Capricorn Metals approves Karlawinda gold project expansion
Gold miner Capricorn Metals has approved the expansion of its Karlawinda gold project in Western Australia, targeting annual production of 150,000 ounces. The numbers: The expansion of the gold mine will incorporate the installation of a new three-stage crushing and ball mill circuit to increase processing capacity to 6.5 million tonnes per year.
Karlawinda commenced operations in June 2021 and has produced over 375,000 ounces of gold to date. Capricorn said the project has generated over $500 million in operating cashflow during that time.
FY24 production at Karlawinda totalled 113,007 ounces, with FY25 guidance between 110,000 to 120,000 ounces.
Capricorn shares lifted 1.3% to $6.35 at market open on the ASX.
The context: Capricorn said the continued replacement of reserves and increased inventory at Karlawinda prompted an evaluation of the economics of investing in higher throughputs and production rates.
The miner noted that the increased processing capacity will not require a significant increase in mining fleet or earthmoving volumes.
In August, Capricorn recorded a "significant increase" to the ore reserve estimate at Karlawinda, and initiated a study to consider an expansion of output at the mine.
What they said: "The board's approval of [Karlawinda]'s expansion reflects the quality and simplicity of the operation and the optionality that comes from increasing reserves and mine life with targeted resource drilling," Capricorn's executive chair Mark Clark said.
"The execution of the Karlawinda expansion project and development of Mount Gibson will see Capricorn enter the very limited space of companies having all Australian based gold production exceeding 300,000 ounces per annum and low-cost gold reserves in excess of three million ounces."
Source: https://www.capitalbrief.com/