Capricorn Metals Ltd (ASX: CMM) has announced a 35% increase in ore reserves at its under development Karlawinda Gold Project (KGP) in Western Australia.
The company says recent drilling success at the Bibra and Tramore deposits has contributed to a significant increase in KGP Ore Reserves to 1,201,000 ounces.
Executive Chairman Mark Clark said inhouse open-pit optimisations helped to target the drilling areas that would likely result in increased Ore Reserves through conversion of Inferred resources to Indicated.
Mr Clark said the KGP JORC compliant Ore Reserves estimate has now been updated to 43.5 million tonnes at 0.9g/t gold for 1,201,000 ounces compared with the May 2018 estimate of 27.6 million tonnes at 1.0g/t gold for 892,000 ounces.
Other positives from the reserves update include:
- The project’s stripping ratio (waste:ore) has reduced significantly from 4.8 to 3.6.
- Expected project life increases from nine years to 12 years.
The increase in the Karlawinda gold Ore Reserve to 1,201,000 ounces confirms the project as a standout new fully funded greenfield development project in the Western Australian gold industry,” Mr Clark said.
“It is a robust, high margin, long life and low technical risk project in arguably the best mining jurisdiction in the world.
“With construction of the project already underway, 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 A$ gold price.”
The Karlawinda Gold Project is located in the Pilbara region of Western Australia, 70km by road south-east of the town of Newman.
Karlawinda is an advanced gold project which includes the Bibra deposit and numerous outstanding exploration targets including the Francopan prospect. The Project covers a total area of approximately 1,419 sq. km.
