The Capricorn Metals Ltd (ASX: CMM) share price is in focus today after the company released its drilling results at its Mt Gibson Gold Project, including intercepts of 13.1 metres at 13.93 grams per tonne (g/t) gold and 28.6 metres at 5.35g/t gold from the Lexington underground prospect.
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What did Capricorn Metals report?
- The first 7 holes (3,333m) of an 18-hole programme at Lexington returned strong gold mineralisation.
- All results are outside the current resource envelope, extending high-grade gold to over 900m of strike and more than 500m below reserve pits.
- Notable intercepts: 13.1m @ 13.93g/t Au from 714.9m, 28.6m @ 5.35g/t Au from 431.8m, and 23.9m @ 3.32g/t Au from 724.1m.
- The drilled zone at Lexington is 600 metres north of the Orion South underground deposit, which boasts an underground mineral resource estimate (MRE) of 895,000 ounces of gold as of November 2025.
- A further 10,000 metres of drilling is planned to support a maiden inferred resource for Lexington.
- An updated Orion South resource and prefeasibility study are expected this quarter.
What else do investors need to know?
The latest results confirm significant underground system scale and continuity between Orion South and Lexington, both open at depth and along strike. The combined 2.1-kilometre drill-tested zone between these prospects remains a small portion of the broader 8-kilometre Mt Gibson resource extent, suggesting substantial resource expansion opportunities.
Drilling at Lexington has identified a distinct intrusion-related orogenic gold system, offering thicker and higher-grade intercepts compared to other areas. Further drilling along this trend is in early stages, with upcoming results likely to inform future resource estimates.
What did Capricorn Metals management say?
Executive Chairman Mark Clark said:
The drilling at Lexington has delivered some of the strongest underground intercepts we have seen at Mt Gibson to date. These outstanding results highlight the scale, continuity and high-grade tenor of the system defined between Orion South and Lexington, which is now clearly emerging as a major underground discovery with genuine potential to add a significant long-life, high-margin underground mining operation to the Mt Gibson project.
What's next for Capricorn Metals?
Capricorn Metals plans to continue aggressive extensional and infill drilling at Lexington to define a maiden underground resource. At the same time, the Orion South resource and prefeasibility study are due for update this quarter, reflecting the potential for increased resource confidence and future ore reserves.
The company emphasises that the 2.1-kilometre zone between Orion and Lexington could underpin a large-scale, long-life underground gold operation. With much of the 8km strike under-explored, ongoing drilling may open up further extensions for future resource growth.
Capricorn Metals share price snapshot
Over the past 12 months, Capricorn Metals shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.
