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Impressive New High-Grade Gold Results Confirm Potential to Expand Bibra Resource

Publié le 20 décembre 2016

ASX ANNOUNCMENT

20 December 2016

Australian Securities Exchange Code: CMM

ABN: 84 121 700 105

Board of Directors:

Mr Guy LeClezio

Non-Executive Chairman

Mr Peter Thompson

Managing Director

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$0.091

Market Cap. A$44.3m

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

IMPRESSIVE NEW HIGH-GRADE GOLD RESULTS CONFIRM POTENTIAL TO EXPAND BIBRA RESOURCE

Strong new intercepts of up to 7.5g/t Au reveal significant down- dip extension while drilling in the Main Footwall Lode confirms a southern extension which could drive the pit deeper

HIGHLIGHTS

Latest assay results from in-fill drilling have identified a high- grade, down-dip extension to the Bibra Resource at the Company's 100%-owned Karlawinda Gold Project in WA. These results are significantly higher grade than the surrounding previous drilling results and potentially represent a new high-grade lode at approximately 200 metres below surface. Results returned to date from this position include:
- KBRC604 7m @ 7.5g/t Au (within 33m @ 2.1g/t Au) & 4m @ 4.8g/t Au
- KBRC603 15m @ 3.4g/t Au (within 33m @ 1.5g/t Au)
These results have potential to expand the resource in this position and, importantly, could result in the current (Scoping Study) design pit driving deeper to capture additional resources.
This zone of high-grade mineralisation remains open down-dip. Assays from additional (adjacent) holes are pending.
Assays have also now been returned from resource drilling targeting the southern extension of the Main Footwall Lode. These results clearly demonstrate the potential for a significant extension to the resource in this location. This zone of mineralization is located just beneath the current final design pit and the new intersections could result in pit design driving deeper to capture additional resources. Results returned to date from this position include:

 KBRC458 7m @ 1.43g/t Au

 KBRC505 6m @ 1.54g/t Au
- KBRC499 8m @ 1.14g/t Au and 5m @ 10.8g/t Au
  
  (includes 1m @ 50.1g/t Au)
  
   KBRC501 8m @ 1.41g/t Au
  
   KBRC502 12m @ 1.10g/t Au
  
   KBRC342 8m @ 1.41g/t Au
  
   KBRC506 9m @ 1.50g/t Au
  
   KBRC510 11m @ 1.20g/t Au
  
   KBRC341 6m @ 1.60g/t Au
These results, when considered in context with the recently announced exploration success at the "near-mine" discoveries such as Easky, Portrush, Tramore, Southern Corridor and the newly discovered footwall structure at Bibra, continue to demonstrate the size and quality of the gold mineralized system at Karlawinda.

20th December 2016: Capricorn Metals Ltd (ASX: CMM) is pleased to advise that resource drilling at the Bibra Gold Deposit at its 100%-owned Karlawinda Gold Project near Newman in WA (Figure 1) has intersected a number of zones that are expected to contribute significantly to the growth of the resource.

Figure 1: Location Map: Karlawinda Gold Project

KEY POINTS
- In-fill resource drilling has intersected significantly higher-grade mineralisation than predicted on section 200,075N in the central part of the Bibra Deposit (Figures 2 and 4). Two holes drilled in this position have intersected a broad zone of gold mineralization with a consistent higher-grade core (see Appendix 2 for details). Assay results received to date from this position include:
  - KBRC604 7m @ 7.5g/t Au (within 33m @ 2.1g/t Au) and 4m @ 4.8g/t Au
  - KBRC603 15m @ 2.4g/t Au (within 33m @ 1.5g/t Au)
- This mineralization remains open down-dip and results for a number of adjacent drill holes are still to be received. There is potential for these results to represent the start of a new high- grade domain down-dip of the current resource.
- These results have potential to expand the resource in this position and, importantly, could result in the final pit design driving deeper to capture additional resources.
  
  Figure 2: Interpreted Cross Section 200,075mN
- A series of holes were drilled to test for the potential southern extension of the Main Footwall lode. This position is located just beneath the Scoping Study Design Pit and, as such, any addition or improvement to the resource in this position could result in the pit design driving deeper to capture additional resources at minimal stripping ratio (Figure 3 and 4). The results returned to date clearly demonstrate the potential for a significant extension to the resource in this location. Results include (see Appendix 2 for details):
  
   KBRC458 7m @ 1.43g/t Au
  
   KBRC505 6m @ 1.54g/t Au
  - KBRC499 8m @ 1.14g/t Au and 5m @ 10.8g/t Au