- Capricorn Metals (CMM) has begun the commissioning phase for its Karlawinda Gold Project (KGP) in Western Australia
- The company is targeting an annual production rate of between 110,000 and 125,000 ounces of gold
- A number of critical components, including the 40-kilometre gas pipeline, tailings storage facility and 7.5-megawatt ball mill have been constructed, fully installed and are now operational
- Capricorn has also fully recruited the workforce and most have already mobilised to the site to help with the hand over from construction teams
- This month Capricorn Metals is focused on crushing and milling activities and, if all goes to plan, first production is expected by the end of this month
- Company shares are up 3.15 per cent and are trading at $1.97
Capricorn Metals (CMM) has commenced the commissioning phase as part of developing its Karlawinda Gold Project (KGP) in Western Australia.
Capricorn acquired the KGP in 2016. Since then it has drilled 147,000 metres and increased the resource by a whopping 329 per cent to 2.145 million ounces of gold.
Of the three deposits that make up the mineral resource estimate, the Bibra deposit is the largest — contributing about 1.62 million ounces of gold. The deposit also has an ore reserve of 43.5 million tonnes at 0.9g/t for 1.2 million ounces of gold.
Capricorn’s plan for the KGP is to produce between 110,000 and 125,000 ounces of gold per year from mid-2021.
“The commencement of commissioning at the Karlawinda Gold Project is an exciting time for Capricorn,” Executive Chairman Mark Clark said.
So far, Capricorn has completed about 45,000 metres of grade control drilling at the Bibra open pit which delineated more than four million tonnes of ore.
Other critical activities that have been completed to date include the construction of the 40-kilometre gas pipeline and delivery station — both of which are now operational.
Additional components that are now operational include the borefield for process water supply which is now ready to begin filling carbon-in-leach (CIL) tanks, and the 18-megawatt gas-fired power station which has now begun electrification.
The tailings storage facility is fully constructed and ready for tailing discharge and the 7.5-megawatt ball mill is installed with commissioning of the variable speed drive motor now underway.
Capricorn has completed recruiting the workforce, with most already mobilised to the site to help with the commissioning phase and hand over from construction teams.
Importantly, more than 250,000 tonnes of ore on the run-of-mine is ready to be processed.
“Our construction team and key contractors have done a great job to get the project to commissioning on time and budget against the significant headwinds of COVID-19, adverse weather and skilled labour shortages,” Mr Clark said.
This month will be crucial in preparing for gold production with crusing and milling activities to commence shortly. This work will allow for the loading of gold in circuit (GIC) and once GIC loadings are sufficient to allow efficient stripping of the circuit stocks, first gold production can begin by the end of June.
The expected total capital costs remains within the guidance range of $165 million and $170 million.
Company shares are up 3.15 per cent and are trading at $1.97 at 11:57 am AEST.