Capricorn Metals (CMM.AX) has released an updated reserve estimate for its Mt Gibson Gold project in Western Australia. The reserves currently contain just under 90 million tonnes of rock at an average grade of 0.9 g/t for a total of 2.59 million ounces of gold, an increase of just over 40% compared to the reserve calculation that was completed earlier this year. The total reserves remain pretty shallow as the pit has been determined to an average depth of 180 meters with a maximum depth of 310 meters. The anticipated strip ratio is just under 5:1.
The updated resource calculation has also boosted the mine life from just under 12 years t 17 years with an anticipated annual production of 150,000 ounces of gold in the first 15 years of the mine life. Capricorn estimates the all-in sustaining cost to be just A$1650-1750 per ounce over the 17 year mine life resulting in a pre-tax NPV5% of A$1.95B using A$3,300 gold as base case scenario.
While the ore reserves total 2.6 million ounces of gold, let’s not forget there’s an additional 1.4 million ounces of gold in the resource categories and hopefully some of that material can eventually make it into the mine plan.
Disclosure: The author has no position in Capricorn Metals. Please read the disclaimer.
