Caprice Resources Sells 75% of West Arunta (Chobe) Project to Corella Resources for up to $2.89M

Why It Matters

The bonanza intercept dramatically improves Island Gold’s grade profile, accelerating Caprice’s path to a resource estimate, while the West Arunta divestment strengthens liquidity and narrows focus on core assets.

Key Takeaways

• 22 m intercept at 66.2 g/t Au, includes 8 m at 181 g/t.
• New high‑grade zone located ~120 m west of Vadrians lode.
• 50,000 m drilling program targets resource estimate and depth extensions.
• West Arunta 75% stake sold for up to $2.89 M, adding $2.70 M cash.
• Retained 15‑25% interest may become royalty, limiting future value capture.

Pulse Analysis

The 8‑metre, 181‑gram‑per‑tonne gold interval at Island Gold is a rarity in junior exploration, signaling a potentially high‑grade core that could lift the average grade of any future resource. Such grades rival those of world‑class deposits and suggest a distinct shear‑zone mineralisation style, separate from the banded‑iron‑formation hosted Vadrians lode. Investors and geologists alike watch these results closely, as they often precede a rapid upgrade from inferred to indicated resources, especially when supported by contiguous drilling.

Caprice’s 50,000‑metre drilling programme, now entering its second phase, is designed to test both lateral extensions of the newly discovered zone and deeper continuity beneath known structures. The upcoming reverse‑circulation holes will verify the vertical extent of the bonanza intercept, while three pending diamond assays aim to confirm depth continuity. By integrating air‑core, RC, and diamond data, the company can produce a more robust geological model, which is essential for a credible maiden resource estimate expected later this year.

The sale of a 75% interest in the West Arunta (Chobe) project for up to $2.89 million provides immediate cash flow and reduces future capital commitments, allowing Caprice to allocate resources to Island Gold. Although Corella Resources’ $5 million capital raise introduces dilution risk, the transaction improves Caprice’s balance sheet to an estimated $16.5 million, enhancing its ability to fund ongoing exploration without external debt. Retaining a 15‑25% free‑carried interest also positions Caprice for potential royalty income, though it may cap upside if the project advances to production. Overall, the combined exploration upside and strengthened finances place Caprice in a favorable position within the Australian gold sector.

Deal Summary

Caprice Resources completed the divestment of a 75% interest in its West Arunta (Chobe) Project to Corella Resources for a total consideration of up to $2.89 million, receiving $2.70 million cash at completion. The transaction strengthens Caprice’s balance sheet while retaining a 15‑25% interest in the project.