Capricorn Metals has secured the Extension Hill and Mungada tenements adjacent to its Mt Gibson Gold Project, aiming to boost exploration potential in a prolific Western Australian gold belt.
- Acquisition of 60 sq km Extension Hill and Mungada tenements for $1.5 million
- Project located contiguous to Capricorn’s Mt Gibson and Golden Range tenure
- Multiple high-priority gold exploration targets identified within the new tenure
- Contingent payments of up to $1.5 million linked to resource milestones and mining decisions
- Exploration activities planned for FY27 to define drill targets
Strategic Expansion in a Proven Gold Region
Capricorn Metals Ltd has taken a decisive step to broaden its exploration footprint by acquiring the Extension Hill and Mungada tenement package from AMMM Resources Pty Ltd. This 60 square kilometre landholding lies immediately north of Capricorn’s existing Mt Gibson Gold Project (MGGP) tenure in Western Australia’s South Murchison region, a well-known corridor for gold mineralisation.
The acquisition, valued at $1.5 million, includes an initial cash payment and a significant portion to be settled via Capricorn shares, reflecting confidence in the project’s upside. Importantly, the deal also incorporates contingent cash payments totaling $1.5 million, triggered by the announcement of a JORC-compliant Mineral Resource Estimate exceeding 75,000 ounces of gold and the commencement of commercial mining operations. This structure aligns vendor and buyer interests around exploration success and project development.
Prospective Targets in the Yalgoo-Singleton Greenstone Belt
The Extension Hill and Mungada tenements are situated within the Yalgoo-Singleton Greenstone Belt, a prolific geological province that hosts significant gold and base metal deposits, including the nearby Golden Grove mine and Capricorn’s own Mt Gibson operations. The region’s complex geology features multiple settings favourable for economic gold deposits, such as orogenic shear zones and intrusion-related systems.
Capricorn has already pinpointed several high-priority exploration targets within the new tenure, with plans underway to conduct broad geological and regolith mapping alongside geochemical sampling. These efforts aim to refine the understanding of mineralisation controls and identify drill-ready targets for the first half of fiscal year 2027, signalling an active exploration campaign ahead.
Implications for Capricorn’s Growth Strategy
Executive Chairman Mark Clark emphasised that the acquisition complements Capricorn’s strategy to expand its resource base around Mt Gibson, potentially adding meaningful ore sources to support ongoing operations. By securing contiguous tenure with promising exploration upside, Capricorn is positioning itself to leverage existing infrastructure and regional expertise.
While the acquisition cost is modest relative to the potential scale of discoveries, the contingent payments highlight the inherent exploration risk and the company’s commitment to advancing the project responsibly. Investors will be watching closely as Capricorn progresses through its exploration phases and moves towards resource definition.
Bottom Line?
Capricorn’s latest acquisition sets the stage for a pivotal exploration phase that could reshape its Mt Gibson resource profile.
Questions in the middle?
- What timeline does Capricorn envisage for completing exploration and delivering a JORC Mineral Resource Estimate?
- How will the share issuance component of the acquisition impact Capricorn’s capital structure?
- What are the specific geological characteristics of the priority targets that make them stand out?