Capricorn Metals Confirms Expanding Underground Gold Scale at Lexington

Lexington Drilling Uncovers High-Grade Gold at Depth

Capricorn Metals Limited (ASX:CMM) has reported exceptional results from the initial seven holes of its 18-hole, 10,659m underground drilling campaign at the Lexington prospect within the Mt Gibson Gold Project (MGGP). These holes, totaling 3,333m, have intersected significant gold mineralisation well below the current resource envelope; ranging from 85 to 365 metres beneath existing resources and 210 to 470 metres below current open pit reserves.

Highlights include standout intercepts such as 13.1m at 13.93g/t Au from 714.9m and 28.6m at 5.35g/t Au from 431.8m, indicating a high-grade tenor consistent with the nearby Orion South underground system. All seven holes assayed to date have returned mineralisation, confirming the continuity and scale of the underground gold system at Lexington.

Distinct Geological Setting Enhances Underground Potential

Unlike the shear-hosted orogenic gold style at Orion South, Lexington's mineralisation is hosted within a major high-strain zone characterized by porphyritic felsic intrusives and volcanic hydrofracture breccias. This intrusion-related orogenic gold system produces thicker intercepts with markedly higher grades, providing a compelling target for ongoing extensional drilling.

The Lexington zone lies over 600 metres north along strike from Orion South, which reported an underground mineral resource estimate (MRE) of 895,000 ounces in November 2025. The combined strike length of the two deposits now exceeds 2.1 kilometres, remains open along strike and at depth, and represents only a fraction of the broader 8-kilometre MGGP resource strike.

Implications for Mt Gibson Gold Project’s Underground Expansion

These drilling results significantly extend high-grade underground mineralisation at MGGP to more than 900 metres of strike and depths exceeding 500 metres below current pit designs. The strong continuity and scale of mineralisation between Orion South and Lexington bolster the prospects for a substantial, long-life underground mining operation.

Capricorn plans a further 10,000 metres of diamond drilling in Q4 FY26 to support a maiden inferred underground resource estimate for Lexington. Meanwhile, an updated Orion South underground resource and prefeasibility study are expected within the current quarter, providing further clarity on the underground mining potential prior to incorporating Lexington's resource.

These developments build on Capricorn’s broader strategy to expand underground operations at MGGP, complementing its ongoing activities at the Karlawinda Gold Project. The company’s recent strong Q3 gold production and resource growth at Orion South underscore its advancing position in Western Australia’s gold sector.

Next Steps and Exploration Outlook

While the early Lexington results are promising, they represent only the first phase of a larger drilling program. The system remains open in all directions, and exploration along the broader MGGP strike is still in its infancy. Continued drilling will be crucial to delineate the full extent and grade continuity of this underground system.

Capricorn’s Executive Chairman Mark Clark emphasised the significance of these intercepts, noting the potential for Lexington and Orion South to evolve into a major underground discovery with a high-margin, long-life mining profile. The upcoming resource updates and prefeasibility studies will be key milestones to watch as the company seeks to translate exploration success into mine development.