Capricorn Metals has secured the Mummaloo project through a binding agreement with Top Iron, expanding its exploration footprint near the Mt Gibson gold project in Western Australia.
Mummaloo contains four key exploration targets that have already been found by Capricorn, with the highest-priority zone just 6km northeast of its current Mt Gibson gold project (MGGP) resources.
Covering approximately 219km2, the Mummaloo project is located north of the Mt Gibson project in the Murchison region and is considered highly prospective for gold mineralisation.
“The acquisition of the Mummaloo project significantly expands Capricorn’s Mt Gibson exploration footprint and adds highly prospective targets analogous and proximal to the company’s current Mt Gibson resources,” Capricorn executive chair Mark Clark said.
“This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation. We look forward to commencing active exploration on the project in 2025.”
The deal is valued at $3.5 million and will include an initial $100,000 cash deposit. The remaining balance is to be settled through the issuance of Capricorn shares to Top Iron.
Share consideration will be determined based on the five-day volume-weighted average price before completion, which is expected in February, pending procedural approvals.
In addition to the tenements, Capricorn will acquire physical assets such as camp and office facilities, small-scale crushing and screening equipment, ancillary equipment and light vehicles from Top Iron’s former magnetite mining operations.
While some assets are already in use by Capricorn’s exploration team, their long-term utility will be assessed.
Historically, gold exploration in the area has been largely limited to early-stage activities since the 1990s, but recent data highlights the project’s potential for near-surface satellite resources and significant gold discoveries.
Capricorn plans to commence on-ground exploration at Mummaloo in 2025, using a targeted approach to unlock its full resource potential.
The Mummaloo camp will also serve as overflow accommodation once Capricorn’s 400-room MGGP camp is operational.
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