Capricorn Metals (ASX:CMM) is set to increase its footprint across the Pilbara Craton greenstones in Western Australia by taking on the Deadman Flat project, which is contiguous to its Karlawinda gold project.
The company has agreed to acquire Deadman Flat from Peregrine Gold Ltd (ASX:PGD), whose tenements stretch around 270 square kilometres on the southern extent of Capricorn’s current tenure.
The geology of Deadman’s project area is enticing; close to the Sylvania Inlier and Pilbara/Yilgarn Craton margin, a zone that is considered a high-strain zone with high prospectivity for gold mineralising fluids with origins from igneous intrusions.
Capricorn’s current exploration focus is on the Bibra gold deposit and Central Zone prospect, both of which are interpreted to have a connection to this Craton Boundary. The latter has also been interpreted to play a future role in the placement of ore fluids in the two interesting areas.
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Deadman Flat – the focus of mining through alluvial and hardrock workings since the 1930s – is also a welcome addition to the company’s portfolio.
Capricorn’s acquisition was made through a transaction consideration of $1.5 million, which it will settle through the issue to Peregrine of fully paid ordinary Capricorn shares upon completion.
Additionally, the company will make contingent deferred payments of $750,000 – on the announcement of a JORC-compliant mineral resource estimate (MRE) in excess of 200,000 ounces of gold, and another $750,000 upon the announcement by Capricorn of a board decision to commence a stand-alone commercial mining operation on the Deadman Flat Project tenements.
The acquisition is set for completion in February.
Capricorn is trading at $7.50.
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