The ore reserve estimate for Capricorn Metals’ Mt Gibson gold project in the Murchison region of Western Australia has been increased by 41 per cent, or 758,000 ounces (oz).
The Mt Gibson ore reserve now stands at 89.8 million tonnes at 0.9 grams per tonne (g/t) of gold for 2.59 million ounces (Moz) of gold.
The updated ore reserve estimate remains shallow with an average depth of 180m, a maximum depth of 310m and operating strip ratio of 4.8.
Capricorn has also updated its Mt Gibson pre-feasibility study, which was originally released in April 2023. The study now estimates that Mt Gibson will have a 17-year mine life, an average annual production of 150,000 ounces for the first 15 years of production, and another two years of processing low grade stockpiles.
The study also estimates the asset will generate $3.6 billion in operating cashflow over its 17-year mine life.
“The increase in the Mt Gibson gold reserve to 2.59 million ounces confirms the project as a transformative and fully funded second mine for Capricorn,” Capricorn executive chairman Mark Clark said.
“It is clearly one of the most compelling development projects in the Australian gold industry. We are excited that there is still significant further growth potential for the resource and reserve as drilling continues at pace at modest depths and we see an emerging underground opportunity.”
Capricorn’s group gold reserves now sit at over 4Moz. The company is expected to update the Mt Gibson ore reserve again in mid-2025 to reflect ongoing drilling of the open pit deposits and potential underground drilling.
“We believe Mt Gibson will become a high-quality operation for Capricorn and to this end we are doing the work to be in the best possible position to expedite development of the project on completion of the permitting process,” Clark said.
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