Capricorn Metals’ Resource Expansion Raises Questions on Underground Mining Viability
Capricorn Metals reports a 13% increase in Mineral Resources at its Mt Gibson Gold Project, highlighted by maiden underground resources and promising high-grade gold intercepts, alongside a strategic acquisition expanding its footprint in Western Australia.
- Mt Gibson Gold Project Mineral Resource Estimation increased by 507,000 ounces to 4.5 million ounces
- Maiden underground resources declared at Orion South (684,000 ounces) and Highway deposit (110,000 ounces)
- High-grade gold intercepts extend mineralisation depth and strike at Lexington and Orion deposits
- Acquisition of Ninghan Gold Project consolidates Capricorn’s tenure in the Yalgoo-Singleton Greenstone Belt
- Ongoing extensive drilling programs at Mt Gibson and Karlawinda projects with further resource upgrades planned
Significant Resource Growth at Mt Gibson
Capricorn Metals Ltd has announced a substantial 13% increase in its Mineral Resource Estimation (MRE) at the Mt Gibson Gold Project (MGGP), lifting the total to 4.5 million ounces of gold. This uplift is underpinned by a maiden underground resource at Orion South, adding 684,000 ounces, and a maiden resource of 110,000 ounces at the Highway deposit. These milestones mark a pivotal step in Capricorn’s strategy to expand its resource base and transition towards underground mining operations.
During the June quarter, Capricorn completed an intensive drilling campaign comprising 216 holes totaling nearly 48,000 metres. The program focused on resource extension, regional exploration, and mine development, yielding multiple high-grade gold intercepts both within and beyond the existing resource boundaries. Notably, diamond drilling at Orion has revealed broad, high-grade mineralisation extending well below the current pit designs, reinforcing the potential for an underground operation.
Emerging Underground Potential at Lexington and Orion
The Lexington deposit has emerged as a promising new target for underground mining, with diamond drilling extending the strike length and depth of high-grade mineralisation. Highlights include intercepts such as 7.31 metres at 15.66 grams per tonne gold and 2.36 metres at 25.49 grams per tonne, all outside the current resource shell. These results suggest a high-tenor, large-scale underground opportunity complementary to Orion South.
Orion’s expanded drilling program, now targeting 40,000 metres, continues to confirm mineralisation open in multiple directions, with significant intercepts like 13.5 metres at 5.29 grams per tonne and 6 metres at 8.37 grams per tonne gold. Capricorn plans to continue drilling with two diamond rigs into the next quarter, aiming to upgrade resource classifications and deliver further updates by mid-2026.
Highway Deposit and Regional Exploration Momentum
The Highway deposit, situated 6 kilometres northwest of the main Mt Gibson mine, has also delivered encouraging results. Drilling has confirmed widespread mineralisation in oxide zones and identified new parallel lodes extending into fresh rock. The maiden open pit resource at Highway stands at 3.93 million tonnes at 0.9 grams per tonne gold for 110,000 ounces, with mineralisation remaining open at depth and along strike.
Beyond Mt Gibson, Capricorn’s regional exploration efforts at the Aries and Big Whiskey prospects have yielded significant gold intercepts, including 12 metres at 9.12 grams per tonne. These findings, alongside the acquisition of the Ninghan Gold Project contiguous to MGGP tenure, consolidate Capricorn’s position in the highly prospective Yalgoo-Singleton Greenstone Belt and set the stage for further discoveries.
Karlawinda Project Drilling Advances
At the Karlawinda Gold Project, Capricorn has maintained an extensive drilling program with over 25,000 metres of aircore and 6,200 metres of reverse circulation drilling completed in the quarter. Early assay results indicate mineralisation and gold pathfinder elements across multiple prospects, warranting follow-up drilling. The project’s proximity to the operating Bibra Mine and its geological setting underscore its potential to host additional near-surface satellite resources.
Outlook and Next Steps
Capricorn Metals is advancing its exploration and resource definition programs aggressively, with plans to continue diamond drilling at Orion and Lexington to refine underground resource models. The company anticipates releasing updates on the maiden underground resource at Lexington in the first quarter of fiscal 2026. Concurrently, regional drilling and heritage surveys are scheduled to commence at the newly acquired Ninghan Gold Project, further expanding Capricorn’s exploration footprint.
These developments position Capricorn Metals as a growing player in Western Australia’s gold sector, with a diversified portfolio of high-quality assets and a clear pathway toward underground mining operations.
Bottom Line?
Capricorn’s expanding resource base and strategic acquisitions signal a promising growth trajectory, but the economic viability of new underground targets remains to be fully demonstrated.
Questions in the middle?
- How will upcoming drilling results at Lexington influence the timing and scale of underground mining development?
- What are the expected capital and operating cost implications of transitioning to underground operations at Orion South and Lexington?
- How will the acquisition of the Ninghan Gold Project impact Capricorn’s exploration strategy and resource growth in the Yalgoo-Singleton Greenstone Belt?
