Capricorn Metals Ltd. has reported a significant upgrade to its resource base, boosting its total group ore reserves by 33 per cent to 5.24 million ounces of gold across its flagship Western Australian projects.
The ore reserve increase, alongside a 29 per cent rise in total mineral resources to 8.66 million ounces, raises the company’s long-term production pipeline and confirms a clear trajectory towards becoming a 400,000-ounce-per-annum gold producer.
At the Karlawinda gold project (KGP), targeted drilling directly down-dip of the 2024 pit design delivered a 32 per cent surge in ore reserves to 1.57 million ounces, extending its expected mine life beyond 10 years at a 150,000-ounce annual run rate.
Simultaneously, an updated pre-feasibility study (PFS) for the Mt Gibson gold project (MGGP) delivered a 21 per cent increase in open-pit reserves to 3.31 million ounces, alongside a maiden underground reserve estimate of 365,000 ounces.
The updated PFS outlines a robust 19.25-year mine life for Mt Gibson, with production expected to average 190,000 ounces annually for 18 years. During four full years of concurrent open-pit and underground mining, production is projected to peak at an average of 260,000 ounces per annum.
Financially, Mt Gibson projects compelling economics, including a rapid 14-month pre-tax payback, life-of-mine pre-tax free cash flow of $12.0 billion, and a pre-tax net present value (NPV7.5) of $6.1 billion, based on an all-in sustaining cost (AISC) of AU$1,870 per ounce.
“The strong growth in Capricorn gold reserves to over 5 million ounces underpins long mine lives at both Karlawinda and Mt Gibson along with compelling and deliverable growth in our gold production profile to over 400,000 ounces per annum within 2.5 years of commencement of operations at Mt Gibson,” said Capricorn Executive Chairman Mark Clark.
With federal environmental approvals secured, Capricorn aims to commence site development at Mt Gibson in the second quarter of fiscal 2027, targeting group production of over 400,000 ounces per year shortly after operations begin.
