Capricorn Metals Ltd (ASX:CMM) has found near-surface gold outside the current resource area at its Bibra Gold Deposit, a part of its Karlawinda Gold Project in the Pilbara region of Western Australia.
The intercept of 19 metres at 1.33 g/t from 20 metres was within the optimised pit shell. The current Inferred Resource is 650,800 ounces at 1.1 g/t gold.
The new results, found in an area classified previously as waste, will have a positive impact on the economics of Capricorn’s proposed open pit project at Karlawinda.
Capricorn also received thick mineralization intercepts of 26 metres at 1.48 g/t from 231 metres and 25 metres at 1.05 g/t from 264 metres from separate step out holes drilled to test the continuity of mineralization circa 200 metres of previous drilling.
These results confirm significant extensions of the Bibra gold deposit.
The findings raise the strong possibility of an upgrade to the Bibra JORC resource estimate as early as next month.
“Our maiden drill program has clearly demonstrated that the Bibra resource remains to be fully defined,” said Mr. Peter Thomson, Capricorn’s Managing Director, adding that the results from the step out holes showed that the Bibra Main Lode “kept on going” with depth.
Capricorn plans to follow up on the updated resource estimate with a Scoping Study by end-July, and thereafter a Feasibility Study.
Last month Capricorn raised $12.6 million from a share placement. With the ongoing sale of assets in Madagascar, the company has sufficient liquid resources until the end of the Feasibility Study.
Capricorn shares are a 10-bagger since late 2015.
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