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Caprice Resources: December 2024 Quarterly Activities Report

Caprice Resources: Strong December Quarter for Gold, Copper, and Niobium Exploration

Caprice Resources Ltd (ASX: CRS) (“Caprice” or “the Company”) continues to progress its exploration efforts in Western Australia’s Murchison Goldfields and the West Arunta region. The Company remains focused on developing high-potential gold, copper, and niobium assets. During the December 2024 quarter, Caprice reported significant advancements in both its gold exploration projects and its West Arunta greenfield initiatives.

Revised Strategy with a Focus on Gold

Following an extensive portfolio review, Caprice has outlined a strategy that prioritises gold exploration in the Murchison Goldfields. At the same time, the Company advances its copper and niobium projects in West Arunta. Caprice’s strategy revolves around three key pillars: exploration, resource growth, and the evaluation of development opportunities. These areas are being progressed in parallel, with the aim to create substantial organic growth.

Gold Development in the Murchison Goldfields

Caprice’s gold assets are strategically located within the Murchison Goldfields, which hosts multiple historical gold mines. The Company is working on two key projects: the Island Gold Project (IGP) and the Cuddingwarra Gold Project.

Island Gold Project (IGP)

Caprice commenced a 5,000-metre reverse circulation (RC) drilling programme at IGP in December 2024. The project is situated near major gold processing facilities, including Westgold’s Cue Gold Mines and Tuckabianna Gold Mill, and Ramelius Resources’ Mt Magnet Gold Mines and Checkers Gold Mill. The IGP holds considerable potential, with previous drilling results highlighting high-grade gold mineralisation, such as:

  • 24m at 6.8g/t Au from 24m, including 4m at 19.0g/t Au
  • 10m at 16.1g/t Au from 104m, including 6m at 26.1g/t Au
  • 5m at 18.0g/t Au from 78m, including 1m at 85.1g/t Au

Caprice has generated an Exploration Target for the IGP, comprising 4 to 5 million tonnes at grades ranging from 1.5 to 1.9g/t Au, with contained gold estimated between 200,000 and 300,000 ounces. The Company cautions that these estimates are conceptual, and further exploration is required to define a Mineral Resource.

Figure 1: (Left) Map showing the Island Gold Project’s location and Musgrave Lena / Break of Day. (Right) Island Gold Project prospects along with related Banded Iron Formation (BIF) gold occurrences, including notable intercepts reported to ASX by CRS on 8 November 2021, stating “Outstanding initial drilling results from the Island.”

Cuddingwarra Gold Project

At Cuddingwarra, Caprice has been focusing on geological mapping and surface sampling, which have identified visible gold in quartz reefs at a high-priority target known as CUD-GPX01. This target is located along a 10km mineralised corridor, which includes extensive quartz reefs commonly associated with high-grade gold deposits in the region. The recent discovery of visible gold in surface workings marks an encouraging step for the project.

Caprice’s exploration at Cuddingwarra has confirmed the presence of prospective greenstone formations beneath calcrete and alluvium cover. The mapping has also revealed multiple quartz reefs, which are often associated with auriferous mineralisation in the Murchison Goldfields.

Figure 2: Map illustrating Caprice’s Cuddingwarra Gold Project’s recent mapping, the nearby Westgold gold mines, and the location of a visible gold sample at the previously identified CUD-GPX01 target.

West Arunta Copper, Gold, and Niobium Exploration

Caprice has made significant strides in its West Arunta project, where the Company holds a large exploration tenement package of around 2,000 km². The project has a focus on copper, gold, and niobium exploration.

Ground Expansion and Land Access Agreement

Caprice expanded its West Arunta ground holding by acquiring 430 km² of land from Rio Tinto. This acquisition places Caprice as the third-largest ASX-listed explorer in the West Arunta region. The Company has also signed a Land Access Agreement with Tjamu Tjamu, an Aboriginal corporation, covering the entire acquired area.

Caprice has engaged highly regarded geophysical consultants to assess the potential of this land. Geophysical surveys have indicated the presence of magnetic and gravity anomalies, that suggest the presence of mineral systems enriched in niobium, rare earth elements (REE), and copper-gold mineralisation.

West Arunta Geophysical Survey Plans

Caprice plans to expand its geophysical survey efforts in the region to refine target generation. These surveys will focus on areas with shallow cover, that may conceal prospective mineral deposits. The Company is particularly interested in targeting magnetic and gravity anomalies, that are commonly associated with niobium and REE deposits in the area.

Corporate Update and Funding

Caprice raised AUD 2.5 million through a strongly supported placement to fund its exploration activities. The funds will be used to advance drilling programmes at the Island Gold Project and further exploration in the West Arunta region. The Company’s exploration programmes remain a high priority, with continued focus on its Murchison Goldfields projects and the West Arunta copper and niobium exploration.

Gold Market Outlook: Bullish Momentum Amid Fed Policy Decisions

The gold market is gaining momentum, with prices recently hitting a multi-month high above USD 2,780. Investors are closely monitoring the U.S. Federal Reserve’s upcoming policy announcements, as its monetary stance could significantly influence market sentiment. With no major rate cuts expected, the Fed’s comments on inflation and economic growth will be key in shaping the market’s direction. In the short term, gold’s technical indicators suggest it may become overbought, but its bullish outlook remains intact. The dollar’s weakness, fueled by lower U.S. Treasury yields and cautious trade policy, has further supported gold’s upward trajectory. Looking ahead, gold is projected to continue its volatility with potential price fluctuations, reaching highs around USD 3,225 in February, with a slight correction expected in March.

Investor’s Outlook

This announcement highlights significant developments for Caprice Resources, particularly its focus on high-potential gold and copper projects in Western Australia. With the Island Gold Project’s promising exploration targets and the Cuddingwarra gold discovery, Caprice shows potential for substantial resource growth. Additionally, the $2.5 million funding boost strengthens the company’s position to accelerate exploration and development efforts. Investors should consider Caprice’s growing footprint in the Murchison Goldfields and West Arunta, that could lead to valuable discoveries and an increased resource base, presenting exciting opportunities for future growth.

Caprice Resources Ltd (CRS) stock price stood at AUD 0.02, with a 52-week range of AUD 0.016 to AUD 0.046 (as of January 31st, 2025). The Company’s market capitalisation was AUD 8.86 million as of January 31st, 2025. With 443,036,800 shares issued, Caprice operates in a dynamic sector with significant potential for growth.

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