Capricorn expands Karlawinda gold project

Capricorn Metals has acquired the Deadman flat project, which adds around 270km² of prospective tenements to its Karlawinda gold project (KGP) in Western Australia.

The transaction with Peregrine Gold will consolidate Capricorn’s holding in the Pilbara Craton greenstones near the Pilbara-Yilgarn Craton margin, a region identified as highly prospective for gold deposits.

The acquisition takes Capricorn’s total KGP tenement area to 4000km².

Under the agreement, Capricorn will pay Peregrine $1.5 million through the issue of Capricorn shares, with additional royalties of one per cent on precious minerals and 1.5 per cent on non-precious minerals.

“The acquisition of the Deadman Flat project expands the Karlawinda gold project exploration footprint and completes the consolidation of the highly prospective southern margin of the Sylvania Inlier, including tenements directly along the strike of the company’s Central Zone prospect,” Capricorn executive chair Mark Clark said.

“This provides Capricorn with an outstanding exploration opportunity with a view to finding meaningful additional ore sources for the Karlawinda operation.”

The Deadman Flat gold prospect has been historically mined through alluvial and hardrock workings, dating back to the 1930s.

Preliminary studies have identified similarities between the project’s geology and Capricorn’s Central Zone prospect, where significant gold mineralisation has been discovered.

Capricorn plans to begin exploration activities in in the third quarter of this year, including high-resolution airborne gravity surveys, geological mapping, and geochemical sampling.

Its aim is to identify high-priority drill targets for the 2026 financial year.

The acquisition builds on Capricorn’s strategy of leveraging the geological potential of the Pilbara Craton, with a focus on finding additional ore sources to support the Karlawinda operation, which already boasts a +2Moz Bibra gold deposit.