ASX-listed Capricorn Metals’ Karlawinda gold project (KGP), in Western Australia, produced 32 216 oz of gold in the quarter ended June 30, taking gold production to 117 076 oz for the full financial year.

This result is at the upper end of the company’s full-year production guidance range of 110 000 oz to 120 000 oz.

All-in sustaining costs are also expected to be within the cost guidance range of $1 370/oz to $1 470/oz.

Ongoing mining productivity efforts supported the consistent quarterly increases in output throughout the year, Capricorn highlights.

It says the performance of the mining fleet enabled achievement of planned pit face positions and advance pre-stripping ahead of the expansion project.

Importantly, mining production rates met the requirement of the Karlawinda expansion project (KEP) ahead of schedule, reducing risks associated with the transition to the expanded project, Capricorn notes.

Full operational and cost details will be provided in the quarterly report later in the month.

The company’s cash and gold on hand at the end of the June quarter was $356.4-million, compared with $404.6-million in the March quarter.

Cash build was $62.5-million for the June quarter, compared with $57.6-million in the previous quarter, before total capital expenditure of $10.8-million at the Mt Gibson gold project (MGGP), in Western Australia, and the KEP; $50-million associated with the final hedge book closure; and a $50-million debt repayment.

The capital spend on development activities at MGGP for the quarter was $1.7-million, mainly focussed on detailed design and procurement activities.

To date, Capricorn has spent $36.2-million on early construction works.

This early spend of part of the MGGP capital budget is a strategic decision to compress the ultimate construction timeline, the company explains.

Development activities at the MGGP continued to be advanced in the period.

The 400-room accommodation village has been completed and handed over for the construction phase; evaluation work for the mining services agreement was completed and MACA, the incumbent contractor at Karlawinda, was awarded preferred contactor status; and the power supply contract evaluation continued.

Moreover, the process plant design scope was advanced to about 55% complete, with site layouts finalised and long-lead items such as the ball mill, crushers and screens committed.

Also, Capricorn submitted the final public environment report (PER) to the Department of Climate Change, Energy, the Environment and Water (DCCEEW). This follows previous receipt of guidelines for the PER and ongoing feedback on the document from DCCEEW. 

This submission starts the public exposure and final assessment process.

Development activities at the KEP were also advanced in the period, including extending the mining contract with MACA for a further five-year term, with Capricorn having the option of further extending the term.

Also, construction of the 120-room camp expansion to accommodate construction personnel continued, with $4.1-million spent during the quarter. Construction was largely complete in the period.

Moreover, the process plant design scope progressed to about 60% complete and procurement works of critical path items continued. Construction equipment, conveyors and pump packages were committed, with a spend of $4.2-million.

Further, early clearing and bulk earthworks associated with the project started; and engagement with the Department of Energy, Mines, Industry Regulation and Safety continued during the quarter in relation to the key approvals covered by the mining proposal and mine closure plans submitted for the KEP in the previous quarter.