The conditional letter of intent issued to GR regards a lump sum turnkey development totalling A$93 million.

 

A development decision is due by mid-year with the aim of first gold production from the 100,000 ounce per annum project slated for the September quarter of 2019. 

 

The company had hoped to be in production a quarter or so earlier, while the new cost is said to compare to an equivalent capital expenditure estimate made in October 2017 of $120.8 million - for plant and infrastructure.

 

Capricorn noted "the equivalent feasibility study capital expenditure figure includes an allowance of $9.6 million brought forward from the project sustaining capital estimate to enable construction of a SAG-Ball (SAB) comminution circuit from project commencement".

 

Financing is now to be undertaken by Capricorn with the aim being to complete in the September quarter, thereafter allowing construction to begin.

 

Shares in Capricorn were up 5% to 8c in afternoon trade, capitalising the company at $60 million.

 

The stock was at 11c this time last year, while cash at the start of 2018 totalled $10 million.