Capricorn Metals to Buy Deadman Flat, Extend Karlawinda Gold Project Tenure

Gold producer Capricorn Metals (ASX:CMM,OTC Pink:CRNLF) has entered into an agreement with Peregrine Gold (ASX:PGD) to acquire the Deadman Flat project in Western Australia's Pilbara region.

In an January 23 announcement, Capricorn said the Deadman Flat tenements cover approximately 270 square kilometres contiguous to its Karlawinda gold project and will expand its territory in the area.

Capricorn will pay AU$1.5 million for the asset by issuing fully paid ordinary shares to Peregrine.

The amount will be paid via two transactions. The first AU$750,000 will be paid once Capricorn declares a JORC-compliant resource estimate exceeding 200,000 ounces of gold for the property, while the remaining AU$750,000 rests on the company’s decision to start a standalone commercial mining operation on the project tenements.

“The acquisition of the Deadman Flat project expands the Karlawinda gold project exploration footprint and completes the consolidation of the highly prospective southern margin of the Sylvania Inlier, including tenements directly along the strike of the Company's Central Zone prospect,” said Capricorn Executive Chairman Mark Clark.

He added that it will give the company the opportunity to find further ore sources for Karlawinda.

A January 7 release shows Karlawinda produced 28,702 ounces of gold for the most recent quarter, bringing its half-year output to 54,261 ounces. According to Capricorn, it's on track to achieve the midpoint of its 2025 fiscal year production guidance of 110,000 to 120,000 ounces, within its cost guidance range of US$1,370 to US$1,470 per ounce.

Deadman Flat has been historically mined through alluvial and hard-rock workings since the 1930s.

Capricorn will soon commence high-resolution airborne gravity surveys, broad-scale geological and regolith mapping and geochemical sampling in currently defined target areas to generate targets for drilling in its 2026 fiscal year.

The company expects to complete its acquisition of Deadman flat in February.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.