Deadman Flat Acquisition Could Reshape Capricorn’s Pilbara Gold Prospects
Capricorn Metals has secured the Deadman Flat Project, adding 270 square kilometres to its Karlawinda Gold Project tenure in the Pilbara. This strategic acquisition enhances exploration potential along a highly prospective craton margin.
- Acquisition of Deadman Flat Project from Peregrine Gold for $1.5 million in shares
- Expansion of Karlawinda Gold Project tenure to approximately 4,000 square kilometres
- Contingent payments tied to resource milestones and mining decisions
- Deadman Flat hosts historical gold mineralisation with limited prior exploration
- Planned FY25 exploration includes airborne gravity surveys and geochemical sampling
Strategic Expansion in the Pilbara
Capricorn Metals Ltd (ASX: CMM) has taken a decisive step to bolster its presence in Western Australia's Pilbara region through the acquisition of the Deadman Flat Project from Peregrine Gold Ltd. Covering approximately 270 square kilometres contiguous to Capricorn's existing Karlawinda Gold Project (KGP), this deal significantly expands Capricorn's tenure along the highly prospective Pilbara - Yilgarn Craton margin.
The acquisition consideration of $1.5 million will be settled via the issue of fully paid Capricorn shares to Peregrine, with additional contingent payments linked to future exploration success and commercial mining decisions. Notably, Capricorn has agreed to grant a 1% net smelter royalty on precious minerals and a 1.5% royalty on non-precious minerals extracted from the Deadman Flat tenements.
Geological Significance and Historical Context
The Deadman Flat Project lies on the southern edge of Capricorn's tenure and is strategically positioned near the Sylvania Inlier, a zone interpreted as a high strain corridor conducive to gold mineralising fluids. This geological setting is analogous to Capricorn's Central Zone prospect and the +2 million ounce Bibra gold deposit, underscoring the potential for significant discoveries.
Historical mining activity at Deadman Flat dates back to the 1930s, with both alluvial and hardrock workings. Open file data reveals gold mineralisation in rock chip and RAB drill samples, although exploration has been limited, primarily to early-stage efforts in the mid-1990s. The host rocks are highly deformed greenstones, similar in character to those at Capricorn's Central Zone, suggesting a promising exploration target.
Looking Ahead: Exploration and Development Plans
Capricorn plans to initiate a comprehensive exploration program in the third quarter of 2025, including high-resolution airborne gravity surveys, broad-scale geological and regolith mapping, and geochemical sampling. These activities aim to generate drill targets for fiscal year 2026, potentially unlocking new gold resources to complement the existing Karlawinda operation.
Executive Chairman Mark Clark highlighted the strategic value of the acquisition, emphasizing the consolidation of the southern margin of the Sylvania Inlier and the opportunity to discover additional ore sources to support Karlawinda's growth.
Completion of the acquisition is anticipated in February 2025, marking a pivotal moment in Capricorn's expansion strategy within one of Australia's most prospective gold provinces.
Bottom Line?
Capricorn’s Deadman Flat acquisition sets the stage for a potentially transformative expansion of its Pilbara gold assets.
Questions in the middle?
- What initial exploration results will Capricorn report from Deadman Flat in FY25 and FY26?
- How might the contingent payments impact Capricorn’s financials if resource milestones are met?
- Could discoveries at Deadman Flat lead to a standalone mining operation or integration with Karlawinda?