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Capricorn readies for drilling at Mt Gibson

4th August 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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KALGOORLIE (miningweekly.com) – Gold miner Capricorn Metals is hoping to start production at its recently acquired Mt Gibson project, in Western Australia, within the next two to two-and-a-half years.

Speaking at the Diggers & Dealers conference, CEO Kim Massey said that the company is hoping to have the tenement applications at Mt Gibson granted within the next three months, allowing the company to start on a 30 000 m drilling campaign.

Capricorn in late July announced the A$39.6-million acquisition of the Mt Gibson gold project consisting of A$25.6-million in cash, a further A$14-million to seller Avenger Projects in the form of 7.65-million fully paid ordinary shares in the company, representing a 2.1% holding in the company, and the grant of a 1% net smelter royalty on all minerals produced from the project area, including gold production in excess of 90 000 oz.

The Mt Gibson mine historically produced more than 868 000 oz of gold between 1986 and 1999, before being placed on care and maintenance when the gold price reached around A$450/oz.

The project has a Joint Ore Reserves Committee-compliant inferred mineral resource of some 2.08-million ounces, and could host an operation similar in size to Capricorn’s producing Karlawinda asset, which will produce some 110 000 oz/y to 125 000 oz/y, Massey said on the sidelines of the conference.

Capricorn was expected to spend some A$5-million at the Mt Gibson operation within the next 12 months on the drilling programme, as well as initial feasibility studies, Massey added.

Edited by Creamer Media Reporter

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