Capricorn Metals has continued its project buying spree, striking its seventh deal this year in a move to acquire land north of its Mt Gibson project for $1.5 million.
Capricorn Metals has continued its project buying spree, striking its seventh deal this year in a move to acquire land north of its Mt Gibson project in the Murchison region for $1.5 million.
The cash and scrip deal with Albion Resources will give Capricorn the 113 square kilometre Mongers Lake project, where Capricorn has identified a number of gold targets.
Mongers Lake sits north of Capricorn’s Mt Gibson gold project, where the goldminer is bullish on the prospects of establishing a significant gold mine in the Murchison region.
Capricorn’s executive director Mark Clark said the company intended to hit the ground running at Mongers Lake.
“The acquisition of the Mongers Lake project continues the expansion of Capricorn’s Mt Gibson exploration footprint and adds highly prospective targets very close to the company’s current Mt Gibson resources,” he said.
“This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation.
“We look forward to commencing active exploration on the project in 2025.”
Capricorn already produces gold at its Karlawinda project and plans to develop Mt Gibson in the years ahead.
It has been on a significant accretive streak in a bid to grow its regional gold ounces near the future mine, which has an ore reserve of 2.59 million ounces.
The largest bid was Capricorn’s $188 million move for Warriedar Resources, which is in progress and has been recommended by the board of the smaller company.
See the full list below.
At the same time Capricorn - like many cashed-up goldminers riding high on record margins - has plans to boost the output of its Karlawinda gold mine, through an investment of around $120 million which received a regulatory tick earlier this week.
The company raised $200 million in support of the Karlawinda expansion and Mt Gibson’s accelerated exploration in November last year.
It produced 117,076 ounces of gold from Karlawinda last financial year, at the upper end of its 110,000-120,000oz production guidance, and ended the quarter with $356 million in cash and bullion on hand.
Capricorn shares were trading 2 per cent lower at 10.30am, at $8.94.
