Capricorn eyes Mt Gibson move by year end
KALGOORLIE (miningweekly.com) – Gold miner Capricorn Metals hopes to complete a Definitive Feasibility Study (DFS) and make an investment decision on its Mt Gibson project in Western Australia by the end of the year .
Speaking on the sidelines of the Diggers and Dealers conference, Capricorn’s executive chairman Mark Clark said the decision to invest in Mt Gibson could be staged, but the company would be in a better position to move forward with the project, complete clearance applications and begin ordering long-lead items .
“We cannot sit idly by and wait forever. If we do the work, if we put ourselves in a position where we see what the costs are, we can move forward. Obviously, if the costs are not good, we can always take our time. We know that this project will grow, we know that there will still be a lot of drilling to do. But I would be surprised if the costs of the project had increased to the point of killing the project.
Capricorn launched an A$10 million 81,000m infill and resource extension drilling program at Mt Gibson in January to support an updated mineral resource estimate and a first ore reserve estimate. This work should facilitate the conduct of feasibility studies.
Mining operations at Mt Gibson ceased in 1999, and the project was placed on care and maintenance after producing some 799,600 ounces of gold. Following mine closure, an additional 68,868 ounces of gold were recovered from a four million tonne heap leach operation.
Clark said Monday that Capricorn is now looking for similar acquisition opportunities.
“We’re not going to do the obvious thing, because we’re trying to create value for our shareholders by being a little different, so we’re looking at things that are a little off the grid, things that might have an ownership structure different, or when the owner can’t find a way out,” Clark said.