Total
0
Shares
Capricorn Metals (ASX:CMM)- Executive Chairman, Mark Clark
Executive Chairman, Mark Clark
Sourced: Business News
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Capricorn Metals (CMM) has announced significant increases to the ore reserve and mineral resource estimates at the Karlawinda gold project (KGP)
  • Recent drilling at KGP has contributed to a significant increase in ore reserves to 1.201 million ounces – a 35 per cent increase on prior numbers
  • There’s also been a substantial upgrade to the mineral resource estimate – a 41 per cent increase to 2.145 million ounces
  • Together with increased processing efficiencies and a strong gold price, the upgrades still have headroom to further extend the life of the mine
  • Capricorn Metals had a boom session on Friday, gaining 18.2 per cent for a closing price of $1.36.5 per share

Capricorn Metals (CMM) has announced significant increases to the ore reserve and mineral resource estimates at the Karlawinda gold project (KGP) in WA.

Ore Reserve

Recent drilling at both Bibra and Tramore deposits at KGP has contributed to a significant increase in ore reserves to 1.201 million ounces – a 35 per cent increase on prior estimates from May, 2018.

A targeted drilling program allowed for new reserves to be delineated and upgraded from inferred to indicated.

With the current spot price sitting well above the five-year average of $1600 per ounce which was used in reserve calculations, and reduced processing costs, Capricorn remains hopeful the ore reserve may be further upgraded down the line.

Mineral Resource

The recent drilling program also resulted in a substantial upgrade to the mineral resource estimate – a 41 per cent increase to 2.145 million ounces.

The estimate was calculated using a gold price of $2000 per ounce, still well below current spot prices. The company notes the 937,000 ounces of gold not included in the ore reserve are situated immediately below the current pit design, raising hopes the extra resource may be included in future reserve estimates if gold prices remain strong.

Together the ore and resource upgrades have extended the potential life of the mine from nine to 12 years.

Capricorn Executive Chairman Mark Clark says the upgrades mark KGP as a standout greenfield development in the WA gold industry.

“It is a robust, high margin, long life and low technical risk project in arguably the best mining jurisdiction in the world,” Mark said.

“With construction of the project already underway, the increase in the resource to 2,145,000 ounces and the large, under-explored tenement package at Karlawinda offer significant mine life extension opportunity, particularly at the current strong Australian dollar gold price,” he added.

Outlook

With considerable exploration upside across the huge project (1,419 square kilometres) and a high likelihood of further reserve upgrades, KGP looks set to to be a big earner for Capricorn.

Even if gold prices fall back to pre-pandemic levels, there’s still more than enough gold in the ground that can be easily processed to make KGP a relatively long-life and lucrative project.

Capricorn Metals had a boom session on Friday, gaining 18.2 per cent for a closing price of $1.36.5 per share.

CMM by the numbers
More From The Market Herald

" Red River Resources (ASX:RVR) commences drilling program at Thalanga

Red River Resources (RVR) has commenced a drilling program targeting gold areas near its Thalanga Operations in northern Queensland.
Venus Metals (ASX:VMC) - Managing Director, Matthew Hogan

" Venus Metals (ASX:VMC) intersects encouraging mineralisation at Vidure

Venus Metals (VMC) has intersected encouraging copper-nickel-platinum group element (PGE) mineralisation at the Vidure Prospect.

" Whitehaven Coal (ASX:WHC) uses record prices to pay down debt

Whitehaven Coal (WHC) will use the uplift

" Alderan Resources (ASX:AL8) commences drilling at Detroit

Alderan Resources (AL8) has commenced drilling at its Detroit copper gold project, located in the US state of Utah.