Name of the Project
Karlawinda gold project.

Location
The project is located near Newman, in the Pilbara region of Western Australia.

Client
Capricorn Metals.

Project Description
A feasibility study on Karlawinda has outlined a technically and financially robust project.

The project has proven and probable reserves of 21-million tonnes grading 1.06 g/t gold, and a mineral resource of 38.3-million tonnes grading 1.1g/t gold.

The project is based on openpit mining from a large multistage openpit, using contract grade-control drilling, contract drill-and-blast and the owner operator load-and-haul method. 

Ore will be treated through a three-million-tonne-year processing plant using standard off-the-shelf processing technology, including single-stage crushing, autogenous/semiautogenous ball, mill, crushing, grinding and gravity recovery, along with conventional cyanide leaching and recovery (carbon-in-leach).

The project has an estimated mine life of 6.5 years, with LoM gold production estimated at 660 955 oz.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$146.3-million and an internal rate of return of 31%, with an estimated post-tax payback within three years of first production.

Value
The cost of the processing plant and associated infrastructure is estimated at A$133.3-million, including contingency.

Duration
Construction is expected to take about 64 weeks.

Capricorn is targeting first gold production from Karlawinda in the June 2019 quarter.

Latest Developments
Capricorn Metals has approved the feasibility study and the start of development activities.

Subject to the completion of suitable financing arrangements, it is expected that the project will proceed to construction early in the second quarter of 2018.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Capricorn Metals, tel +61 8 9212 4600, fax +61 8 9212 4699 or email enquiries@capmet.com.au.