ASX-listed Capricorn Metals has delivered another strong quarter of operations at the Karlawinda gold project, in Western Australia, in the quarter ended December 31, 2025.

The mine produced 30 476 oz of gold, in line with the 2026 financial year mine plan.

This compares with the 32 318 oz produced in the prior quarter.

In the year to date, Karlawinda produced 62 794 oz of gold, which sets it on track to achieve the upper end of guidance for the full-year – between 115 000 oz and 125 000 oz.

Capricorn confirms it achieved a recovery rate of 89.9% in the quarter under review, compared with a recovery rate of 90.3% in the quarter ended September 30, 2025.

The company explains that continued achievement of the post expansion mining run rate allowed Karlawinda to deliver strong quarterly gold production and meet the development requirements of the Karlawinda Expansion Project (KEP).

“The mining fleet achieved the planned pit face positions to achieve budget gold production, while also delivering the required pre-stripping and infrastructure materials for the expansion project. Mining production rates have continued at the expanded project run rate for the KEP for the last three quarters,” the company confirms.

At the end of December, the company had cash and gold on hand of $444-million, compared with a balance of $394-million at the end of the September quarter.

The cash build for the quarter was $88.8-million before total capital expenditure of $39-million at the KEP and the Mt Gibson project, where the company is developing its second Western Australia-based gold mine.

Capital spend for the quarter at KEP, with on-site construction fully under way, totalled $36.1-million. This included engineering and design, equipment procurement, civil, concrete, piping and tank construction activities and pre-production mining.

Following the approval of Karlawinda’s mining proposal and mine closure plan by the Department of Energy, Mines, Industry Regulation and Safety in July 2025, development activities have advanced materially on site, with progress including completed bulk earthworks and 95% completion of the process plant design scope.

Capricorn explains that a jaw crusher and several other equipment packages were delivered to site in the reporting quarter. The site’s ball mill delivery is scheduled to arrive at site in early in the quarter ending June 30, ahead of commissioning starting in the quarter thereafter.  

The capital spend on development activities at Mt Gibson for the quarter was $2.9-million, which was mainly focussed on finalising detailed design, early procurement activities and contract preparations.

This early spend of part of the Mt Gibson capital budget is a strategic decision to compress the ultimate construction timeline, Capricorn states.

At this site, Capricorn’s contractor has started with early works mine design and planning activities as well as process plant design scope.

The company is in the process of garnering environmental approvals for Mt Gibson.