Strengthening Exploration with Innovative Funding
Caprice Resources Ltd (ASX: CRS) (“Caprice” or “the Company”) has signed a A$1 million drill-for-equity agreement with Topdrill Pty Ltd. This agreement enhances their partnership and allows Caprice to expand exploration at the Murchison Gold Project while preserving cash reserves.
Caprice CEO Luke Cox highlighted the benefits of the agreement:
“We are pleased to enter into this drill-for-equity agreement which highlights the mutual recognition of the superior drilling services which Topdrill provide and the potential Caprice Resources equity appreciation that could occur with ongoing successful exploration. This agreement offers a capital-effective method to increase our drilling programmes across Caprice’s exciting gold projects in the Murchison Goldfields.”
The agreement enables Caprice to settle up to 40% of Topdrill’s invoices in shares, subject to a $1 million cap. The shares will be issued at no premium to the 15-day VWAP and will be voluntarily escrowed for three months. The agreement remains valid until 31 March 2026, providing flexibility for future drilling programs.
Figure 1: Topdrill‘s RC23 track-mounted drill rig in action at the Island Gold Project, February 2025.
Advancing the Murchison Gold Project
Caprice will use this agreement to fund aggressive drilling campaigns at the Murchison Gold Project, which has strong potential for high-grade gold mineralisation. The upcoming 5,000 metres drilling program will focus on expanding gold zones and testing 30 high-priority structural targets along a 5 km mineralised corridor.
Previous drilling has been shallow, mostly less than 100 metres deep, leaving significant upside for deeper extensions. The December 2024 drill program tested only a small section of the strike, yet multiple thick, high-grade gold lodes were intersected. These zones remain open in multiple directions, increasing the potential for a substantial maiden resource estimate.
Island Gold Project – Scaling Up Exploration
Caprice continues to advance the Island Gold Project (IGP) with a structured multiphase exploration strategy. Recent drilling has already delivered strong results, confirming stacked, high-grade lodes down-plunge of historical workings.
Following the completion of two RC drilling programs in December 2024 and February 2025, Caprice is preparing for a third phase of drilling. The next 5,000 metres drill program, scheduled to begin in April 2025, will target:
- Extensions of high-grade gold mineralisation at the Vadrians prospect.
- New greenfield targets along the prospective 5km strike zone.
With permits and approvals already secured, Caprice is well-positioned to continue expanding the gold resource potential at IGP.
Expanding the Project Area
Caprice has applied for two new tenements adjacent to the Island Gold Project, doubling the total project area. These tenements cover the same highly prospective greenstone lithologies and contain outcropping Banded Iron Formations (BIFs), which are known to host gold mineralisation.
The expansion increases Caprice’s exposure to additional high-grade gold targets, providing further exploration opportunities.
Exploration at Cuddingwarra
In addition to its work at IGP, Caprice is also focused on advancing the Cuddingwarra Project.
A surface geochemical sampling program will begin in April 2025 to refine existing targets and identify new high-grade gold zones. The project area features a northeast-trending structural corridor, which cross-cuts the Westgold Cuddingwarra open pit, located just 500 metres away.
To follow up on these targets, Caprice has scheduled a 2,500 metres aircore drilling program in Q2 2025. This campaign aims to identify:
- Gold mineralisation associated with quartz veins and breccias.
- New high-grade zones along the structural corridor.
Caprice expects this program to uncover previously unexplored gold potential, further supporting its exploration growth strategy.
Figure 2: Cuddingwarra is located in Western Australia, approximately 540 kilometers from Perth and 10 kilometers from Cue.
Caprice’s Strong Financial Position
Caprice remains well-funded to execute its exploration plans. The drill-for-equity agreement provides a cost-effective approach to funding drilling while maintaining financial flexibility.
With promising drill results, expanding project areas, and strategic funding arrangements, Caprice is well-positioned for significant exploration success in the Murchison Goldfields.
Gold Price Outlook and Caprice’s Growth Potential
Gold Prices Continue Upward Momentum
Gold prices have surged, reaching USD 3,232 per ounce, reflecting a 1.73% daily increase. The broader trend shows a strong bullish trajectory, with gains of:
- 5.77% over the past week
- 10.56% in the past month
- 37.39% over the past year
The continued strength in gold prices supports exploration companies like Caprice Resources, as higher gold prices enhance project economics and investor interest in gold-focused stocks.
Caprice Positioned for Growth Amid Rising Gold Prices
With gold prices reaching record levels, Caprice’s Murchison and Island Gold Projects could benefit significantly. The Company’s aggressive drilling strategy aims to define high-grade gold zones, potentially leading to a substantial maiden resource estimate.
The recent drill-for-equity agreement allows Caprice to expand its drilling efforts while conserving cash, aligning well with the favourable gold market. Rising gold prices could increase the value of any future discoveries, providing further upside for investors.
Investor’s Outlook
Strong Market Performance
Caprice Resources Ltd (ASX: CRS) reached $0.053, gaining 7.00% for the day, reflecting strong investor confidence in its exploration progress.
Caprice Resources (ASX: CRS) has delivered exceptional returns, with its share price increasing:
Compared to its sector, Caprice has outperformed by 252.18%, and it has also outpaced the ASX 200 by 237.15%.
Market Capitalisation and Trading Range
- Market Capitalisation: $26.47 million
- Shares on Issue: 529,414,002
- 52-Week Trading Range: $0.016 – $0.087
Despite its impressive gains, Caprice remains well below its 52-week high of $0.087, suggesting potential for further upside as exploration advances.
Future Catalysts for Growth
- Aggressive Drilling Strategy: The upcoming 5,000 metres drilling program could lead to major gold discoveries.
- High-Growth Gold Environment: Rising gold prices could increase Caprice’s valuation as its projects advance.
- Strategic Funding: The drill-for-equity agreement ensures financial flexibility for continued exploration.
- Expanding Project Area: New tenement applications could unlock additional gold-bearing zones.
Caprice Resources is positioned for further growth, with strong fundamentals, strategic funding, and exposure to a rising gold market. Investors looking for high-growth gold stocks may find Caprice an attractive opportunity in the current market.
