Capricorn Metals has revealed plans to restart production at the historic Mt Gibson gold project (MGGP) in the Murchison region of Western Australia as part of the company’s strategy to grow into an Australian-focused multi-mine gold company.
Capricorn will commence the technical and environmental studies required to underpin a reserve estimate and feasibility study on the project in due course.
The MGGP is located approximately 280 kilometres northeast of Perth and less than 10 kilometres from the Great Northern Highway.
The project produced 868,000 ounces between 1986 and 1999 before it was placed on care and maintenance when the gold price was around $450 per ounce.
According to a company statement, Capricorn has identified very strong exploration potential both between, below and along strike of current resources, with no significant gold focused exploration conducted at the project since the late 1990s.
Capricorn executive chairman Mark Clark said the acquisition of the project has major potential for the company.
“The purchase of the Mt Gibson Gold Project is an outstanding opportunity for Capricorn to grow beyond the now operational Karlawinda project,” Clark said.
“The project has a proven gold endowment, is located in the world-class mining jurisdiction of WA and has been subject to very limited modern exploration.
“There is every reason to be optimistic about the opportunity with last gold production over 30 years ago from very shallow open pits when the gold price was around $450 per ounce.
“We look forward to undertaking an extensive drilling programme to infill and significantly extend the shallow drilling depths to allow an update to the current 2.1 million ounce resource.”
Capricorn acquired the project and associated tenure encompassing 139sqkm this week from Avenger Projects.
The acquisition increases Capricorn’s total resources to 4.2 million ounces including the resources and 1.2 million ounce ore reserve at its operating Karlawinda Gold Mine.
The company poured first gold at its Karlawinda project in Western Australia earlier this month as the company continues to optimise its processes.
The first gold bars weighed 12 kilograms (386 ounces) and were the first of a 12-year mine life at over 110,000 ounces per annum for Karlawinda.