Capricorn targets 2019 production at Pilbara gold project

Capricorn Metals has forecast a $146.3 million price tag to build its Karlawinda gold project in the Pilbara region of Western Australia.

The company, which has released a feasibility study for the project, is targeting first production at Karlawinda in the June quarter of 2019.

Capricorn’s feasibility study for Karlawinda outlines a 6.5-year mine life, with annual output of around 100,000 ounces of gold at average production costs of $1025 an ounce.

The project is based on a single multi-stage open pit with contract grade control, contract drill and blast and owner operator load and haul.

Construction of the project is expected to take around 64 weeks. The forecast $146.3 million capital cost includes a 3 million tonnes per annum processing plant, project infrastructure and owner’s costs.

Capricorn executive chairman Heath Hellewell said the feasibility study confirmed the potential for a robust, high-margin gold project.

“This study provides us with the confidence that the Karlawinda gold project will become a significant new Western Australian gold mine, with a strong production profile, low forecast operating costs and the ability to generate strong financial returns over its initial 6.5-year life and beyond,” Hellewell said.

“With certainty now around the state government gold royalty, and based on what are now high confidence capital and operating cost estimates, we are confident that the development of the project will proceed, subject to financing.

“As our exploration programs once again ramp up, we are excited about the endowment potential of the region and the opportunities that exist within our current exploration targets. We look forward to delivering on the outstanding upside and potential for growth in our resource and reserve inventory as we continue to work towards first gold production.”

Capricorn acquired the Karlawinda project in 2015.

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