Capricorn Metals has commenced its foundational drilling program at the Mt Gibson gold project in Western Australia.
It comes after Capricorn had its Mt Gibson mining tenure granted in December, comprising 24 exploration and prospecting licences across 213 square kilometres.
The 81,000-metre resource drill program will target 8 kilometres of strike of the 2.08-million-ounce resource, with objectives to complete infill and extensional drilling to understand the gold potential within and beyond the current gold resource.
Commencing with one drill rig, Capricorn aims to ramp up to three drill rigs over the next two months and the company expects the program to take 4-6 months to complete.
Capricorn will publish its exploration findings as part of an updated mineral resource estimate and maiden ore reserve estimate, which the company aims to release in the September 2022 quarter.
Capricorn executive chairman Mark Clark said commencing the drilling program is a critical milestone as Mt Gibson eyes first production.
“The commencement of the major drill program in and around the current two-million-ounce Mt Gibson gold resource is the first step towards Capricorn’s goal of developing a gold mining operation at the project,” he said.
“We look forward to estimating a maiden ore reserve and completing a feasibility study to underpin a development decision in the second half of 2022. With Karlawinda now fully operational, we have a clear focus on expediting development of Capricorn’s second Western Australian mining operation.”
Approximately 660,000 metres of exploration and drilling has occurred at Mt Gibson in the past, with less than 5 per cent of that deeper than 150 metres below the surface. Mining hasn’t occurred at Mt Gibson since 1999.
Capricorn acquired a full stake in Mt Gibson in July 2021, increasing the company’s total resources to 4.2 million ounces. Capricorn also owns the Karlawinda gold mine in Western Australia which has an estimate ore reserve of 1.2 million ounces.