Capricorn Metals' (ASX:CMM) share price has been on the rise and a drill program commencing today will shed more light on the recently acquired Karlawinda Gold project, located 65km south-east of Newman in the Pilbara.
The previous owner Independence Group Ltd (ASX:IGO) had undertaken a fair amount of work at the project and determined the 650,000 ounce gold deposit could be mined by open put with a low strip ratio.
So drilling will see a 48 hole, 8000 metre RC drill program at the Bibra deposit, to extend the known mineralisation at Bibra down-dip.
This will allow Capricorn's managing director Peter Thompson us to flesh out mineralisation below 150 metres and gain a good understanding of the grade distribution and controls.
Any positive results would feed into a higher mineral resource while still within the A$1600/ounce open pit shell identified by Independence Group and into an updated scoping study which has already begun.
There would appear to be significant upside on the resource size given limited drilling near to the resource envelope by the previous owner.
Given the amount of work at the project; $12 million was spent to date by Independence, and the infrastructure in place, this could be quite a fast track to mine development.
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