Australian mining company Capricorn Metals’ board has approved the expansion of the Karlawinda Gold Project (KGP) in the Pilbara region of Western Australia.
The project is set to undergo a significant upgrade with the installation of a new three-stage crushing and ball mill circuit involving a projected capital investment of A$120m ($7.9m).
With an expanded milling capacity of 6.5mtpa, the project aims to produce 150,000 ounces (oz) of gold annually at an all-in sustaining cost (AISC) of A$1,700/oz.
It is expected to achieve a payback period of 20 months at a gold price of A$3,300/oz, delivering an internal rate of return of 49%.
Permitting is targeted for completion by the fourth quarter (Q4) of fiscal year 2025 (FY25), with the processing plant construction finishing in Q4 FY26.
Capricorn executive chairman Mark Clark said: "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 300,000oz per annum and low-cost gold reserves in excess of three million oz [moz].”
The decision for the expansion follows a substantial increase in the project's ore reserve estimate to 1.43moz, announced in August 2024.
The expansion includes constructing new accommodation facilities to enhance productivity during construction and meet long-term operational staff requirements.
A new tailings storage facility will also be built, using waste material from the nearby Berwick deposit to accommodate the increased deposition needs of the project.
Notably, the expansion's plant and infrastructure footprint will be contained within Capricorn's existing mining leases.
