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Highlights
- Capricorn Metals extends key mining contract for Karlawinda Project
- Preferred contractor named for Mt Gibson development
- Operational scale-up aimed at 150,000 oz annual gold output
Capricorn Metals (ASX:CMM), a leading Australian gold producer and a constituent of the ASX200, is accelerating its project development in Western Australia with strategic contract extensions and contractor appointments. These moves reinforce the company’s commitment to long-term production goals and capitalise on a favourable resource environment.
Karlawinda Contract Extension Boosts Expansion Vision
Capricorn has extended its mining contract for the Karlawinda Gold Project (KGP) for another five years. This extension solidifies operational continuity and includes an option for further renewal. Under the updated agreement, existing unit rate pricing is maintained while accommodating a larger mining fleet to support higher output levels.
The fleet expansion aligns with the Karlawinda Expansion Project (KEP), which aims to process 6.5 million tonnes of ore annually and generate approximately 150,000 ounces of gold per year. The upgraded fleet has already commenced early stripping works to maintain consistent ore feed and ensure smoother production ramps.
Mt Gibson Gains Momentum with Preferred Contractor Appointment
Capricorn has also named MACA as the preferred mining contractor for its Mt Gibson Gold Project. This early appointment streamlines future development, allowing for swift mobilisation once regulatory approvals are finalised. The move also helps mitigate risks associated with equipment delays and service scalability.
The contractor selection was based on unit cost rates aligned with Capricorn’s reserve model assumptions, which the company views as a strong endorsement of Mt Gibson’s economic feasibility.
Operational Outlook and Market Presence
With a market capitalisation of $4.39 billion, Capricorn Metals is expanding its footprint across the Pilbara and Mid-West regions of Western Australia. By securing experienced service providers and scaling production, Capricorn positions itself strategically for sustained output and shareholder value creation.
Executive Chairman Mark Clark highlighted that the expansion not only increases capacity but also strengthens the economic framework for future operations. The company’s proactive moves also reflect a broader trend of resource companies optimising operations amid rising inclusion and visibility within the ASX200 index.
