Capricorn Metals Gets Board Approval for Expansion of Karlawinda Gold Project

Major Expansion to Increase Gold Output and Processing Capacity

Capricorn Metals has approved a major Karlawinda Gold Expansion at its Karlawinda Gold Project (KGP) in Pilbara, Western Australia. The expansion adds a three-stage crushing and ball mill circuit, boosting the total processing capacity from 4Mtpa to 6.5Mtpa. This move, costing A$120 million ($78.6 million), promises a 49% internal rate of return (IRR) and a rapid payback period of just 20 months.

Production Growth and Long-Term Value

Since 2021, KGP has produced over 375,000 ounces of gold, generating more than A$500 million ($327.7 million) in operating cash flow. The expanded operation will add an expected 150,000 ounces of gold annually. This Karlawinda Gold Expansion is set to increase the overall production and output. Additionally, the company plans to extend the mine’s life by up to 10 years, thanks to a rise in ore reserves to 1.43 million ounces.

Phased Expansion and Infrastructure Plans

The Karlawinda Gold Expansion will roll out in phases, starting with permitting, engineering, and procurement to finish by Q4 FY25. Construction will begin shortly after, and the new facilities should be operational by Q4 FY26. The project will include expanded accommodations for the growing workforce and a new tailings storage facility (TSF) to manage increased output, utilizing displaced waste from the nearby Berwick deposit.

Environmental and Regulatory Approvals Underway

Capricorn Metals is well aware of the environmental approval requirements and plans to submit applications soon for the Karlawinda Gold Expansion. The expansion is confined within the boundaries of existing mining leases, minimizing any impact. The company anticipates a smooth regulatory process as it seeks the necessary approvals.

Executive Team’s Optimistic Outlook

Mark Clark, Executive Chairman, emphasized the simplicity and efficiency of the operation. He believes this Karlawinda Gold Expansion will maximize returns and extend KGP’s profitability for years. With continued drilling and enhanced reserves, the company aims to ensure long-term success at the project.