The Capricorn Metals Ltd (ASX: CMM) share price is in focus today after the company announced completion of the Karlawinda Expansion Project, with the new plant hitting its targeted 6.5 million tonnes per annum throughput on schedule.
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What did Capricorn Metals report?
- The Karlawinda Expansion Project (KEP) construction and commissioning completed on schedule.
- New crushing, milling, and CIL circuits now fully operational and running continuously.
- Steady state project throughput of 6.5 million tonnes per annum (Mtpa) achieved.
- Expanded Karlawinda Gold Project expected to produce about 150,000 ounces of gold per year.
- Mine life exceeds 10 years based on current reserves.
What else do investors need to know?
The company credits its construction and operations teams, along with key contractors, for delivering the Karlawinda Expansion Project on time over a 12-month build. The plant is currently processing low-grade ore and will ramp up to run-of-mine grade ore in the next week as operations settle into a steady state.
Infrastructure including CIL areas and tailings storage pipeline work are also commissioned, with run-of-mine ore stockpiling underway. Ongoing optimisation of the crushing circuit is set to continue now that main construction is complete.
What did Capricorn Metals management say?
Capricorn Executive Chairman Mark Clark said:
The commencement of continuous ore processing at the Karlawinda Expansion Project on schedule is a significant milestone for Capricorn. It is the culmination of a huge effort from our construction and operations teams, supported by key contractors. We now look forward to the transition of Karlawinda into a long life operation producing around 150,000 ounces of gold per annum.
What's next for Capricorn Metals?
Capricorn Metals plans to shift from processing low-grade ore to run-of-mine grade in the coming week to reach full steady state operations. The expanded Karlawinda Gold Project is forecast to support a long-term annual gold output of about 150,000 ounces, underpinned by a mine life of at least a decade.
The company also notes ongoing work to further optimise product size through its new crushing circuit, with the potential to enhance operational efficiency and output over time.
Capricorn Metals share price snapshot
Over the past 12 months, Capricorn Metals shares have risen 24%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.
