Code CMM Source ASX

The Karlawinda gold project is in Western Australia, located 65 km southeast of the town of Newman. The project area is close to key infrastructure and mining support services. In April 2017, total Resources (JORC 2012) for the project were estimated at:

 31 million tonnes @ 1.1g/t Au for 1,114,000 ounces of gold

Gold mineralisation at the Francopan Prospect was originally discovered by WMC Resources Ltd in 2005. The project was subsequently acquired by Independence Group (IGO) in 2008 resulting in the discovery of the significant Bibra Gold Deposit in 2009.

Figure 1: Karlawinda Gold Project Tenement Location Map. Granted Mining Lease shown in green outline.

At the time of acquisition of Karlawinda from IGO by Capricorn, approximately A$12 million had been spent on regional exploration, resource evaluation and prefeasibility activities.
Subsequent work by Capricorn in 2016 included over 80,000m of RC and Diamond drilling at the Bibra Deposit and the completion of a Scoping Study in July 2016.

A Definitive Feasibility Study (DFS) on development of the Bibra deposit is due for completion in the September Quarter 2017. The study is based on a single large open pit deposit feeding a 3Mtpa CIL processing plant, producing approximately 100,000ozpa over an initial mine life of up to eight years.

Importantly, a Native Title Access Agreement was signed in November 2016, followed immediately by the grant of Mining Lease M52/1070.

The Bibra deposit is hosted within a thick, shallow-dipping gold mineralised structure which is amenable to low-cost open pit mining with mineralisation starting close to the surface. The deposit remains open in down-plunge positions and potential exists for strike extensions and stacked mineralised lodes

Figure 2: Bibra Gold Deposit – Resource Block Model (Blue: $A1750 optimal pit shell, Brown: Laterite resource, Yellow: Saprolite and Fresh resource)

Bibra is part of a large-scale Archaean aged gold mineralized system. The resource is hosted within a package of deformed volcanic and meta-sedimentary rocks, mineralisation has developed on at least two parallel, shallow dipping structures; supergene laterite and oxide mineralization has developed over the structures close to surface.

The deposit is oxidized to average depths of 50-70m. Significantly, a gold-enriched, horizontal laterite zone lies within 15m of surface, containing 1.54 million tonnes @ 1.4 g/t Au for 67,600oz (within the abovementioned 1,114,000 oz resource). The shallow dipping (25-30 degrees from horizontal) nature of mineralisation is amenable to efficient open-pit mining and relatively low waste: ore stripping ratios.

Figure 3 : Bibra Cross Section 200100mN

Bibra Resources

In April 2017, an update of the previous (July 2016) JORC 2012 Resource estimate for Bibra was undertaken.


Table 1 Bibra Gold Deposit JORC Open Pit Resources Estimate - As of April 2017Table 2 Bibra Gold Deposit JORC Open Pit Resources Estimate By Domain- As of April 2017

Notes on the April 2017 Mineral Resource Estimate:
  1. Refer to ASX anouncement of 10/04/2017 full details.
  2. Discrepancy in summation may occur due to rounding.
  3. The mineralisation has been wireframe modelled using a 0.3g/t Au assay cut-off grade. The resource estimate has been reported above a block grade of 0.5g/t Au.
  4. The resource has been constrained by a A$1750/ounce conceptual optimal pit shell.
  5. Ordinary kriging was used for grade estimation utilising Surpac software v6.6.2.
  6. Grade estimation was constrained to blocks within each of the mineralised wireframes.
  7. See ASX announcement dated 4th July 2016 for Inferred Resource announcement.

Regional Exploration Potential

The Karlawinda Project remains largely unexplored. Since the discovery of the Bibra Deposit the focus has largely been on detailed assessment of that resource. Outside of Bibra and the original Francopan discovery (81m @ 1.2 g/t Au) regional exploration remains at an early stage and is limited to wide spaced aircore drilling, surface geochemistry and programs of geophysics.

Figure 9: Francopan Prospect Interpreted Geological Cross Section
Figure 4: Francopan Prospect Interpreted Geological Cross Section