The expansion of the Karlawinda gold project (KGP) in the Pilbara region of Western Australia has been approved by Capricorn Metals Limited’s Board.
Capricorn Metals is targeting an annual gold production of 150,000 ounces of gold per year with this expansion. This rate is based on the Karlawinda gold project’s 10-year mine life as well as the asset’s ore reserve that currently sits at 1.43 million ounces at 0.8 grams per tonne.
The Karlawinda gold project expansion will include the installation of a new three-stage crushing and ball mill circuit to increase processing capacity to 6.5Mtpa. However, the increase in processing capacity will not require a significant increase in mining fleet or earthmoving volumes.
“The Board’s approval of KGP’s expansion reflects the quality and simplicity of the operation and the optionality that comes from increasing reserves and mine life with targeted resource drilling. Capricorn’s strong technical team have delivered an expansion study that will allow the Company to continue to maximise returns from the operation. KGP is a long-life, low-cost gold mine, and the strong financials associated with the expansion strengthen our belief that KGP will continue to generate industry-leading cash flows for years to come.
“The execution of the Karlawinda Expansion Project and development of Mount Gibson will see Capricorn enter the very limited space of companies having all Australian based gold production exceeding 300,000 ounces per annum and low-cost gold reserves in excess of three million ounces,” Capricorn Metals Limited Executive Chairman Mark Clark said.
Additional accommodation will also be delivered as part of the expansion to maximise productivity during the construction of the processing plant as well as facilitate the additional personnel requirements of the Karlawinda gold project’s long-term operations.
The expansion will also involve the installation of a new tailings storage facility and it will utilise displaced waste material from the adjacent Berwick deposit to meet the increased deposition requirements of the project.
Long lead procurement and detailed process plant engineering is already underway while environmental approval requirements are being prepared for submission to regulators.
The Karlawinda gold project expansion has a total capital investment of $120 million, which has a 20-month payback.
Construction of the processing plant is expected to be completed in the fourth quarter of the 2026 financial year.
The Karlawinda gold project is located in the Pilbara region, about 65 kilometres south-east of Newman.
Source: Capricorn Metals Limited (1, 2); Australian Mining; Creamer Media’s Mining Weekly