Name of the Project
Karlawinda gold project.

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

Project Owner/s
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 decreased from 3.1 years to 2.5 years.

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

Planned Start/End Date
Construction is expected to start in the March quarter of 2020, with first gold production in the March quarter of 2021.

Latest Developments
Capricorn Metals has hedged 200 000 oz of gold from its Karlawinda mine at A$2 249/oz.

The hedging amount represents about two years of anticipated gold production from the current eight-and-a-half-year mine life, on the current ore reserve of 892 000 oz of gold.

Meanwhile, Capricorn has launched a A$65-million share placement to fund the development of Karlawinda.

The share placement will enable Capricorn to expedite optimisation of the development plans targeting the start of construction in 2020.

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.