Name of the Project
Karlawinda gold project.

Location
The project is located in the Pilbara, in Western Australia.

Project Owner/s
Capricorn Metals.

Project Description
An optimisation study on Karlawinda has resulted in significant improvements to its economic parameters.

The life-of-mine (LoM) has increased to 8.5 years in the optimisation study, compared with 6.5 years in the June 2017 feasibility study.

The processing plant design is estimated at 4.5-million tonnes a year to 5-million tonnes a year in the oxide/fresh ore blend in the first three years, and up to 4-million tonnes a year to 4.5-million tonnes a year in solely fresh rock ore in Year 4 and beyond.

These throughput capacities are higher than the 3.5-million tonnes a year to  4-million tonnes a year previously reported, and have allowed for a refinement of the expected long-term production range of 110 000 oz/y to 125 000 oz/y (previously 105 000 oz/y to 120 000 oz/y).

The project is expected to produce 660 955 oz over an eight-and-a-half-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from A$144-million to $243-million, at an 8% discount rate, while the internal rate of return has increased from 31% to 36%.

Project payback has decreased from 3.1 years to 2.5 years.

Capital Expenditure
The project is estimated at between A$165-million and A$170-million.

Planned Start/End Date
First gold production in 2021.

Latest Developments
Capricorn Metals will start the drawdown on an A$80-million Macquarie Bank debt facility to develop its Karlawinda gold project after satisfying all conditions precedent for the financing.

The development of the project is proceeding on time and on budget.

Capricorn is expected to produce first gold at Karlawinda in the June quarter of next year, with the forecast development currently tracking in line with guidance of between A$165-million and A$170-million.

Key Contracts, Suppliers and Consultants
Not stated.

Contact Details for Project Information
Capricorn Metals, tel +61 8 9212 4600, fax +61 8 9212 4699 or email enquiries@capmet.com.au.