Name of the Project
Karlawinda gold project.

Location
The project is located in the Pilbara, in Western Australia.

Client
Capricorn Metals.

Project Description
An optimisation study on Karlawinda has resulted in significant improvements to the economic parameters of the project.

The project has mineral reserves of 28-million tonnes grading 1 g/t gold.

The ore reserve is contained in an updated measured and indicated resource of 45-million tonnes grading 1 g/t gold.

The life-of-mine (LoM) has increased to 8.5 years in the optimisation study, compared with 6.5 years in the June 2017 feasibility study. LoM gold production has also increased 25% from 660 955 oz to 823 000 oz.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from A$144-million to $243-million, at an 8% discount rate, while the internal rate of return has increased from 31% to 36%.

Project payback has, meanwhile, decreased from 3.1 years to 2.5 years.

Value
Capital costs have decreased from A$146.3-million in the October 2017 feasibility study to A$132-million in the optimisation study.

Duration
Not stated.

Latest Developments
Capricorn Metals has secured a A$107-million funding package to develop its Karlawinda gold project.

The project finance facility, secured from Macquarie Bank, includes a senior project finance facility of A$81-million, a bank guarantee facility of A$19-million, and a working capital facility of A$7-million.

Security for the facility is provided through a fixed and floating charge over the assets of Capricorn subsidiary Greenmount Resources. A hedging facility over 250 000 oz, over the five-and-a-half-year term of the loan, is also included in the transaction.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

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