SIGNIFICANT NEW DISCOVERY AT KARLAWINDA HIGHLIGHTS POTENTIAL TO GROW GOLD INVENTORY
Exploration drilling immediately south of the Bibra Gold Deposit intersects thick near-surface mineralisation at Southern Corridor Target
ASX ANNOUNCMENT
20 October 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$0.12
Market Cap. A$58.4M
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
HIGHLIGHTS
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New zone of gold mineralization intersected in first-pass Reverse Circulation drilling at the Southern Corridor Prospect, located immediately south of the Bibra Gold Deposit and outside the current 914,000oz resource inventory.
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Results from the first two RC drill holes into this prospect, which is likely to represent the southern extension of the Bibra Gold Deposit, are:
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KBRC430 12 metres @ 1.37g/t Au from 117m; and
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KBRC431 8 metres @ 1.42g/t Au from 80m.
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These new results are interpreted to be the same horizon intersected in previous drilling 700m further to the south, which returned the following intercepts:
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KBRC040 9 metres @ 2.5g/t Au from 114m; and
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KBRC041 9 metres @ 1.0g/t Au from 194m.
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The Southern Corridor Prospect extends over a 700m strike length immediately along strike of the Bibra Gold Deposit, which has to date remained untested. Mineralisation remains open in all directions.
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The mineralized structure comes to within 20m of surface, where it is obscured by shallow transported cover.
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Follow-up drilling in this area has been planned and will commence at the earliest opportunity.
20th October 2016: Capricorn Metals Ltd (ASX: CMM) is pleased to advise that it has discovered what is believed to be a significant new zone of gold mineralization at the Southern Corridor Prospect at its 100%- owned Karlawinda Gold Project in Western Australia.
The Southern Corridor is located immediately along strike to the south of the Bibra Gold Deposit, and is within 400 metres of the planned open pit development. This area is not currently part of the Mineral Resource inventory (see Figures 2 and 3).
The new zone was discovered during the ongoing 60,000m in-fill and extensional drilling program at Karlawinda, which forms a key part of the current Definitive Feasibility Study (DFS).
Southern Corridor is one of several emerging near-mine prospects with potential to grow the gold inventory and further enhance the economics of the Karlawinda Project.
The Karlawinda Gold 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).
Figure 1: Location Map: Karlawinda Gold Project
KEY POINTS:
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The Southern Corridor is the second of a series of resource expansion targets identified within 500m of the main Bibra Resource to be tested by Capricorn Metals (Figure 2).
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Previous wide-spaced drilling clearly demonstrated that the large-scale Bibra mineralized system remains open and, in particular, had not been drill tested over a strike length of least 700m to the south. The recent drilling program was designed as a first-pass test to target mineralized lodes similar to those being delineated at Bibra.
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This drilling has intersected a broad anomalous zone of gold mineralization up to 100m down-hole (KBRC431: 100m @ 0.47g/t Au) with zones of higher grade mineralization hosted in discrete shear zones (see Table 2 for details), including:
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Highlighting the large-scale potential of the southern corridor is the presence of a series of wide spaced drill holes previously drilled 700m to the south. These holes intersected a series of stacked flat lying gold lodes and returned significant grades including (see Table 2 for details):
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KBRC040 9 metres @ 2.5g/t Au from 114m
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KBRC041 9 metres @ 1.0g/t Au from 194m
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KBRC039 4 metres @ 2.6g/t Au from 166m
The current understanding is that this mineralisation is part of the same Southern Corrdor system and is likely to be contiguous.
Figure 2: Bibra Resource Expansion Targets
Figure 3: Southern Corridor Drilling Results (Section 199900mN)
Figure 4: Southern Corridor Prospect Drilling Results (Plan)
NEXT STEPS
The resource drilling program is currently scheduled to be completed by mid-November. Follow-up exploration programs at both the Southern Corridor and the Portrush Prospect will be completed in parallel with this resource drilling.
MANAGEMENT COMMENT
Capricorn's Managing Director, Mr Peter Thompson, said the discovery of a potentially extensive new zone of mineralization at the Southern Corridor prospect was a significant and exciting development for the Karlawinda Project.
"We have long believed that there is strong potential to find additional ounces in close proximity to the known resource, and the work we have done so far at Portrush and now Southern Corridor certainly vindicates this belief," he said.
"The Southern Corridor target appears to extend over a strike length of at least 700m to the south of the current open pit design, with the initial shallow intercepts occurring less than 400 metres from the current optimized open pit design.
"When combined with additional historical further intercepts to the south, this new zone could clearly shape up as a significant, shallow addition to the mineral inventory at Karlawinda and will be a priority focus for further drilling once we have completed in-fill drilling within the current open pit design.
"There is clearly a lot more work to do on several of the key exploration prospects drilled to date, but early indications are that there is excellent potential to expand the current pit design to the west in the area of the Portrush prospect and to the south where the new mineralization has been found at Southern Corridor.
"We will be working hard to fully delineate these and other exploration prospects over the coming weeks, so that we will be in a position to include these zones in the updated Mineral Resource estimate that will underpin the Karlawinda Definitive Feasibility Study, due for completion in the first half of next year."