Capricorn Metals posts increase in Karlawinda gold reserves
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The news: Gold miner Capricorn Metals has announced a "significant increase" to the ore reserve estimate (ORE) at its Karlawinda gold project in Western Australia.
The numbers: Capricorn said the project's ORE has increased by 15% to 1.43 million ounces of gold, from 1.25 million ounces. The increase represents a 27% increase, of 333,000 ounces, after accounting for mining depletion, the company said.
Following the increase, Capricorn has initiated a study to consider a 2 million to 2.5 million tonne per year expansion of the Karlawinda operation, which has a current throughput of 4.5 million tonnes per year.
The context: The WA-based gold producer last week reported improved production at Karlawindi during the June quarter, helping it achieve full-year guidance.
Together with the Mount Gibson gold project, Karlawindi is one of two gold developments operated by Capricorn.
What they said: Capricorn executive chair Mark Clark said: "The increase in Karlawinda gold reserves to 1.43 million ounces is a remarkable testament to both the quality of the orebody and Capricorn’s operating team who have turned the deposit in to a very successful, 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," he said.
"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."
The source: ASX announcement
