Capricorn Metals Ltd (ASX: CMM) has commenced a key 81,000m drill programme as it progresses its Mt Gibson Gold Project in Western Australia towards development.
The drilling is being carried out across eight kilometres of strike within the current 2.08 million ounce resource.
The objectives of this programme include:
• Infill drilling of resource to broadly bring the drill density to 25 x 25 metres;
• Test gaps between resource pit optimisation shells along the eight kilometres of strike of current resources; and
• Test for extensions of gold mineralisation below the current resource shells.
Drilling has commenced with one RC drill rig and is expected to ramp up to three rigs over the next two months. The programme is expected to take in the order of four to six months to complete at a cost of approximately A$10 million.
Results of this programme (and any extensions to it) will be used as the basis for a resource update and a maiden Ore Reserve Estimate in 2022.
Outlook
The current extensive resource drilling programme will underpin an update to the MRE targeted for the September 2022 quarter.
Other technical studies will be advanced in parallel with the drilling with a view to having completed sufficient technical work to allow the estimation of a maiden Ore Reserve Estimate, also in the September 2022 quarter.
Executive Chairman Mark Clark says it is expected that the Ore Reserve and technical studies will facilitate completion of a Feasibility Study and a decision on the development of the project in the December 2022 quarter.
“The commencement of the major drill programme in and around the current two million ounce Mt Gibson gold resource is the first step towards Capricorn’s goal of developing a gold mining operation at the project,” Mr Clark said.
“We look forward to estimating a maiden Ore Reserve and completing a feasibility study to underpin a development decision in the second half of 2022.
“With Karlawinda now fully operational, we have a clear focus on expediting development of Capricorn’s second Western Australian mining operation.”
MGGP Opportunity
The combined area of the granted tenure at MGGP covers approximately 213 square kilometres and in excess of 15 kilometres of strike on the gold bearing Retaliation Greenstone Belt, in the SW portion of the Yalgoo-Singleton Greenstone Belt.
The MGGP has been the subject of approximately 660,000 metres of exploration and operations drilling, of which less than 5% is deeper than 150 metres below surface.
The deepest open pit at the MGGP finished only approximately 100 metres below surface while the average depth of mining is between 60 – 80 metres below surface.
The gold price in 1999 when the mining operations ceased was in the order of A$450 per ounce (compared to current price of circa A$2,500/oz).
Mr Clark said that in addition to the resource expansion potential at the project there is also a significant broader exploration opportunity on the tenure package.
The parallel (immediately west) structure to the Mt Gibson Mine Trend and the Highway/McDonalds area located five km north of the current resources have been identified as significant immediate exploration targets.
Significant opportunities for Capricorn at MGGP include:
1: The resource estimate extends over a length of eight kilometres to an average depth of 140 metres and maximum depth of 220 metres below surface.
There are significant drillhole data gaps between areas of the resource optimisation shells along the length of the resource strike. There are also numerous targets (derived from both deeper historical drill results and from geological interpretations) below the depth limits of the current resource.
2) Although the density of drilling in the resource is very good, (ranging from 25m x 25m to 50m x 25m) the resource is currently all classified in the Inferred category until database validation drilling is completed in the planned programme;
3) The deposit is open along strike both to the north and south of current resource shells; and
4) Known gold occurrences have also been identified elsewhere on the granted tenure outside the immediate current resource areas.
Capricorn has planned extensive drill programmes for both resource development and first pass exploration.
