Capricorn Metals (ASX:CMM) has extended the Karlawinda Gold Project’s (KGP) contract while also issuing a notice of preferred mining contractor status to services provider MACA for the Mt Gibson Gold Project in Western Australia.
Under the Karlawinda contract, Capricorn has extended the contract for another five years with MACA, with an option to extend.
The contract extension confirms the existing unit rate pricing and includes the larger mining fleet required to deliver an increased volume of 6.5 million tonnes per year and 150,000 ounces of gold production annually under the Karlawinda Expansion Project (KEP).
MACA has mobilised the expanded mining fleet with volumes increasing in recent months as part of the early stripping required to service enduring ore feed rates at KEP.
Capricorn, which has a market capitalisation of $4.39 billion, says the early selection of MACA enables it to achieve rapid mobilisation when the company is in a position to proceed with project development, derisking equipment lead times and service delivery.
Executive Chairman Mark Clark says this Karlawinda expansion will lift the operation to 6.5 million tonnes per year and increase annual gold production.
“To secure MACA’s service as preferred mining contractor for the Mt Gibson project at unit cost rates in line with our reserve model costing is strong validation of the project’s economics,” Clark says.
“The award also puts MACA in an excellent position to rapidly advance early mining works once Capricorn completes the currently regulatory permitting phase and launches development.”
MACA is an international contracting group providing services to the mining, infrastructure, and construction sector industries for 20 years.
Capricorn Metals is an Australian gold producer headquartered in Perth, Western Australia. The company operates within two areas — the Pilbara and Mid-West regions of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Capricorn Metals
