Capricorn Metals Ltd. announced strong results returned from early drilling at Mt Gibson Gold Project. Highlights: 29,842 metres (188 holes) of a planned 81,000 metre resource definition RC drilling programme completed to date at Capricorn's wholly owned Mt Gibson Gold Project (MGGP). Drill programme commenced in January 2022 and is designed to infill (including historic data validation) and extend (depth extensions and along strike data gaps) the current Mineral Resource Estimate of 2.08 million ounces of gold.

Assays have been returned from the first 55 holes with very encouraging gold results reported, including: 23m @ 5.04 g/t from 157m CMRC028; 18m @ 3.65 g/t from 149m CMRC031; 14m @ 6.40 g/t from 126m CMRC035; 19m @ 3.18 g/t from 160m CMRC038; 21m @ 2.22 g/t from 155m CMRC039; 10m @ 3.68 g/t from 139m CMRC1011; 6m @ 5.30 g/t from 230m CMRC1007; 15m @ 2.08 g/t from 184m CMRC017; 13m @ 2.34 g/t from 109m CMRC001; 8m @ 3.31 g/t from 204m CMRC015; 15m @ 1.73 g/t from 173m CMRC1007; 2m @ 11.92 g/t from 138m CMRC006; 10m @ 2.26 g/t from 75m CMRC022; 14m @ 1.59 g/t from 95m CMRC1001; 10m @ 2.18 g/t from 174m CMRC040. Importantly, significant gold mineralisation has been returned both within and below the resource pit optimisation shells with high-grade mineralisation intercepts aligning with historic data both spatially and for grade tenor. Review of strong results returned to date near the base of and below current resource pit optimisations has led to the planning of additional extensional drilling which will be incorporated in the drill programme in the current quarter.

The resource drill programme will underpin an updated Mineral Resource Estimate and maiden Ore Reserve estimate targeted for completion in the September 2022 quarter. Regional exploration targeting underway with planning for drilling programmes at the prospective Taurus Trend and Highway prospects. Other technical studies to inform the maiden Ore Reserve estimate and feasibility studies are progressing.

Infill and Extensional RC Drilling: Two RC rigs (third arriving end April 2022) are drilling the planned 81,000 metre drill programme across the 8 kilometres of strike of current resources. The objectives of this programme include: Infill drilling of resource to broadly bring the drill density to 25 x 25 metres; Test gaps between resource pit optimisation shells along the 8 kilometres of strike; and Test for extensions of gold mineralisation below the current resource shells. Results of this programme (and extensions to it) will underpin an updated Mineral Resource Estimate and a maiden Ore Reserve Estimate targeted for completion in the September 2022 quarter.

The 188 holes (29,842 metres) of the RC drill programme completed to date have mainly focussed on the Orion Mine Trend, one of the more significant areas of the 2.08 million ounce resource at MGGP. Mineralisation remains open down dip and along strike to the north and south with multiple stacked lodes intersected. Importantly the assays received to date line up with the historic data both spatially and for grade tenor, providing validation of the historic +660,000 metre drill database acquired with the project in July 2021.

This is very positive for resource categorisation in the next update given that Capricorn's current MRE of 79.7 mt at 0.80g/t gold for 2.083 million ounces is all classified as Inferred (in spite of drill density of 25m x 25m for the majority of the resource) due to the need to validate the data quality. It is also very encouraging that drilling to date at the depth extremities of the resource optimisation shells (where historic drill density is broader spaced) and below them has returned results consistent with Capricorn's geological interpretations of mineralisation location, widths and grade tenor. Review (including updated Capricorn internal pit optimisations) of strong results returned to date near the base of and below current resource pit optimisations has led to the planning of additional extensional drilling which will be incorporated in the drill programme in the current quarter.