The board of Capricorn Metals Ltd ('Capricorn' or 'the Company') is pleased to advise that it has entered into a binding agreement with Top Iron Pty Ltd ('Top Iron') to acquire the prospective Mummaloo Project tenements and physical assets ('Mummaloo Project').
The Mummaloo Project covers approximately 219 square kilometres of tenure located contiguous to the north of Capricorn's Mt Gibson Gold Project ('MGGP') in the Murchison region of Western Australia. The Mummaloo Project is considered highly prospective for gold mineralisation, featuring multiple settings conducive to hosting economic gold deposits. Capricorn has already identified four target zones for exploration within the project tenure, with the highest priority target located only 6 kilometres northeast of current MGGP resources.
The acquisition also includes camp and office facilities currently being used by Capricorn exploration and development team prior to commissioning the Company's 400 room camp at MGGP which is nearing completion. The Mummaloo camp will be used as overflow and exploration accommodation going forward as required. Other assets include small scale crushing and screening equipment (ex Top Iron magnetite iron ore mining operations), various ancillary equipment and several light vehicles. The utility of these assets will be assessed for future use.
The transaction consideration is $3.5 million, of which Capricorn has paid an initial cash deposit of $100,000. The balance of the consideration will be satisfied by the issue of fully paid ordinary Capricorn shares to Top Iron upon completion. The share issue consideration will be determined based on the 5-day VWAP preceding the completion date. Completion of the acquisition is expected in February 2025, being subject only to procedural conditions precedent.
Background on Mummaloo Project
The Mummaloo Project, located approximately 295 kilometres north-northeast of Perth, lies between the townships of Wubin and Paynes Find within the Yalgoo-Singleton Greenstone Belt of the Murchison Province in Western Australia. This region is well-regarded for its significant mineral discoveries. The Yalgoo-Singleton Greenstone Belt spans 190 kilometres and extends in a north northwest direction from Mt Gibson to north of Yalgoo town. It hosts notable Volcanogenic Massive Sulphide (VMS) deposits, including the Cu-Pb-Zn-Ag-Au Golden Grove mine, and is also host to significant gold deposits such as Mt Gibson, Deflector, and Karara. The tenement package is highly prospective for gold mineralisation, featuring multiple settings conducive to hosting economic gold deposits. Historically, gold exploration in this area has been limited to early-stage activities, predominantly in the mid-1990s. However, both historical and recent exploration efforts have underscored the potential of the project to support further near surface satellite resources and significant gold discoveries, particularly near Capricorn's existing Mt Gibson resources. Capricorn has identified four main target zones for exploration within the Mummaloo Project. The highest priority of these is located only 6 kilometres northeast of current Capricorn MGGP resources. This zone is geologically analogous to the main mineralisation of the Mt Gibson deposit, featuring historic workings in shear zones along a contact of metamorphosed and chlorite-biotite muscovite altered mafic volcanics. Additional data has revealed geological settings favourable for shear-hosted and intrusion-related mineralisation, with identified gold occurrences near magnetic corridors and known lithological contacts. Three further priority targets have also been identified and on ground exploration is planned for 2025. Capricorn will use a focused approach to fully understanding and capitalising on the resource potential of the area.
Capricorn Executive Chairman Mark Clark commented: 'The acquisition of the Mummaloo Project significantly expands Capricorn's Mt Gibson exploration footprint and adds highly prospective targets analogous and proximal to the Company's current Mt Gibson resources. This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation. We look forward to commencing active exploration on the project in 2025.'
Contact:
Mr Mark Clark
Executive Chairman
Tel: +61 8 9212 4600
Email: enquiries@capmet.com.au
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