The Mt Gibson Gold Project – Orion Pit. Image credit: Capricorn Metals Ltd.
Capricorn Metals Ltd has announced the execution and completion of two separate binding agreements (Acquisition Agreements) to acquire the Mt Gibson Gold Project (MGGP).
The Mt Gibson Gold Project (MGGP) is located roughly 280 kilometres northeast of Perth and less than 10 kilometres from the main arterial Great Northern Highway, in the Murchison region of Western Australia.
Gold production at the MGGP occurred between 1986 and 1999, when the project was placed on care and maintenance. It produced more than 868,000 ounces during this period.
Capricorn notes that no significant gold-focused exploration has been conducted at the MGGP since the late 1990s. However, there is strong exploration potential both between, below and along strike of current resources.
Pursuant to the Acquisition Agreement with Avenger Projects Ltd, Capricorn has acquired all of the shares in Crimson Metals Pty Ltd (Crimson), the holder of applications for exploration and prospecting licenses over the majority of the MGGP area pursuant to its priority rights under section 100 of the Mining Act 1978 (WA).
Additionally, pursuant to the Acquisition Agreement with Extension Hill Pty Ltd, Capricorn via its 100 per cent owned subsidiary, Metrovex Pty Ltd, has acquired various mining tenure, mining information, infrastructure and improvements from Extension Hill.
Capricorn Executive Chairman, Mark Clark, said the purchase of the Mt Gibson Gold Project is an outstanding opportunity for Capricorn to grow beyond the now operational Karlawinda project.
“The project has a proven gold endowment, is located in the world-class mining jurisdiction of WA and has been subject to very limited modern exploration. There is every reason to be optimistic about the opportunity with last gold production over 30 years ago from very shallow open pits when the gold price was around A$450 per ounce. We look forward to undertaking an extensive drilling programme to infill and significantly extend the shallow drilling depths to allow an update to the current 2.1 million ounce resource,” Mr Clark said.
The key terms and conditions of the Acquisition Agreements are outlined on page 12 of Capricorn’s announcement here.