Company Background

In October 2015, Capricorn Copper Holdings Pty Ltd acquired Capricorn Copper Pty Ltd, the 100% owner of the mothballed Capricorn Copper Mine (CCM) located in North West Queensland. Capricorn Copper Holdings Pty Ltd is an incorporated joint venture owned by EMR Capital and Lighthouse Minerals Pty Ltd. EMR Capital is a specialist resource private equity fund and comprises a team with extensive technical, development and operational experience. Lighthouse Minerals Pty Ltd is a private mining company with a Board and Management that has significant expertise, experience and track-record in the mining industry and proven success in creating shareholder value.

During 2016, Capricorn Copper completed a series of technical studies, Restart Execution Studies (RES), aimed at improving the resource estimates for the known ore bodies and outlining the optimal restart strategy for the mine.

The aim of the RES was to demonstrate the technical and economic feasibility for recommencing operations at Capricorn Copper Mine. The RES technical programs ensured the operation’s reserve and resource supported the investment required to recommence operations with the potential to produce copper concentrate in the lower half of the cost curve. The RES production plan and operation strategy is based on a Life of Mine plan derived from Joint Ore Reserves Committee (JORC) compliant reserves and resources.

Capricorn Copper expects the mine will produce between approximately 30ktpa (approximately) of copper in concentrate over an initial Life of Mine of approximately 10 years. The Life of Mine has a high probability of being extended, and potentially expanded, through further exploration of the known ore bodies, near mine high priority targets and of Capricorn Copper’s extensive and highly prospective land package. An additional exploration and drilling program, plus the associated mining and metallurgical programs, commenced in January 2017. These programs are aimed at supporting an expansion of the current resource and extension of the Mine Life. This program is estimated to cost approximately A$14million over the next two years.

There is also upside potential in additional resources being discovered outside of the known mineral resources both near mine and within the extensive land package held by Capricorn Copper.

The Capricorn Copper Mine is a fully permitted copper operation and benefits from the existence of the required operating infrastructure, including a processing plant, underground development at the Mammoth (MAM) deposit, the existing decline portal at the Esperanza South (ESS) deposit and all required site services.