Capricorn Metals has reported a 35 per cent increase in ore reserves at the Karlawinda gold project in Western Australia, adding three years to its mine life.
The reserve jump to over 1.2 million ounces extended Karlawinda’s expected project life from nine to 12 years.
Capricorn now expects to produce 105,000–120,000 ounces of gold a year at plant throughput rates of 3.5–4 million tonnes a year.
Company chairman Mark Clark said Karlawinda gold ore reserve increase confirmed the project as a standout in the Western Australian gold industry as a new fully-funded greenfield development project
“It is a robust, high margin, long life and low technical risk project in arguably the best mining jurisdiction in the world,” Clark said.
“With construction of the project already under way, the increase in the resource to 2,145,000 ounces and the large, under explored tenement package at Karlawinda offer significant mine life extension opportunity, particularly at the current strong Australian Dollar gold price.”
The gold price assumption for ore reserves remained at $1600 an ounce, reflecting the spot gold prices over the past five years.
Capricorn has also received approval for Karlawinda’s mining proposal and an environmental permit for its mining and water supply aspects.
The company plans to update the increased ore reserve’s mining and processing power for the proposal.
The project’s JORC compliant ore reserves estimate is now updated to 43.5 million tonnes at 0.9 grams per tonne of gold for 1,201,000 ounces, compared with the May 2018 estimate of 27.6 million tonnes at one gram per tonne for 892,000 ounces.
This is driven by drilling at both Bibra and Tramore deposits that used in-house open-pit optimisations to help target the drilling areas.
The Karlawinda project is located in the Pilbara region, 70 kilometres south-east of the town of Newman.