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Mining

Capricorn Metals identifies high grade extension at Karlawinda Gold

Capricorn Metals (ASX:CMM) has identified a high-grade, down-dip extension to the Bibra Resource at its Karlawinda Gold Project in Western Australia.

The latest drilling results are of higher grade than the surrounding previous drilling results and potentially represent a new high-grade lode at about 200 metres below surface.

Results returned to date from this position include:

- 7 metres at 7.5 g/t gold (within 33 metres at 2.1 g/t gold); and

- 15 metres at 3.4 g/t gold (within 33 metres at 1.5 g/t gold).

These results have the potential to expand Capricorn’s resource and, importantly, could result in the current scoping study design pit driving deeper to capture additional resources.

This zone of high-grade mineralisation remains open down-dip. Assays from additional (adjacent) holes are pending.

The June 2016 inferred resource for Bibra reported 25.5 million tonnes at 1.1 g/t gold for 914,000 ounces of contained gold.

The Bibra scoping study was completed in July 2016, which envisages an open pit development with a 3 million tonne per year CIL (carbon-in-leach) process plant.

Assays have also now been returned from resource drilling targeting the southern extension of the Main Footwall Lode.

The results clearly demonstrate the potential for a significant extension to the resource in this location.

Capricorn will need additional results to be returned from these two areas, but it is expected that they will add to the overall resource when the new estimation is undertaken early next year.

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