Capricorn Metals (ASX:CMM) has begun an expansion study for the Karlawinda Gold Project in Western Australia, after increasing the ore reserves by 15% to 1.43 million ounces of gold.
Karlawinda’s reserves estimate contains 57.7 million tonnes at 0.8 grams per tonne (g/t) gold for 1.43 million ounces of gold, an increase from the March 2023 estimate of 49.2 million tonnes at 0.8g/t gold for 1.24 million ounces.
Executive Chairman Mark Clark says the increase in gold reserves is a testament to the quality of the orebody and the operating team who turned the deposit into a low-cost gold mining operation.
“To still have a 13 year mine life after operating the mine for three years puts Capricorn in a very strong position relative to the mid-tier gold industry,” Clark says.
“The robust economics and long mine life of the project have underpinned Capricorn’s enthusiasm to complete a study for a material expansion of the project to grow the production rate and further enhance the returns from the operation.”
On the basis of the increased reserves estimate underpinning a current 13 year mine life, the scope of the expansion study includes increasing throughput by 2 to 2.5 million tonnes per year, and mining studies to consider the optimal blend of further ore supply.
Capricorn Metals, which has a market capitalisation of $2 billion, says this additional ore supply would come from accelerating the mining schedule to deliver an increase in direct run of mine ore, and direct feed of lower grade ore currently mined and stockpiled.
The study focus areas will also include expanding the processing plant flowsheet, configuration, and installation logistics, the plant, infrastructure, and associated capital costs, the mining schedule and fleet optimisation, as well as the tailings storage facility expansion and other permitting requirements.
Capricorn Metals aims to complete the study by the end of the second quarter of 2025. Once completed, the company will move onto permitting and execution.
Capricorn Metals is an Australian-based gold producer headquartered in Perth, Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Capricorn Metals
