Capricorn Metals Gets Board Approval for Expansion of Karlawinda Gold Project

Project Expansion: Increased Capacity and Output
Capricorn Metals has received board approval for the expansion of its Karlawinda gold project (KGP), located in the Pilbara region of Western Australia. The expansion will see the addition of a three-stage crushing and ball mill circuit with a capacity of 2.5 million tonnes per annum (Mtpa), increasing the total processing capacity to 6.5Mtpa. The expansion is expected to cost A$120 million ($78.6 million) with a payback period of just 20 months, providing a projected internal rate of return (IRR) of 49%.

Gold Production and Project Economics
The Karlawinda project, which began production in June 2021, has already produced over 375,000 ounces of gold, generating more than A$500 million ($327.7 million) in operating cash flow. The expanded facility is expected to deliver an annual output of approximately 150,000 ounces of gold, strengthening the project’s financial position. Capricorn Metals aims to extend the mine life to 10 years with this expansion, supported by the recent increase in ore reserves to 1.43 million ounces.

Phased Expansion and Infrastructure Development
The expansion will be executed in phases, with permitting, engineering, and procurement set to be completed by the end of Q4 FY25. A 12-month construction phase will follow, with the expanded facility expected to be operational by Q4 FY26. Additional infrastructure upgrades include expanded accommodation facilities to support the growing workforce, and a new tailings storage facility (TSF) to manage the increased output, utilizing displaced waste material from the nearby Berwick deposit.

Environmental and Regulatory Approvals
Capricorn Metals has indicated that the environmental approval requirements for the expansion are well understood. The company is preparing to submit applications to the relevant regulatory bodies, and the expansion will take place within the boundaries of its current mining leases.

Statement from the Executive Team
Mark Clark, Executive Chairman of Capricorn Metals, emphasized the simplicity and quality of the operation and noted that the expansion will allow the company to continue maximizing returns. He expressed confidence that the KGP expansion would generate long-term, industry-leading cash flows. Capricorn’s strong technical team, combined with targeted resource drilling, will continue to enhance the mine’s reserves and extend its life.