 DD programme showed that there was high gold potential at various exploration prospects near the Kilimapesa Hill deposit.

Additionally, on several occasions the drilling intercepted ‘one or more mineralised structures of significant thickness located a few hundred metres south of Kilimapesa Hill,’ Caracal Gold said.

Chief Executive Officer Robbie Mcrae said: ‘We have always believed in the possibility we will discover large open-pittable style resources at Kilimaespa, as can be found across the border in Tanzania. It is very early stage at Vim Rutha but the thinking behind the exploration programme is to target a large open-pittable resource that could possibly support the development of a large Tanzanian/West African style gold mine.’

‘Early indications are that Vim Rutha could be a second economically viable deposit in our Kilimapesa licence,’ he added.

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