The Capricorn Metals Ltd (ASX: CCM) share price is in focus today after the company reported a 31% increase in the Mt Gibson Gold Project's Orion South underground mineral resource, taking it to 895,000 ounces of gold. This uptick follows more than 13,000 metres of focused drilling since the maiden resource estimate in July 2025.
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What did Capricorn Metals report?
- Orion South Underground Mineral Resource Estimate (MRE) increased to 9.5Mt at 2.9g/t gold, for a total of 895,000 ounces.
- Resource up by 211,000 ounces (31%) since July 2025 maiden underground MRE.
- Indicated resource now 33% of the MRE, at 297,000 ounces.
- High data density supports an average of 5,400 ounces per vertical metre within the core 100m below the pit design.
- Extensional drilling underway, with resource remaining open at depth.
- Drilling at next potential underground targets—Lexington and Hornet—planned to start soon.
What else do investors need to know?
The updated resource estimate covers just 1.2 kilometres of Orion South, compared to the Mt Gibson Gold Project's overall 8-kilometre strike, leaving plenty of room for further growth. Ongoing infill drilling aims to increase the Indicated portion of the resource, which is essential for future pre-feasibility studies and a maiden Ore Reserve estimate.
Capricorn has commenced technical assessments such as geotechnical and hydrogeological studies. A trade-off study to optimise the transition between open pit and underground mining is also underway, aiming to deliver a more efficient mining plan.
What did Capricorn Metals management say?
Mark Clark, Executive Chairman said:
Increasing the Orion South underground resource by over 30% to 895,000 ounces in less than four months since the maiden underground resource is indicative of the emerging underground opportunity at Mt Gibson. Capricorn is committed to a strategy of growing the resource, delivering ore reserves and completing the work to validate our belief that Mt Gibson will become a long mine life open pit and underground mining operation.
What's next for Capricorn Metals?
Further drilling is planned to firm up and grow the underground resource at Orion South, while first drilling at Lexington and Hornet targets is about to begin. Capricorn aims to move more of its current Inferred resource into the Indicated category, allowing it to complete higher-confidence mining studies and move towards converting resources to reserves.
Technical work to define the best interface between underground and open pit mining is expected to conclude in the second half of FY26. Additional resource updates are likely as drilling and studies continue at Mt Gibson and satellite prospects.
Capricorn Metals share price snapshot
Capricorn Metals shares have soared 114% over the past 12 months, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 7% over the same period.
