Capricorn Metals has provided a quarterly production update for its Karlawinda gold project in the Pilbara region and the Mount Gibson gold project in the Murchison region of Western Australia.
During the December 2023 quarter, Karlawinda produced 30,399 ounces (oz) of gold. This is a 699oz increase from the September quarter, which brings production for the second half of the 2023–24 (FY24) year to 60,099oz.
The December production results position Capricorn to achieve the mid-point of its FY24 guidance of 115,000–125,000oz, with all in sustaining costs expected to be within the FY24 cost guidance range of $1270–$1370/oz.
“The company’s cash and gold on hand at the end of December 2023 was $160.1 million, an increase of $26.5 million from the prior quarter,” Capricorn said.
“The cash build of $26.5 million was achieved after the payment of $1.7 million for accommodation units at the Mount Gibson gold project.”
The gold producer announced last month that it had ordered 400 accommodation units and associated infrastructure buildings required for the Mount Gibson project, following Capricorn receiving regulatory approval to construct a new camp for the proposed mining operations.
The first units have now arrived on site and their installation is expected to begin in February.
Capricorn has also updated its mineral resource estimates for Karlawinda and Mount Gibson.
Mount Gibson’s MRE now stands at 120.8 million tonnes (Mt) at 0.8 grams per tonne (g/t) for 3.24 million ounces (moz), demonstrating an 18 per cent increase.
Karlawinda’s MRE is now 97.4Mt at 0.7g/t for 2.22moz, bringing Capricorn’s total MRE to 218.2moz at 0.8g/t for 5.47moz.
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