ASX ANNOUNCMENT
28 September 2016
Australian Securities Exchange Code: CMM
ABN: 84 121 700 105
Board of Directors:
Mr Guy LeClezio
Non-Executive Chairman
Mr Peter Thompson
Managing Director
Mr Peter Langworthy
Technical Director
Mr Heath Hellewell
Non-Executive Director
Issued Capital:
Shares 486.9M Options 17.3M Share Price A$0.15
Market Cap. A$73.0M
EXPLORATION OFFICE:
1 Coventry Parade
North Fremantle, WA 6159
REGISTERED OFFICE:
15 Lovegrove Close
Mount Claremont, WA 6010
T +61 8 9384 3284
F +61 8 9284 3801
E [email protected]
www.capmetals.com.au
SIGNIFICANT NEW ZONE OF GOLD MINERALISATION INTERSECTED IMMEDIATELY WEST OF BIBRA OPEN PIT
Exploration drilling at Portrush prospect confirms potential for significant hangingwall mineralization outside of current open pit design
HIGHLIGHTS
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First-pass RC drilling to test the Portrush Prospect has confirmed the potential for this target to develop into a significant zone of shallow gold mineralization immediately west of the Bibra Gold Deposit, with results including:
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KBRC366 11 metres @ 1.00g/t Au from 57m
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KBCR367 7 metres @ 1.40g/t Au from 71m
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KBAC377* 8 metres @ 1.15g/t Au from 28m
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KBRC150* 17 metres @ 1.00g/t Au from 67m
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KBRC160* 12 metres @ 1.02g/t Au from 94m
(*Previously reported result)
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While still to be fully defined, the new zone of mineralization is interpreted to occur in flat-lying stacked lodes within 150m of the surface.
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The mineralization is interpreted to dip to the west, has a potential strike extent of 150-200m and remains open in the down-dip position.
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A follow-up drilling program is now planned to fully delineate the extents of the Portrush mineralization with a view to including this zone in the next Mineral Resource estimation and potentially in an expanded open pit design.
28th September 2016: Capricorn Metals Ltd (ASX: CMM) is pleased to advise that it has discovered a significant new zone of shallow gold mineralization at the Portrush Prospect, the first exploration target to be tested as part of the current 60,000m at its 100%-owned Karlawinda Gold Project in WA.
The Portrush Prospect is located in a near surface (
The Karlawinda Project is located near the town of Newman in the Pilbara region of Western Australia (Figure 1). Capricorn Metals is currently undertaking a fast-tracked Definitive Feasibility Study ("DFS") on the large-scale Bibra gold resource. The DFS includes 60,000m of RC and Diamond drilling designed both to increase the classification of the resource and to expand the resource.
The Inferred Resource for the Bibra Gold Deposit currently stands at 25.5Mt @ 1.1g/t Au for 914,000oz (see Appendix 1 for details).
KEY POINTS:
Figure 1: Location Map: Karlawinda Gold Project
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The Portrush Prospect is the first of a series of resource expansion targets identified within 500m of the main Bibra Resource to be tested by Capricorn Metals.
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The drilling program was completed as a first pass follow-up to a number of previous drill intersections that highlighted the potential of this position to host significant gold mineralization.
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The interpreted flat-lying, stacked geometry of the mineralization is considered highly favourable for inclusion in the Bibra Resource within an expanded optimized open pit shell (see Figure 2).
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The mineralisation is interpreted to "daylight" into the current optimized pit shell and remains open in the down-dip direction to the west. The margins of the mineralization are currently poorly defined, with low-grade intersections marking the persistence of the structure.
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The mineralization is interpreted to dip to the west, has a potential north-south strike extent of 150-200m and remains open in the down-dip position (Figure 3).
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A follow-up drilling program is now planned to fully delineate the extents of the Portrush mineralization with a view to including this zone in the next Mineral Resource estimation.
Figure 2: Portrush Prospect Drilling Results (Section 199900mN)
Figure 3: Portrush Prospect Drilling Results (Plan)
MANAGEMENT COMMENT
Capricorn's Managing Director, Mr Peter Thompson, said the encouraging early results from the Portrush Prospect demonstrated the significant exploration upside at the Karlawinda Gold Project.
"Portrush is the first of a series of near-mine exploration targets being tested as part of the current drill program for which we have now received assay results. The results confirm that the Bibra mineralisation is still not closed off, even for shallow, easily-accessed extensions in close proximity to the existing open pit design.
"Subject to further drilling of this area, we believe there is excellent potential to expand the resource in this area and include it within a revised and expanded open pit shell - which would have positive implications for the Definitive Feasibility Study outcomes.
"Meanwhile drilling of other exploration targets is currently being completed with results expected over the coming weeks. We will report on these programs, and our other ongoing DFS activities, in due course."
For and on behalf of the Board
Peter Thompson Managing Director
For further information, please contact:
Mr Peter Thompson, Managing Director Mr Nicholas Read Email: [email protected] Read Corporate Phone: 0417 979 169 Phone: 0419 929 046
Competent Persons Statement
The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr. Peter Langworthy, Technical Director, who is a Member of the Australian Institute of Mining and Metallurgy. Mr. Peter Langworthy is a full time Director of Capricorn Metals Limited and has sufficient experience, whi1ch is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Peter Langworthy consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.