For personal use only
30 May 2022 | |
Company Announcements Office | |
Australian Securities Exchange Limited | |
Level 4, 20 Bridge Street | ASX:CMM |
Sydney NSW 2000 |
ACQUISITION OF MUMBAKINE WELL PROJECT
The board of Capricorn Metals Ltd ("Capricorn" or "the Company") is pleased to advise that it has entered into an agreement with Gascoyne Resources Ltd ("Gascoyne") to acquire the prospective Mumbakine Well Project ("the Project") located contiguous to the Company's Karlawinda Gold Project ("KGP") tenure in the Pilbara region of Western Australia.
Capricorn will pay Gascoyne $1.25 million upon completion of the transfer of the exploration licence and grant a 0.5% net smelter royalty on all gold produced from the Project. In addition, the Company has agreed to make contingent deferred payments as follows:
- $1.5 million upon the announcement by Capricorn of a JORC compliant Mineral Resource Estimate in excess of 200,000 ounces of gold on the Project (representing a minimum of 6.55 million tonnes at a minimum grade of 0.95g/t Au); and
- $2.0 million upon the announcement by Capricorn of a board decision to commence commercial mining activities on the Project
In the event that Capricorn announces to the ASX a decision to commence mining activities prior to the definition of a JORC code compliant Mineral Resource Estimate meeting the criteria referenced above, Capricorn must pay both contingent deferred payments.
All amounts are payable in cash or Capricorn shares valued at a 20-day VWAP prior to either completion occurring or the release of the ASX announcement. The choice of payment method is at Capricorn's election1 with completion of the acquisition conditional upon customary conditions precedent (including any required third party consents). Completion is expected to occur by the end of June 2022.
1 Capricorn's right to elect to settle any contingent deferred payment in shares expires on the date which is 5 years after the date of execution of the acquisition agreement.
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The Project is located on exploration licence E52/3531 which is contiguous to Capricorn's existing KGP tenure and is less than 10 kilometres from the processing facility and Bibra open pit. The Project covers approximately 361 square kilometres and lies adjacent to the KGP access road to the Great Northern Highway.
The Project area is located on the southern margin of the Sylvania Dome, an inlier of Archean granitoid - greenstone terrain on the southern edge of the Hamersley Basin. Along the margin of the dome a sequence of meta/basaltic and meta/sedimentary rocks interpreted to be 2700 Ma Fortescue Group has been faulted against the granitoids.
The main focus of historic exploration has been the Central Prospect which straddles 3 kilometres of thrust contact between the granitoids and volcanic/sedimentary rocks of the Fortescue Group. This sequence comprises (north to south) a sedimentary package of shales with minor coarse- grained arkose, steeply dipping to the south, up to 150 metres thick, overlain by a thick sequence of fine-grained mafic volcanics before disappearing undercover. The Central Prospect lies on a gravity high.
There is some evidence of shearing directly adjacent to the granite/sediment contact in the form of quartz stockworks and isolated narrow quartz veins. The stockwork and vein systems are both mineralised. There is also strong shearing along the sediment/mafic contact within the Fortescue sequence. The mylonised shear is 150 metres long by 20 metres wide and was intersected in drilling up to 90 metres vertical depth. This shear is mineralised with an extensive, strongly anomalous arsenic halo.
Very little exploration work has been completed on the Project, however historical drilling in the 1990's by Battle Mountain Australia and Compass Resources NL returned encouraging results at the Central Prospect and the Jims Vein Prospect. Drilling consisted of a total of 112 RAB holes for 4,870 metres and 38 RC holes for 2,320 metres testing gold prospectivity identified in soil sampling programmes.
Significant results from this drilling included: | ||
• 5m @ 7.06ppm from 65 metres | WWR064 | |
• 9m @ 2.88ppm from 32 metres | WWP023 | |
• 6m @ 3.94ppm from 47 metres | WWR118 | |
• 5m @ 3.19ppm from 9 metres | WWP008 | |
• 2m @ 7.43ppm from 5 metres | WWP013 | |
• 2m | @ 5.67ppm from 0 metres | WRB144 |
• 2m | @ 4.40ppm from 2 metres | WRB139 |
• 2m | @ 2.98ppm from 9 metres | WRB137 |
• 3m | @ 1.92ppm from 33 metres | WWP011 |
For more information refer to Appendix 1 and 2.
Capricorn Executive Chairman Mark Clark commented:
"The acquisition of the prospective Mumbakine Well Project located only 10 kilometres from the Karlawinda processing plant provides Capricorn with an outstanding opportunity to add satellite resources and ultimately mill feed to the Karlawinda Gold Project."
This announcement has been authorised for release by the Capricorn Metals Ltd board.
