Capricorn Metals’ board has approved the expansion of the Karlawinda gold project (KGP) in the Pilbara region of Western Australia.
The KGP expansion is targeting an annual gold production of 150,000 ounces (oz), a rate based on KGP’s 10-year mine life and the asset’s ore reserves currently sitting at 1.43 million ounces (Moz) at 0.8 grams per tonne (g/t).
The expansion will involve installing a new three-stage crushing and ball mill circuit to increase Karlawinda’s processing capacity to 6.5 million tonnes per annum and will not require a significant increase in mining fleet or earthmoving volumes.
It will also involve the construction of additional accommodation to maximise productivity during the plant construction phase and facilitate the additional personnel requirements of long-term operations, with Capricorn already working on long lead procurement and detailed process plant engineering.
Recent mine-to-mill studies have focused on the delivery of a run of mine (ROM) ore product to the processing plants, minimising ore stockpiling and re-handling throughout the life of mine and eliminating associated costs.
The KGP expansion will require $120 million in total capital investment with a 20-month payback period at $3300/oz, and Capricorn is expected to finish constructing the expanded plant by the fourth quarter of the 2025–26 financial year.
“The board’s approval of KGP’s expansion reflects the quality and simplicity of the operation and the optionality that comes from increasing reserves and mine life with targeted resource drilling,” Capricorn Metals executive chairman Mark Clark said.
“Capricorn’s strong technical team have delivered an expansion study that will allow the company to continue to maximise returns from the operation. KGP is a long-life, low-cost gold mine, and the strong financials associated with the expansion strengthen our belief that KGP will continue to generate industry-leading cash flows for years to come.
“The execution of the Karlawinda expansion project and development of Mount Gibson will see Capricorn enter the very limited space of companies having all Australian based gold production exceeding 300,000 ounces per annum and low-cost gold reserves in excess of three million ounces.”
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