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Capricorn Metals is laying the groundwork for a significant expansion of its Western Australian gold operations as it pursues an ambitious target of producing 500,000 ounces annually within five years.
The company completed construction of the Karlawinda Expansion Project on schedule and within budget during the September quarter, achieving its targeted steady-state processing throughput of 6.5 million tonnes per annum.
The expanded operation is expected to lift annual gold production from approximately 120,000 ounces to 150,000 ounces, with Capricorn maintaining its 2026–27 financial year guidance of 137,000–147,000 ounces.
Karlawinda produced 31,218 ounces during the quarter, up from 30,437 ounces in the previous period, at an all-in sustaining cost of $2005 per ounce.
The operation generated $113.1 million in operating cash flow, while Capricorn finished September with $535 million in cash and gold holdings.
Attention is also turning towards the Mt Gibson Gold Project, where detailed engineering is complete and major contracts have been finalised, subject to outstanding approvals.
Capricorn has received federal environmental approval for Mt Gibson and is progressing the remaining Western Australian permitting requirements.
An updated pre-feasibility study outlined a 19.25-year mine life, with average annual production of approximately 260,900 ounces during four years of steady-state operations.
Together, Karlawinda and Mt Gibson are expected to support a production run rate exceeding 400,000 ounces annually within 2.5 years of Mt Gibson commencing operations.
Capricorn is also investigating a second processing hub at Golden Range as part of its broader ‘Range 500’ growth strategy.
“Range 500 is an exciting opportunity for Capricorn to pursue given the significant growth already underway at Karlawinda and development ready at Mt Gibson,” Capricorn Metals executive chairman Mark Clark said in July.
“With the current medium-term gold production outlook for the combined business now over 400,000 ounces per annum, pursuing growth to 500,000 ounces per annum by optimising Mt Gibson and Golden Range is a significant value creation goal to pursue.
“Achieving this goal has the potential to lift Capricorn into a uniquely attractive position in the Australian mid-tier gold mining space.”
Preliminary study results are expected later in the December quarter, with a pre-feasibility study and final investment decision targeted for 2027.
Meanwhile, exploration at Mt Gibson continues to identify high-grade underground mineralisation, including a 6m intersection at 57.38 grams per tonne gold at Lexington.
The company expects to deliver a maiden underground mineral resource estimate for Lexington during the December quarter.
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