For further information, please contact:
Mr Kim Massey
Chief Executive Officer
- enquiries@capmet.com.au
- +61 8 9212 4600
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Forward Looking Statements
This announcement may contain certain "forward-looking statements" which may not have been based solely on historical facts, but rather may be based on the Company's current expectations about future events and results. Where the Company expresses or implies an expectation of belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. The detailed reasons for that conclusion are outlined throughout this announcement and all material assumptions are disclosed.
However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.
Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as governmental regulation and judicial outcomes.
For a more detailed discussion of such risks and other factors, see the Company's Annual Reports, as well as the Company's other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any "forward looking statement" to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr. Jarrad Price who is General Manager - Geology at, and a full-time employee of, the Company. Mr. Jarrad Price is a current Member of the Australian Institute of Geoscientists and has sufficient experience, which 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. Price consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
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Appendix 1 - Significant Results
Hole | Hole | Grade | |||||||||
Hole No | Type | Northing | Easting | RL | Depth | Dip/Azi | From | To | Width | (g/t Au) | |
only | WWR064 | RC | 7366424 | 783410 | 510 | 120 | -60/360 | 65 | 70 | 5 | 7.06 |
WWP023 | RAB | 7366607 | 783517 | 505 | 44 | -60/360 | 32 | 41 | 9 | 2.88 | |
WWR118 | RC | 7366654 | 783685 | 502 | 130 | -60/360 | 47 | 53 | 6 | 3.94 | |
WWP008 | RAB | 7366455 | 783308 | 509 | 52 | -60/360 | 9 | 14 | 5 | 3.19 | |
WWP013 | RAB | 7366495 | 783422 | 504 | 40 | -60/360 | 5 | 7 | 2 | 7.43 | |
WRB144 | RC | 7367064 | 782654 | 500 | 20 | -60/100 | 0 | 2 | 2 | 5.67 | |
WRB139 | RC | 7367002 | 782588 | 500 | 20 | -60/112 | 2 | 4 | 2 | 4.40 | |
WRB137 | RC | 7367010 | 782569 | 500 | 20 | -60/112 | 9 | 11 | 2 | 2.98 | |
use | |||||||||||
WWP011 | RAB | 7366456 | 783411 | 507 | 36 | -60/360 | 33 | 36 | 3 | 1.92 | |
WRB130 | RC | 7366680 | 783673 | 500 | 62 | -60/330 | 38 | 42 | 4 | 1.05 | |
WRB131 | RC | 7366642 | 783702 | 500 | 70 | -60/330 | 53 | 56 | 3 | 1.37 | |
WWP009 | RAB | 7366428 | 783308 | 510 | 52 | -60/360 | 38 | 42 | 4 | 1.01 | |
WRB138 | RC | 7367006 | 782579 | 500 | 20 | -60/112 | 5 | 6 | 1 | 3.10 | |
WWR116 | RC | 7366373 | 783408 | 510 | 148 | -60/360 | 104 | 107 | 3 | 0.97 | |
WRB145 | RC | 7367165 | 782701 | 500 | 20 | -60/90 | 5 | 7 | 2 | 1.42 | |
personal | |||||||||||
WWR064 | RC | 7366424 | 783410 | 510 | 120 | -60/360 | 71 | 76 | 5 | 0.56 | |
WWP037 | RAB | 7366898 | 784344 | 503 | 52 | -60/360 | 16 | 20 | 4 | 0.63 | |
WRB136 | RC | 7367016 | 782560 | 500 | 19 | -60/112 | 16 | 18 | 2 | 1.13 | |
WRB125 | RC | 7366583 | 783593 | 500 | 80 | -60/360 | 34 | 35 | 1 | 2.20 | |
WWP018 | RAB | 7366496 | 783514 | 506 | 45 | -60/360 | 40 | 45 | 5 | 0.44 | |
WWP001 | RAB | 7366996 | 782509 | 503 | 30 | -60/360 | 12 | 14 | 2 | 1.05 | |
WWP002 | RAB | 7367070 | 782615 | 501 | 40 | -60/360 | 9 | 10 | 1 | 1.62 | |
WRB130 | RC | 7366680 | 783673 | 500 | 62 | -60/330 | 43 | 45 | 2 | 0.66 | |
WRB140 | RC | 7366998 | 782597 | 500 | 20 | -60/112 | 1 | 2 | 1 | 1.30 | |
WWP002 | RAB | 7367070 | 782615 | 501 | 40 | -60/360 | 11 | 12 | 1 | 1.27 | |
WRB147 | RC | 7367166 | 782662 | 500 | 20 | -60/90 | 15 | 17 | 2 | 0.61 | |
WWP009 | RAB | 7366428 | 783308 | 510 | 52 | -60/360 | 48 | 50 | 2 | 0.60 | |
WWR118 | RC | 7366654 | 783685 | 502 | 130 | -60/360 | 56 | 58 | 2 | 0.43 | |
WRB120 | RC | 7366456 | 783359 | 500 | 80 | -60/360 | 35 | 36 | 1 | 0.68 | |
For | WRB146 | RC | 7367166 | 782688 | 500 | 20 | -60/90 | 2 | 3 | 1 | 0.66 |
WWP012 | RAB | 7366474 | 783421 | 505.5 | 40 | -60/360 | 20 | 21 | 1 | 0.61 | |
WWR064 | RC | 7366424 | 783410 | 510 | 120 | -60/360 | 115 | 116 | 1 | 0.60 | |
WRB120 | RC | 7366456 | 783359 | 500 | 80 | -60/360 | 41 | 42 | 1 | 0.54 | |
WRB142 | RC | 7367064 | 782675 | 500 | 20 | -60/100 | 2 | 3 | 1 | 0.50 | |
WRB120 | RC | 7366456 | 783359 | 500 | 80 | -60/360 | 7 | 8 | 1 | 0.45 | |
WWR063 | RC | 7366385 | 783306 | 510 | 120 | -60/360 | 89 | 90 | 1 | 0.45 | |
WRB133 | RC | 7366721 | 783776 | 500 | 62 | -60/360 | 15 | 16 | 1 | 0.44 | |
