Join our daily newsletter At The Bell to receive exclusive market insights
Capricorn Metals (ASX:CMM) has pounced on the Mummaloo project that neighbours its Mount Gibson gold dig, fronting up $3.5 million to acquire the Western Australian prospect and its assets from Top Iron by February.
The Mummaloo project, which stretches 219 square kilometres through the Murchison region, is considered “highly prospective for gold mineralisation.”
In fact, Capricorn has already dialled in on four target zones where it will now explore.
Between these four, one just six kilometres northeast of Capricorn’s current Mt Gibson worksite has been identified as the highest priority. The remaining three – and any future pickups – will then be next cabs off the rank.
There will be future pickups too, Capricorn promised today: The company has been pouring over early data that suggests there are “geographical settings favourable for shear-hosted and intrusion-related mineralisation.”
These include identified gold occurrences near magnetic corridors.
With so many big ticks, the company can’t help but be happy with its $3.5M buy – and that was certainly the tone in Friday’s early morning market update.
“The acquisition of the Mummaloo project significantly expands Capricorn’s Mt Gibson exploration footprint and adds highly prospective targets analogous and proximal to the company’s resources,” chairman Mark Clark lauded.
“This provides [us] with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation.”
The company plans to start active exploration quite quickly, Capricorn’s chairman added.
The whole deal cost Capricorn $100,000 upfront; the other $3.4M is still to pay.
This acquisition seems to be a play the WA company is happy to run out several times; it picked up Deadman Flat from Peregrine Gold (ASX:PGD) for $1.5 million a little over a week ago. That deal will close in February too.
Before that, the booming gold miner temporarily paused trading in November 2024 to bank $200 million in a “strongly supported” $6-per-share placement.
CMM shares have been $7.62 at open, down 0.13% already.
Join the discussion. See what HotCopper users are saying about Capricorn Metals and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
