Name of the Project
Karlawinda gold project (KGP) expansion.

Location
Pilbara region of Western Australia.

Project Owner/s
Gold exploration and development company Capricorn Metals.

Project Description
The expansion will incorporate the installation of a new three-stage crushing and ball mill circuit to increase processing capacity to 6.5-million tonnes a year. 

The average gold production from the expanded KGP is expected to be about 150 000 oz/y over a ten-year mine life.

The expansion will also include the construction of additional accommodation capacity, which will maximise productivity during the plant construction phase and facilitate the additional personnel requirements of long-term operations. 

The installation of a new tailings storage facility (TSF), using displaced waste material from the adjacent Berwick deposit, will meet the increased project deposition requirements.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an internal rate of return of 49%.

Capital Expenditure
$120-million, with a 20-month payback.

Planned Start/End Date
The project was approved in October 2024. Construction of the expanded plant is scheduled for the fourth quarter of 2026.

Latest Developments
The KGP 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.

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

The performance of the mining fleet enabled achievement of planned pit face positions and advance prestripping ahead of the expansion project.

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

Development activities have also advanced, 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 is continuing, with $4.1-million spent during the quarter. Construction has been largely completed.

Moreover, the process plant design scope has advanced to about 60% completion and procurement works of critical path items are continuing. Construction equipment, conveyors and pump packages have been committed, with a spend of $4.2-million.

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

Key Contracts, Suppliers and Consultants
Not disclosed.

Contact Details for Project Information
Capricorn Metals, tel +61 8 9212 4600 or email enquiries@capmet.com.au.