Capricorn Metals maintains a robust 4.0 million ounce gold reserve as of June 2025, with significant drilling success at Mt Gibson and ongoing updates planned for both Mt Gibson and Karlawinda projects in FY26.
- Group Ore Reserve Estimate steady at 4.0 million ounces of gold
- Mt Gibson drilling adds 144,000 ounces to Ore Reserves
- Maiden underground resource and Ore Reserve planned for Mt Gibson in H2 FY26
- Karlawinda Ore Reserve reflects mining depletion; resource drilling underway
- Strong funding position with A$356 million cash and gold on hand
Capricorn Metals' Reserve Stability and Growth
Capricorn Metals Limited (ASX, CMM) has announced its group Ore Reserve Estimate (ORE) remains steady at 4.0 million ounces of gold as of 30 June 2025, despite another strong year of production. This stability underscores the company's effective resource management and ongoing exploration success, particularly at its Mt Gibson Gold Project (MGGP) and Karlawinda Gold Project (KGP) in Western Australia.
The MGGP has been a focal point for growth, with recent drilling campaigns delivering a 5.6% increase; an additional 144,000 ounces; to its Ore Reserves. Notably, the project is advancing towards its maiden underground Ore Reserve, following a maiden underground Mineral Resource Estimate (MRE) of 684,000 ounces reported in July 2025. This underground resource is currently undergoing infill drilling and a scoping study, with the underground Ore Reserve update expected in the second half of FY26.
Karlawinda Project Update and Resource Definition
At Karlawinda, the Ore Reserve update primarily reflects mining depletion, with the current estimate standing at 1.30 million ounces. Resource definition drilling is underway to support an Ore Reserve update anticipated in the latter half of FY26. The Karlawinda project continues to demonstrate a long mine life, approaching 10 years, supported by a Mineral Resource Estimate of 2.12 million ounces.
Both projects benefit from conservative gold price assumptions used in pit optimisations; A$2,200 per ounce for most pits and A$2,500 per ounce for the Aries pit at MGGP; significantly below current spot prices. This conservative approach underpins Capricorn’s low operating costs and provides a buffer against market volatility.
Operational and Financial Strength
Capricorn’s financial position remains strong, with A$356 million in cash and gold on hand at 30 June 2025, complemented by robust cash flow from ongoing operations at Karlawinda. The company is progressing environmental approvals for MGGP, having submitted a Public Environmental Report and engaged in extensive community consultations, including with the Badimia people. Infrastructure development is well underway, including a 400-room accommodation village completed in July 2025.
The Mt Gibson project’s capital cost estimate stands at approximately A$260 million, covering processing plant construction, water supply, power generation, and tailings storage facilities. The company is also exploring opportunities to integrate renewable energy sources and optimize power supply costs.
Risks and Future Outlook
While Capricorn Metals’ projects are economically robust with strong margins, the company acknowledges risks including gold price fluctuations, resource and reserve estimation uncertainties, potential delays in environmental approvals, and inflationary pressures on operating costs. The company’s strategy includes aggressive drilling programs to convert inferred resources and expand reserves, alongside early works to expedite project timelines.
Looking ahead, the market will be watching Capricorn’s ability to deliver updated Ore Reserves for both Mt Gibson and Karlawinda in FY26, alongside the progression of environmental approvals and infrastructure development that will pave the way for sustained production growth.
Bottom Line?
Capricorn Metals’ steady reserves and drilling-driven growth set the stage for pivotal updates and potential expansion in FY26.
Questions in the middle?
- How will the maiden underground Ore Reserve at Mt Gibson impact the project’s economics and mine life?
- What are the timelines and potential hurdles for final environmental approvals at Mt Gibson?
- Could inflationary pressures or supply chain constraints materially affect Capricorn’s capital and operating cost estimates?