NEW HIGH-GRADE MINERALISED STRUCTURE INTERSECTED BELOW BIBRA DEPOSIT
Drilling continues to expand the potential of the Bibra mineralised system
ASX ANNOUNCMENT
16 December 2016
Australian Securities Exchange Code: CMM
HIGHLIGHTS
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Follow-up drilling of an isolated drill intersection in the footwall stratigraphy immediately beneath the 914,000oz Bibra Gold Deposit at the 100%-owned Karlawinda Gold Project in WA has confirmed the presence of significant high-grade gold mineralization. The results from this limited, wide-spaced drilling are:
ABN: 84 121 700 105
Board of Directors:
Mr Guy LeClezio
Non-Executive Chairman
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The new hole, KBRC547, was drilled approximately 120m up-dip of the historical intersection in KBRC025 (drilled by Independence Group - "IGO") to confirm the mineralised structure. Importantly, this structure has not been tested in the projected up-dip position and remains open along strike to the north and south.
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Mr Peter Thompson
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Excellent potential exists for the
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development
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of
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laterite
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Managing Director
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mineralisation close to surface.
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Mr Peter Langworthy
Technical Director
Mr Heath Hellewell
Non-Executive Director
Mr Jonathan Shellabear Non-Executive Director
Issued Capital:
Shares 486.9M Options 17.8M Share Price A$0.09
Market Cap. A$43.8m
EXPLORATION OFFICE:
1 Coventry Parade
North Fremantle, WA 6159
REGISTERED OFFICE:
15 Lovegrove Close
Mount Claremont, WA 6010
T +61 8 9384 3284
F +61 8 9284 3801
E [email protected]
www.capmetals.com.au
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These results continue to confirm the potential for the Karlawinda Project to host significant zones of high-grade gold mineralization and demonstrate that the mineralization is hosted in multiple, stacked, flat-lying structures.
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Together with other recent "near-mine" discoveries such as Easky, Portrush, Tramore and Southern Corridor, the newly discovered footwall structure shows that Bibra is continuing to emerge as a large stacked gold lode system.
Figure 1: Location Map: Karlawinda Gold Project
Figure 2: Interpreted Cross Section 199,725mN Figure 3: Plan view showing drill section location
Page 2 of 9
16th December 2016: Capricorn Metals Ltd (ASX: CMM) is pleased to advise that it has confirmed the presence of a new, high-grade mineralised structure in the immediate footwall of the Bibra Gold Deposit at its 100%-owned Karlawinda Gold Project near Newman in WA (Figure 1).
A recently completed Reverse Circulation drill hole (KBRC547) was drilled to a depth of 209m to test the up-dip extension of a high-grade intersection returned in previous drilling by IGO. The results of these two holes are (see Appendix 2 for details):
The significance of these results includes:
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Confirmation of potential for a significant high-grade component to the mineralized system(s) within the Karlawinda Project;
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The opportunity to identify new large-scale mineralized structures at Bibra that are part of a major stacked gold lode system;
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The mineralization is untested up-dip into near-surface positions and is untested along strike to the north and south;
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The potential to define significant zones, of shallow laterite mineralization in close proximity to the Bibra Deposit.
MANAGEMENT COMMENT
Capricorn's Managing Director, Mr Peter Thompson, said the latest drilling results clearly demonstrated the outstanding exploration upside at Karlawinda, including the significant potential to discover high-grade gold mineralisation.
"This is the latest in a series of excellent exploration results we have now achieved in very close proximity to our flagship Bibra Resource.
"The presence of multiple stacked gold lodes is a real positive for any emerging gold project, and the recent drilling clearly shows that we have a large-scale gold system with the opportunity to target high-grade zones that could add significant value to the project.
"As we continue to explore around Bibra and across the wider Karlawinda Project we will continue to improve our understanding of the controls on and distribution of the mineralization, and we are confident that this will lead to additional quality discoveries."
For and on behalf of the Board
Peter Thompson Managing Director
For further information, please contact:
Mr Peter Thompson, Managing Director Mr Nicholas Read Email: [email protected] Read Corporate Phone: 0417 979 169 Phone: 0419 929 046
Competent Persons Statement
The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr. Peter Langworthy, Technical Director, who is a Member of the Australian Institute of Mining and Metallurgy. Mr. Peter Langworthy is a full time Director of Capricorn Metals Limited and has sufficient experience, which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Peter Langworthy consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
APPENDIX 1 - RESOURCE TABLE
Table 1 - Resource Summary (see ASX announcement dated 4 July 2016)
The June 2016 Inferred Resource for the Bibra gold deposit now reports at 25,500,000 tonnes @ 1.1g/t for 914,000 ounces of contained gold. The resource is reported at a 0.5g/t Au cut-off grade and is constrained within an optimized open pit shell using a gold price of A$1750/oz. Details of the resource are provided in Table (1).
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TABLE (1): Bibra Gold JORC Open Pit Inferred Resource Estimate (as at June 30, 2016)
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Domain
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Tonnes
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Grade (g/t Au)
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Ounces
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Laterite
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2,100,000
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1.3
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85,000
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Saprolite
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4,300,000
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1.0
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142,000
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Transition
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1,500,000
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1.2
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58,000
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Fresh
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17,600,000
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1.1
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629,000
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Total
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25,500,000
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1.1
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914,000
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Notes on the Inferred Mineral Resource:
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Refer to JORC 2012 Table (1) below for full details.
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Discrepancy in summation may occur due to rounding.
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The mineralisation has been wireframe modelled using a 0.3g/t Au assay cut-off grade. The resource estimate has been reported above a block grade of 0.5g/t Au.
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The resource has been constrained by a A$1750/ounce conceptual optimal pit shell.
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Ordinary Kriging was used for grade estimation utilising Surpac software v6.6.2.
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Grade estimation was constrained to blocks within each of the mineralisation wireframes.
APPENDIX 2 - SIGNIFICANT DRILLING RESULTS
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TABLE (2): Karlawinda Gold Project: Drilling Results
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Hole ID
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Easting
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Northing
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RL
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From
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To
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Interval
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Grade (g/t Au)
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KBRC025
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50400
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199741
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2590
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218
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220
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2
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9.3
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KBRC547
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50150
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199723
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2590
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162
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164
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2
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4.0
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(Note: See Appendix (3) JORC Code (2012) Table 1 Parameters).