Carnavale Resources Ltd (ASX:CAV) is focused on acquiring and exploring high quality and advanced exploration and development projects prospective for gold and battery minerals.
The company is currently exploring a number of high impact projects in Western Australia, while it continues to evaluate exploration and development opportunities that can enhance shareholder value.
The company’s projects in Western Australia — all within 150 kilometres of Kalgoorlie — are the Kookynie Gold Project, for which a mineral resource estimate (MRE) and scoping study were recently completed; the Ora Banda South Gold Project where the company is undertaking active gold exploration under cover; and the Grey Dam Nickel Project, which hosts a shallow nickel-cobalt resource.
CAV's project locations in Western Australia
Carnavale’s primary current focus is on the Kookynie Gold Project, where the company is working to expand existing resources and continue exploration campaigns.
Kookynie Gold Project
At the Kookynie Gold Project, a 80/20 joint venture (JV) with Western Resources, Carnavale discovered high-grade gold mineralisation at the Swiftsure deposit, under thin transported cover and along a highly prospective 2-kilometre mineralised trend.
The strategy at Kookynie is to define high-quality, high-value gold resources and evaluate potential sale opportunities at nearby processing plants. The project presents potential to mine, haul and process at nearby processing plants.
The project area has seen extensive historical gold mining between 1895 and 1922, with historical gold production at Cosmopolitan amounting to more than 331,000 ounces of gold at 15 g/t.
This is the same geological region as new gold discoveries made at the Ulysses, Admiral-Butterfly, Orient Well and Puzzle deposits by Genesis Minerals (ASX:ASX:GMD).
Carnavale’s MRE for the Kookynie Gold Project defined a resource of 457,000 tonnes at 5.8 g/t for 85,000 ounces of gold, including 61,000 tonnes at 31.5 g/t for 55,000 ounces of bonanza-grade "ounce dirt", indicating the exceptionally high grade of the gold mineralisation there. The high grade gold ensures “robust financials for the project,” according to Carnavale.
Meanwhile, the scoping study outlined a net present value, using an 8% discount rate, (NPV8) of A$91 million and an internal rate of return (IRR) of 192%, at an all-in cost of A$1,730 per ounce recovered.
The study demonstrated robust economics and various pathways to value for shareholders.
CEO Humphrey Hale said, “This is just the starting position for the Kookynie Gold Project, as the high-grade shoots that contain ‘ounce dirt’ remain open at depth and there are multiple additional targets along strike that have the potential to host additional high-grade shoots in fresh rock, at depth.”
The company is sees exploration upside down-dip at Swiftsure below 250 metres from surface for bonanza gold shoots. It also plans to test new shallow discoveries at Tiptoe and Valiant for high-grade shoots in fresh rock and sees further potential at Champion South and McTavish North.
Placement sees CAV well funded to further Kookynie
A recent $2.2 million cash injection will help Carnavale add resource ounces to the Kookynie Gold Project with diamond and reverse circulation (RC) drilling.
The placement, priced at A$0.0033 per share, was strongly supported, enabling Carnavale to expand the initial $2 million offer to reach A$2.2 million and introduce new, institutional, sophisticated and professional investors to the share register.
Carnavale is now well-funded to execute its planned exploration strategy while continuing to advance the mining licence application for the Swiftsure deposit.
“Carnavale is looking forward to drilling down-dip of Swiftsure deposit to add additional resources to the bonanza grades previously discovered. It is our aim to extend the mineralisation at depth and add ounces to the valuable resources at the project through organic exploration growth,” Hale said.
“In addition, the Kookynie Gold Project still has many, shallow, exploration targets that could host further high-grade gold shoots that have created so much value at the Swiftsure deposit, such as the Tiptoe and Valiant prospects along strike from the Swiftsure deposit.
"We are excited about including these shallow, fresh rock targets as part of the next phase of exploration.”