Capricorn Metals (ASX: CMM) has expanded its exploration footprint in Western Australia with the acquisition of the Mummaloo Project, a highly prospective gold site adjacent to its Mt Gibson Gold Project (MGGP). This acquisition, secured through a deal with Top Iron, aligns with Capricorn’s strategy to enhance its resource base and boost future production potential.
The $3.5 million transaction includes an initial $100,000 cash deposit, with the remaining balance to be settled through the issuance of Capricorn shares to Top Iron. The share consideration will be based on the five-day volume-weighted average price (VWAP) before completion, expected in February 2025, pending procedural approvals.
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Expanding Gold Prospects Near Mt Gibson
Spanning 219 square kilometers, the Mummaloo Project is situated in Western Australia’s Murchison region, just 6 kilometers northeast of Capricorn’s existing Mt Gibson resources. It encompasses four key exploration targets, which Capricorn has identified as highly prospective for gold mineralization.
“The acquisition of the Mummaloo Project significantly expands Capricorn’s Mt Gibson exploration footprint and adds highly prospective targets that are both analogous and proximal to the company’s current Mt Gibson resources,” said Capricorn Executive Chair Mark Clark.
“This presents Capricorn with an outstanding exploration opportunity, with the goal of adding meaningful additional ore sources to the Mt Gibson operation. We look forward to commencing active exploration in 2025.”
Unlocking Exploration Potential
Gold exploration in the Mummaloo area has been limited since the 1990s, yet recent data indicates the presence of near-surface satellite resources with significant discovery potential. Capricorn’s exploration program will prioritize these high-potential targets, with on-ground activities set to begin in 2025.
Additionally, Capricorn will acquire physical assets from Top Iron’s former magnetite mining operations, including:
- Camp and office facilities
- Small-scale crushing and screening equipment
- Ancillary equipment and light vehicles
While some of these assets are already in use by Capricorn’s exploration team, their long-term utility will be further evaluated.
Moreover, the Mummaloo camp will serve as overflow accommodation once Capricorn’s 400-room MGGP camp becomes fully operational.
Strengthening Western Australia’s Gold Sector
Capricorn’s expansion comes as Western Australia’s gold sector experiences a surge in activity, driven by high gold prices and underexplored tenements. The region’s well-established mining infrastructure and strong gold endowment position Mummaloo as a strategic addition to Capricorn’s growing portfolio.
With exploration efforts ramping up in 2025, investors will be watching closely to see whether Mummaloo can contribute additional gold resources to sustain long-term production growth at Mt Gibson.
