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Highlights

  • Five-year contract extension signed with MACA for Karlawinda Gold Project, maintaining current unit rates.

  • MACA selected as preferred mining contractor for Mt Gibson Gold Project following a competitive tender process.

  • Capricorn share price rose 2.16% to AUD 10.42 on 24 June 2025 following the announcement.

Capricorn Metals Ltd (ASX:CMM) has announced a significant update regarding its mining operations, securing a five-year contract extension with long-time mining partner MACA Ltd for the Karlawinda Gold Project (KGP) and naming the contractor as the preferred partner for its Mt Gibson Gold Project (MGGP).

The new contract at Karlawinda confirms the existing unit cost structure, a notable outcome given that mining costs represent a substantial portion of the operation’s total expenditure. The agreement includes an option for further extension at Capricorn’s discretion and encompasses an expanded mining fleet required for the increased mining volumes associated with the Karlawinda Expansion Project (KEP).

With the expansion targeting 6.5 million tonnes per annum in ore processing and an estimated 150,000 ounces of annual gold production, MACA has already mobilised additional equipment. Mining activity has accelerated, with volumes reaching 1.2 to 1.4 million bank cubic metres (Mbcm) per month, aimed at completing the necessary early-stage waste stripping to secure consistent long-term ore supply ahead of the KEP’s operational start.

Capricorn also confirmed that MACA has been selected as the preferred mining contractor for the Mt Gibson Gold Project. This follows a competitive tender process, with MACA’s proposal validating Capricorn’s internal reserve model and cost assumptions. The selection, however, does not impose any financial obligation on Capricorn until regulatory approvals are secured.

The Company recently submitted its final Public Environment Report (PER) to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), initiating the public review and assessment process. The contractor appointment enables MACA to prepare for rapid mobilisation once development begins, reducing potential equipment lead-time risks.

The initial term of the Mt Gibson contract will be five years, with a further five-year extension option available to Capricorn. All contract commitments remain subject to standard conditions precedent, including final permitting approvals.

Capricorn’s Executive Chairman Mark Clark said the company is pleased to continue its longstanding relationship with MACA:

“We are pleased to have executed a five-year extension of the mining contract with MACA for Karlawinda that confirms existing unit cost rates and is already delivering the increased mining volumes required to underpin the exciting Karlawinda expansion project.

To secure MACA’s services as preferred mining contractor for the Mt Gibson project at unit cost rates in line with our reserve model costing is strong validation of the project’s economics.”

Following the announcement, Capricorn’s share price rose 2.16% to AUD 10.42 at the time of writing on 24 June 2025.