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- Capricorn reports eight shifts lost to rain this year
- The weather has prevented access to high grade ore in Karlawinda’s open pit
- Production expected to reach only 26,000 ounces in the March quarter of 2024
- Capricorn is trading at $5.21
For the second time this year, gold producer Capricorn Metals (ASX:CMM) has announced a drop in mining shifts caused by rainfall at its Karlawinda Gold Project near Newman in Western Australia.
More than 150 milimetres of rain in recent days has prompted a closedown in open pit mining at the project following an earlier stoppage in January.
While Karlawinda’s processing plant has not been affected by the rainfall, it has prevented further work on higher grade ore blocks in the open pit, the company reported on Monday.
Treatment of lower grade stockpiles will instead be the focus now for geotechs on-site until conditions improve.
Rainfall is ultimately expected to cause a drop in Capricorn’s gold production for the March 2024 quarter, anticipated to reach 26,000 ounces.
Production for the financial year is expected to be between 115,000 and 125,000 ounces of gold overall, with Capricorn guiding expectations towards the bottom end of this range.
Karlawinda produced 60,099 ounces of gold for Capricorn in the first half of the 2024 financial year.
Costs for the project will still be within the predicted margins, between $1,270 and $1,370 per ounce for the financial year, following costs of $1,324 per ounce for the first half.
Capricorn is trading at $5.21.