WWR064 | RC | 7366424 | 783410 | 510 | 120 | -60/360 | 102 | 103 | 1 | 0.44 | |
WRB131 | RC | 7366642 | 783702 | 500 | 70 | -60/330 | 32 | 33 | 1 | 0.41 | |
WWR064 | RC | 7366424 | 783410 | 510 | 120 | -60/360 | 63 | 64 | 1 | 0.41 | |
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Appendix 2
JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria | JORC Code explanation | Commentary | ||
Sampling | • | Nature and quality of sampling (eg cut channels, random chips, or specific specialised | Drilling on E52/3531 has been completed by multiple companies mainly in the 1990's using | |
techniques | industry standard measurement tools appropriate to the minerals under investigation, | a combination of Reverse Circulation (RC) and RAB. The methods of collection for the | ||
such as down hole gamma sondes, or handheld XRF instruments, etc). These examples | historical data are unknown. | |||
• | should not be taken as limiting the broad meaning of sampling. | Sample weight and collection method are unknown for the historical drilling. Sample condition | ||
Include reference to measures taken to ensure sample representivity and the appropriate | ||||
is not logged in the available data. Sample quality is unknown for the historical drilling. The | ||||
calibration of any measurement tools or systems used. | ||||
• | majority of samples are recorded as being assayed by aqua regia. | |||
Aspects of the determination of mineralisation that are Material to the Public Report. | ||||
• | In cases where 'industry standard' work has been done this would be relatively simple | Field duplicates and certified reference material (CRM) data are not present in the database. | ||
(eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was | ||||
pulverised to produce a 30 g charge for fire assay'). In other cases more explanation | ||||
may be required, such as where there is coarse gold that has inherent sampling | ||||
problems. Unusual commodities or mineralisation types (eg submarine nodules) may | ||||
warrant disclosure of detailed information. | ||||
Drilling | • | Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, | RC and RAB drilling bit and blade diameters are unknown for the historical drilling. | |
techniques | Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of | |||
diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what | ||||
method, etc). | ||||
Drill | sample | • | Method of recording and assessing core and chip sample recoveries and results | The method of recording and assessing chip sample recoveries and results is unknown. |
recovery | • | assessed. | The measures taken to maximise sample recovery and ensure representative nature of the | |
Measures taken to maximise sample recovery and ensure representative nature of the | ||||
samples are unknown. | ||||
samples. | ||||
• | ||||
Whether a relationship exists between sample recovery and grade and whether sample | Sample condition is not in the available logging. | |||
bias may have occurred due to preferential loss/gain of fine/coarse material. | It is unknown if bias exists between sample recovery and grade. | |||
Logging | • | Whether core and chip samples have been geologically and geotechnically logged to a | Logging processes are unknown for the historical drilling. Logging field in the database show | |
level of detail to support appropriate Mineral Resource estimation, mining studies and | that lithology was logged. | |||
• | metallurgical studies. | Logging is both qualitative and quantitative or semi-quantitative in nature. | ||
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) | ||||
photography. | ||||
• The total length and percentage of the relevant intersections logged. | ||||
Sub-sampling | • | If core, whether cut or sawn and whether quarter, half or all core taken. | Non-core sampling sub sampling techniques are not known. Sample condition is not in the | |
techniques and | • | If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or | available data. | |
sample | dry. | Sample preparation techniques are not known. | ||
preparation | • | For all sample types, the nature, quality and appropriateness of the sample preparation | ||
• | technique. | Field duplicates and certified reference material (CRM) data are present in the available | ||
Quality control procedures adopted for all sub-sampling stages to maximise | database. | |||
representivity of samples. |
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Capricorn Metals Ltd. published this content on 29 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2022 12:48:09 UTC.