Capricorn Metals extends Mt Gibson exploration footprint

Capricorn Metals (ASX:CMM) has entered a strategic agreement to add to its Mt Gibson and Golden Range projects in Western Australia, with plans to acquire the prospective Extension Hill and Mungada tenement package.

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The Extension Hill and Mungada tenement package in question is contiguous to Capricorn’s Mt Gibson and Golden Range tenures, north of the Mt Gibson gold project in Western Australia’s South Murchison region.

The projects cover around 60 square kilometres and are considered prospective for gold mineralisation, featuring several settings conducive to hosting economic deposits. Capricorn has already identified several target zones for exploration in the area.

“The acquisition of the Extension Hill and Mungada project tenure continues the expansion of Capricorn’s Mt Gibson exploration footprint and adds highly prospective targets contiguous with existing tenure,” Capricorn’s chairman, Mark Clark, said

“This [is] an outstanding exploration opportunity with a view to adding meaningful additional ore sources to MGGP and the region. We look forward to commencing active exploration on the project later this year.”

Capricorn is outlaying $1.5 million, comprised of an initial cash deposit of $100,000 – which has been paid – and $1.4 millionon completion to be satisfied by the issue of fully paid ordinary shares.

In addition, the company has agreed to make contingent deferred payments of $750,000 in cash upon the announcement by Capricorn of a mineral resource estimate in excess of 75,000 ounces of gold on the project tenure; a further $750,000 in cash upon a decision to commence commercial mining there.

Extension Hill and Mungada are located within the Yalgoo- Singleton Greenstone Belt, a region noted for its significant mineral discoveries. The package includes 15km of largely untested strike contiguous to Capricorn’s MGGP tenure.

“Capricorn will use a focused approach to fully understand and capitalise on the resource potential of the area,” Mr Clark said.

CMM is up +1.90% to $13.67. Mkt cap $6.121B.

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