Capricorn Metals is positioning itself for its next phase of growth after completing the acquisition of Warriedar Resources and outlining strong underground expansion potential at its Mt Gibson gold hub.
The company finalised its acquisition of Warriedar Resources in November 2025, securing the Golden Range project and the Ricciardo gold-antimony deposit.
This came alongside the Fields Find gold project located about 90 kilometres (km) north of Capricorn’s Mt Gibson gold project (MGGP) in Western Australia.
The transaction significantly expands Capricorn’s regional footprint, consolidating approximately 788km² of tenure and unlocking additional exploration upside and infrastructure synergies around Mt Gibson.
Capricorn’s strategic expansion comes alongside a notable lift in its group mineral resource inventory, which now stands at 8.1 million ounces of gold, reinforcing the company’s long-term production outlook and potential mine life extension across its WA operations.
While the Warriedar acquisition marks a major corporate milestone, Capricorn also used the December quarter to advance a compelling underground growth opportunity at MGGP.
Updated drilling at the Orion South deposit expanded the underground mineral resource estimate to 9.5 million tonnes at 2.9 grams per tonne gold (g/t) for 895,000 ounces, highlighting high-grade mineralisation that remains open at depth.
A conceptual underground mining study based on the updated resource outlined the potential for a 6.1-million-tonne (Mt) mining plan grading 2.6g/t for 513,000 ounces of gold.
The study also demonstrated the potential to run underground operations concurrently with open-pit mining, supporting the vision of MGGP as a long-life, dual mining operation.
Capricorn said further drilling across the broader eight-kilometre strike at Mt Gibson could deliver additional underground resources, with early-stage targets already identified at Lexington and Hornet.
Operationally, Capricorn continued to deliver stable production from its Karlawinda gold project (KGP) during the December quarter, producing 30,476 ounces of gold at an all-in sustaining cost (AISC) of $1,627 per ounce.
The result brings year-to-date production to 62,794 ounces, keeping the operation on track to achieve the upper end of its 2026 financial year (FY26) guidance of 115,000 – 125,000 ounces.
Strong production performance translated into record quarterly operating cash flow of $122.4 million, contributing to Capricorn finishing the quarter with cash and gold holdings of $457.4 million, including balances integrated through the Warriedar acquisition.
Revenue for the quarter totalled $200.5 million, generated from gold sales of 31,652 ounces at an average realised price of $6,333 per ounce.
Alongside consistent operations, Capricorn progressed construction of the Karlawinda expansion project (KEP), which is expected to lift processing capacity to 6.5 million tonnes per annum and increase average annual gold production to around 150,000 ounces once fully commissioned.
During the quarter, major earthworks and structural construction continued, including completion of bulk earthworks at the plant site, advancement of tailings storage facility works, and progress on carbon-in-leach tank construction.
The company also completed excavation works to allow improved pit access, with key equipment deliveries progressing ahead of commissioning targeted for the 2027 financial year.
Capricorn is also advancing development approvals and early engineering works at MGGP, with the project undergoing parallel environmental assessment processes at both state and federal levels.
Exploration activity across the Mt Gibson region remains aggressive, with multiple drilling rigs operating across Orion South, Lexington and the Highway prospect, returning several high-grade intercepts and supporting further resource growth.
In addition to Warriedar, Capricorn continued to expand its exploration footprint by securing the Yalgoo project during the quarter, adding around 1,000km² of prospective tenure contiguous to Mt Gibson and providing further regional consolidation opportunities.
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