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FINALIST: MINER

Old hands build new mines

by Michael Washbourne

reshly minted producers Emerald Resources NL and Capricorn generating a healthy $27.6 million in operating cash flow from its
FMetals Ltd have emerged as future contenders for the GMJ first quarter in production.
Miner of the Year after impressive starts to their respective “Our construction team and key contractors have done a great
operations in Cambodia and Western Australia. job in achieving this milestone on time and on budget against the
Both led by former members of the acclaimed Equigold and Regis significant headwinds of COVID-19, adverse weather and skilled
Resources Ltd management teams, Emerald and Capricorn were labour shortages,” Clark wrote to shareholders ahead of the
able to navigate the challenges of the ongoing COVID-19 pandemic company’s AGM in November.
and successfully commission their mines on time and on budget. “The project is already generating strong positive cash flow,
underlining the potential to deliver robust returns for Capricorn
shareholders for many years to come...we now turn our attention to
the significant exploration potential at Karlawinda.
“Over the last 12 months we have built up a good geological
understanding of our regional tenement package and have
undertaken extensive first-pass exploration work. That work has
generated several prospective drill targets and programmes have
been planned to test these targets in the current [financial] year. We
Ribbon cutting ceremony for the opening of the Okvau are very conscious that a new discovery within trucking distance of
gold mine, Cambodia the processing plant would add significant value for the company.”
Following the successful start-ups, Emerald indicated Okvau
Just as newly crowned Miner of the Year West African Resources
remained on target to achieve its DFS guidance of 100,000-
Ltd did through 2020, Emerald had to overcome the hurdle of
110,000oz on an annualised basis while Capricorn lifted
building a brand new gold mine in an overseas jurisdiction. Both
Karlawinda’s expected life-of-mine production run rate to 110,000-
managing director Morgan Hart and executive director Mick Evans
125,000 ozpa.
spent considerable time in Cambodia to ensure the country’s first
ever commercial gold mine – Okvau – was a roaring success from Capricorn’s Karlawinda operation churned out almost 25,000oz
the opening pour in late June. gold in its first full quarter of production
Around the same time, first production was taking place at
Capricorn’s Karlawinda mine in the Pilbara. The company reported
achieving steady-state operations during the September quarter
on the back of churning out 24,329oz for its maiden reporting
period as a gold producer.
Emerald reported production of around 23,000oz in the September
quarter, with circa 17,000oz of gold poured. During that period,
the newly constructed processing plant achieved throughput
some 10% above the 2 mtpa nameplate target. Sulphide ore gold
recoveries were also in line with DFS estimates. Both companies could be set to do it all again. Soon after switching
“The board and management of Emerald are extremely proud of the lights on at Karlawinda, Capricorn announced it had picked up
the outstanding results delivered by the company’s workforce and the 2.1 moz Mt Gibson gold project, about 280km north-east of
contractors in achieving a near full production quarter whilst still Perth in WA’s Murchison district. Clark said the project had been
undertaking commissioning and ramp-up activities,” Hart said. subject to very limited exploration.
“Additionally, the performance of the mining and milling/processing “At an acquisition cost of less than $20 per resource ounce, the
departments whilst operating on run-of-mine sulphide ore late transaction represents an excellent value creation opportunity and
in the [September] quarter, gives the company confidence that provides an outstanding platform for Capricorn to grow into an
the Okvau gold mine will continue to perform at, or above, DFS Australian-focused multi-mine gold company,” he said.
estimates.” At the time of print, Emerald announced it was acquiring Bullseye
Capricorn executive chairman Mark Clark was equally full of praise Mining Ltd and its flagship North Laverton project in WA via an off-
for the dedicated workforce at Karlawinda, especially with the mine market takeover valued at $117 million.

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